Based on the key measurements obtained from CSX's financial statements, CSX Corporation is performing exceptionally good at this time. It has a great risk to report excellent financial results in August. At this time, CSX's Intangible Assets are fairly stable compared to the past year. Total Permanent Equity is likely to rise to about 17.8 B in 2025, whereas Total Assets are likely to drop slightly above 27.5 B in 2025. Key indicators impacting CSX's financial strength include:
Investors should never underestimate CSX's ability to pay suppliers on time, ensure interest payments are not accumulating, and correctly time where and how to reinvest extra cash. Individual investors need to monitor CSX's cash flow, debt, and profitability to make informed and accurate decisions about investing in CSX Corporation.
Understanding current and past CSX Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of CSX's financial statements are interrelated, with each one affecting the others. For example, an increase in CSX's assets may result in an increase in income on the income statement.
Please note, the imprecision that can be found in CSX's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of CSX Corporation. Check CSX's Beneish M Score to see the likelihood of CSX's management manipulating its earnings.
CSX Stock Summary
CSX competes with Canadian National, Canadian Pacific, Deere, Norfolk Southern, and Union Pacific. CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services. CSX Corporation was incorporated in 1978 and is headquartered in Jacksonville, Florida. CSX Corp operates under Railroads classification in the United States and is traded on NASDAQ Exchange. It employs 21946 people.
An income statement is very similar to a cash flow statement, but instead of showing net revenue minus expenses, it only includes earnings before interest and taxes (EBIT). This number does not have all of the same line items that are on a cash flow statement, but it leaves out non-cash expenses like depreciation and amortization. For example, if you bought $100 worth of goods from Walmart (WMT) using your debit card that has an interest rate of 20%, then paid off the balance at the end of the month with a credit card that charges 30% interest, you would have an income statement showing EBIT of $80 because your expenses are lower than the amount that went into your pocket.
Cash flow analysis captures how much money flows into and out of CSX Corporation. It measures of how well CSX is doing because it can show the actual money that comes into and out of the Company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money CSX brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money CSX had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what CSX has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
Comparative valuation techniques use various fundamental indicators to help in determining CSX's current stock value. Our valuation model uses many indicators to compare CSX value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across CSX competition to find correlations between indicators driving CSX's intrinsic value. More Info.
CSX Corporation is rated second in return on equity category among its peers. It is rated third in return on asset category among its peers reporting about 0.29 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for CSX Corporation is roughly 3.51 . At this time, CSX's Return On Equity is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the CSX's earnings, one of the primary drivers of an investment's value.
CSX Corporation Systematic Risk
CSX's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. CSX volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was thirty with a total number of output elements of thirty-one. The Beta measures systematic risk based on how returns on CSX Corporation correlated with the market. If Beta is less than 0 CSX generally moves in the opposite direction as compared to the market. If CSX Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one CSX Corporation is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of CSX is generally in the same direction as the market. If Beta > 1 CSX moves generally in the same direction as, but more than the movement of the benchmark.
CSX Thematic Clasifications
CSX Corporation is part of Transportation investing theme. If you are a theme-oriented, socially responsible, and at the same time, a result-driven investor, you can align your investing habits with your values without jeopardizing your expectations about returns. You can easily create an optimal portfolio of stocks, ETFs, funds, or cryptocurrencies based on a specific theme of your liking. USA Equities from Transportation industry as classified by Fama & French. Fama and French investing themes focus on testing asset pricing under different economic assumptions
This theme covers USA Equities from Transportation industry as classified by Fama & French. Fama and French investing themes focus on testing asset pricing under different economic assumptions. Get More Thematic Ideas
Today, most investors in CSX Stock are looking for potential investment opportunities by analyzing not only static indicators but also various CSX's growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of CSX growth as a starting point in their analysis.
Along with financial statement analysis, the daily predictive indicators of CSX help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of CSX Corporation. We use our internally-developed statistical techniques to arrive at the intrinsic value of CSX Corporation based on widely used predictive technical indicators. In general, we focus on analyzing CSX Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build CSX's daily price indicators and compare them against related drivers.
When running CSX's price analysis, check to measure CSX's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CSX is operating at the current time. Most of CSX's value examination focuses on studying past and present price action to predict the probability of CSX's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CSX's price. Additionally, you may evaluate how the addition of CSX to your portfolios can decrease your overall portfolio volatility.