There are no safe havens in the stock market. Every stock carries risk. But some less than others. This column features stocks that have shown one or more of the following characteristics: less volatility, better earnings, larger market caps, safe and increasing dividends. In these times of turmoil, our goal is to show readers better opportunities for investing with fewer risks.

September 8, 2009 - Burlington Northern, Santa Fe Corp. (BNI-NYSE) through its subsidiaries, engages in the freight rail transportation business. It transports various consumer products, which include motor vehicles and vehicle parts; and industrial products comprising construction, building, petroleum, chemicals and plastic, and food and beverages, as well as cotton, salt, rubber and tires, and miscellaneous boxcar shipments.

As of December 31, 2008, Burlington Northern Santa Fe operated a railroad system consisting of approximately 32,000 route miles in 28 states and 2 Canadian provinces. The company was founded in 1994 and is based in Fort Worth, Texas.

Burlington Northern has been on an uphill track for much of 2009. Earnings and revenues are down. It's another victim of the economic cycle. Since a good portion of revenues comes from manufacturing, including the auto makers, it's not exempt from the reality of the times. Having said that, this is a strong company that will definitely benefit when the economy recovers, and manufacturing is pumping out products again.

Earnings for 2009 will most likely by $4.97, well below the $6.34 in 2008. For 2010, analysts see a rebound to $5.57. The next quarterly report will be announced on October 22 with expectations of $1.28 compared to the $1.91 of the third period last year. For the fourth quarter, 17 analysts have a consensus estimate of $1.38, down from $1.79 last year in the same quarter. During the first half of 2009, earnings decreased by 13%.

On the plus side is the increase in margins, helped by lower fuel and compensation costs which widened operating margins. Noticeably lower prices for oil and gas reduced fuel costs. Lower incentive expenses and fewer employees also contributed. Even though fuel costs have been rising of late, BNI uses a hedging program to offset them. Operating expenses are about 11% lower at this time than they were a year ago, thanks to strong cost containment.

The stock price hit its low in March of this year, trading at $50.86. Since then, it's gone only higher, touching $86 recently. Last year, the stock got to $110.04, an all time high, before sliding to its March low. Since 2004, the price has steadily increased, going from a low of $29.50 to the $110 mark.

More numbers: Trailing P/E is 14.42 while the Forward P/E is 15.12. Price to sales is 1.75. Price to book is 2.37. Operating margin for the last 12 months was 23.71% while Profit margin was 12.53%. Return on equity was 17.31%. Total cash is $484 million making $1.43 in cash per share. Total debt is $9.84 billion or 45% of capital. Current ratio is .75. Book value per share is $34.85. There are 340.02 million shares outstanding with a float of 338.77 million shares. Institutions own 79.4% of the stock. The dividend is $1.60 per year, up from $1.36 last year. The yield is 1.6%. Financial strength is A by Value Line.

Look into Burlington Northern if you think the economy is on the way to recovery. Even though the stock has moved up 60% since the March lows, if the economy shows better activity, analysts will certainly raise their earnings estimates. This is a stock that will definitely benefit when manufacturing revives.

- Company Web site: www.bnsf.com

Ted Allrich