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Is this Large Market Cap Stock target price reasonable for Kansas City Southern (NYSE:KSU)?

The company in question is, Kansas City Southern (NYSE:KSU) currently with a stock price of 94.55 (1.38% today). The market cap for Kansas City Southern is 10070.52, and is in the sector Services, and Railroads industry. The target price for Kansas City Southern is 103.17. Currently Kansas City Southern is trading with a P/E of 20.61, and a forward P/E of 17.88. Average volume for Kansas City Southern is 1199.54 and so far today it is 1613800.

Performance in the last year for Kansas City Southern has been -2.02%. For EPS growth, Kansas City Southern has seen a growth of -3.30%, and is looking to grow in the next year to 12.92%. More long term stats show that EPS growth has been 3.50% over the last five years and could be 9.19% for the next five years. Kansas City Southern has seen sales growth quarter over quarter at -3.00%, with EPS growth quarter over quarter at 10.00%. The 20-day simple moving average is -0.16%, with the 200-day simple moving average coming to 7.85%.

Since the IPO date for Kansas City Southern on the 11/5/1987, Kansas City Southern has seen performance year to date to be 28.02%. With Kansas City Southern trading at 94.55, the dividend yield is 1.40%, and the EPS is 4.59.

So could Kansas City Southern, be undervalued? Well as said before P/E is 20.61. The PEG is 2.24, P/S is 4.27 and the P/B is at 2.54. The P/cash is 34.3, with P/free cash flow at 90.32.

Kansas City Southern ability to deal with debt shows that the current ratio is 1.1, and the quick ratio is 0.9. This is with long term debt/equity at 0.57, and total debt/equity at 0.64.

In terms of margins, Kansas City Southern has a gross margin of 65.40%, an operating margin of 35.50% and a profit margin of 21.10%.Payout ratio for Kansas City Southern is 28.70%. Return on assets come to 5.90% with return on investment coming to 9.70%.

Insider ownership for Kansas City Southern, is at 0.50% and institutional ownership comes to 91.80%. Outstanding shares are at 106.51. While shares float is 106.34. The float short is currently 2.50%, and short ratio is 2.22.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Peter Clarke

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