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Kansas City Southern (KSU) Stock Fundamental Analysis

NYSE:KSU - New York Stock Exchange, Inc. - Common Stock

293.59  -5.05 (-1.69%)

After market: 293.35 -0.24 (-0.08%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to KSU. KSU was compared to 39 industry peers in the Ground Transportation industry. KSU may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, KSU is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

KSU had positive earnings in the past year.
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 2015 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 2015 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 2015 2016 2017 2018 2019 2020 20 40 60

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2

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.
KSU Yearly Shares OutstandingKSU Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 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 2015 2016 2017 2018 2019 2020 1B 2B 3B 4B

2.3 Liquidity

KSU has a Current Ratio of 0.72. This is a bad value and indicates that KSU is not financially healthy enough and could expect problems in meeting its short term obligations.
KSU has a Quick Ratio of 0.72. This is a bad value and indicates that KSU is not financially healthy enough and could expect problems in meeting 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 2015 2016 2017 2018 2019 2020 200M 400M 600M 800M

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6

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.
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

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

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.
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.
KSU Yearly Revenue VS EstimatesKSU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10

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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 valuation a bit more expensive than the S&P500 average which is at 29.62.
With a Price/Forward Earnings ratio of 29.84, KSU can be considered very expensive at the moment.
KSU's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.70.
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 10 20 30

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 KSU does not grow enough to justify the current Price/Earnings ratio.
KSU's earnings are expected to grow with 16.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.02
PEG (5Y)4.09
EPS Next 2Y18.89%
EPS Next 3Y16.48%

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1

5. Dividend

5.1 Amount

KSU has a yearly dividend return of 0.72%, which is pretty low.
With a Dividend Yield of 0.72, KSU pays less dividend than the S&P500 average, which is at 2.27.
Industry RankSector 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
KSU Yearly Dividends per shareKSU Yearly Dividends per shareYearly Dividends per share 2015 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 2015 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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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 N/A
Earnings (Next)01-21 2022-01-21
Inst Owners0%
Inst Owner Change0%
Ins Owners1.21%
Ins Owner Change0%
Market Cap26.83B
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
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
ROICexcg growth 3Y0%
ROICexcg 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