CSX Corp. (CSX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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CSX Corp.

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GATX Corp.

XPO, Inc.

Knight-Swift Transportation Holdings, Inc.

Why is CSX Corp. ?

High Management Efficiency with a high ROCE of 18.20%

Poor long term growth as Operating profit has grown by an annual rate 1.62% of over the last 5 years

Positive results in Mar 26

DIVIDEND PER SHARE(HY) Highest at USD 10.35
RAW MATERIAL COST(Y) Fallen by -18.77% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at 134.28 %

With ROCE of 14.91%, it has a very expensive valuation with a 2.93 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 41.53%, its profits have fallen by -15.2%

High Institutional Holdings at 80.37%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating Performance

The stock has generated a return of 41.53% in the last 1 year, much higher than market (S&P 500) returns of 25.41%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to CSX Corp. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is CSX Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

CSX Corp.

41.53%

1.68

23.00%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.89%

EBIT Growth (5y)

1.62%

EBIT to Interest (avg)

6.71

Debt to EBITDA (avg)

2.36

Net Debt to Equity (avg)

1.48

Sales to Capital Employed (avg)

0.46

Tax Ratio

23.77%

Dividend Payout Ratio

33.71%

Pledged Shares

Institutional Holding

80.37%

ROCE (avg)

18.20%

ROE (avg)

28.25%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.61

EV to EBIT

19.64

EV to EBITDA

14.46

EV to Capital Employed

2.93

EV to Sales

6.53

PEG Ratio

Dividend Yield

1.39%

ROCE (Latest)

14.91%

ROE (Latest)

22.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 10.35

RAW MATERIAL COST(Y)

Fallen by -18.77% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 134.28 %

OPERATING PROFIT MARGIN(Q)

Highest at 47.85 %

-3What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 4,630 MM

CASH AND EQV(HY)

Lowest at USD 1,784 MM

Here's what is working for CSX Corp.

Dividend per share

Highest at USD 10.35 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Profit Margin

Highest at 47.85 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Debt-Equity Ratio

Lowest at 134.28 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -18.77% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for CSX Corp.

Operating Cash Flow

Lowest at USD 4,630 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv

Lowest at USD 1,784 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents