Kansas City Southern

Kansas City Southern is a holding company with domestic and international rail operations in North America. The company is engaged in the freight rail transportation business operating through a single coordinated rail network under one reportable business segment. The company's coordinated rail network comprises approximately 6,700 route miles extending from the midwest and southeast portions of the U.S. south into Mexico and connects with all other Class I railroads, providing shippers with an alternative to other railroad routes and giving direct access to Mexico and the southeast and southwest U.S. through alternate interchange hubs.
  • TickerKSU
  • ISINUS4851703029
  • ExchangeNew York Stock Exchange
  • SectorIndustrial Transportation
  • CountryUnited States

Analysts

ValuEngine Rating and Forecast Report for KSU

ValuEngine Rating and Forecast Report for KSU

ValuEngine Rating and Forecast Report for KSU

ValuEngine Rating and Forecast Report for KSU

ValuEngine Rating and Forecast Report for KSU

ValuEngine Rating and Forecast Report for KSU

Kansas City Southern: Update to credit analysis

Our credit view of KCS reflecting an attractive rail network, good profitability and robust credit metrics, as well as its exposure to potential changes in trade policies with Mexico.

ValuEngine Rating and Forecast Report for KSU

ValuEngine Rating and Forecast Report for KSU

Kansas City Southern: Update to credit analysis

Our credit view of KCS reflecting an attractive rail network, good profitability and robust credit metrics, as well as its exposure to potential changes in trade policies with Mexico.

Kansas City Southern - March 2019 (LTM): Peer Snapshot

Compares key performance metrics against industry peers.

Kansas City Southern - December 2018 (LTM): Peer Snapshot

Compares key performance metrics against industry peers.

Kansas City Southern - September 2018 (LTM): Peer Snapshot

Compares key performance metrics against industry peers.

Kansas City Southern - June 2018 (LTM): Peer Snapshot

Compares key performance metrics against industry peers.

Keith Schoonmaker

Morningstar | Kansas City Southern Joins Its Class I Peers in Adopting Precision Scheduled Railroading Principles

Kansas City Southern, after years of lagging profitability, is free cash flow positive and producing margins on par with the large Class I railroads. As recently as 2009, KCS' operating expenses exceeded 80% of sales, but in its annual results for 2018, the company attained an impressive 63.7% operating ratio. Such performance puts it in the company of Class I railroads with top lines several times larger than KCS', and we expect the improvement to continue. After years of being cash flow negative, the firm initiated a dividend on its common shares in early 2012 and received investment-grade c...

Keith Schoonmaker

Kansas City Southern Joins Its Class I Peers in Adopting Precision Scheduled Railroading Principles

Kansas City Southern improved its normalized first-quarter operating ratio a healthy 1.6 percentage points to 64.2% as it grew revenue 6% despite a 1% carload decline. Our key takeaways concern assertive implementation of precision scheduled railroading and healthy top-line conditions even with the carload decline. We expect no major change to our fair value estimate, and our wide moat rating stands.  Clearly the company has embraced precision scheduled railroading. On its earnings call, managem...

Valens Research

Valens Equity Insights and Inflections - 2019 05 29

SSNC currently trades above historical averages relative to UAFRS-based (Uniform) Earnings, with a 19.4x Uniform P/E. Even at these levels, the market is pricing in expectations for Uniform ROA to decline from 70% in 2018 to 24% in 2023, accompanied by 27% Uniform Asset growth going forward. However, analysts have less bearish expectations, projecting Uniform ROA to only decline to 57% by 2020, accompanied by 24% Uniform Asset growth. Meanwhile, management is confident in their focus on core margins, and new and existing business wins. Should SSNC just meet analyst expectations, as positive ma...

Valens Research

KSU - Embedded Expectations Analysis - 2019 05 22

Kansas City Southern (KSU:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 21.6x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management has concerns about revenue growth, their ability to seize business opportunities, and the business environment in Mexico. Specifically, management may lack confidence in their ability to sustain improvements in their operating ratio, cost reduction, and revenue growth. Furthermore, they may be concerned about yard congestion, the execution of the PSR program, and their abilit...

Keith Schoonmaker

Morningstar | Kansas City Southern Is Diving Deep Into Precision Scheduled Railroading

Kansas City Southern improved its normalized first-quarter operating ratio a healthy 1.6 percentage points to 64.2% as it grew revenue 6% despite a 1% carload decline. Our key takeaways concern assertive implementation of precision scheduled railroading and healthy top-line conditions even with the carload decline. We expect no major change to our fair value estimate, and our wide moat rating stands. Clearly the company has embraced precision scheduled railroading. On its earnings call, management gave the floor to its new EVP of PSR (a Canadian National veteran), who provided several early 2...

1 director sold after exercising options/sold

A director at Kansas City Southern sold after exercising options/sold 11,837 shares at 122.453USD and the significance rating of the trade was 80/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted unde...

ValuEngine Rating and Forecast Report for KSU

ValuEngine Rating and Forecast Report for KSU

ValuEngine Rating and Forecast Report for KSU

ValuEngine Rating and Forecast Report for KSU

ValuEngine Rating and Forecast Report for KSU

ValuEngine Rating and Forecast Report for KSU

ValuEngine Rating and Forecast Report for KSU

ValuEngine Rating and Forecast Report for KSU

ValuEngine Rating and Forecast Report for KSU

ValuEngine Rating and Forecast Report for KSU

Dave Nicoski ...
  • Ross LaDuke

Vermilion Compass: Weekly Equity Strategy

Caution warranted; Downgrading Materials We continue to believe that caution is warranted and we are concerned that key support levels we have been monitoring may not hold -- notably 2,800 and the 200-day MA on the S&P 500 and 4,125 and the 200-day MA on the equal-weighted S&P 500. Below we highlight several negative developments which increase the likelihood of a breakdown below these key S&P 500 support levels. • Cyclicals are deteriorating. We are downgrading Materials (XLB, RTM) to underweight -- reduce exposure and raise cash where possible. The Sector is succumbing to price and RS dete...

Dave Nicoski ...
  • Ross LaDuke

Vital Signs: Actionable charts

Key Points: • Communication and Media names continue to act well (ex. CHTR, CABO, CMCSA, and T) • The Consumer Discretionary Sector still has a number of leadership names (ex. PHM, JACK, CMG, AN, LAD, POOL, OLLI, LOW, and COST) • Low interest rates continue to aid the Staples and Utility Sectors (ex. SJM, TR, FLO, GIS, CPB, ETR, NEE, ES, and WEC)

Dave Nicoski ...
  • Ross LaDuke

Vermilion Compass: Weekly Equity Strategy

S&P 500 at multi-month highs Both the cap- and equal-weighted S&P 500 are trading at highs not seen since early October 2018 - a positive indication in itself. Additionally, key risk-on areas we highlighted in last week's Compass (small-caps, Financials/Banks, and Transports) have outperformed off the recent lows - a welcomed sight for risk sentiment. Our overall positive outlook remains intact, and below we highlight several observations which lead us to this conclusion. • 3M/10Y and 1Y/10Y no longer inverted. For now the 3M/10Y and 1Y/10Y yield curve inversions appear to have been a one-we...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Compass: Weekly Equity Strategy

Shifting to large-cap overweight Supporting our bullish outlook, the S&P 500's steady uptrend remains intact despite China opting to give the Trump administration the silent treatment, calling off high-level trade talks. Additionally, the large-cap (S&P 500) vs. small-cap (S&P 600) ratio is breaking out to multi-month highs; shift to an overweight of large-caps... see chart below. • Sector Relative Strength Rankings (RSRs). Health Care remains atop our rankings from both a cap- and equal-weighted perspective - stay overweight and continue to focus on outperforming medical device/equipment st...

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