Kansas City Southern (NYSE:KSU) has a beta of 1.10, a 12-month trailing P/E ratio of 45.07, and a growth ratio of 2.60. The stock’s Relative Strength Index (RSI) is 58.92, with weekly volatility at 1.02% and ATR at 4.73. The KSU stock’s 52-week price range has touched low of $140.01 and a $315.39 high. Its shares traded lower over the last trading session, losing -0.29% on 06/02/21. The shares fell to a low of $298.77 before closing at $299.60. Intraday shares traded counted 1.19 million, which was 25.95% higher than its 30-day average trading volume of 1.61M. KSU’s previous close was $300.47 while the outstanding shares total 90.76M.
Investors have identified the Railroads company Kansas City Southern as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $27.03 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Kansas City Southern (KSU) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For KSU, the company has in raw cash 259.9 million on their books with 6.5 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 723.3 million total, with 482.7 million as their total liabilities.
KSU were able to record 120.2 million as free cash flow during the 07/20/2021 quarter of the year, this saw their quarterly net cash flow reduce by 71.7 million. In cash movements, the company had a total of 226.2 million as operating cash flow.
Potential earnings growth for Kansas City Southern (KSU)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/20/2021 quarter of the year, Kansas City Southern recorded a total of 706.0 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -3.64% coming in sequential stages and their sales for the 07/20/2021 quarter increasing by 1.78%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 453.0 million trying to sell their products during the last quarter, with the result yielding a gross income of 253.0 million. This allows shareholders to hold on to 90.76M with the recently reported earning now reading 1.69 cents per share. This is a figure that compared to analyst’s prediction for their 07/20/2021 (1.91 cents a share).
Having a look at the company’s valuation, the company is expected to record 10.58 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on KSU sounds very interesting.
Is the stock of KSU attractive?
In related news, Sr. VP – Human Resources, Cheatum Lora S sold 1,519 shares of the company’s stock in a transaction that recorded on Nov 20. The sale was performed at an average price of 188.95, for a total value of 287,015. As the sale deal closes, the EVP & Chief Innovation Officer, Hancock Brian D. now sold 3,000 shares of the company’s stock, valued at 576,488. Also, Executive Vice President, ERDMAN WARREN K sold 3,036 shares of the company’s stock in a deal that was recorded on Nov 18. The shares were price at an average price of 189.28 per share, with a total market value of 574,647. Following this completion of acquisition, the EVP & Chief Marketing Officer, NAATZ MICHAEL J. now holds 5,355 shares of the company’s stock, valued at 1,013,353. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.50%.
5 out of 16 analysts covering the stock have rated it a Buy, while 10 have maintained a Hold recommendation on Kansas City Southern. 0 analysts has assigned a Sell rating on the KSU stock. The 12-month mean consensus price target for the company’s shares has been set at $280.80.