Business Analysis of CSX

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of CSX

Business Overview

CSX Corporation, together with its subsidiaries, provides rail-based transportation services in the United States and Canada. The company offers rail services, as well as transports intermodal containers and trailers. It transports agricultural and food products, fertilizers, chemicals, automotive, metals and equipment, minerals, and forest products; and coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, and industrial plants. The company also exports coal to deep-water port facilities. In addition, it offers intermodal transportation services through a network of approximately 50 terminals transporting manufactured consumer goods in containers in the eastern United States; drayage services, including the pickup and delivery of intermodal shipments; and trucking dispatch services. Further, the company serves the automotive industry with distribution centers and storage locations, as well as connects non-rail served customers through transferring products from rail to trucks, which includes plastics and ethanol. Additionally, it acquires, develops, sells, leases, and manages real estate properties. The company operates approximately 21,000 route mile rail network, which serves various population centers in 23 states east of the Mississippi River, the District of Columbia, and the Canadian provinces of Ontario and Quebec, as well as owns and leases approximately 4,400 locomotives. It also serves production and distribution facilities through track connections. CSX Corporation was founded in 1978 and is based in Jacksonville, Florida.

CSX

CSX


R&P Rank: 264
Sector: Transportation & Logistics
Industry:Railroad Transportation & Logistics
H.Q Location:Florida
Website: www.csx.com
Company Address:
500 WATER STREET, 15TH FLOOR, JACKSONVILLE FL 32202
Ph:904-359-3200

Business Analysis of CSX

The Transportation & Logistics Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how CSX compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by CSX to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of CSX with an interactive chart.

  1. Revenue Growth: CSX reported a revenue growth of -6.3% year-on-year during 2016. Railroad Transportation & Logistics Industry grew at -7.2% in the same period
  2. COGS share of Revenues: CSX COGS share of Revenues details are not available because either company does not share the data or we do not have it
  3. R&D share of Revenues: CSX R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, CSX spent 69.4% of its total revenues on Sales, Marketing, and General Administration (SG&A). Railroad Transportation & Logistics industry average SG&A spending in the same period was 30.8%
  5. Inventory share of Revenues: As a percentage of revenue, CSX spent 3.7% of its total revenues on Inventories. Railroad Transportation & Logistics industry average Inventory spending in the same period was 4.9%
  6. Accounts Payable share of Revenues: As a percentage of revenue, CSX invested 7.3% of its total revenues on Accounts Payable (A/P) Railroad Transportation & Logistics industry average Accounts Payable investment in the same period was 13.7%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, CSX invested 8.5% of its total revenues on Accounts Receivable (A/R). Railroad Transportation & Logistics industry average Accounts Receivable investment in the same period was 9.6%
  8. PP&E share of Revenues: As a percentage of revenue, CSX invested 281.4% of its total revenues on Property, Plants, and Equipments (PP&E). Railroad Transportation & Logistics industry average PPE investment in the same period was 248.9%
  9. Intangibles share of Revenues: CSX Intangibles share of Revenues details are not available because either company does not share the data or we do not have it
  10. Net Margins: CSX Net Margins in the year 2016 were 15.5%. Railroad Transportation & Logistics industry average Net Margins in the same period were 17.9%

Sector and Industry Association of CSX

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

CSX is associated with Industrials Sector Group, Transportation & Logistics Sector, and Railroad Transportation & Logistics Industry.

Transportation & Logistics sector is comprised of the following industries: Air Delivery & Freight Services; Railroad Transportation & Logistics; Shipping Transportation & Logistics; Trucking Transportation & Logistics. The definitions for each of the industries is as follows:

  • Air Delivery & Freight Services industry includes companies providing Air transportation and logistics products and services to the Industrial sector. It also includes companies that manage airports. Courier and logistic services primarily involving air transportation are also part of this industry.
  • Railroad Transportation & Logistics industry includes companies providing transportation and logistics products and services to the Industrial sector using railroads. It also includes companies that manage train depots.
  • Shipping Transportation & Logistics industry includes companies providing shipping transportation and logistics products and services to the Industrial sector. It also includes companies that manage bridges & tunnels.
  • Trucking Transportation & Logistics industry includes companies providing trucking transportation and logistics products and services to the Industrial sector. It also includes companies that manage roads, bridges, tunnels.

Industry Ranking of CSX

With $11.1 billion revenues, CSX ranked number 2 of all the companies in the US Railroad Transportation & Logistics industry. There were a total of 12 public companies in the US Railroad Transportation & Logistics industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Railroad Transportation & Logistics industry by revenues during 2016 were:

  1. Union Pacific ($19.9 billion)
  2. CSX ($11.1 billion)
  3. Norfolk Southern ($9.9 billion)
  4. Canadian Pacific Railway ($6.2 billion)
  5. Westinghouse Air Brake Technologies ($2.9 billion)
  6. Greenbrier Companies ($2.7 billion)
  7. Kansas City Southern ($2.3 billion)
  8. Genesee & Wyoming ($2 billion)
  9. GATX ($1.4 billion)
  10. American Railcar Industries ($639.1 million)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of CSXand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of csx

Union Pacific (UNP) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Union Pacific Corp with $20 billion revenues in the year 2016 was the number 1 Railroad Transportation & Logistics company. Read this report to know the top competitors of Union Pacific and identify growth and cost optimization opportunities of Union Pacific

Norfolk Southern (NSC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Norfolk Southern Corp with $10 billion revenues in the year 2016 was the number 3 Railroad Transportation & Logistics company. Read this report to know the top competitors of Norfolk Southern and identify growth and cost optimization opportunities of Norfolk Southern

Canadian Pacific Railway (CP) Business Analysis – Analyze Historical Performance, Strategic...

Canadian Pacific Railway Ltd with $6 billion revenues in the year 2016 was the number 4 Railroad Transportation & Logistics company. Read this report to know the top competitors of Canadian Pacific Railway and identify growth and cost optimization opportunities of Canadian Pacific Railway

Westinghouse Air Brake Technologies (WAB) Business Analysis – Analyze Historical Performance,...

Westinghouse Air Brake Technologies Corp with $3 billion revenues in the year 2016 was the number 5 Railroad Transportation & Logistics company. Read this report to know the top competitors of Westinghouse Air Brake Technologies and identify growth and cost optimization opportunities of Westinghouse Air Brake Technologies

Greenbrier Companies (GBX) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Greenbrier Companies Inc with $3 billion revenues in the year 2016 was the number 6 Railroad Transportation & Logistics company. Read this report to know the top competitors of Greenbrier Companies and identify growth and cost optimization opportunities of Greenbrier Companies

Kansas City Southern (KSU) Business Analysis – Analyze Historical Performance, Strategic...

Kansas City Southern with $2 billion revenues in the year 2016 was the number 7 Railroad Transportation & Logistics company. Read this report to know the top competitors of Kansas City Southern and identify growth and cost optimization opportunities of Kansas City Southern

Revenues Analysis

CSX (CSX) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of CSX Corp (CSX) from 2012 to 2016. CSX generated a total of $11.1 billion revenues during 2016. CSX reported a revenue growth of -6.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

CSX (CSX) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of CSX Corp (CSX) from 2002 to 2016. CSX generated a total of $11.1 billion revenues during 2016. CSX reported a revenue growth of -6.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

CSX (CSX) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of CSX Corp (CSX) revenue growth with Railroad Transportation & Logistics industry growth during the last five years from 2012 to 2016. CSX reported a revenue growth of -6.3% year-over-year during 2016. The Railroad Transportation & Logistics industry growth was -7.2% year-over-year during 2016. CSX growth was faster than the industry during 2016.

Profit Analysis

CSX (CSX) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of CSX Corp (CSX) from 2012 to 2016. CSX reported a total net income of $1.7 billion during 2016. CSX generated a total of $11.1 billion revenues during 2016. CSX net profit margin was 15.5% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.