Revenue ton miles is the most critical key performance indicator for railroads. Revenue is generated when the system moves tonnage. Railroads experience strong gross margins and rarely take financial losses. Determining growth rates and setting discount rates is easier in this industry than in others. Thus, value is driven more by the income statement than the balance sheet.
There are six Class 1 Railways traded in the US market. If you look at each railway’s respective annual and quarterly filings, all of them report certain key performance indicators (KPIs).
Key Performance Indicators in the Railroad Industry Read More »
In yesterday’s post, I indicated that if Union Pacific’s share price drops to $156.79 that the fund would use its excess cash to purchase shares.
Railroad Fund – Update 02/27/2020 Purchased Union Pacific Read More »
I noticed that Union Pacific (I consider Union Pacific the highest quality stock within the six Class I railways of the railroad fund) is now at $165.00 even. A 17% drop is the requirement for me to buy; see my article: Union Pacific – Buy/Sell Model.
Railroad Fund – Update 02/26/2020 Coronavirus Impact Read More »
Volatility is necessary to create market fluctuations. Market fluctuations create price disparity for either intrinsic value (buy side of the buy low/sell high tenet of value investing) or price recovery, i.e. unsubstantiated high market prices for stock.
Railroad Fund – Update on 02/24/2020 Read More »
Every one of the six railroad stocks are at or above their all-time highs.
Railroad Stocks – Analysis 02/15/2020 Read More »
During the last 30 days, the fund held 13.52375 shares (original investment of $2,500) and sold them on 01/17/2020 at 9:40 AM when the price in the market hit the target under the value investment principle at $207.17.
Railroad Fund – Status on 01/31/2020 Read More »
It’s the end of the quarter and time to report on the railroad fund.
Railroad Fund – Status as of 12/31/19 Read More »
Union Pacific’s stock carries the highest price to book ratio among the six Class I Railways. It is about a 1.43 times factor over the next best price to book ratio of CSX at 4.73.
Union Pacific – Buy/Sell Model Read More »
Today is November 15, 2019 and Canadian Pacific Railroad recovered in accordance with my railroad fund investment model to $241.47 per share.
Canadian Pacific Railroad – Sold Stock at $241.47 Read More »
This is purely a historical record of the investment fund for railroad stocks based on the value investing concept developed using business ratios.
Railroad Fund – Status as of 11/06/19 Read More »
