Kansas Story

KSU -  USA Stock  

USD 305.22  8.91  3.01%

Kansas City Cash and Equivalents Turnover is comparatively stable at the moment as compared to the past year. Kansas City reported Cash and Equivalents Turnover of 15.58 in 2020. Return on Investment is likely to gain to 14.58 in 2021, whereas Average Assets are likely to drop slightly above 9.9 B in 2021. This short post will review Kansas City as a possible investment alternative for your portfolios. We will provide a perspective on Kansas City future direction.
Published over two weeks ago
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Are Kansas (NYSE:KSU) private investors starting to hold back?
Kansas City Southern has a beta of 1.1646. Let's try to break down what Kansas's beta means in this case. Kansas City returns are very sensitive to returns on the market. As the market goes up or down, Kansas City is expected to follow. The beta indicator helps investors understand whether Kansas City moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Kansas deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Kansas City Southern. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Kansas City

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Kansas City's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Kansas City in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Kansas City. Your research has to be compared to or analyzed against Kansas City's peers to derive any actionable benefits. When done correctly, Kansas City's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Kansas City Southern.

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

Another Deeper Perspective

The newest gain in Kansas City Southern short term price appreciation may raise some interest from private investors. The stock closed today at a share price of 260.15 on 1,608,543 in trading volume. The company executives have successfully maneuvered the firm at convenient times to take advantage of all market conditions in March. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.26. The current volatility is consistent with the ongoing market swings in March 2021 as well as with Kansas City Southern unsystematic, company-specific events.

Returns Breakdown

Return on Investment14.58
Return on Assets0.0671
Return on Equity0.15
Return Capital0.0865
Return on Sales0.38

Will Kansas pull back in May 2021?

Newest Sortino Ratio is up to 0.09. Price may drop again.
As of the 16th of April 2021, Kansas City secures the Risk Adjusted Performance of 0.1244, mean deviation of 1.43, and Downside Deviation of 1.65. 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 are able to interpolate and collect 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 260.15 per share. Given that Kansas City Southern has jensen alpha of 0.1193, 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 Bottom Line On Kansas City Southern

Whereas other companies 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. The inconsistency in the assessment between current Kansas valuation and our trade advice on Kansas City is due to the recent market swings and your selection of investing horizon. 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 Gabriel Shpitalnik do not own shares of Kansas City Southern. Please refer to our Terms of Use for any information regarding our disclosure principles.

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