CANADIAN PACIFIC KANSAS CITY (CP.CA) Stock Fundamental Analysis

TSX:CP • CA13646K1084

116.44 CAD
+0.44 (+0.38%)
Last: Feb 20, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Overall CP gets a fundamental rating of 4 out of 10. We evaluated CP against 6 industry peers in the Ground Transportation industry. CP has a medium profitability rating, but doesn't score so well on its financial health evaluation. CP is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • CP had positive earnings in the past year.
  • CP had a positive operating cash flow in the past year.
  • CP had positive earnings in each of the past 5 years.
  • Each year in the past 5 years CP had a positive operating cash flow.
CP.CA Yearly Net Income VS EBIT VS OCF VS FCFCP.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

1.2 Ratios

  • CP has a better Return On Assets (4.82%) than 66.67% of its industry peers.
  • CP has a worse Return On Equity (9.03%) than 66.67% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 5.45%, CP is doing worse than 66.67% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for CP is below the industry average of 7.09%.
  • The 3 year average ROIC (4.98%) for CP is below the current ROIC(5.45%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 4.82%
ROE 9.03%
ROIC 5.45%
ROA(3y)4.66%
ROA(5y)4.59%
ROE(3y)8.75%
ROE(5y)8.75%
ROIC(3y)4.98%
ROIC(5y)4.47%
CP.CA Yearly ROA, ROE, ROICCP.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • CP has a better Profit Margin (27.46%) than 100.00% of its industry peers.
  • In the last couple of years the Profit Margin of CP has declined.
  • Looking at the Operating Margin, with a value of 37.68%, CP belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
  • CP's Operating Margin has declined in the last couple of years.
  • CP has a Gross Margin of 85.38%. This is amongst the best in the industry. CP outperforms 100.00% of its industry peers.
  • In the last couple of years the Gross Margin of CP has remained more or less at the same level.
Industry RankSector Rank
OM 37.68%
PM (TTM) 27.46%
GM 85.38%
OM growth 3Y-0.13%
OM growth 5Y-2.61%
PM growth 3Y-11.71%
PM growth 5Y-2.83%
GM growth 3Y1.7%
GM growth 5Y-0.77%
CP.CA Yearly Profit, Operating, Gross MarginsCP.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CP is destroying value.
  • CP has less shares outstanding than it did 1 year ago.
  • CP has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for CP is higher compared to a year ago.
CP.CA Yearly Shares OutstandingCP.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
CP.CA Yearly Total Debt VS Total AssetsCP.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B

2.2 Solvency

  • CP has an Altman-Z score of 2.23. This is not the best score and indicates that CP is in the grey zone with still only limited risk for bankruptcy at the moment.
  • CP has a Altman-Z score of 2.23. This is in the better half of the industry: CP outperforms 66.67% of its industry peers.
  • CP has a debt to FCF ratio of 10.69. This is a negative value and a sign of low solvency as CP would need 10.69 years to pay back of all of its debts.
  • With a Debt to FCF ratio value of 10.69, CP is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
  • A Debt/Equity ratio of 0.43 indicates that CP is not too dependend on debt financing.
  • CP has a Debt to Equity ratio of 0.43. This is in the better half of the industry: CP outperforms 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 10.69
Altman-Z 2.23
ROIC/WACC0.57
WACC9.61%
CP.CA Yearly LT Debt VS Equity VS FCFCP.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.3 Liquidity

  • A Current Ratio of 0.49 indicates that CP may have some problems paying its short term obligations.
  • The Current ratio of CP (0.49) is worse than 66.67% of its industry peers.
  • A Quick Ratio of 0.41 indicates that CP may have some problems paying its short term obligations.
  • The Quick ratio of CP (0.41) is worse than 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 0.49
Quick Ratio 0.41
CP.CA Yearly Current Assets VS Current LiabilitesCP.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 8.22% over the past year.
  • Measured over the past 5 years, CP shows a small growth in Earnings Per Share. The EPS has been growing by 5.46% on average per year.
  • Looking at the last year, CP shows a small growth in Revenue. The Revenue has grown by 3.66% in the last year.
  • Measured over the past years, CP shows a quite strong growth in Revenue. The Revenue has been growing by 14.36% on average per year.
EPS 1Y (TTM)8.22%
EPS 3Y7.32%
EPS 5Y5.46%
EPS Q2Q%3.1%
Revenue 1Y (TTM)3.66%
Revenue growth 3Y19.6%
Revenue growth 5Y14.36%
Sales Q2Q%1.26%

3.2 Future

  • CP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.59% yearly.
  • The Revenue is expected to grow by 5.85% on average over the next years.
EPS Next Y17.95%
EPS Next 2Y15.45%
EPS Next 3Y15.46%
EPS Next 5Y21.59%
Revenue Next Year6.27%
Revenue Next 2Y6.6%
Revenue Next 3Y6.92%
Revenue Next 5Y5.85%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
CP.CA Yearly Revenue VS EstimatesCP.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5B 10B 15B
CP.CA Yearly EPS VS EstimatesCP.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 5 10

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2

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 25.26, CP can be considered very expensive at the moment.
  • CP's Price/Earnings ratio is in line with the industry average.
  • CP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 21.42 indicates a rather expensive valuation of CP.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CP is on the same level as its industry peers.
  • CP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.06.
Industry RankSector Rank
PE 25.26
Fwd PE 21.42
CP.CA Price Earnings VS Forward Price EarningsCP.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CP indicates a slightly more expensive valuation: CP is more expensive than 66.67% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CP indicates a slightly more expensive valuation: CP is more expensive than 66.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 48.19
EV/EBITDA 16.51
CP.CA Per share dataCP.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

  • CP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of CP may justify a higher PE ratio.
  • CP's earnings are expected to grow with 15.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.41
PEG (5Y)4.63
EPS Next 2Y15.45%
EPS Next 3Y15.46%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. Dividend

5.1 Amount

  • CP has a yearly dividend return of 0.80%, which is pretty low.
  • Compared to an average industry Dividend Yield of 1.70, CP has a dividend in line with its industry peers.
  • With a Dividend Yield of 0.80, CP pays less dividend than the S&P500 average, which is at 1.85.
Industry RankSector Rank
Dividend Yield 0.8%

5.2 History

  • The dividend of CP has a limited annual growth rate of 4.71%.
  • CP has paid a dividend for at least 10 years, which is a reliable track record.
  • The dividend of CP decreased recently.
Dividend Growth(5Y)4.71%
Div Incr Years0
Div Non Decr Years1
CP.CA Yearly Dividends per shareCP.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • CP pays out 19.22% of its income as dividend. This is a sustainable payout ratio.
  • CP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP19.22%
EPS Next 2Y15.45%
EPS Next 3Y15.46%
CP.CA Yearly Income VS Free CF VS DividendCP.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
CP.CA Dividend Payout.CP.CA Dividend Payout, showing the Payout Ratio.CP.CA Dividend Payout.PayoutRetained Earnings

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CANADIAN PACIFIC KANSAS CITY

TSX:CP (2/20/2026, 7:00:00 PM)

116.44

+0.44 (+0.38%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)01-28
Earnings (Next)04-28
Inst Owners75.74%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap104.53B
Revenue(TTM)15.08B
Net Income(TTM)4.14B
Analysts82.86
Price Target124.97 (7.33%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.8%
Yearly Dividend0.87
Dividend Growth(5Y)4.71%
DP19.22%
Div Incr Years0
Div Non Decr Years1
Ex-Date03-27
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.35%
Min EPS beat(2)-4.7%
Max EPS beat(2)-4%
EPS beat(4)0
Avg EPS beat(4)-3.43%
Min EPS beat(4)-4.7%
Max EPS beat(4)-1.24%
EPS beat(8)2
Avg EPS beat(8)-2.32%
EPS beat(12)3
Avg EPS beat(12)-3.19%
EPS beat(16)4
Avg EPS beat(16)-3.1%
Revenue beat(2)0
Avg Revenue beat(2)-3.82%
Min Revenue beat(2)-3.97%
Max Revenue beat(2)-3.68%
Revenue beat(4)0
Avg Revenue beat(4)-3.75%
Min Revenue beat(4)-5.44%
Max Revenue beat(4)-1.89%
Revenue beat(8)0
Avg Revenue beat(8)-3.53%
Revenue beat(12)0
Avg Revenue beat(12)-3.78%
Revenue beat(16)0
Avg Revenue beat(16)-3.84%
PT rev (1m)-0.62%
PT rev (3m)0.26%
EPS NQ rev (1m)-4.38%
EPS NQ rev (3m)-5.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.23%
Revenue NQ rev (1m)-3.56%
Revenue NQ rev (3m)-3.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
Industry RankSector Rank
PE 25.26
Fwd PE 21.42
P/S 6.93
P/FCF 48.19
P/OCF 19.69
P/B 2.28
P/tB 4.26
EV/EBITDA 16.51
EPS(TTM)4.61
EY3.96%
EPS(NY)5.44
Fwd EY4.67%
FCF(TTM)2.42
FCFY2.08%
OCF(TTM)5.91
OCFY5.08%
SpS16.8
BVpS51.11
TBVpS27.33
PEG (NY)1.41
PEG (5Y)4.63
Graham Number72.81
Profitability
Industry RankSector Rank
ROA 4.82%
ROE 9.03%
ROCE 7.11%
ROIC 5.45%
ROICexc 5.46%
ROICexgc 7.45%
OM 37.68%
PM (TTM) 27.46%
GM 85.38%
FCFM 14.39%
ROA(3y)4.66%
ROA(5y)4.59%
ROE(3y)8.75%
ROE(5y)8.75%
ROIC(3y)4.98%
ROIC(5y)4.47%
ROICexc(3y)5.01%
ROICexc(5y)4.49%
ROICexgc(3y)6.88%
ROICexgc(5y)5.62%
ROCE(3y)6.57%
ROCE(5y)5.87%
ROICexgc growth 3Y26.52%
ROICexgc growth 5Y-8.99%
ROICexc growth 3Y14.26%
ROICexc growth 5Y-14.19%
OM growth 3Y-0.13%
OM growth 5Y-2.61%
PM growth 3Y-11.71%
PM growth 5Y-2.83%
GM growth 3Y1.7%
GM growth 5Y-0.77%
F-Score7
Asset Turnover0.18
Health
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 10.69
Debt/EBITDA 2.59
Cap/Depr 155.52%
Cap/Sales 20.83%
Interest Coverage 6.58
Cash Conversion 68.94%
Profit Quality 52.38%
Current Ratio 0.49
Quick Ratio 0.41
Altman-Z 2.23
F-Score7
WACC9.61%
ROIC/WACC0.57
Cap/Depr(3y)156.06%
Cap/Depr(5y)167.92%
Cap/Sales(3y)20.14%
Cap/Sales(5y)19.45%
Profit Quality(3y)52.93%
Profit Quality(5y)61.58%
High Growth Momentum
Growth
EPS 1Y (TTM)8.22%
EPS 3Y7.32%
EPS 5Y5.46%
EPS Q2Q%3.1%
EPS Next Y17.95%
EPS Next 2Y15.45%
EPS Next 3Y15.46%
EPS Next 5Y21.59%
Revenue 1Y (TTM)3.66%
Revenue growth 3Y19.6%
Revenue growth 5Y14.36%
Sales Q2Q%1.26%
Revenue Next Year6.27%
Revenue Next 2Y6.6%
Revenue Next 3Y6.92%
Revenue Next 5Y5.85%
EBIT growth 1Y7.31%
EBIT growth 3Y19.44%
EBIT growth 5Y11.37%
EBIT Next Year41.11%
EBIT Next 3Y18.47%
EBIT Next 5Y14.22%
FCF growth 1Y-9.85%
FCF growth 3Y-5.68%
FCF growth 5Y13.91%
OCF growth 1Y0.76%
OCF growth 3Y8.63%
OCF growth 5Y13.63%

CANADIAN PACIFIC KANSAS CITY / CP.CA FAQ

Can you provide the ChartMill fundamental rating for CANADIAN PACIFIC KANSAS CITY?

ChartMill assigns a fundamental rating of 4 / 10 to CP.CA.


What is the valuation status of CANADIAN PACIFIC KANSAS CITY (CP.CA) stock?

ChartMill assigns a valuation rating of 2 / 10 to CANADIAN PACIFIC KANSAS CITY (CP.CA). This can be considered as Overvalued.


What is the profitability of CP stock?

CANADIAN PACIFIC KANSAS CITY (CP.CA) has a profitability rating of 6 / 10.


What are the PE and PB ratios of CANADIAN PACIFIC KANSAS CITY (CP.CA) stock?

The Price/Earnings (PE) ratio for CANADIAN PACIFIC KANSAS CITY (CP.CA) is 25.26 and the Price/Book (PB) ratio is 2.28.


Can you provide the financial health for CP stock?

The financial health rating of CANADIAN PACIFIC KANSAS CITY (CP.CA) is 2 / 10.