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CSX Corp (FRA:CXR)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

CSX Corp has an F-score of 6 indicating the company's financial situation is typical for a stable company.

FRA:CXR' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 5

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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 388.684790595 + 288.196958726 + 298.825256975 + 339.442815249 = €1,315 Mil.
Cash Flow from Operations was 621.601763409 + 433.743664012 + 563.876651982 + 674.486803519 = €2,294 Mil.
Revenue was 2383.54151359 + 2181.02824041 + 2202.64317181 + 2198.68035191 = €8,966 Mil.
Gross Profit was 1537.83982366 + 1329.47139754 + 1369.30983847 + 1409.09090909 = €5,646 Mil.
Total Assets at the begining of this year (Jun13) was €23,591 Mil.
Total Assets was €23,494 Mil.
Long-Term Debt was €6,179 Mil.
Total Current Assets was €1,743 Mil.
Total Current Liabilities was €2,055 Mil.
Net Income was 398.013750955 + 354.294478528 + 336.090225564 + 350.809560524 = €1,439 Mil.

Revenue was 2326.9671505 + 2272.2392638 + 2173.68421053 + 2231.30300694 = €9,004 Mil.
Gross Profit was 1522.53628724 + 1470.09202454 + 1378.94736842 + 1446.41480339 = €5,818 Mil.
Total Assets at the begining of last year (Jun12) was €24,076 Mil.
Total Assets was €23,591 Mil.
Long-Term Debt was €6,731 Mil.
Total Current Assets was €1,901 Mil.
Total Current Liabilities was €1,847 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 was 1,315. ==> 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 was 2,294. ==> 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.

ROA (This Year)=Net Income/Total Assets at the beginning of this year (Jun13)
=1315.14982155/23591.2910619
=0.05574726

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jun12)
=1439.20801557/24075.6712775
=0.05977852

CSX Corp's return on assets of this year was 0.05574726. CSX Corp's return on assets of last year was 0.05977852. ==> 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 was 1,315. CSX Corp's current cash flow from operations was 2,294. ==> 2,294 > 1,315 ==> 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)=Long-Term Debt/Total Assets
=6179.27994122/23493.7545922
=0.26301798

Gearing (Last Year)=Long-Term Debt/Total Assets
=6731.09243697/23591.2910619
=0.28532107

CSX Corp's gearing of this year was 0.26301798. CSX Corp's gearing of last year was 0.28532107. ==> This year is lower or equal to last year. ==> Score 1.

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)=Total Current Assets/Total Current Liabilities
=1742.83614989/2055.10653931
=0.84805148

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=1901.45148969/1847.21161192
=1.02936311

CSX Corp's current ratio of this year was 0.84805148. CSX Corp's current ratio of last year was 1.02936311. ==> Last year's current ratio is higher ==> Score 0.

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 1003. CSX Corp's number of shares in issue last year was 1023. ==> 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)=Gross Profit/Revenue
=5645.71196876/8965.89327771
=0.62968762

Gross Margin (Last Year)=Gross Profit/Revenue
=5817.9904836/9004.19363177
=0.64614231

CSX Corp's gross margin of this year was 0.62968762. CSX Corp's gross margin of last year was 0.64614231. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales 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/Total Assets at the beginning of this year (Jun13)
=8965.89327771/23591.2910619
=0.38005098

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jun12)
=9004.19363177/24075.6712775
=0.37399554

CSX Corp's asset turnover of this year was 0.38005098. CSX Corp's asset turnover of last year was 0.37399554. ==> 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+1+0+1+0+1
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

CSX Corp has an F-score of 6 indicating the company's financial situation is typical for a stable company.


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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1110101100
Q4 1011111111
Q5 1100001011
Q6 1010110010
Q7 0001111111
Q8 1111010011
Q9 1100101100
F-score 8665767676

CSX Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111111
Q2 1111111111
Q3 1111000000
Q4 1111111111
Q5 0011110111
Q6 0001111000
Q7 1111111111
Q8 0111111000
Q9 1110000001
F-score 6667776555
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