Kansas City Southern, a transportation holding company, provides domestic and international rail transportation services in North America. More Details
Proven track record with mediocre balance sheet.
Share Price & News
How has Kansas City Southern's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: KSU is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: KSU's weekly volatility (6%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: KSU exceeded the US Transportation industry which returned 45.5% over the past year.
Return vs Market: KSU exceeded the US Market which returned 43.1% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Kansas City Southern's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall StSlowing Rates Of Return At Kansas City Southern (NYSE:KSU) Leave Little Room For Excitement
2 months ago | Simply Wall StDoes Kansas City Southern (NYSE:KSU) Have A Healthy Balance Sheet?
3 months ago | Simply Wall StWhat Makes Kansas City Southern (NYSE:KSU) A Great Dividend Stock?
Is Kansas City Southern undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: KSU ($292.36) is trading above our estimate of fair value ($186.19)
Significantly Below Fair Value: KSU is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: KSU is poor value based on its PE Ratio (43.8x) compared to the US Transportation industry average (27x).
PE vs Market: KSU is poor value based on its PE Ratio (43.8x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: KSU is poor value based on its PEG Ratio (4.3x)
Price to Book Ratio
PB vs Industry: KSU is overvalued based on its PB Ratio (6.3x) compared to the US Transportation industry average (2.5x).
How is Kansas City Southern forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KSU's forecast earnings growth (10.1% per year) is above the savings rate (2%).
Earnings vs Market: KSU's earnings (10.1% per year) are forecast to grow slower than the US market (15.5% per year).
High Growth Earnings: KSU's earnings are forecast to grow, but not significantly.
Revenue vs Market: KSU's revenue (5.8% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: KSU's revenue (5.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: KSU's Return on Equity is forecast to be low in 3 years time (17.3%).
How has Kansas City Southern performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KSU has high quality earnings.
Growing Profit Margin: KSU's current net profit margins (23.7%) are higher than last year (20.1%).
Past Earnings Growth Analysis
Earnings Trend: KSU's earnings have grown by 1.7% per year over the past 5 years.
Accelerating Growth: KSU's earnings growth over the past year (5.2%) exceeds its 5-year average (1.7% per year).
Earnings vs Industry: KSU earnings growth over the past year (5.2%) underperformed the Transportation industry 11.1%.
Return on Equity
High ROE: KSU's Return on Equity (13.6%) is considered low.
How is Kansas City Southern's financial position?
Financial Position Analysis
Short Term Liabilities: KSU's short term assets ($723.3M) exceed its short term liabilities ($482.7M).
Long Term Liabilities: KSU's short term assets ($723.3M) do not cover its long term liabilities ($5.2B).
Debt to Equity History and Analysis
Debt Level: KSU's debt to equity ratio (81.9%) is considered high.
Reducing Debt: KSU's debt to equity ratio has increased from 55.7% to 81.9% over the past 5 years.
Debt Coverage: KSU's debt is well covered by operating cash flow (27.3%).
Interest Coverage: KSU's interest payments on its debt are well covered by EBIT (6.5x coverage).
What is Kansas City Southern current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: KSU's dividend (0.74%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.27%).
High Dividend: KSU's dividend (0.74%) is low compared to the top 25% of dividend payers in the US market (3.36%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, KSU has been paying a dividend for less than 10 years.
Growing Dividend: KSU's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (26.7%), KSU's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: KSU's dividends in 3 years are forecast to be well covered by earnings (19.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Pat Ottensmeyer (62 yo)
Mr. Patrick J. Ottensmeyer, also known as Pat, has been the President of Kansas City Southern since March 1, 2015 and its Chief Executive Officer and Director since July 1, 2016. Mr. Ottensmeyer served as ...
CEO Compensation Analysis
Compensation vs Market: Pat's total compensation ($USD7.14M) is below average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Pat's compensation has been consistent with company performance over the past year.
Experienced Management: KSU's management team is considered experienced (2.7 years average tenure).
Experienced Board: KSU's board of directors are considered experienced (4.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Kansas City Southern's company bio, employee growth, exchange listings and data sources
- Name: Kansas City Southern
- Ticker: KSU
- Exchange: NYSE
- Founded: 1887
- Industry: Railroads
- Sector: Transportation
- Market Cap: US$26.762b
- Shares outstanding: 90.93m
- Website: https://www.kcsouthern.com
Number of Employees
- Kansas City Southern
- 427 West 12th Street
- Kansas City
- United States
Kansas City Southern, a transportation holding company, provides domestic and international rail transportation services in North America. The company serves a ten-state region in the Midwest and southeast...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/15 03:43|
|End of Day Share Price||2021/06/14 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.