Should you buy Kansas City Southern stock? (NYSE:KSU). Let's see how it does in our automated value investing analysis system.
Based on historical returns, we believe that Kansas City Southern can grow its free cash at a rate of about 3%. That's positive!
(Kansas City Southern stock price per share)
||KSU Fair Price
(based on intrinsic value)
||KSU Safety Price (based on a variable margin of safety)||$65.98|
||PE Ratio versus Sector||43% lower than other Industrial Goods stocks|
|PE Ratio versus Industry||30% lower than other Railroads stocks|
|Free Cash Flow Jitter||38%|
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.
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.
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