CSX Return On Equity vs. Current Valuation
| CXR Stock | EUR 31.80 0.53 1.64% |
For CSX profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CSX to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CSX Corporation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CSX's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CSX Corporation over time as well as its relative position and ranking within its peers.
CSX |
CSX Corporation Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining CSX's current stock value. Our valuation model uses many indicators to compare CSX value to that of its competitors to determine the firm's financial worth. CSX Corporation is number one stock in return on equity category among its peers. It also is the top company in current valuation category among its peers reporting about 252,360,993,738 of Current Valuation per Return On Equity. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the CSX's earnings, one of the primary drivers of an investment's value.CSX Current Valuation vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
CSX |
| = | 0.32 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
CSX |
| = | 80.48 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
CSX Current Valuation vs Competition
CSX Corporation is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Railroads industry is currently estimated at about 131.27 Billion. CSX totals roughly 80.48 Billion in current valuation claiming about 61% of equities listed under Railroads industry.
CSX Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in CSX, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CSX will eventually generate negative long term returns. The profitability progress is the general direction of CSX's change in net profit over the period of time. It can combine multiple indicators of CSX, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services. CSX Corporation was founded in 1978 and is based in Jacksonville, Florida. CSX CORP operates under Railroads classification in Germany and is traded on Frankfurt Stock Exchange. It employs 21541 people.
CSX Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on CSX. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of CSX position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the CSX's important profitability drivers and their relationship over time.
Use CSX in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if CSX position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CSX will appreciate offsetting losses from the drop in the long position's value.CSX Pair Trading
CSX Corporation Pair Trading Analysis
The ability to find closely correlated positions to CSX could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CSX when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CSX - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CSX Corporation to buy it.
The correlation of CSX is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as CSX moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CSX Corporation moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for CSX can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your CSX position
In addition to having CSX in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Online Gaming Thematic Idea Now
Online Gaming
Companies that are involved in the building and marketing of online gaming-related products. The Online Gaming theme has 48 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Online Gaming Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Information and Resources on Investing in CSX Stock
When determining whether CSX Corporation offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of CSX's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Csx Corporation Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Csx Corporation Stock:Check out Trending Equities. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
To fully project CSX's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CSX Corporation at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include CSX's income statement, its balance sheet, and the statement of cash flows.