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CSX Corp (NYSE:CSX)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

CSX Corp has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

CSX' s 10-Year Piotroski F-Score Range
Min: 4   Max: 8
Current: 7

4
8

During the past 13 years, the highest Piotroski F-Score of CSX Corp was 8. The lowest was 4. And the median was 6.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Net Income was 398 + 529 + 509 + 491 = $1,927 Mil.
Cash Flow from Operations was 599 + 846 + 2302 + 1041 = $4,788 Mil.
Revenue was 3012 + 3244 + 3221 + 3192 = $12,669 Mil.
Gross Profit was 1836 + 2093 + 2112 + 2100 = $8,141 Mil.
Average Total Assets from the begining of this year (Dec13)
to the end of this year (Dec14) was
(31782 + 31680 + 31975 + 32623 + 33053) / 5 = $32222.6 Mil.
Total Assets at the begining of this year (Dec13) was $31,782 Mil.
Long-Term Debt was $9,514 Mil.
Total Current Assets was $2,572 Mil.
Total Current Liabilities was $2,107 Mil.
Net Income was 462 + 521 + 455 + 426 = $1,864 Mil.

Revenue was 2963 + 3046 + 2985 + 3032 = $12,026 Mil.
Gross Profit was 1917 + 1993 + 1908 + 1897 = $7,715 Mil.
Average Total Assets from the begining of last year (Dec12)
to the end of last year (Dec13) was
(30723 + 30586 + 30881 + 30943 + 31782) / 5 = $30983 Mil.
Total Assets at the begining of last year (Dec12) was $30,723 Mil.
Long-Term Debt was $9,022 Mil.
Total Current Assets was $2,602 Mil.
Total Current Liabilities was $2,424 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

CSX Corp's current net income (TTM) was 1,927. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

CSX Corp's current cash flow from operations (TTM) was 4,788. ==> Positive ==> Score 1.

Q3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

CSX Corp's return on assets of this year was 0.0606318. CSX Corp's return on assets of last year was 0.06067116. ==> Last year is higher ==> Score 0.

Q4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

CSX Corp's current net income (TTM) was 1,927. CSX Corp's current cash flow from operations (TTM) was 4,788. ==> 4,788 > 1,927 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=9514/32222.6
=0.29525861

Gearing (Last Year: Dec13)=Long-Term Debt/Average Total Assets from Dec12 to Dec13
=9022/30983
=0.29119194

CSX Corp's gearing of this year was 0.29525861. CSX Corp's gearing of last year was 0.29119194. ==> Last year is lower than this year ==> Score 0.

Q6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Dec14)=Total Current Assets/Total Current Liabilities
=2572/2107
=1.22069293

Current Ratio (Last Year: Dec13)=Total Current Assets/Total Current Liabilities
=2602/2424
=1.07343234

CSX Corp's current ratio of this year was 1.22069293. CSX Corp's current ratio of last year was 1.07343234. ==> This year's current ratio is higher. ==> Score 1.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

CSX Corp's number of shares in issue this year was 995. CSX Corp's number of shares in issue last year was 1013. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Q8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=8141/12669
=0.64259215

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=7715/12026
=0.64152669

CSX Corp's gross margin of this year was 0.64259215. CSX Corp's gross margin of last year was 0.64152669. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Dec13)
=12669/31782
=0.39862186

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=12026/30723
=0.39143313

CSX Corp's asset turnover of this year was 0.39862186. CSX Corp's asset turnover of last year was 0.39143313. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+0+1+1+1+1
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

CSX Corp has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

CSX Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Q1 1111111111
Q2 1111111111
Q3 1101011000
Q4 0111111111
Q5 1000010110
Q6 0101100101
Q7 0011111111
Q8 1110100111
Q9 0111011001
F-score 5767676767

CSX Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
Q1 1111111111
Q2 1111111111
Q3 0000000000
Q4 1111111111
Q5 1111011100
Q6 0111100011
Q7 1111111111
Q8 1111110001
Q9 0000000011
F-score 6777665567
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