CSX Corporation (CSX) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: CSX Corporation

Updated on October 22, 2026 · accounts published on October 21, 2026

A highly profitable industrial business with falling earnings and heavy capital spending

CSX trades at a P/E of 27.1 over the last 12 months, 42 % above its ten-year median of 19.0, while EPS fell 14 % year on year.

• Is CSX expensive or cheap? CSX's P/E is 42 % above its ten-year median, and the stock traded at a lower P/E 91 % of the time over the last decade.
• How is the business doing? Revenue fell 3 % and EPS 14 % over the last 12 months, but the 36.4 % operating margin beats its 2014-2025 average.
• How strong is the balance sheet? Net debt was $10.47 per share in fiscal 2025, or 3.2× EBITDA, just above the 3.0× considered healthy for industrials.
• What to expect from the next earnings? Analysts expect EPS of $0.50 for the quarter CSX reports on January 28, 2027, below the $0.57 it just delivered.
• Does CSX turn its margin into cash, and what multiple does it trade at across the cycle? Only 59 % of CSX's fiscal 2025 net income became free cash flow, well short of the 85 % considered healthy for industrials.

Is CSX expensive or cheap?

Over the last 12 months CSX trades at a P/E of 27.1. Its ten-year median is 19.0, and its range over the decade runs from 11.9 to 31.3. It has traded at a lower multiple 91 % of the time over the last decade, so today's P/E is close to the top of its own history. The premium to other companies is smaller: the P/E is 5 % above the sector median of 25.8 across 297 companies. The stock is up 49 % in 12 months while EPS fell 14 %, so all of the rise came from a higher multiple.

How is the business doing?

Sales over the last 12 months are 3.1 % lower than a year earlier and EPS is down 14 %. That is a sharp turn after revenue per share grew 10.4 % a year from fiscal 2020 to 2025. Profitability has held up: the operating margin of 36.4 % over the last 12 months is above the 35.6 % average of fiscal 2014-2025 and up from 32.1 % in fiscal 2025. ROIC of 11.6 % beats the sector median of 8.9 % by 2.7 points and has topped 10 % in 7 of the last 10 fiscal years. These returns are durable but not exceptional.

How strong is the balance sheet?

Debt to equity of 0.15 over the last 12 months looks light, but net debt tells more. It was $10.47 per share in fiscal 2025, equal to 20 % of the current price and 3.2× EBITDA, just above the 3.0× ceiling considered healthy for industrials. A current ratio of 0.84 means short-term liabilities exceed short-term assets, and the Altman Z of 2.3 sits in the grey zone. The dividend yields 1.1 % over the last 12 months and has risen for 11 straight fiscal years. The payout was 34 % of fiscal 2025 earnings, which leaves room to keep raising it.

What to expect from the next earnings?

On October 21, 2026, CSX reported EPS of $0.57 against $0.53 expected, a 7.3 % beat, and it has topped estimates in 5 of the last 8 quarters. The next report is due January 28, 2027, with consensus at $0.50. Estimates are stable: over the last 30 days the 2026 EPS consensus slipped from $2.01 to $2.00 across 13 analysts, while the 2026 revenue estimate rose 0.6 %. Of 46 analysts, 27 rate the stock a buy, 17 a hold and 2 a sell. With the P/E near a decade high, the multiple already assumes that earnings growth will return.

Does CSX turn its margin into cash, and what multiple does it trade at across the cycle?

Industrials are semi-cyclical, so a margin only counts if it turns into cash, and the multiple has to be judged against a full cycle. CSX passes the margin test with a 32.1 % operating margin in fiscal 2025, against a healthy floor of 12 %. Cash conversion is weaker: free cash flow was 59.2 % of net income, against an 85 % benchmark. Capex took 20.6 % of revenue in fiscal 2025, far above the usual 4-8 % range. ROIC of 11.6 % misses the 15 % mark. The P/E of 27.1 compares with a ten-year average of 20.4, and EV/EBITDA of 15.9 compares with a seven-year average of 12.7. Both are above the level where the sector counts as expensive.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.