Kansas City SouthernStock Price and Value Analysis

Should you buy Kansas City Southern stock? (NYSE:KSU). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
None.
  • This company is less known than others.
  • This company is making money at a modest rate.
  • This stock looks overpriced.
  • This company has a low dividend yield.
  • This company has wild ups and downs.

KSU Free Cash Flow Trend

Based on historical returns, we believe that Kansas City Southern can grow its free cash at a rate of about 3%. That's positive!

Free Cash Flow trendline for KSU
Free Cash Flow trendline for Kansas City Southern

Inside the KSU Numbers

KSU Price
(Kansas City Southern stock price per share)
$111.74
[?] KSU Fair Price
(based on intrinsic value)
$104.58
[?] KSU Safety Price (based on a variable margin of safety) $62.75
[?] PE Ratio versus Sector 7% higher than other Services stocks
[?] PE Ratio versus Industry 32% higher than other Railroads stocks
[?] Cash Yield 9.08%
[?] Free Cash Flow Jitter 38%
[?] Dividend Yield 1%

Is Kansas City Southern Stock on Sale?

We believe that Kansas City Southern may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Kansas City Southern looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy KSU Stock?

Does Kansas City Southern have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.