NYSE:KSU

Stock Analysis Report

Executive Summary

Kansas City Southern, a transportation holding company, provides domestic and international rail transportation services in North America.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

5.2%

NYSE:KSU

1.4%

US Transportation

2.1%

US Market


1 Year Return

7.4%

NYSE:KSU

-0.4%

US Transportation

-0.04%

US Market

KSU outperformed the Transportation industry which returned 0% over the past year.

KSU outperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

KSUIndustryMarket
7 Day5.2%1.4%2.1%
30 Day-0.6%-9.2%-3.2%
90 Day1.9%-7.0%2.8%
1 Year8.8%7.4%1.3%-0.4%2.2%-0.04%
3 Year29.2%24.0%73.4%65.2%41.5%32.3%
5 Year15.2%7.7%71.0%56.8%55.0%37.8%

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

Valuation

Is Kansas City Southern undervalued based on future cash flows and its price relative to the stock market?

21.94x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Kansas City Southern's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Kansas City Southern's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Kansas City Southern is overvalued based on earnings compared to the US Transportation industry average.

Kansas City Southern is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Kansas City Southern is poor value based on expected growth next year.


Price Based on Value of Assets

Kansas City Southern is overvalued based on assets compared to the US Transportation industry average.


Next Steps

Future Growth

How is Kansas City Southern expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Kansas City Southern's revenue is expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).

Kansas City Southern's earnings are expected to grow by 15.7% yearly, however this is not considered high growth (20% yearly).

Kansas City Southern's revenue growth is positive but not above the United States of America market average.

Kansas City Southern's earnings growth is expected to exceed the United States of America market average.

Kansas City Southern's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Kansas City Southern is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Kansas City Southern performed over the past 5 years?

12.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Kansas City Southern's year on year earnings growth rate has been positive over the past 5 years.

Kansas City Southern's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Kansas City Southern's 1-year earnings growth is negative, it can't be compared to the US Transportation industry average.


Return on Equity

Kansas City Southern has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Kansas City Southern used its assets less efficiently than the US Transportation industry average last year based on Return on Assets.


Return on Capital Employed

Kansas City Southern has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Kansas City Southern's financial position?


Financial Position Analysis

Kansas City Southern's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Kansas City Southern's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Kansas City Southern's level of debt (51.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (57.2% vs 51.9% today).

Debt is well covered by operating cash flow (39.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8.8x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.21%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Kansas City Southern before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Kansas City Southern's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Kansas City Southern's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Whilst dividend payments have been stable, Kansas City Southern has been paying a dividend for less than 10 years.

Dividend payments have increased, but Kansas City Southern only paid a dividend in the past 7 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (6x coverage).


Next Steps

Management

What is the CEO of Kansas City Southern's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Pat Ottensmeyer (61yo)

3.1yrs

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

Pat's remuneration is lower than average for companies of similar size in United States of America.

Pat's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.6yrs

Average Tenure

55.5yo

Average Age

The tenure for the Kansas City Southern management team is about average.


Board Age and Tenure

3.1yrs

Average Tenure

64yo

Average Age

The tenure for the Kansas City Southern board of directors is about average.


Insider Trading

Kansas City Southern individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$124,50029 Jul 19
Lu Córdova
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$124.50
SellUS$105,11623 Jul 19
Adam Godderz
EntityIndividual
Shares840
Max PriceUS$125.14
SellUS$312,60823 Jul 19
Robert Druten
EntityIndividual
Role
Chairman of the Board
Chairman
Shares2,500
Max PriceUS$125.04
SellUS$116,84806 Jun 19
Lu Córdova
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$116.87
SellUS$441,18309 May 19
Michael Naatz
EntityIndividual
Role
Head of Marketing
Executive VP & Chief Marketing Officer
Shares3,601
Max PriceUS$122.52
SellUS$123,06802 May 19
Suzanne Grafton
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer & VP
Shares1,000
Max PriceUS$123.07
BuyUS$102,68029 Oct 18
Henry Maier
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$102.68
SellUS$87,32329 Aug 18
Suzanne Grafton
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer & VP
Shares729
Max PriceUS$120.00
SellUS$118,92529 Aug 18
Lu Córdova
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$118.95

Ownership Breakdown


Management Team

  • Warren Erdman (60yo)

    Executive Vice President of Administration & Corporate Affairs

    • Tenure: 9.3yrs
    • Compensation: US$1.27m
  • Pat Ottensmeyer (61yo)

    CEO, President & Director

    • Tenure: 3.1yrs
    • Compensation: US$5.52m
  • Lora Cheatum (62yo)

    Senior Vice President of Human Resources

    • Tenure: 4.8yrs
  • Brian Hancock (53yo)

    Executive VP & Chief Innovation Officer

    • Tenure: 0.8yrs
    • Compensation: US$1.58m
  • Mike Naatz (53yo)

    Executive VP & Chief Marketing Officer

    • Tenure: 0.8yrs
  • Mike Upchurch (58yo)

    CFO & Executive VP

    • Tenure: 10.8yrs
    • Compensation: US$1.70m
  • Jeff Songer (49yo)

    COO & Executive VP

    • Tenure: 3.4yrs
    • Compensation: US$1.68m
  • Suzie Grafton (43yo)

    Chief Accounting Officer & VP

    • Tenure: 2.1yrs
  • Ashley Thorne

    Vice President of Investor Relations

    • Tenure: 1.7yrs
  • Sameh Fahmy

    Executive Vice President of Precision Scheduled Railroading

    • Tenure: 0.5yrs

Board Members

  • Tom McDonnell (73yo)

    Presiding Director

    • Tenure: 0.0yrs
    • Compensation: US$240.03k
  • Bob Druten (71yo)

    Chairman

    • Tenure: 0.0yrs
    • Compensation: US$350.03k
  • Pat Ottensmeyer (61yo)

    CEO, President & Director

    • Tenure: 3.1yrs
    • Compensation: US$5.52m
  • Lu Córdova (64yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$231.94k
  • Mitch Krebs (47yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$200.07k
  • Lydia Beebe (66yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$230.07k
  • David Francisco Garza Santos (57yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$190.07k
  • Antonio O. Garza (59yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$257.07k
  • Henry Maier (65yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$200.07k

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$12.392b
  • Shares outstanding: 100.59m
  • Website: https://www.kcsouthern.com

Number of Employees


Location

  • Kansas City Southern
  • 427 West 12th Street
  • Kansas City
  • Missouri
  • 64105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KSUNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 1964
KCYDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1964
KSU *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 1964
0JQ4LSE (London Stock Exchange)YesCommon StockGBUSDMar 1964
KSU.PRNYSE (New York Stock Exchange)PFD 4%USUSDDec 1972

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 23:38
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.