CSX Passes the Buck: Fool by Numbers
By Anders Bylund
January 22, 2008
On Jan. 22, major railroad operator CSX (NYSE: CSX) released earnings for the fiscal year ended Dec. 28, 2007.
- CSX loaded 3% fewer rail cars in 2007 than in 2006, but made up for that with an overall 11% price increase.
- Notwithstanding 9% higher fuel costs (net of hedging maneuvers), CSX reported its best full-year operating ratio in a decade.
- Have a look at the competitive context table below. Oh my gosh! It's full of stars! Our Motley Fool CAPS players say that railroads could make a great investment right now.
(Figures in millions, except per-share data)
Income Statement Highlights
|
FY 2007
|
FY 2006
|
Change
|
|
Sales
|
$10,030
|
$9,566
|
4.9%
|
|
Net Profit
|
$1,336
|
$1,310
|
2.0%
|
|
EPS
|
$2.99
|
$2.82
|
6.0%
|
|
Diluted Shares
|
448.3
|
465.9
|
(3.8%)
|
Get back to basics with the income statement.
Margin Checkup
|
FY 2007
|
FY 2006
|
Change*
|
|
Operating Margin
|
22.5%
|
22.4%
|
0.1
|
|
Net Margin
|
13.3%
|
13.7%
|
(0.4)
|
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets
|
FY 2007
|
FY 2006
|
Change
|
|
Cash + ST Invest.
|
$714
|
$900
|
(20.7%)
|
|
Accounts Rec.
|
$1,174
|
$1,174
|
0%
|
|
Liabilities
|
FY 2007
|
FY 2006
|
Change
|
|
Accounts Payable
|
$976
|
$974
|
0.2%
|
|
Long-Term Debt
|
$6,470
|
$5,362
|
20.7%
|
The balance sheet reflects the company's health.
Cash Flow Highlights
|
FY 2007
|
FY 2006
|
Change
|
|
Cash From Ops.
|
$2,184
|
$2,058
|
6.1%
|
|
Capital Expenditures
|
$1,773
|
$1,639
|
8.2%
|
|
Free Cash Flow
|
$411
|
$419
|
(1.9%)
|
Free cash flow is a Fool's best friend.
Competitive Context
|
Market Cap*
|
Trailing P/E Ratio
|
CAPS Rating
|
|
Union Pacific (NYSE: UNP)
|
$29.1
|
16.2
|
****
|
|
Burlington
Northern Santa Fe (NYSE: BNI)
|
$27.0
|
15.2
|
*****
|
|
Canadian National Railway (NYSE: CNI)
|
$21.4
|
12.6
|
*****
|
|
CSX
|
$18.2
|
14.4
|
****
|
|
Norfolk
Southern (NYSE: NSC)
|
$17.3
|
12.4
|
*****
|
* In billions.
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