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Kansas City Southern (NYSE: KSU) – Is this large market cap stock undervalued?

Kansas City Southern (NYSE: KSU), is firmly in the large market cap category with market cap of 10250.14. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Kansas City Southern is 93.36 (with a change from open of 0.69%), this in conjunction with a target price of 104.65. Volume today has so far reached 577802, with an average volume of about 1217.21. The GAP for this stock, is -0.94%.

The P/E ratio is 20.4, bringing the forward P/E to a value of 17.65. The current EPS for Kansas City Southern, is 4.59, with a EPS growth for this year coming to a value of -3.30%. Performance has been interesting with performance year to date coming to 26.73%.

Looking further into the growth statistics for Kansas City Southern, EPS is looking like it will grow 12.93% in the next year. Looking even further it is projected to be 9.19%. Quarter over quarter is 10.00% for EPS growth and for sales growth quarter over quarter it is -3.00%. Looking at past EPS growth statistics we see that for the past five years it has been 3.50%. Sales growth for the past five years has in fact been 5.90%.

Looking at the ownership, we see that the insider ownership is at 0.50% and institutional ownership is 92.00%. Shares outstanding is 109.51, while shares float is at a value of 106.51. Float short for Kansas City Southern is 3.36% and the short ratio is 2.94.

In terms of debt, long term debt/equity is 0.57, while the total debt/equity comes to 0.64. The ability to meet these debts, means that the current ratio is 1.1, and the quick ratio is 0.9. The most recent gross margin is 65.40% and their operating margin is 35.50%. The profit margin is 21.10%.

Kansas City Southern has seen returns on assets of 5.90%, and on investment, 9.70%. Return on equity is 12.70%. Price/Earnings to growth ratio is 2.22. Price/Sales ratio is at a value of 4.34, with Price/book ratio coming to 2.51 and Price/cash is 34.91, and finally Price/Free cash Flow is 91.93.

The simple moving averages are -1.45% and 6.61% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -6.96% and the 52 week low is 51.75%.

Kansas City Southern has a dividend yield of 1.41%, with a current price of 93.36. The ability to pay this means the payout ratio is 28.70%. This is in an industry, Railroads, with equally high dividends from other companies in this sector, which it is Services. Kansas City Southern is based in USA.

Performance in the Railroads industry means that Kansas City Southern has seen performance for the past week of 0.14%, with performance for the month coming to 1.57%. Looking at the data for the quarter it is at a value of -1.04%, and for the half year the performance is -1.16%. Volatility for this week is 2.06% and for the month this is 1.68%.

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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Tony Dabbs

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