Kansas Story

<div class='circular--portrait' style='background:#FF6600;color: #FFFAFA;font-size:4em;'>KC</div>
KSU -- USA Stock  

USD 184.46  2.16  1.18%

Kansas City Southern is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 16th of October 2020. Kansas City Net Current Assets as percentage of Total Assets are comparatively stable at the moment as compared to the past year. Kansas City reported Net Current Assets as percentage of Total Assets of 2.42 in 2019. Dividend Yield is likely to gain to 0.0123 in 2020, whereas Average Assets are likely to drop slightly above 9.5 B in 2020. As many baby boomers are still indifferent towards industrials space, it makes sense to review Kansas City Southern as a unique choice for millenniums.
Published over a week ago
View all stories for Kansas City | View All Stories
What is November outlook for Kansas (NYSE:KSU)?
Kansas City Southern has 3.84 B in debt with debt to equity (D/E) ratio of 0.81, which is OK given its current industry classification. The entity has a current ratio of 2.39, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.
Kansas City financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Kansas City, including all of Kansas City's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Kansas City assets, the company is considered highly leveraged. Understanding the composition and structure of overall Kansas City debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Kansas Total Liabilities

Kansas City Southern liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Kansas City Southern has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Kansas City balance sheet include debt obligations and money owed to different Kansas City vendors, workers, and loan providers. Below is the chart of Kansas short long-term liabilities accounts currently reported on its balance sheet.
You can use Kansas City Southern financial leverage analysis tool to get a better grip on understanding its financial position

How important is Kansas City's Liquidity

Kansas City financial leverage refers to using borrowed capital as a funding source to finance Kansas City Southern ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Kansas City financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Kansas City's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Kansas City, but it might be worth checking our own buy vs. sell analysis

Breaking down Kansas City Indicators

The firm reported the last year's revenue of 2.76 B. Total Income to common stockholders was 568.7 M with profit before taxes, overhead, and interest of 1.42 B.

Liabilities Breakdown

1.2 B
Tax Liabilities
Current Liabilities
4.3 B
Long-Term Liabilities
Total Liabilities4.87 Billion
Current Liabilities613.08 Million
Long-Term Liabilities4.25 Billion
Tax Liabilities1.16 Billion

Kansas City has 55 percent chance to drop below $180 in 30 days

The potential upside is down to 3.33 as of today. Kansas City Southern has relatively low volatility with skewness of 2.27 and kurtosis of 8.7. However, we advise all investors to independently investigate Kansas City Southern to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

The Bottom Line

Whereas some firms within the railroads industry are still a little expensive, even after the recent corrections, Kansas City may offer a potential longer-term growth to private investors. While some private investors may not share our view, we believe it may be a good time to increase your existing holdings in Kansas as the risk-reward trade off is appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Kansas City.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Kansas City Southern. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com