CANADIAN PACIFIC KANSAS CITY (CP.CA) Stock Fundamental Analysis
Canada - TSX:CP - CA13646K1084 - Common Stock
104.86 CAD
-1.35 (-1.27%)
Overall CP gets a fundamental rating of 4 out of 10. We evaluated CP against 6 industry peers in the Ground Transportation industry. While CP is still in line with the averages on profitability rating, there are concerns on its financial health. CP is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CP was profitable.
CP had a positive operating cash flow in the past year.
In the past 5 years CP has always been profitable.
CP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CP's Return On Assets of 4.91% is fine compared to the rest of the industry. CP outperforms 66.67% of its industry peers.
The Return On Equity of CP (9.05%) is worse than 66.67% of its industry peers.
CP has a Return On Invested Capital of 5.25%. This is in the lower half of the industry: CP underperforms 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CP is below the industry average of 6.89%.
The 3 year average ROIC (4.45%) for CP is below the current ROIC(5.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.91% | ||
| ROE | 9.05% | ||
| ROIC | 5.25% |
ROA(3y)4.65%
ROA(5y)5.69%
ROE(3y)8.76%
ROE(5y)13.62%
ROIC(3y)4.45%
ROIC(5y)5.79%
1.3 Margins
CP's Profit Margin of 28.04% is amongst the best of the industry. CP outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of CP has declined.
CP has a better Operating Margin (36.96%) than 83.33% of its industry peers.
In the last couple of years the Operating Margin of CP has declined.
The Gross Margin of CP (85.09%) is better than 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.96% | ||
| PM (TTM) | 28.04% | ||
| GM | 85.09% |
OM growth 3Y-3.17%
OM growth 5Y-1.91%
PM growth 3Y-10.52%
PM growth 5Y-3.98%
GM growth 3Y-0.68%
GM growth 5Y-0.26%
2. Health
2.1 Basic Checks
CP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CP has about the same amount of shares outstanding.
CP has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CP has an improved debt to assets ratio.
2.2 Solvency
CP has an Altman-Z score of 2.19. 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.
The Altman-Z score of CP (2.19) is comparable to the rest of the industry.
The Debt to FCF ratio of CP is 8.90, which is on the high side as it means it would take CP, 8.90 years of fcf income to pay off all of its debts.
CP has a Debt to FCF ratio of 8.90. This is amonst the worse of the industry: CP underperforms 83.33% of its industry peers.
CP has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
CP's Debt to Equity ratio of 0.47 is amongst the best of the industry. CP outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 8.9 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.64
WACC8.19%
2.3 Liquidity
A Current Ratio of 0.93 indicates that CP may have some problems paying its short term obligations.
CP has a Current ratio of 0.93. This is comparable to the rest of the industry: CP outperforms 50.00% of its industry peers.
CP has a Quick Ratio of 0.93. This is a bad value and indicates that CP is not financially healthy enough and could expect problems in meeting its short term obligations.
CP's Quick ratio of 0.81 is in line compared to the rest of the industry. CP outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
CP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.31%, which is quite good.
Measured over the past 5 years, CP shows a small growth in Earnings Per Share. The EPS has been growing by 5.28% on average per year.
The Revenue has been growing slightly by 4.77% in the past year.
The Revenue has been growing by 13.30% on average over the past years. This is quite good.
EPS 1Y (TTM)9.31%
EPS 3Y4.29%
EPS 5Y5.28%
EPS Q2Q%6.67%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y22.08%
Revenue growth 5Y13.3%
Sales Q2Q%2.66%
3.2 Future
Based on estimates for the next years, CP will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.49% on average per year.
The Revenue is expected to grow by 5.90% on average over the next years.
EPS Next Y14.57%
EPS Next 2Y14.73%
EPS Next 3Y14.2%
EPS Next 5Y12.49%
Revenue Next Year4.78%
Revenue Next 2Y5.55%
Revenue Next 3Y5.81%
Revenue Next 5Y5.9%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.51, CP is valued on the expensive side.
CP's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.02. CP is around the same levels.
The Price/Forward Earnings ratio is 18.70, which indicates a rather expensive current 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.
The average S&P500 Price/Forward Earnings ratio is at 22.57. CP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.51 | ||
| Fwd PE | 18.7 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CP.
66.67% of the companies in the same industry are cheaper than CP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.49 | ||
| EV/EBITDA | 15.71 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CP has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CP's earnings are expected to grow with 14.20% in the coming years.
PEG (NY)1.61
PEG (5Y)4.45
EPS Next 2Y14.73%
EPS Next 3Y14.2%
5. Dividend
5.1 Amount
CP has a yearly dividend return of 0.79%, which is pretty low.
Compared to an average industry Dividend Yield of 3.47, CP is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.43, CP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
The dividend of CP has a limited annual growth rate of 5.07%.
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)5.07%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
CP pays out 17.72% 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.
DP17.72%
EPS Next 2Y14.73%
EPS Next 3Y14.2%
TSX:CP (10/10/2025, 7:00:00 PM)
104.86
-1.35 (-1.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners75.84%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap96.26B
Analysts81.18
Price Target124.9 (19.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend0.76
Dividend Growth(5Y)5.07%
DP17.72%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.52%
Min EPS beat(2)-3.79%
Max EPS beat(2)-1.24%
EPS beat(4)1
Avg EPS beat(4)-2.1%
Min EPS beat(4)-4.38%
Max EPS beat(4)1.02%
EPS beat(8)3
Avg EPS beat(8)-1.12%
EPS beat(12)3
Avg EPS beat(12)-2.7%
EPS beat(16)4
Avg EPS beat(16)-3.57%
Revenue beat(2)0
Avg Revenue beat(2)-3.67%
Min Revenue beat(2)-5.44%
Max Revenue beat(2)-1.89%
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)-3.13%
Revenue beat(12)0
Avg Revenue beat(12)-3.66%
Revenue beat(16)0
Avg Revenue beat(16)-3.98%
PT rev (1m)1.49%
PT rev (3m)0.92%
EPS NQ rev (1m)-0.66%
EPS NQ rev (3m)-1.64%
EPS NY rev (1m)0.46%
EPS NY rev (3m)-2.62%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-1.97%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.51 | ||
| Fwd PE | 18.7 | ||
| P/S | 6.45 | ||
| P/FCF | 38.49 | ||
| P/OCF | 17.54 | ||
| P/B | 2.08 | ||
| P/tB | 3.86 | ||
| EV/EBITDA | 15.71 |
EPS(TTM)4.46
EY4.25%
EPS(NY)5.61
Fwd EY5.35%
FCF(TTM)2.72
FCFY2.6%
OCF(TTM)5.98
OCFY5.7%
SpS16.25
BVpS50.33
TBVpS27.14
PEG (NY)1.61
PEG (5Y)4.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.91% | ||
| ROE | 9.05% | ||
| ROCE | 6.77% | ||
| ROIC | 5.25% | ||
| ROICexc | 5.3% | ||
| ROICexgc | 7.19% | ||
| OM | 36.96% | ||
| PM (TTM) | 28.04% | ||
| GM | 85.09% | ||
| FCFM | 16.77% |
ROA(3y)4.65%
ROA(5y)5.69%
ROE(3y)8.76%
ROE(5y)13.62%
ROIC(3y)4.45%
ROIC(5y)5.79%
ROICexc(3y)4.48%
ROICexc(5y)5.83%
ROICexgc(3y)5.71%
ROICexgc(5y)6.61%
ROCE(3y)5.78%
ROCE(5y)7.61%
ROICexcg growth 3Y21.06%
ROICexcg growth 5Y-10.7%
ROICexc growth 3Y9.14%
ROICexc growth 5Y-16%
OM growth 3Y-3.17%
OM growth 5Y-1.91%
PM growth 3Y-10.52%
PM growth 5Y-3.98%
GM growth 3Y-0.68%
GM growth 5Y-0.26%
F-Score8
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 8.9 | ||
| Debt/EBITDA | 2.89 | ||
| Cap/Depr | 152.58% | ||
| Cap/Sales | 20.02% | ||
| Interest Coverage | 6.71 | ||
| Cash Conversion | 73.44% | ||
| Profit Quality | 59.8% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.19 |
F-Score8
WACC8.19%
ROIC/WACC0.64
Cap/Depr(3y)165.06%
Cap/Depr(5y)179.72%
Cap/Sales(3y)19.08%
Cap/Sales(5y)19.62%
Profit Quality(3y)59.97%
Profit Quality(5y)60.36%
High Growth Momentum
Growth
EPS 1Y (TTM)9.31%
EPS 3Y4.29%
EPS 5Y5.28%
EPS Q2Q%6.67%
EPS Next Y14.57%
EPS Next 2Y14.73%
EPS Next 3Y14.2%
EPS Next 5Y12.49%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y22.08%
Revenue growth 5Y13.3%
Sales Q2Q%2.66%
Revenue Next Year4.78%
Revenue Next 2Y5.55%
Revenue Next 3Y5.81%
Revenue Next 5Y5.9%
EBIT growth 1Y7.05%
EBIT growth 3Y18.2%
EBIT growth 5Y11.13%
EBIT Next Year44.89%
EBIT Next 3Y19.58%
EBIT Next 5Y13.69%
FCF growth 1Y-3.55%
FCF growth 3Y3.72%
FCF growth 5Y12.37%
OCF growth 1Y19.39%
OCF growth 3Y12.63%
OCF growth 5Y12%