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

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$109.86 $3.16 (2.96%) KSU stock closing price Mar 21, 2018 (Closing)
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Kansas City Southern
Updated on : Mar 21, 2018
previous close
KSU 106.7 (0%)
S&P 500 2716.9 (0%)
Closing Price On: Mar 20, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Sector :
5 Quarter Revenue
Revenue Growth
Compared to the industry
Operating Profit
Operating Margin:
Sector Average:
5 Quarter Net Profit
Net Margins
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
Net Income:
Dividend Yield
KSU dividend yield:
Operating Margins
Net Margins
FCF Margin
Cash Flow
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
Industry PS :
Sector:   Transportation.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
Return on Equity:
Free Cash Flow Margin:
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KSU Stock Analysis

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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 3.6/5

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 2017 Q4 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?

  • The TTM operating margin was good at 35.7% for Kansas City Southern.
  • Net margins came in at average 37.2% for Kansas City Southern over the last twelve months.
  • Kansas City Southern has an attractive ROIC (Return on Invested Capital) of 8.5%
  • Kansas City Southern has a good Return On Equity (ROE) of 21.2%.
  • The company has a healthy free cash flow margin of 24%.

Should you sell KSU stock?

  • Cash flow from operations is low at 0.5 times the net income.
  • The company is trading at a price to sales multiple of 4.4, which is overvalued in comparison to the Transportation-Rail industry average multiple of 1.4.

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.