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Is Kansas City Southern(NYSE: KSU), a large market cap stock a smart buy?

With a market cap of has a large market cap size. Kansas City Southern (NYSE: KSU) has been on the stock market since its IPO date on the 11/5/1987. Kansas City Southern is in the Railroads industry and Services sector. Average volume for Kansas City Southern, is 1345.89, and so far today it has a volume of 304330. Performance year to date since the 11/5/1987 is 29.69%.

To help you determine whether Kansas City Southern is undervalued the following values will help you decide. P/E is 20.95 and forward P/E is 18.09. PEG perhaps more useful shows that Kansas City Southern has a value for PEG of 2.17. P/S ratio is 4.37 and the P/B ratio is 2.58. The P/Cash and P/Free cash flow is 35.17 and 92.6 respectively.

At the current price Kansas City Southern is trading at, 95.68 (-0.44% today), Kansas City Southern has a dividend yield of 1.37%, and this is covered by a payout ratio of 28.70%. Earnings per share (EPS) is 4.59, and this is looking to grow in the next year to 11.08% after growing -3.30% this past year. EPS growth quarter over quarter is 10.00%, and -3.00% for sales growth quarter over quarter.

The number of shares outstanding is 107.43, and the number of shares float is 106.53. The senior management bring insider ownership to 0.60%, and institutional ownership is at 97.80%. The float short is 3.55%, with the short ratio at a value of 2.81. Management has seen a return on assets of 5.90%, and also a return on investment of 9.70%.

The ability for Kansas City Southern, to deal with debt, means it current ratio is 1.1, and quick ratio is 0.9. Long term debt/equity is 0.57 and total debt/equity is 0.64. In terms of margins, Kansas City Southern has a gross margin of 65.40%, with its operating margin at 35.50%, and Kansas City Southern has a profit margin of 21.10%.

The 52 week high is -3.99%, with 55.00% being its 52 week low. The 20 day simple moving average is 4.59% and the 200 day simple moving average is 12.85%.

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.


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Mark Hines

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