A Class I railroad delivers Total Shareholder Returns (TSR) of 13.5%-14.5% assuming a stable stock market. The assumptions are 3.5%-4% price increases, 2% volume increase tied to GNP growth and expense increases held to 3% or below. With these assumptions, EPS grows by 10-10.5%, a dividend adds 1.3%, and buybacks add another 2.5% or more because of their effect on EPS. The railroad’s stock sells at a P/E of 20+. Everyone is happy, and rightfully so.
Author: Gil Lamphere
In the late 1980s and early 1990s, a One-Trick Pony was foaled. His parents named him “PSR.” He had many attributes, so it was unfair that he was labeled a One-Trick Pony by his jealous detractors.
Memorandum To: CEOs, Boards of Directors, Institutional InvestorsBcc: All operating personnel, finance, marketing, HR, investor relationsFrom: Gil LamphereSubject: Intermodal – The Real Story “Attention class! Boys and girls! Sharpen your pencils. Today you take a test. It may
The recent spate of accidents involving humans and vehicles on Brightline’s tracks between West Palm Beach and Miami between November 2021 and February 2022 highlights two of the biggest obstacles facing Brightline’s success as a scheduled, reliable passenger railroad: The effectiveness of the dozens of grade crossing warning systems, and the easy, unimpeded accessibility of the tracks to large numbers of the population.