Csx Corporation Stock Fair Value – CSX Corp. Stock Increases, But Still Trails Market Performance

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CSX ($NASDAQ:CSX) Corporation is an American holding company focused on rail transportation and related services. On Tuesday, the company’s stock experienced an increase, but it still lagged behind the overall performance of the market.

However, it soon began to decline as the market’s momentum began to fade. In comparison, the broader market experienced a more robust increase on Tuesday. Analysts attributed the bump in stocks to easing worries about rising inflation and a strengthening labor market. Overall, while CSX Corp. stock experienced an increase on Tuesday, it still trails the performance of the broader market. Investors remain hopeful that the company will continue to see growth in the future, as they judge it on more than just its one-day performance.

Market Price

On Wednesday, CSX Corporation‘s stock opened at $33.2 and closed at the same rate, having gained a mere 0.1% from its previous closing price. Despite this small increase in share price, the company still trails behind the overall market performance. The company’s stock price has been relatively stagnant over the last few months, with moderate fluctuations in value. While the market outlook appears optimistic, CSX Corporation’s stock appears to be lagging behind, which is concerning for investors.

This could be due to several factors, such as the ongoing trade war with China or the general economic slowdown. It remains to be seen if the company can turn things around and make meaningful gains for investors in the near future. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Csx Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Csx Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Csx Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for Csx Corporation are shown below. More…

Analysis – Csx Corporation Stock Fair Value

At GoodWhale, we have conducted an analysis of CSX CORPORATION‘s financials and have determined that the fair value of its share is around $38.7. Our proprietary Valuation Line has determined that the price of CSX CORPORATION stock is undervalued by 14.3%, as the current stock is trading at $33.2. This presents a unique opportunity to purchase stock in a company at a fair price that is currently undervalued in the market. More…

Peers

CSX Corp is one of the largest railway companies in North America. Its competitors include Canadian Pacific Railway Ltd, Union Pacific Corp, and Canadian National Railway Co. CSX operates primarily in the eastern United States, while Canadian Pacific and Union Pacific operate in the western United States and Canada, respectively. Canadian National Railway is the largest railway company in Canada.

– Canadian Pacific Railway Ltd ($TSX:CP)

Canadian Pacific Railway Ltd is a Canadian transcontinental railway company. Its market cap is $90.72B as of 2022 and its ROE is 6.42%. The company operates approximately 20,000 route miles of track in Canada and the United States. CP provides rail service through a network of approximately 12,400 miles of track. CP also transports bulk commodities, intermodal traffic, and finished goods.

– Union Pacific Corp ($NYSE:UNP)

Union Pacific Corporation is an American railroad operator and holding company headquartered in Omaha, Nebraska. As of 2020, it is the largest railroad operator in North America by revenue and the largest operator of freight trains in the United States by fleet size. The company operates eight major railroad networks serving different regions of the country.

– Canadian National Railway Co ($TSX:CNR)

CN is a world-class transportation leader and trade-enabler. Essential to the economy, to the customers we serve and to the shareholders who own us, CN safely and efficiently moves people and the products they rely upon, connecting communities and powering the global economy. We strive to be the essential link in the supply chains of the industries that drive the world’s economy.

CN is a public company with a market capitalization of $106.08 billion as of 2022. The company has a return on equity of 20.67%. CN is a transportation company that operates a railroad system in Canada and the United States. The company transports a variety of goods, including crude oil, agricultural products, and manufactured goods.

Summary

Investors continue to remain cautious on CSX Corporation (CSX) stock despite it rising Tuesday. The stock has lagged behind the broader market, with its year-to-date performance being negative. Analysts attribute this underperformance to the company’s cost structure, which is higher than most of its competitors. Additionally, CSX reported weaker-than-expected fourth quarter earnings that weighed on its stock price. The company’s current financial situation does not support any significant upside potential.

However, its large network and geographical presence may prove beneficial as the economy recovers. Moreover, the company’s efforts to limit costs and improve operating efficiency could increase its competitiveness in the long-term. Overall, investor sentiment on CSX remains mixed as of now.