Fundamentals · CSX
DuPont (ROE Decomposition) for CSX
AI-generated plain-English read of dupont (roe decomposition) for CSX. Updated daily.
Margin-driven ROE, improving
highGenuine quality: profitability (25.5%) is the engine and ROE is rising to 7.1%. Leverage is normal — margin expansion at reasonable leverage is the kind of compounding that holds.
What will probably happen
- ROE is on an upward path — if the leading leg continues, the next reported period should sustain or extend the gain.
What to do
- If you HOLD this stock
- No structural red flags from the DuPont picture. Maintain the position but continue monitoring the leading leg — it's the first place a story change shows up.
- If you are EVALUATING this stock
- Margin-driven ROE that's improving is the highest-quality DuPont signal. Before buying, check whether pricing power or cost reduction is driving margins — pricing power is more durable.
- If you trade OPTIONS
- Improving margin-driven ROE is a quality tailwind. If the stock is at a reasonable valuation, covered calls or cash-secured puts capitalize on the stable-to-improving fundamental backdrop.
37 periods with all three DuPont legs populated — trend reads are reliable.
Technical details
Technical analysis
- ROE
- 7.1% — improving
- Sector context
- not provided
- Periods analysed
- 37
- Primary ROE driver
- Margin Driven
- Profitability (net margin)
- 25.5% — improving, healthy
- Asset efficiency (turnover)
- 0.09× — stable, healthy
- Leverage (equity multiplier)
- 3.17× — stable, healthy
Key levels
| Level | Value |
|---|---|
| latest em | 3.175 |
| latest roe | 0.071 |
| latest margin | 0.255 |
| latest turnover | 0.088 |
| em high threshold | 4 |
| em critical threshold | 5 |