Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Kansas City Southern's 5-Year RORE % for the quarter that ended in Sep. 2021 was 0.00%.
The industry rank for Kansas City Southern's 5-Year RORE % or its related term are showing as below:
KSU's 5-Year RORE % is not ranked *
in the Transportation industry.
Industry Median: 7.095 * Ranked among companies with meaningful 5-Year RORE % only.
Kansas City Southern 5-Year RORE % Historical Data
The historical data trend for Kansas City Southern's 5-Year RORE % 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.
Competitive Comparison of Kansas City Southern's 5-Year RORE %
For the Railroads subindustry, Kansas City Southern's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Kansas City Southern's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Kansas City Southern's 5-Year RORE % falls into.
Kansas City Southern 5-Year RORE % Calculation
Kansas City Southern's 5-Year RORE % for the quarter that ended in Sep. 2021 is calculated as:
* 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.
In the calculation of 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Sep. 2021 and 5-year before.
Kansas City Southern (NYSE:KSU) 5-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Kansas City Southern 5-Year RORE % Related Terms
Thank you for viewing the detailed overview of Kansas City Southern's 5-Year RORE % provided by GuruFocus.com. Please click on the following links to see related term pages.
Kansas City Southern (Kansas City Southern) Business Description
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.
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