Kansas City Southern's average rating is Hold from 15 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Kansas City market sentiment investors' perception of the future value of Kansas. Let us look at a few aspects of Kansas technical analysis. The company has Net Profit Margin of
21.68 %, which may imply that it executes well on its competitive polices and has reasonable control over its expenses and variable costs. This is very large. In the same way, it shows Net Operating Margin of
52.34 %, which entails that for every 100 dollars of revenue, it generated 0.52 of operating income.
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. 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.
Closer look at Kansas City Semi Variance
Kansas City Southern has current Semi Variance of 0.91. Semi-variance provides a good measure of downside volatility for equity or a portfolio. It is similar to variance, but it only looks at periods where the returns are less than the target or average level.
Semi-variance is the square of semi-deviation. Semi-variance is calculated by averaging the deviations of returns that have a result that is less than the mean.
Semi Variance | = | SUM(RET DEV)2 N(ZERO) |
| = | 0.91 |
| SUM | = | Summation notation |
| RET DEV | = | Actual return deviation over selected period |
| N(ZERO) | = | Number of points with returns less than zero |
Let's now compare Kansas City Semi Variance to its closest peers:
| KSU | 0.9063853751337775 |
| CP | 1.46 |
| CSX | 1.46 |
| GBX | 10.0 |
| FSTR | 3.6 |
Over 3 percent gain for Kansas City. What does it mean for private investors?
Kansas City newest downside variance boosts over 1.62. Kansas City Southern has relatively low volatility with skewness of 0.02 and kurtosis of -0.13. 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.
Our Final Perspective on Kansas City
Whereas other companies under the railroads industry are still a bit expensive, Kansas City may offer a potential longer-term growth to private investors. With a relatively neutral outlook on the newest economy, it is better to hold off any trading of Kansas as the current risk-reward utility is not appealing enough. 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.
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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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