CANADIAN PACIFIC KANSAS CITY (CP.CA) Stock Fundamental Analysis
Canada - TSX:CP - CA13646K1084 - Common Stock
99.13 CAD
-0.67 (-0.67%)
CP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 6 industry peers in the Ground Transportation industry. While CP belongs to the best of the industry regarding profitability, 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
CP had positive earnings in the past year.
In the past year CP had a positive cash flow from operations.
In the past 5 years CP has always been profitable.
Each year in the past 5 years CP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.92%, CP belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Return On Equity of CP (9.33%) is better than 66.67% of its industry peers.
CP has a worse Return On Invested Capital (5.27%) than 66.67% of its industry peers.
CP had an Average Return On Invested Capital over the past 3 years of 4.45%. This is below the industry average of 6.71%.
The 3 year average ROIC (4.45%) for CP is below the current ROIC(5.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.92% | ||
| ROE | 9.33% | ||
| ROIC | 5.27% |
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
The Profit Margin of CP (28.38%) is better than 100.00% of its industry peers.
CP's Profit Margin has declined in the last couple of years.
CP has a Operating Margin of 37.47%. This is amongst the best in the industry. CP outperforms 83.33% of its industry peers.
CP's Operating Margin has declined in the last couple of years.
CP has a better Gross Margin (85.12%) 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 | 37.47% | ||
| PM (TTM) | 28.38% | ||
| GM | 85.12% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CP is destroying value.
CP has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, CP has more shares outstanding
Compared to 1 year ago, CP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.01 indicates that CP is not a great score, but indicates only limited risk for bankruptcy at the moment.
CP's Altman-Z score of 2.01 is in line compared to the rest of the industry. CP outperforms 50.00% of its industry peers.
CP has a debt to FCF ratio of 9.98. This is a negative value and a sign of low solvency as CP would need 9.98 years to pay back of all of its debts.
CP's Debt to FCF ratio of 9.98 is on the low side compared to the rest of the industry. CP is outperformed by 83.33% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that CP is somewhat dependend on debt financing.
CP has a better Debt to Equity ratio (0.51) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 9.98 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.65
WACC8.11%
2.3 Liquidity
A Current Ratio of 0.63 indicates that CP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.63, CP is in line with its industry, outperforming 50.00% of the companies in the same industry.
CP has a Quick Ratio of 0.63. 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 has a Quick ratio (0.54) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
CP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.12%, which is quite good.
CP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.28% yearly.
The Revenue has been growing slightly by 4.02% 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)10.12%
EPS 3Y4.29%
EPS 5Y5.28%
EPS Q2Q%11.11%
Revenue 1Y (TTM)4.02%
Revenue growth 3Y22.08%
Revenue growth 5Y13.3%
Sales Q2Q%3.16%
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 12.59% on average per year.
CP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.98% yearly.
EPS Next Y13.02%
EPS Next 2Y13.68%
EPS Next 3Y13.68%
EPS Next 5Y12.59%
Revenue Next Year4.34%
Revenue Next 2Y5.25%
Revenue Next 3Y5.67%
Revenue Next 5Y5.98%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CP is valuated rather expensively with a Price/Earnings ratio of 21.69.
CP's Price/Earnings is on the same level as the industry average.
CP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.89.
With a Price/Forward Earnings ratio of 18.01, CP is valued on the expensive side.
CP's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of CP to the average of the S&P500 Index (34.59), we can say CP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 18.01 |
4.2 Price Multiples
CP's Enterprise Value to EBITDA ratio is in line with the industry average.
83.33% 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 | 38.03 | ||
| EV/EBITDA | 14.9 |
4.3 Compensation for Growth
The 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 13.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.67
PEG (5Y)4.11
EPS Next 2Y13.68%
EPS Next 3Y13.68%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, CP is not a good candidate for dividend investing.
CP's Dividend Yield is slightly below the industry average, which is at 3.55.
With a Dividend Yield of 0.90, CP pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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.
CP has decreased its dividend recently.
Dividend Growth(5Y)5.07%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
CP pays out 18.03% of its income as dividend. This is a sustainable payout ratio.
The dividend of CP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP18.03%
EPS Next 2Y13.68%
EPS Next 3Y13.68%
TSX:CP (11/14/2025, 7:00:00 PM)
99.13
-0.67 (-0.67%)
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 Cap91.00B
Revenue(TTM)15.03B
Net Income(TTM)4.26B
Analysts81.11
Price Target124.65 (25.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend0.76
Dividend Growth(5Y)5.07%
DP18.03%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.9%
Min EPS beat(2)-4%
Max EPS beat(2)-3.79%
EPS beat(4)1
Avg EPS beat(4)-2%
Min EPS beat(4)-4%
Max EPS beat(4)1.02%
EPS beat(8)3
Avg EPS beat(8)-1.43%
EPS beat(12)3
Avg EPS beat(12)-2.83%
EPS beat(16)4
Avg EPS beat(16)-3.22%
Revenue beat(2)0
Avg Revenue beat(2)-4.56%
Min Revenue beat(2)-5.44%
Max Revenue beat(2)-3.68%
Revenue beat(4)0
Avg Revenue beat(4)-3.61%
Min Revenue beat(4)-5.44%
Max Revenue beat(4)-1.89%
Revenue beat(8)0
Avg Revenue beat(8)-3.11%
Revenue beat(12)0
Avg Revenue beat(12)-3.81%
Revenue beat(16)0
Avg Revenue beat(16)-3.81%
PT rev (1m)-0.2%
PT rev (3m)1.76%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)1.11%
EPS NY rev (1m)-1.36%
EPS NY rev (3m)-3.94%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 18.01 | ||
| P/S | 6.05 | ||
| P/FCF | 38.03 | ||
| P/OCF | 16.58 | ||
| P/B | 1.99 | ||
| P/tB | 3.79 | ||
| EV/EBITDA | 14.9 |
EPS(TTM)4.57
EY4.61%
EPS(NY)5.5
Fwd EY5.55%
FCF(TTM)2.61
FCFY2.63%
OCF(TTM)5.98
OCFY6.03%
SpS16.37
BVpS49.78
TBVpS26.14
PEG (NY)1.67
PEG (5Y)4.11
Graham Number71.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.92% | ||
| ROE | 9.33% | ||
| ROCE | 6.91% | ||
| ROIC | 5.27% | ||
| ROICexc | 5.3% | ||
| ROICexgc | 7.19% | ||
| OM | 37.47% | ||
| PM (TTM) | 28.38% | ||
| GM | 85.12% | ||
| FCFM | 15.92% |
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%
ROICexgc growth 3Y21.06%
ROICexgc 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-Score7
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 9.98 | ||
| Debt/EBITDA | 3.04 | ||
| Cap/Depr | 155.73% | ||
| Cap/Sales | 20.6% | ||
| Interest Coverage | 6.57 | ||
| Cash Conversion | 72.04% | ||
| Profit Quality | 56.11% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 2.01 |
F-Score7
WACC8.11%
ROIC/WACC0.65
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)10.12%
EPS 3Y4.29%
EPS 5Y5.28%
EPS Q2Q%11.11%
EPS Next Y13.02%
EPS Next 2Y13.68%
EPS Next 3Y13.68%
EPS Next 5Y12.59%
Revenue 1Y (TTM)4.02%
Revenue growth 3Y22.08%
Revenue growth 5Y13.3%
Sales Q2Q%3.16%
Revenue Next Year4.34%
Revenue Next 2Y5.25%
Revenue Next 3Y5.67%
Revenue Next 5Y5.98%
EBIT growth 1Y8.58%
EBIT growth 3Y18.2%
EBIT growth 5Y11.13%
EBIT Next Year44.89%
EBIT Next 3Y19.58%
EBIT Next 5Y13.85%
FCF growth 1Y9.37%
FCF growth 3Y3.72%
FCF growth 5Y12.37%
OCF growth 1Y21.41%
OCF growth 3Y12.63%
OCF growth 5Y12%
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 5 / 10 to CP.CA.
Can you provide the valuation status for CANADIAN PACIFIC KANSAS CITY?
ChartMill assigns a valuation rating of 3 / 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 7 / 10.
What is the earnings growth outlook for CANADIAN PACIFIC KANSAS CITY?
The Earnings per Share (EPS) of CANADIAN PACIFIC KANSAS CITY (CP.CA) is expected to grow by 13.02% in the next year.
Is the dividend of CANADIAN PACIFIC KANSAS CITY sustainable?
The dividend rating of CANADIAN PACIFIC KANSAS CITY (CP.CA) is 4 / 10 and the dividend payout ratio is 18.03%.