CSX CORP

CSXdata completeness 88%19 fiscal years on file
The thesis, from the filings

CSX CORP earns about 29% on invested capital, far above its ~9% cost of capital, and has bought back 17% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $19.53 and $21.09 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$12.5B1$14.9B2$14.7B3$14.5B3$14.1B3
Net income$3.78B4$4.11B5$3.67B6$3.47B6$2.89B6
Operating cash flow$5.1B7$5.53B8$5.51B9$5.25B9$4.61B9
Capital expenditure$1.79B10$2.11B11$2.26B12$2.53B12$2.9B12
Free cash flow (derived)$3.31B7$3.41B8$3.26B9$2.72B9$1.71B9
Total debt
Cash & equivalents$2.24B13$1.96B13$1.35B14$933M14$670M14
Diluted shares2.25B2.14B2.01B1.94B1.87B

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$70.26
your share of equity
Profit it earned you last year
$15.42
Free cash flow it threw off
$9.14
Debt you’d be carrying

10 shares is a claim on $70.26 of net worth that earned you $15.42 and generated $9.14 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
29% avg · 5y
FY21 29%FY22 34%FY23 29%FY24 30%FY25 23%

It earned about 29% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−17% shares · 5y

Share count is down 17% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $19.53 and $21.09 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$19.53
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$2.72B
DCF · Growth Exit 5Y
$21.09
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$2.72B
Earnings Power Value
$20.29
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$3.67B
  • growthAssumed0.0%
Graham Number
$15.6
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $21.09
The three cases
Bear0.0%$21.09
Base0.0%$21.09
Bull5.0%$26.11

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000277948-24-000010 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0000277948-25-000008 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0000277948-26-000006 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0000277948-24-000010 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0000277948-25-000008 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0000277948-26-000006 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000277948-24-000010 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000277948-25-000008 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0000277948-26-000006 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0000277948-24-000010 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0000277948-25-000008 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0000277948-26-000006 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0000277948-23-000006 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2023-12-31 · accession 0000277948-26-000006 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)