Kansas City Southern Stock Analysis, Valuation (NYSE:KSU)

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$108.28 $0 (0%) KSU stock closing price Jun 22, 2018 (Closing)

Investors can watch the Amigobulls Kansas City Southern stock analysis video here. Our analyst opinion covering the buy and sell arguments for KSU stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Kansas City Southern Stock Rating 3.2/5

Amigobulls KSU stock analysis takes into account various financial ratios like relative valuation, Kansas City Southern revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check Kansas City Southern dividend performance. Kansas City Southern valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Kansas City Southern stock rating is our opinion about the business fundamentals of the company.

Should you buy KSU stock?

  • Kansas City Southern's average operating margin of 35.59 was exceptional.
  • LTM Net margins were good at 36.7% for Kansas City Southern.
  • With a debt/equity ratio of 0.53, Kansas City Southern is comparatively less leveraged than its peers in the -sectordesc- sector.
  • Kansas City Southern generates a high return on invested capital of 8.3.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Kansas City Southern at 20.7.

Should you sell KSU stock?

  • Over the last 5 years, the company registered a poor revenue growth of 3.1.
  • The company is trading at a price to sales multiple of 4.3, which is overvalued in comparison to the Transportation sector average multiple of 1.6.

Comments on this video and Kansas City Southern stock

Investors can use Amigobulls Kansas City Southern stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

While doing a study of the company financials, Kansas City Southern revenue growth and profit or net income are two main metrics which help in identifying whether KSU stock is overvalued or undervalued. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.