Kansas City Southern (KSU) Fundamental Analysis & Valuation

NYSE:KSU

293.59
-5.05 (-1.69%)
At close: Dec 13, 2021
293.35
-0.24 (-0.08%)
After Hours: 12/13/2021, 8:43:27 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This KSU fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to KSU. KSU was compared to 42 industry peers in the Ground Transportation industry. Both the profitability and financial health of KSU have multiple concerns. While showing a medium growth rate, KSU is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

0

1. KSU Profitability Analysis

1.1 Basic Checks

  • In the past year KSU was profitable.
KSU Yearly Net Income VS EBIT VS OCF VS FCFKSU Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 200M 400M 600M 800M 1B

1.2 Ratios

Industry RankSector 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
KSU Yearly ROA, ROE, ROICKSU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 5 10 15 20

1.3 Margins

Industry RankSector 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
KSU Yearly Profit, Operating, Gross MarginsKSU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 20 40 60

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2

2. KSU Health Analysis

2.1 Basic Checks

  • Compared to 1 year ago, KSU has less shares outstanding
  • KSU has a worse debt/assets ratio than last year.
KSU Yearly Shares OutstandingKSU Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 20M 40M 60M 80M 100M
KSU Yearly Total Debt VS Total AssetsKSU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2B 4B 6B 8B

2.2 Solvency

  • KSU has an Altman-Z score of 3.15. This indicates that KSU is financially healthy and has little risk of bankruptcy at the moment.
  • KSU has a Debt/Equity ratio of 0.97. This is a neutral value indicating KSU is somewhat dependend on debt financing.
Industry RankSector Rank
Debt/Equity 0.97
Debt/FCF N/A
Altman-Z 3.15
ROIC/WACCN/A
WACCN/A
KSU Yearly LT Debt VS Equity VS FCFKSU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 1B 2B 3B 4B

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 RankSector Rank
Current Ratio 0.72
Quick Ratio 0.62
KSU Yearly Current Assets VS Current LiabilitesKSU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 200M 400M 600M 800M

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6

3. KSU Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 14.37% over the past year.
  • Measured over the past years, KSU shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.11% on average per year.
  • KSU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.40%.
  • Measured over the past years, KSU shows a small growth in Revenue. The Revenue has been growing by 1.71% on average per year.
EPS 1Y (TTM)14.37%
EPS 3Y9.99%
EPS 5Y9.11%
EPS Q2Q%3.06%
Revenue 1Y (TTM)8.4%
Revenue growth 3Y0.64%
Revenue growth 5Y1.71%
Sales Q2Q%12.8%

3.2 Future

  • The Earnings Per Share is expected to grow by 15.89% on average over the next years. This is quite good.
  • KSU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.31% yearly.
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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
KSU Yearly Revenue VS EstimatesKSU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
KSU Yearly EPS VS EstimatesKSU Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10

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0

4. KSU Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 37.26, KSU can be considered very expensive at the moment.
  • KSU is valuated rather expensively when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 29.84 indicates a quite expensive valuation of KSU.
  • KSU's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.60.
Industry RankSector Rank
PE 37.26
Fwd PE 29.84
KSU Price Earnings VS Forward Price EarningsKSU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 20.23
KSU Per share dataKSU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • 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%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

1

5. KSU Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.72%, KSU is not a good candidate for dividend investing.
  • Compared to an average S&P500 Dividend Yield of 1.82, KSU's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.72%

5.2 History

  • The dividend of KSU decreases each year by -1.38%.
  • KSU has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-1.38%
Div Incr YearsN/A
Div Non Decr YearsN/A
KSU Yearly Dividends per shareKSU Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 0.5 1 1.5 2

5.3 Sustainability

  • KSU pays out 182.57% of its income as dividend. This is not a sustainable payout ratio.
DP182.57%
EPS Next 2Y18.89%
EPS Next 3Y16.48%
KSU Yearly Income VS Free CF VS DividendKSU Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 200M 400M 600M 800M
KSU Dividend Payout.KSU Dividend Payout, showing the Payout Ratio.KSU Dividend Payout.PayoutRetained Earnings

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KSU Fundamentals: All Metrics, Ratios and Statistics

Kansas City Southern

NYSE:KSU (12/13/2021, 8:43:27 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)N/A
Earnings (Next)01-21
Inst Owners0%
Inst Owner Change0%
Ins Owners1.21%
Ins Owner Change0%
Market Cap26.83B
Revenue(TTM)2.89B
Net Income(TTM)96.40M
Analysts65.88
Price Target301.84 (2.81%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.72%
Yearly Dividend1.64
Dividend Growth(5Y)-1.38%
DP182.57%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 37.26
Fwd PE 29.84
P/S 9.27
P/FCF N/A
P/OCF N/A
P/B 6.87
P/tB N/A
EV/EBITDA 20.23
EPS(TTM)7.88
EY2.68%
EPS(NY)9.84
Fwd EY3.35%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS31.66
BVpS42.74
TBVpSN/A
PEG (NY)2.02
PEG (5Y)4.09
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 0.91%
ROE 2.47%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM 38.91%
PM (TTM) 3.33%
GM N/A
FCFM 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
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y0%
ROICexgc growth 5Y0%
ROICexc growth 3YN/A
ROICexc growth 5YN/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
F-Score6
Asset Turnover0.27
Health
Industry RankSector Rank
Debt/Equity 0.97
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.72
Quick Ratio 0.62
Altman-Z 3.15
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.37%
EPS 3Y9.99%
EPS 5Y9.11%
EPS Q2Q%3.06%
EPS Next Y18.4%
EPS Next 2Y18.89%
EPS Next 3Y16.48%
EPS Next 5Y15.89%
Revenue 1Y (TTM)8.4%
Revenue growth 3Y0.64%
Revenue growth 5Y1.71%
Sales Q2Q%12.8%
Revenue Next Year12.27%
Revenue Next 2Y10.75%
Revenue Next 3Y9.13%
Revenue Next 5Y8.31%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A

Kansas City Southern / KSU FAQ

Can you provide the ChartMill fundamental rating for Kansas City Southern?

ChartMill assigns a fundamental rating of 3 / 10 to KSU.


Can you provide the valuation status for Kansas City Southern?

ChartMill assigns a valuation rating of 0 / 10 to Kansas City Southern (KSU). This can be considered as Overvalued.


Can you provide the profitability details for Kansas City Southern?

Kansas City Southern (KSU) has a profitability rating of 1 / 10.


What is the expected EPS growth for Kansas City Southern (KSU) stock?

The Earnings per Share (EPS) of Kansas City Southern (KSU) is expected to grow by 18.4% in the next year.


Can you provide the dividend sustainability for KSU stock?

The dividend rating of Kansas City Southern (KSU) is 2 / 10 and the dividend payout ratio is 182.57%.