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Kansas City Southern

NYSE:KSU
Snowflake Description

Adequate balance sheet with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KSU
NYSE
$12B
Market Cap
  1. Home
  2. US
  3. Transportation
Company description

Kansas City Southern, a transportation holding company, provides domestic and international rail transportation services in North America. The last earnings update was 60 days ago. More info.


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KSU Share Price and Events
7 Day Returns
-0.5%
NYSE:KSU
-1.4%
US Transportation
0.5%
US Market
1 Year Returns
6.2%
NYSE:KSU
6.6%
US Transportation
0.8%
US Market
KSU Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Kansas City Southern (KSU) -0.5% -4.1% 0.7% 6.2% 32.8% 8.4%
US Transportation -1.4% -1.9% 2% 6.6% 83% 66.2%
US Market 0.5% -0.1% 1% 0.8% 37.5% 37.5%
1 Year Return vs Industry and Market
  • KSU outperformed the Market in United States of America which returned 0.8% over the past year.
Price Volatility
KSU
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Kansas City Southern to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Kansas City Southern.

NYSE:KSU Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:KSU
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Transportation Unlevered Beta Simply Wall St/ S&P Global 0.99
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.988 (1 + (1- 21%) (24.17%))
1.118
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.118 * 5.96%)
9.39%

Discounted Cash Flow Calculation for NYSE:KSU using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Kansas City Southern is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:KSU DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.39%)
2019 466.80 Analyst x7 426.72
2020 610.29 Analyst x7 509.97
2021 632.00 Analyst x2 482.77
2022 689.00 Analyst x1 481.11
2023 733.00 Analyst x1 467.89
2024 770.78 Est @ 5.15% 449.75
2025 804.90 Est @ 4.43% 429.33
2026 836.43 Est @ 3.92% 407.84
2027 866.22 Est @ 3.56% 386.09
2028 894.91 Est @ 3.31% 364.63
Present value of next 10 years cash flows $4,406.10
NYSE:KSU DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $894.91 × (1 + 2.73%) ÷ (9.39% – 2.73%)
$13,796.03
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $13,796.03 ÷ (1 + 9.39%)10
$5,621.18
NYSE:KSU Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,406.10 + $5,621.18
$10,027.28
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $10,027.28 / 100.59
$99.69
NYSE:KSU Discount to Share Price
Calculation Result
Value per share (USD) From above. $99.69
Current discount Discount to share price of $116.91
= -1 x ($116.91 - $99.69) / $99.69
-17.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Kansas City Southern is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Kansas City Southern's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Kansas City Southern's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:KSU PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $5.78
NYSE:KSU Share Price ** NYSE (2019-06-14) in USD $116.91
United States of America Transportation Industry PE Ratio Median Figure of 25 Publicly-Listed Transportation Companies 17.21x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Kansas City Southern.

NYSE:KSU PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:KSU Share Price ÷ EPS (both in USD)

= 116.91 ÷ 5.78

20.23x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Kansas City Southern's expected growth come at a high price?
Raw Data
NYSE:KSU PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.23x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
13%per year
United States of America Transportation Industry PEG Ratio Median Figure of 23 Publicly-Listed Transportation Companies 2.02x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NYSE:KSU PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.23x ÷ 13%

1.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kansas City Southern is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Kansas City Southern's assets?
Raw Data
NYSE:KSU PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $47.95
NYSE:KSU Share Price * NYSE (2019-06-14) in USD $116.91
United States of America Transportation Industry PB Ratio Median Figure of 28 Publicly-Listed Transportation Companies 1.63x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:KSU PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:KSU Share Price ÷ Book Value per Share (both in USD)

= 116.91 ÷ 47.95

2.44x

* Primary Listing of Kansas City Southern.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kansas City Southern is overvalued based on assets compared to the US Transportation industry average.
X
Value checks
We assess Kansas City Southern's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Transportation industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Transportation industry average (and greater than 0)? (1 check)
  5. Kansas City Southern has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Kansas City Southern expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Kansas City Southern expected to grow at an attractive rate?
  • Kansas City Southern's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Kansas City Southern's earnings growth is positive but not above the United States of America market average.
  • Kansas City Southern's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:KSU Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:KSU Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 13%
NYSE:KSU Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 5.3%
United States of America Transportation Industry Earnings Growth Rate Market Cap Weighted Average 11.8%
United States of America Transportation Industry Revenue Growth Rate Market Cap Weighted Average 8.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:KSU Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:KSU Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 3,533 1,422 1
2022-12-31 3,359 1,344 1
2021-12-31 3,220 1,280 819 8
2020-12-31 3,071 1,197 752 16
2019-12-31 2,886 1,126 642 17
NYSE:KSU Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,750 1,078 586
2018-12-31 2,714 946 627
2018-09-30 2,680 1,001 1,018
2018-06-30 2,638 1,037 974
2018-03-31 2,612 1,039 960
2017-12-31 2,583 1,028 962
2017-09-30 2,521 969 540
2017-06-30 2,469 918 531
2017-03-31 2,381 889 517
2016-12-31 2,334 919 478
2016-09-30 2,334 922 488
2016-06-30 2,361 930 499

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Kansas City Southern's earnings are expected to grow by 13% yearly, however this is not considered high growth (20% yearly).
  • Kansas City Southern's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:KSU Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Kansas City Southern Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:KSU Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 8.79 9.15 8.44 6.00
2020-12-31 7.74 8.13 7.39 13.00
2019-12-31 6.36 6.81 6.14 12.00
NYSE:KSU Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 5.78
2018-12-31 6.16
2018-09-30 9.95
2018-06-30 9.45
2018-03-31 9.24
2017-12-31 9.18
2017-09-30 5.11
2017-06-30 4.99
2017-03-31 4.83
2016-12-31 4.44
2016-09-30 4.52
2016-06-30 4.60

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Kansas City Southern is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Kansas City Southern's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Kansas City Southern has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Kansas City Southern's growth in the last year to its industry (Transportation).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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.
Earnings and Revenue History
Kansas City Southern's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Kansas City Southern Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:KSU Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,750.20 585.50
2018-12-31 2,714.00 627.20
2018-09-30 2,680.40 1,017.80
2018-06-30 2,638.00 973.50
2018-03-31 2,612.00 959.70
2017-12-31 2,582.90 961.80
2017-09-30 2,521.00 539.70
2017-06-30 2,468.90 531.00
2017-03-31 2,381.00 516.70
2016-12-31 2,334.20 477.90
2016-09-30 2,333.70 487.60
2016-06-30 2,361.10 498.60
2016-03-31 2,378.40 490.30
2015-12-31 2,418.80 483.30
2015-09-30 2,463.30 485.00
2015-06-30 2,508.90 491.50
2015-03-31 2,572.80 509.50
2014-12-31 2,577.10 502.40
2014-09-30 2,550.20 475.20
2014-06-30 2,494.30 455.50
2014-03-31 2,423.90 341.10
2013-12-31 2,369.30 351.20
2013-09-30 2,322.10 329.20
2013-06-30 2,277.90 300.90
2013-03-31 2,243.90 405.90
2012-12-31 2,238.60 377.10
2012-09-30 2,200.50 380.90
2012-06-30 2,167.60 390.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Kansas City Southern has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Kansas City Southern used its assets more efficiently than the US Transportation industry average last year based on Return on Assets.
  • Kansas City Southern's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Kansas City Southern's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Transportation industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Kansas City Southern has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Kansas City Southern's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Kansas City Southern's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Kansas City Southern is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Kansas City Southern's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Kansas City Southern's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Kansas City Southern Company Filings, last reported 2 months ago.

NYSE:KSU Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 5,150.00 2,842.10 92.70
2018-12-31 5,132.70 2,689.40 100.50
2018-09-30 5,090.80 2,691.20 107.10
2018-06-30 4,996.20 2,693.10 61.10
2018-03-31 4,931.40 2,609.00 47.00
2017-12-31 4,865.40 2,619.40 134.10
2017-09-30 4,406.40 2,634.80 88.40
2017-06-30 4,507.80 2,588.60 166.30
2017-03-31 4,468.90 2,556.00 123.10
2016-12-31 4,404.50 2,478.20 170.60
2016-09-30 4,385.80 2,550.80 293.10
2016-06-30 4,331.70 2,557.30 293.60
2016-03-31 4,252.10 2,368.60 39.20
2015-12-31 4,224.70 2,401.10 136.60
2015-09-30 4,184.30 2,344.80 116.60
2015-06-30 4,197.50 2,145.60 50.90
2015-03-31 4,138.50 2,101.70 38.40
2014-12-31 4,064.10 2,301.40 348.00
2014-09-30 3,953.10 2,182.90 285.80
2014-06-30 3,841.80 2,198.20 190.20
2014-03-31 3,739.30 2,057.20 167.50
2013-12-31 3,676.60 2,188.90 429.50
2013-09-30 3,582.70 1,780.60 95.90
2013-06-30 3,483.30 1,814.30 30.00
2013-03-31 3,487.10 1,594.30 63.70
2012-12-31 3,400.70 1,608.70 72.60
2012-09-30 3,313.20 1,609.90 187.00
2012-06-30 3,232.40 1,623.60 105.50
  • Kansas City Southern's level of debt (52.2%) 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 (55% vs 52.2% today).
  • Debt is well covered by operating cash flow (40.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.7x coverage).
X
Financial health checks
We assess Kansas City Southern's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Kansas City Southern has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Kansas City Southern's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.23%
Current annual income from Kansas City Southern dividends. Estimated to be 1.29% next year.
If you bought $2,000 of Kansas City Southern shares you are expected to receive $25 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Kansas City Southern's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Kansas City Southern's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:KSU Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United States of America Transportation Industry Average Dividend Yield Market Cap Weighted Average of 18 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:KSU Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1.54 5.00
2020-12-31 1.55 9.00
2019-12-31 1.42 8.00
NYSE:KSU Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-20 1.440 1.215
2019-02-01 1.440 1.254
2018-11-09 1.440 1.439
2018-08-16 1.440 1.299
2018-05-18 1.440 1.312
2018-01-24 1.440 1.328
2017-11-10 1.440 1.326
2017-08-17 1.440 1.367
2017-05-05 1.320 1.324
2017-01-26 1.320 1.514
2017-01-20 1.320 1.514
2016-08-17 1.320 1.480
2016-05-06 1.320 1.430
2016-01-28 1.320 1.553
2015-11-12 1.320 1.740
2015-08-04 1.320 1.435
2015-05-08 1.320 1.393
2015-01-29 1.320 1.200
2014-11-13 1.120 0.960
2014-08-05 1.120 0.956
2014-05-01 1.120 1.046
2014-01-27 1.120 1.131
2013-11-14 0.860 0.724
2013-08-06 0.860 0.762
2013-05-02 0.860 0.776
2013-01-28 0.860 0.838
2012-11-16 0.780 0.942
2012-08-07 0.780 1.008
2012-05-04 0.780 1.128
2012-04-02 0.780 1.057

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Kansas City Southern's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.8x coverage).
X
Income/ dividend checks
We assess Kansas City Southern's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Kansas City Southern afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Kansas City Southern has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Pat Ottensmeyer
COMPENSATION $5,523,327
AGE 60
TENURE AS CEO 2.9 years
CEO Bio

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 the Chief Marketing Officer and Executive Vice President of Sales & Marketing at Kansas City Southern from October 16, 2008 to March 2, 2015. Mr. Ottensmeyer served as the Chief Financial Officer and Executive Vice President of The Kansas City Southern. Mr. Ottensmeyer served as the Chief Financial Officer and Executive Vice President of Kansas City Southern from May 15, 2006 to October 2008. Mr. Ottensmeyer served as the Chief Financial Officer and Executive Vice President of Kansas City Southern de Mexico, S. de R.L. de C.V. since October 2007. Mr. Ottensmeyer joined KCS in May 2006. He has over 25 years of financial experience and leads its International Finance Department. He served as the Chief Financial Officer of Ikano Therapeutics Inc.(also known as Intranasal Therapeutics, Inc.) from 2001 to May 2006. He served as Corporate Vice President and Treasurer of Dade-Behring Holdings, Inc. (Dade-Behring, Inc.) from 2000 to 2001. From 1993 to 1999, he served as Vice President of Finance and Treasurer of Burlington Northern Santa Fe Corporation (BNSF), one of the largest railroads in the United States. Prior to joining BNSF, Mr. Ottensmeyer spent 15 years in the commercial banking industry, including senior positions at National Bank of Detroit, Security Pacific National Bank and Bank of America, where he served as a Senior Vice President in the New York City corporate banking office. He has been a Director of Kansas City Southern de Mexico, S. de R.L. de C.V. since 2006 and has been the Director of Kansas City Southern since 2016. He served as a Director of Metal Management, Inc. in Chicago. Mr. Ottensmeyer serves as the President of Advisory Board for Judson College in Elgin, Illinois, the Finance Advisory Board for DePaul University in Chicago and the Finance and Audit Committee for the Make-A-Wish Foundation of Northern Illinois. He serves as an Executive In Residence on the finance advisory board at DePaul University. He holds a Bachelor Of Science in Finance from Indiana University.

CEO Compensation
  • Pat's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Pat's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Kansas City Southern management team in years:

2.4
Average Tenure
54.5
Average Age
  • The tenure for the Kansas City Southern management team is about average.
Management Team

Pat Ottensmeyer

TITLE
CEO, President & Director
COMPENSATION
$6M
AGE
60
TENURE
2.9 yrs

Mike Upchurch

TITLE
CFO & Executive VP
COMPENSATION
$2M
AGE
57
TENURE
10.7 yrs

Jeff Songer

TITLE
COO & Executive VP
COMPENSATION
$2M
AGE
48
TENURE
3.3 yrs

Warren Erdman

TITLE
Executive Vice President of Administration & Corporate Affairs
COMPENSATION
$1M
AGE
59
TENURE
9.2 yrs

Brian Hancock

TITLE
Executive VP & Chief Innovation Officer
COMPENSATION
$2M
AGE
52
TENURE
0.7 yrs

Suzie Grafton

TITLE
Chief Accounting Officer & VP
AGE
42
TENURE
1.9 yrs

Ashley Thorne

TITLE
Vice President of Investor Relations
TENURE
1.5 yrs

Mike Naatz

TITLE
Executive VP & Chief Marketing Officer
AGE
52
TENURE
0.7 yrs

Lora Cheatum

TITLE
Senior Vice President of Human Resources
AGE
61
TENURE
4.7 yrs

Sameh Fahmy

TITLE
Executive Vice President of Precision Scheduled Railroading
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Kansas City Southern board of directors in years:

2.9
Average Tenure
63
Average Age
  • The average tenure for the Kansas City Southern board of directors is less than 3 years, this suggests a new board.
Board of Directors

Bob Druten

TITLE
Chairman
COMPENSATION
$350K
AGE
70

Pat Ottensmeyer

TITLE
CEO, President & Director
COMPENSATION
$6M
AGE
60
TENURE
2.9 yrs

Tom McDonnell

TITLE
Presiding Director
COMPENSATION
$240K
AGE
72

Lu Córdova

TITLE
Independent Director
COMPENSATION
$232K
AGE
63
TENURE
9.1 yrs

Antonio Garza

TITLE
Independent Director
COMPENSATION
$257K
AGE
58
TENURE
9.1 yrs

David Francisco Santos

TITLE
Independent Director
COMPENSATION
$190K
AGE
56
TENURE
3.3 yrs

Mitch Krebs

TITLE
Director
COMPENSATION
$200K
AGE
46
TENURE
2.1 yrs

Lydia Beebe

TITLE
Director
COMPENSATION
$230K
AGE
65
TENURE
2.1 yrs

Henry Maier

TITLE
Director
COMPENSATION
$200K
AGE
64
TENURE
2.1 yrs
Who owns this company?
Recent Insider Trading
  • Kansas City Southern insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Jun 19 Sell Lu Córdova Individual 04. Jun 19 04. Jun 19 -1,000 $116.87 $-116,848
09. May 19 Sell Michael Naatz Individual 07. May 19 07. May 19 -3,601 $122.52 $-441,183
02. May 19 Sell Suzanne Grafton Individual 01. May 19 01. May 19 -1,000 $123.07 $-123,068
29. Oct 18 Buy Henry Maier Individual 26. Oct 18 26. Oct 18 1,000 $102.68 $102,680
29. Aug 18 Sell Suzanne Grafton Individual 28. Aug 18 29. Aug 18 -729 $120.00 $-87,323
29. Aug 18 Sell Lu Córdova Individual 28. Aug 18 28. Aug 18 -1,000 $118.95 $-118,925
X
Management checks
We assess Kansas City Southern's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Kansas City Southern has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Do Kansas City Southern’s (NYSE:KSU) Returns On Capital Employed Make The Cut?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Kansas City Southern: 0.11 = US$978m ÷ (US$9.6b - US$481m) (Based on the trailing twelve months to March 2019.) So, Kansas City Southern has an ROCE of 11%. … What Are Current Liabilities, And How Do They Affect Kansas City Southern's ROCE? … Kansas City Southern has a low level of current liabilities, which have a minimal impact on its uninspiring ROCE.

Simply Wall St -

With A Return On Equity Of 11%, Has Kansas City Southern's (NYSE:KSU) Management Done Well?

See our latest analysis for Kansas City Southern How Do I Calculate Return On Equity? … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Kansas City Southern: 11% = US$586m ÷ US$5.2b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Kansas City Southern's Debt And Its 11% ROE Although Kansas City Southern does use debt, its debt to equity ratio of 0.55 is still low.

Simply Wall St -

What You Must Know About Kansas City Southern's (NYSE:KSU) Financial Strength

See our latest analysis for Kansas City Southern KSU’s Debt (And Cash Flows) KSU's debt levels surged from US$2.6b to US$2.8b over the last 12 months , which includes long-term debt. … With this growth in debt, the current cash and short-term investment levels stands at US$93m , ready to be used for running the business. … Next Steps: KSU’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

Why Kansas City Southern's (NYSE:KSU) High P/E Ratio Isn't Necessarily A Bad Thing

Looking at earnings over the last twelve months, Kansas City Southern has a P/E ratio of 21.4. … How Do I Calculate Kansas City Southern's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Want To Invest In Kansas City Southern (NYSE:KSU) Today? Read This First

Kansas City Southern (NYSE:KSU) is considered a high growth stock. … View our latest analysis for Kansas City Southern? … Analysts are predicting good growth prospects for Kansas City Southern over the next couple of years

Simply Wall St -

Should Kansas City Southern (NYSE:KSU) Be Part Of Your Dividend Portfolio?

Is Kansas City Southern (NYSE:KSU) a good dividend stock? … Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … With a 1.2% yield and a seven-year payment history, investors probably think Kansas City Southern looks like a reliable dividend stock.

Simply Wall St -

Is Kansas City Southern's (NYSE:KSU) CEO Salary Justified?

Pat Ottensmeyer became the CEO of Kansas City Southern (NYSE:KSU) in 2016. … Check out our latest analysis for Kansas City Southern? … Our data indicates that Kansas City Southern is worth US$12b, and total annual CEO compensation is US$5.5m.

Simply Wall St -

Who Has Been Selling Kansas City Southern (NYSE:KSU) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Kansas City Southern (NYSE:KSU). … Kansas City Southern Insider Transactions Over The Last Year. … In total, Kansas City Southern insiders sold more than they bought over the last year.

Simply Wall St -

Will Kansas City Southern's (NYSE:KSU) Earnings Grow In The Years Ahead?

In December 2018, Kansas City Southern (NYSE:KSU) announced its most recent earnings update, whicha

Simply Wall St -

The Kansas City Southern Share Price Is Up 28% And Shareholders Are Holding On

For example, the Kansas City Southern (NYSE:KSU) share price return of 28% over three years lags the market return in the same period. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Kansas City Southern was able to grow its EPS at 12% per year over three years, sending the share price higher.

Simply Wall St -

Company Info

Description

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. 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.

Details
Name: Kansas City Southern
KSU
Exchange: NYSE
Founded: 1887
$11,759,626,053
100,586,999
Website: http://www.kcsouthern.com
Address: Kansas City Southern
427 West 12th Street,
Kansas City,
Missouri, 64105,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE KSU Common Stock New York Stock Exchange US USD 02. Mar 1964
DB KCY Common Stock Deutsche Boerse AG DE EUR 02. Mar 1964
LSE 0JQ4 Common Stock London Stock Exchange GB USD 02. Mar 1964
BMV KSU * Common Stock Bolsa Mexicana de Valores MX MXN 02. Mar 1964
NYSE KSU.PR PFD 4% New York Stock Exchange US USD 14. Dec 1972
Number of employees
Current staff
Staff numbers
7,200
Kansas City Southern employees.
Industry
Railroads
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 23:39
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/13
Last earnings filing: 2019/04/17
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.