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Kansas City Southern (Kansas City Southern) Earnings Yield (Joel Greenblatt) % : 1.28% (As of Sep. 2021)


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What is Kansas City Southern Earnings Yield (Joel Greenblatt) %?

Kansas City Southern's Enterprise Value for the quarter that ended in Sep. 2021 was $28,310 Mil. Kansas City Southern's EBIT for the trailing twelve months (TTM) ended in Sep. 2021 was $361 Mil. Kansas City Southern's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2021 was 1.28%.

The historical rank and industry rank for Kansas City Southern's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

KSU' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 1.12   Med: 6.02   Max: 8.09
Current: 1.2

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Kansas City Southern was 8.09%. The lowest was 1.12%. And the median was 6.02%.

KSU's Earnings Yield (Joel Greenblatt) % is not ranked
in the Transportation industry.
Industry Median: 6.95 vs KSU: 1.20

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Kansas City Southern's Forward Rate of Return (Yacktman) % for the quarter that ended in Sep. 2021 was 2.30%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Kansas City Southern Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Kansas City Southern's Earnings Yield (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Kansas City Southern Earnings Yield (Joel Greenblatt) % Chart

Kansas City Southern Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.51 7.14 7.95 4.95 4.32

Kansas City Southern Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Earnings Yield (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.59 4.32 3.56 1.30 1.28

Competitive Comparison of Kansas City Southern's Earnings Yield (Joel Greenblatt) %

For the Railroads subindustry, Kansas City Southern's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Kansas City Southern's Earnings Yield (Joel Greenblatt) % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Kansas City Southern's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Kansas City Southern's Earnings Yield (Joel Greenblatt) % falls into.



Kansas City Southern Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Kansas City Southerns Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2020 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=974.1/22569.844523
=4.32 %

Kansas City Southern's EBIT for the trailing twelve months (TTM) ended in Sep. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $361 Mil.



Kansas City Southern  (NYSE:KSU) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Kansas City Southern Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Kansas City Southern's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Kansas City Southern (Kansas City Southern) Business Description

Industry
Traded in Other Exchanges
N/A
Address
427 West 12th Street, Kansas City, MO, USA, 64105
Kansas City Southern, the smallest Class I railroad, derives about half of its $2.6 billion revenue on 3,400 miles of track in the Central and Southern United States. Remaining sales are produced by operating concessions on 3,300 miles of rail in Mexico and 47 miles of track adjacent to the Panama Canal. KCS' freight includes industrial and forest products (around 21% of total revenue), chemicals and petroleum (26%), agriculture and minerals (18%), intermodal (13%), energy (9%), and autos (9%); other revenue stems from switching, demurrage, and the like.
Executives
Warren K Erdman officer: Executive Vice President
Lora S Cheatum officer: Sr. VP - Human Resources KANSAS CITY SOUTHERN PO BOX 219335 KANSAS CITY MO 64121
Suzanne M Grafton officer: VP & Chief Accounting Officer 427 W 12TH STREET KANSAS CITY MO 64105
Del Cueto Cuevas Oscar Augusto officer: President & Exec Rep of Sub 427 W 12TH STREET KANSAS CITY MO 64105
Michael W Upchurch officer: EVP & Chief Financial Officer KANSAS CITY SOUTHERN, PO BOX 219335, KANSAS CITY MO 64121
Patrick J Ottensmeyer officer: President & CEO PO BOX 219335, KANSAS CITY MO 64121
Adam J Godderz officer: SVP Chief Legal Ofc & Corp Sec 427 W 12TH STREET KANSAS CITY MO 64105
Brian D. Hancock officer: EVP & Chief Innovation Officer KANSAS CITY SOUTHERN, PO BOX 219335, KANSAS CITY MO 64121
Michael J. Naatz officer: EVP & Chief Marketing Officer 10990 ROE AVE, OVERLAND PARK KS 66211
Thomas A Mcdonnell director C/O KANSAS CITY SOUTHERN, 427 W 12TH STREET, KANSAS CITY MO 64105
Garza Santos David F director AV. INDUSTRIALES DEL PONIENTE NO. 2300 SANTA CATARINA, N.L. O5 66350
Robert J Druten director 6503 SENECA ROAD, MISSION HILLS KS 66208
Jeffrey M Songer officer: EVP & COO KANSAS CITY SOUTHERN PO BOX 219335 KANSAS CITY MO 64121
Janet H Kennedy director KANSAS CITY SOUTHERN, PO BOX 219335, KANSAS CITY MO 64121
Lydia I Beebe director 13403 NORTHWEST FREEWAY, HOUSTON TX 77040

Kansas City Southern (Kansas City Southern) Headlines

From GuruFocus

Kansas City Southern (KSU) EVP & CFO Michael W Upchurch Sold $11.4 million of Shares

By GuruFocus Research GuruFocus Editor 10-23-2021