Kansas City Southern
Market Cap
US$16.7b
Last Updated
2020/02/16 23:38 UTC
Data Sources
Company Financials +
Executive Summary
Kansas City Southern, a transportation holding company, provides domestic and international rail transportation services in North America.
Snowflake Analysis
Mediocre balance sheet with limited growth.
Similar Companies
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.0%
KSU
-0.6%
US Transportation
1.5%
US Market
1 Year Return
61.5%
KSU
11.7%
US Transportation
20.1%
US Market
Return vs Industry: KSU exceeded the US Transportation industry which returned 11.7% over the past year.
Return vs Market: KSU exceeded the US Market which returned 20.1% over the past year.
Shareholder returns
| KSU | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.0% | -0.6% | 1.5% |
| 30 Day | 4.3% | 2.0% | 1.4% |
| 90 Day | 12.3% | 11.0% | 8.7% |
| 1 Year | 63.4%61.5% | 13.8%11.7% | 22.7%20.1% |
| 3 Year | 107.8%99.8% | 61.5%53.7% | 50.1%40.5% |
| 5 Year | 59.4%48.9% | 62.8%30.3% | 73.1%54.1% |
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
3 days ago | Simply Wall St
Is Kansas City Southern (NYSE:KSU) A Great Dividend Stock?2 weeks ago | Simply Wall St
Is Kansas City Southern (NYSE:KSU) A Risky Investment?3 weeks ago | Simply Wall St
Should You Investigate Kansas City Southern (NYSE:KSU) At US$165?Valuation
Is Kansas City Southern undervalued compared to its fair value and its price relative to the market?
32.01x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: KSU ($173.64) is trading above our estimate of fair value ($131.55)
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 (32x) compared to the Transportation industry average (21.7x).
PE vs Market: KSU is poor value based on its PE Ratio (32x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: KSU is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: KSU is overvalued based on its PB Ratio (3.8x) compared to the US Transportation industry average (2.4x).
Next Steps
Future Growth
How is Kansas City Southern forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
15.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KSU's forecast earnings growth (15.6% per year) is above the savings rate (1.7%).
Earnings vs Market: KSU's earnings (15.6% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: KSU's earnings are forecast to grow, but not significantly.
Revenue vs Market: KSU's revenue (4.9% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: KSU's revenue (4.9% 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 (16.6%).
Next Steps
Past Performance
How has Kansas City Southern performed over the past 5 years?
8.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KSU has high quality earnings.
Growing Profit Margin: KSU's current net profit margins (18.8%) are lower than last year (23.1%).
Past Earnings Growth Analysis
Earnings Trend: KSU's earnings have grown by 8.5% per year over the past 5 years.
Accelerating Growth: KSU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: KSU had negative earnings growth (-14.1%) over the past year, making it difficult to compare to the Transportation industry average (-14.1%).
Return on Equity
High ROE: KSU's Return on Equity (11.4%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Kansas City Southern's financial position?
Financial Position Analysis
Short Term Liabilities: KSU's short term assets ($728.6M) exceed its short term liabilities ($491.3M).
Long Term Liabilities: KSU's short term assets ($728.6M) do not cover its long term liabilities ($4.5B).
Debt to Equity History and Analysis
Debt Level: KSU's debt to equity ratio (68.2%) is considered high.
Reducing Debt: KSU's debt to equity ratio has increased from 56.6% to 68.2% over the past 5 years.
Debt Coverage: KSU's debt is well covered by operating cash flow (34.1%).
Interest Coverage: KSU's interest payments on its debt are well covered by EBIT (9.1x coverage).
Balance Sheet
Inventory Level: KSU has a high level of physical assets or inventory.
Debt Coverage by Assets: KSU's debt is not covered by short term assets (assets are 0.2x debt).
Next Steps
Dividend
What is Kansas City Southern's current dividend yield, its reliability and sustainability?
0.92%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Kansas City Southern before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: KSU's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: KSU's dividend (0.92%) is low compared to the top 25% of dividend payers in the US market (3.69%).
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 8 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (27.3%), 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 (16.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.4yrs
Average management tenure
CEO
Pat Ottensmeyer (61yo)
3.6yrs
Tenure
US$5,523,327
Compensation
Mr. Patrick J. Ottensmeyer, also known as Pat, has been the President of Kansas City Southern since March 1, 2015 and its Chief Executive Officer and director since July 1, 2016. Mr. Ottensmeyer served as ...
CEO Compensation Analysis
Compensation vs Market: Pat's total compensation ($USD5.52M) is below average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Pat's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 3.6yrs | US$5.52m | 0.13% $22.0m | |
| Executive VP & CFO | 11.3yrs | US$1.70m | 0.028% $4.7m | |
| Executive VP & COO | 3.9yrs | US$1.68m | 0.036% $6.0m | |
| Executive Vice President of Administration & Corporate Affairs | 9.8yrs | US$1.27m | 0.056% $9.4m | |
| Executive VP & Chief Innovation Officer | 1.3yrs | US$1.58m | 0.033% $5.5m | |
| VP & Chief Accounting Officer | 2.6yrs | no data | 0.011% $1.8m | |
| Vice President of Investor Relations | 2.2yrs | no data | no data | |
| Senior VP | 1.1yrs | no data | 0.0071% $1.2m | |
| Vice President of Sales & Marketing Automotive | 0.4yrs | no data | no data | |
| Executive VP & Chief Marketing Officer | 1.3yrs | no data | 0.018% $3.0m |
2.4yrs
Average Tenure
53yo
Average Age
Experienced Management: KSU's management team is considered experienced (2.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 3.6yrs | US$5.52m | 0.13% $22.0m | |
| Presiding Director | 0yrs | US$240.03k | 0.12% $20.1m | |
| Independent Chairman of the Board | 0yrs | US$350.03k | 0.018% $3.1m | |
| Independent Director | 9.8yrs | US$231.94k | 0.0095% $1.6m | |
| Independent Director | 2.8yrs | US$200.07k | 0.0033% $547.6k | |
| Independent Director | 2.8yrs | US$230.07k | 0.0048% $808.1k | |
| Independent Director | 4yrs | US$190.07k | 0.0021% $345.6k | |
| Independent Director | 9.8yrs | US$257.07k | 0.0037% $611.1k | |
| Independent Director | 2.8yrs | US$200.07k | 0.0085% $1.4m | |
| Director | 0.2yrs | US$95.10k | 0.0026% $429.1k |
3.2yrs
Average Tenure
62.5yo
Average Age
Experienced Board: KSU's board of directors are considered experienced (3.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: KSU insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Kansas City Southern's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Kansas City Southern
- Ticker: KSU
- Exchange: NYSE
- Founded: 1887
- Industry: Railroads
- Sector: Transportation
- Market Cap: US$16.696b
- Shares outstanding: 96.15m
- Website: https://www.kcsouthern.com
Number of Employees
Location
- Kansas City Southern
- 427 West 12th Street
- Kansas City
- Missouri
- 64105
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| KSU | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Mar 1964 |
| KCY | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Mar 1964 |
| KSU * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Mar 1964 |
| 0JQ4 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Mar 1964 |
| KSU.PR | NYSE (New York Stock Exchange) | PFD 4% | US | USD | Dec 1972 | |
| K1CS34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 4 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
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 regions of the United States and has the shortest north/south rail route between Kansas City, Missouri, and ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi, and Texas. It operates a commercial corridor of the Mexican railroad system and has its direct rail passageway between Mexico City and Laredo, Texas. The company provides rail access to the United States and Mexico border crossing at Nuevo Laredo, Tamaulipas; and controls and operates the southern half of the rail bridge at Laredo, Texas, as well as the northern half of this bridge. Kansas City Southern also provides rail access to the port of Lazaro Cardenas on the Pacific Ocean; and owns a 157-mile rail line extending from Laredo, Texas to the port city of Corpus Christi, Texas. Its rail network comprises approximately 6,700 route miles extending from the Midwest and Southeast portions of the United States south into Mexico. The company serves the chemical and petroleum, industrial and consumer products, agriculture and minerals, energy, intermodal, and automotive markets. Kansas City Southern was founded in 1887 and is headquartered in Kansas City, Missouri.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:38 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.