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) |
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 |
Related Foolishness:
