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CSX vs GD

CSX
CSX Corporation
BEARISH
Price
$43.37
Market Cap
$80.67B
Sector
Industrials
AI Confidence
85%
GD
General Dynamics Corporation
NEUTRAL
Price
$313.21
Market Cap
$84.83B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CSX
28.35
GD
20.29
Forward P/E
CSX
20.72
GD
17.43
P/B Ratio
CSX
6.13
GD
3.3
P/S Ratio
CSX
5.72
GD
1.61
EV/EBITDA
CSX
15.49
GD
14.51

Profitability

Gross Margin
CSX
45.59%
GD
15.13%
Operating Margin
CSX
32.73%
GD
10.14%
Profit Margin
CSX
20.5%
GD
8.01%
ROE
CSX
22.51%
GD
17.66%
ROA
CSX
6.86%
GD
5.99%

Growth

Revenue Growth
CSX
-0.9%
GD
7.8%
Earnings Growth
CSX
-0.4%
GD
0.4%

Financial Health

Debt/Equity
CSX
1.48
GD
0.38
Current Ratio
CSX
0.81
GD
1.44
Quick Ratio
CSX
0.63
GD
0.78

Dividends

Dividend Yield
CSX
1.29%
GD
1.94%
Payout Ratio
CSX
33.77%
GD
38.83%

AI Verdict

CSX BEARISH

CSX presents a significant valuation disconnect, with a Piotroski F-Score of 4/9 indicating only stable health and a current price of $43.37 that vastly exceeds both the Graham Number ($15.61) and Intrinsic Value ($10.71). While the company maintains strong operating margins (32.72%) and ROE (22.51%), growth has stalled with negative YoY revenue and earnings growth. The stock has experienced a massive 1-year price surge of 60.3%, yet the technical trend has shifted to heavily bearish (10/100), suggesting a potential peak. Overall, the high PEG ratio of 3.74 indicates the market is paying a steep premium for a company with stagnant growth.

Strengths
Strong operating margins at 32.72%
Robust Return on Equity (ROE) of 22.51%
Conservative dividend payout ratio of 33.77%
Risks
Severe overvaluation relative to Graham and Intrinsic value baselines
Negative YoY revenue growth (-0.90%) and earnings growth (-0.40%)
Liquidity risk indicated by a current ratio of 0.81
GD NEUTRAL

General Dynamics presents a dichotomy between fundamental stability and valuation extremes. While the Piotroski F-Score of 4/9 indicates stable financial health and the Debt/Equity ratio (0.38) is exceptionally low, the stock is trading at a significant premium to both its Graham Number ($181.57) and Intrinsic Value ($117.34). Stagnant earnings growth (0.40% YoY) and bearish insider activity, including sales by the CEO, offset the positive analyst consensus and long-term price performance.

Strengths
Very low Debt/Equity ratio (0.38) indicating strong solvency
Strong Return on Equity (ROE) of 17.66%
Consistent earnings track record with 3/4 beats in the last year
Risks
Significant overvaluation relative to Graham and Intrinsic value baselines
Stagnant earnings growth (0.40% YoY) failing to justify current P/E
Bearish insider sentiment with $17.93M in net sales, including CEO activity

Compare Another Pair

CSX vs GD: Head-to-Head Comparison

This page compares CSX Corporation (CSX) and General Dynamics Corporation (GD) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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