📊 CSX Key Takeaways
Investment Thesis
CSX demonstrates robust operational profitability with a 32.1% operating margin and strong interest coverage of 30.3x, indicating excellent ability to service debt. However, declining revenues (-3.1% YoY) and net income (-16.7% YoY) signal near-term headwinds in demand, though the company maintains solid cash generation with $1.7B free cash flow and healthy FCF margin of 12.1%.
CSX Strengths
- Exceptional operating margin of 32.1% demonstrates pricing power and operational efficiency in the railroad industry
- Strong interest coverage ratio of 30.3x provides substantial debt servicing cushion despite leverage
- Solid free cash flow generation of $1.7B supports capital investments ($2.9B capex) and shareholder returns
- Return on equity of 22% reflects efficient capital deployment and profitability relative to shareholder base
- High insider activity with 43 Form 4 filings suggests management confidence in business fundamentals
CSX Risks
- Revenue decline of 3.1% YoY indicates weakening freight demand in the transportation sector
- Net income fell 16.7% YoY, outpacing revenue decline and suggesting margin compression or expense pressures
- Current ratio of 0.81x signals tight liquidity and potential short-term working capital constraints
- High leverage with debt-to-equity of 1.38x and long-term debt of $18.2B limits financial flexibility
- Capital-intensive business model requires sustained high capex spending ($2.9B annually) to maintain competitive position
Key Metrics to Watch
- Revenue growth trajectory and freight volume trends to assess demand recovery
- Operating margin sustainability amid potential pricing pressures and cost inflation
- Free cash flow stability and conversion ability to fund debt reduction or shareholder distributions
- Current ratio and working capital management to ensure adequate liquidity
- Debt-to-equity ratio and refinancing costs given elevated leverage levels
CSX Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
CSX Profitability Ratios
CSX vs Default Sector
How CSX CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CSX Balance Sheet & Liquidity
CSX 5-Year Financial Trend
5-Year Trend Summary: CSX CORP's revenue has grown significantly by 17% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.82 reflects profitable operations.
CSX Growth Metrics (YoY)
CSX Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.6B | $646.0M | $0.37 |
| Q2 2025 | $3.6B | $646.0M | $0.44 |
| Q1 2025 | $3.4B | $646.0M | $0.34 |
| Q3 2024 | $3.6B | $828.0M | $0.41 |
| Q2 2024 | $3.7B | $828.0M | $0.41 |
| Q1 2024 | $3.7B | $893.0M | $0.46 |
| Q3 2023 | $3.6B | $846.0M | $0.42 |
| Q2 2023 | $3.7B | $859.0M | $0.49 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CSX Capital Allocation
CSX SEC Filings
Access official SEC EDGAR filings for CSX CORP (CIK: 0000277948)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CSX
What is the AI rating for CSX?
CSX CORP (CSX) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CSX's key strengths?
Exceptional operating margin of 32.1% demonstrates pricing power and operational efficiency in the railroad industry. Strong interest coverage ratio of 30.3x provides substantial debt servicing cushion despite leverage.
What are the risks of investing in CSX?
Revenue decline of 3.1% YoY indicates weakening freight demand in the transportation sector. Net income fell 16.7% YoY, outpacing revenue decline and suggesting margin compression or expense pressures.
What is CSX's revenue and growth?
CSX CORP reported revenue of $14.1B.
Does CSX pay dividends?
CSX CORP pays dividends, with $972.0M distributed to shareholders in the trailing twelve months.
Where can I find CSX SEC filings?
Official SEC filings for CSX CORP (CIK: 0000277948) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CSX's EPS?
CSX CORP has a diluted EPS of $1.54.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.