Kansas City is FAIRLY VALUED at 204.82 per share with modest projections ahead. Macroaxis provides trade recommendations on Kansas City Southern to complement and cross-verify current
on Kansas City. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
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. Financial leverage can amplify the potential profits to Kansas City's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Kansas City's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Kansas City's total debt and its cash.
Earning per share calculations of the firm is based on official Zacks consensus of 7 analysts regarding Kansas City's future annual earnings. Given the historical accuracy of 95.3%, the future earnings per share of the company is estimated to be 7.0137 with the lowest and highest values of 6.95 and 7.1, respectively. Please note that this consensus of annual earnings estimates for Kansas City Southern is an estimate of EPS before non-recurring items and including employee stock options expenses.
Is Kansas a risky opportunity?
Let's check the volatility. Kansas is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Kansas (NYSE:KSU) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Kansas City stock makes you a part-owner of that company.
Kansas City Southern Current Consensus
Here is the newest trade recommendation based on an ongoing consensus estimate among financial analysis covering Kansas City Southern. The Kansas consensus assessment is calculated by taking the average estimates from all of the analysts covering Kansas City
| Strong Buy | 6 | 40.0 |
| Buy | 0 | 0.0 |
| Hold | 9 | 60.0 |
| Sell | 0 | 0.0 |
| Strong Sell | 0 | 0.0 |
Analysis of Kansas City Southern
Potential upside is down to 2.28. It may call for a possible volatility drop. As of the 21st of January, Kansas City secures the Downside Deviation of 1.34,
mean deviation of 0.9901, and Risk Adjusted Performance of 0.1678. Kansas City Southern
technical analysis lets you operate historical price patterns with an objective to determine a pattern that forecasts the direction of the firm's future prices. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to analyze nineteen
technical drivers for Kansas City, which can be compared to its peers in the industry. Please verify
Kansas City Southern standard deviation,
value at risk, as well as the
relationship between the Value At Risk and
kurtosis to decide if Kansas City Southern is priced some-what accurately, providing market reflects its recent price of 212.99 per share. Given that Kansas City Southern has
jensen alpha of 0.1214, we recommend you to check Kansas City's last-minute market performance to make sure the company can sustain itself at a future point.
Our Final Takeaway
Whereas other companies under the railroads industry are still a bit expensive, Kansas City may offer a potential longer-term growth to private investors. All things considered, as of the 21st of January 2021, we believe Kansas City is currently
fairly valued. It follows the market closely and projects
low odds of financial turmoil in the next two years. Our primary 30 days advice on the firm is
Strong Buy.
Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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 Raphi Shpitalnik do not own shares of Kansas City Southern. Please refer to our
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