CSX Corp (CSX, Financial) has recently garnered significant attention from investors and financial analysts, thanks to its strong financial performance. With a current share price of $33.38 and a modest daily gain of 0.21%, despite a three-month decline of -11.48%, the company shows promising signs of substantial growth. This potential is further underscored by its impressive GF Score of 92 out of 100, indicating a high potential for market outperformance.
What Is the GF Score?
The GF Score is a proprietary ranking system from GuruFocus, designed to predict stock performance through a comprehensive analysis of five key financial metrics. These metrics include Financial Strength, Profitability, Growth, GF Value, and Momentum. Each component is crucial in assessing a company's long-term success and is weighted differently based on its impact on stock performance. For CSX Corp, the scores are as follows:
- Financial strength rank: 5/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 7/10
- Momentum rank: 7/10
Understanding CSX Corp's Business
CSX Corp operates a vast network of over 21,000 miles of track primarily in the Eastern United States. As a Class I railroad, it generated approximately $14.7 billion in revenue in 2023. The company's diverse cargo includes coal, chemicals, intermodal containers, automotive products, and other bulk and industrial merchandise. With a market cap of $65.26 billion and sales totaling $14.63 billion, CSX Corp boasts an impressive operating margin of 37.27%, highlighting its efficiency and profitability.
Profitability and Growth Metrics
CSX Corp's high Profitability Rank of 9 out of 10 demonstrates its superior ability to generate earnings relative to its peers. This is complemented by a strong Predictability Rank of 3.5 stars, indicating consistent operational performance and reliability for investors. The company's commitment to growth is evident in its 3-Year Revenue Growth Rate of 16.6%, which surpasses 68.7% of its competitors in the Transportation industry. Additionally, CSX Corp has experienced significant EBITDA growth, with a three-year growth rate of 13.2% and a five-year rate of 9.3%.
Conclusion: A Strong Contender for Market Leadership
Considering CSX Corp's robust financial strength, high profitability, and consistent growth metrics, the GF Score effectively highlights the company's strong position for potential market outperformance. Investors looking for reliable growth opportunities in the transportation sector might find CSX Corp an attractive option. For more insights into companies with strong GF Scores, consider exploring our GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
