Kansas City Southern (KSU)
Common Stock
KSU gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 36 industry peers in the Ground Transportation industry. KSU may be in some trouble as it scores bad on both profitability and health. KSU is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year KSU was profitable.
1.2 Ratios
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | 2.47% | ||
| ROIC | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.91% | ||
| PM (TTM) | 3.33% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for KSU has been reduced compared to 1 year ago.
The debt/assets ratio for KSU is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.15 indicates that KSU is not in any danger for bankruptcy at the moment.
A Debt/Equity ratio of 0.97 indicates that KSU is somewhat dependend on debt financing.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.15 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.72 indicates that KSU may have some problems paying its short term obligations.
A Quick Ratio of 0.62 indicates that KSU may have some problems paying its short term obligations.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
KSU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.37%, which is quite good.
KSU shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.11% yearly.
The Revenue has grown by 8.40% in the past year. This is quite good.
KSU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.71% yearly.
EPS 1Y (TTM)14.37%
EPS 3Y9.99%
EPS 5Y9.11%
EPS growth Q2Q3.06%
Revenue 1Y (TTM)8.4%
Revenue growth 3Y0.64%
Revenue growth 5Y1.71%
Revenue growth Q2Q12.8%
3.2 Future
Based on estimates for the next years, KSU will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.89% on average per year.
Based on estimates for the next years, KSU will show a quite strong growth in Revenue. The Revenue will grow by 8.31% on average per year.
EPS Next Y18.4%
EPS Next 2Y18.89%
EPS Next 3Y16.48%
EPS Next 5Y15.89%
Revenue Next Year12.27%
Revenue Next 2Y10.75%
Revenue Next 3Y9.13%
Revenue Next 5Y8.31%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 37.26, KSU can be considered very expensive at the moment.
KSU's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.55.
With a Price/Forward Earnings ratio of 29.84, KSU can be considered very expensive at the moment.
The average S&P500 Price/Forward Earnings ratio is at 20.92. KSU is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.26 | ||
| Fwd PE | 29.84 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KSU does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as KSU's earnings are expected to grow with 16.48% in the coming years.
PEG (NY)2.02
PEG (5Y)4.09
EPS Next 2Y18.89%
EPS Next 3Y16.48%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, KSU is not a good candidate for dividend investing.
With a Dividend Yield of 0.72, KSU pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
The dividend of KSU decreases each year by -1.38%.
KSU has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-1.38%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
182.57% of the earnings are spent on dividend by KSU. This is not a sustainable payout ratio.
DP182.57%
EPS Next 2Y18.89%
EPS Next 3Y16.48%
Kansas City Southern
NYSE:KSU (12/13/2021, 7:43:27 PM)
After market: 293.35 -0.24 (-0.08%)293.59
-5.05 (-1.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap26.83B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.26 | ||
| Fwd PE | 29.84 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.02
PEG (5Y)4.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | 2.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 38.91% | ||
| PM (TTM) | 3.33% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)14.37%
EPS 3Y9.99%
EPS 5Y
EPS growth Q2Q
EPS Next Y18.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.4%
Revenue growth 3Y0.64%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y