Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

CSX Corporation (0HRJ.L)

Company Dividend Discount ModelIndustry: General TransportationSector: Industrials

Valuation Snapshot

Stable Growth$22.39 - $41.21$30.14
Multi-Stage$28.82 - $31.60$30.18
Blended Fair Value$30.16
Current Price$35.51
Upside-15.06%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.04%3.99%0.490.470.450.440.420.400.400.380.360.36
YoY Growth--5.44%3.52%1.55%5.27%4.46%1.60%6.07%4.12%-0.87%9.06%
Dividend Yield--1.67%1.27%1.51%1.19%1.31%2.12%1.56%2.02%2.32%4.17%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,881.00
(-) Cash Dividends Paid (M)960.00
(=) Cash Retained (M)1,921.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)576.20360.13216.08
Cash Retained (M)1,921.001,921.001,921.00
(-) Cash Required (M)-576.20-360.13-216.08
(=) Excess Retained (M)1,344.801,560.881,704.93
(/) Shares Outstanding (M)1,887.251,887.251,887.25
(=) Excess Retained per Share0.710.830.90
LTM Dividend per Share0.510.510.51
(+) Excess Retained per Share0.710.830.90
(=) Adjusted Dividend1.221.341.41
WACC / Discount Rate7.55%7.55%7.55%
Growth Rate1.99%2.99%3.99%
Fair Value$22.39$30.14$41.21
Upside / Downside-36.95%-15.11%16.04%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,881.002,967.083,055.743,147.053,241.083,337.923,438.06
Payout Ratio33.32%44.66%55.99%67.33%78.66%90.00%92.50%
Projected Dividends (M)960.001,325.021,711.002,118.872,549.573,004.133,180.21

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.55%7.55%7.55%
Growth Rate1.99%2.99%3.99%
Year 1 PV (M)1,220.031,231.991,243.95
Year 2 PV (M)1,450.581,479.171,508.03
Year 3 PV (M)1,654.021,703.161,753.25
Year 4 PV (M)1,832.531,905.471,980.56
Year 5 PV (M)1,988.152,087.552,190.89
PV of Terminal Value (M)46,241.7248,553.6350,957.10
Equity Value (M)54,387.0456,960.9759,633.79
Shares Outstanding (M)1,887.251,887.251,887.25
Fair Value$28.82$30.18$31.60
Upside / Downside-18.84%-15.00%-11.02%

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