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CSX Corp (NAS: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 Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 8
Current: 7

3
8

During the past 13 years, the highest Piotroski F-Score of CSX Corp was 8. The lowest was 3. 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 (Sep15) TTM:Last Year (Sep14) TTM:
Net Income was 491 + 442 + 553 + 507 = $1,993 Mil.
Cash Flow from Operations was 1041 + 690 + 892 + 930 = $3,553 Mil.
Revenue was 3192 + 3027 + 3064 + 2939 = $12,222 Mil.
Gross Profit was 2100 + 2017 + 2141 + 2022 = $8,280 Mil.
Average Total Assets from the begining of this year (Sep14)
to the end of this year (Sep15) was
(32623 + 33053 + 33161 + 33777 + 34015) / 5 = $33325.8 Mil.
Total Assets at the begining of this year (Sep14) was $32,623 Mil.
Long-Term Debt was $10,088 Mil.
Total Current Assets was $2,502 Mil.
Total Current Liabilities was $1,922 Mil.
Net Income was 426 + 398 + 529 + 509 = $1,862 Mil.

Revenue was 3032 + 3012 + 3244 + 3221 = $12,509 Mil.
Gross Profit was 1897 + 1836 + 2093 + 2112 = $7,938 Mil.
Average Total Assets from the begining of last year (Sep13)
to the end of last year (Sep14) was
(30943 + 31782 + 31680 + 31975 + 32623) / 5 = $31800.6 Mil.
Total Assets at the begining of last year (Sep13) was $30,943 Mil.
Long-Term Debt was $9,387 Mil.
Total Current Assets was $2,676 Mil.
Total Current Liabilities was $2,231 Mil.

Profitability

Question 1. 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 1,993. ==> Positive ==> Score 1.

Question 2. 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 3,553. ==> Positive ==> Score 1.

Question 3. 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 0.06109187. CSX Corp's return on assets of last year was 0.06017516. ==> This year is higher. ==> Score 1.

Question 4. 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 1,993. CSX Corp's current cash flow from operations (TTM) was 3,553. ==> 3,553 > 1,993 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. 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: Sep15)=Long-Term Debt/Average Total Assets from Sep14 to Sep15
=10088/33325.8
=0.30270841

Gearing (Last Year: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=9387/31800.6
=0.29518311

CSX Corp's gearing of this year was 0.30270841. CSX Corp's gearing of last year was 0.29518311. ==> Last year is lower than this year ==> Score 0.

Question 6. 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: Sep15)=Total Current Assets/Total Current Liabilities
=2502/1922
=1.30176899

Current Ratio (Last Year: Sep14)=Total Current Assets/Total Current Liabilities
=2676/2231
=1.19946212

CSX Corp's current ratio of this year was 1.30176899. CSX Corp's current ratio of last year was 1.19946212. ==> This year's current ratio is higher. ==> Score 1.

Question 7. 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 987. CSX Corp's number of shares in issue last year was 1004. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. 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
=8280/12222
=0.67746686

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=7938/12509
=0.6345831

CSX Corp's gross margin of this year was 0.67746686. CSX Corp's gross margin of last year was 0.6345831. ==> This year's gross margin is higher. ==> Score 1.

Question 9. 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 (Sep14)
=12222/32623
=0.37464366

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep13)
=12509/30943
=0.40425944

CSX Corp's asset turnover of this year was 0.37464366. CSX Corp's asset turnover of last year was 0.40425944. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+1+1+0
=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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 1010110000
Question 4 1111111111
Question 5 0000001100
Question 6 1011001011
Question 7 0111111111
Question 8 1001001111
Question 9 1110110010
F-score 7576667676

CSX Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 0000001110
Question 4 1111111111
Question 5 0111000000
Question 6 1000111111
Question 7 1111111111
Question 8 1100011111
Question 9 0000111000
F-score 6655678776
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