CANADIAN PACIFIC KANSAS CITY (CP.CA) Stock Fundamental Analysis
Canada - TSX:CP - CA13646K1084 - Common Stock
101.46 CAD
+1.42 (+1.42%)
We assign a fundamental rating of 5 out of 10 to CP. CP was compared to 6 industry peers in the Ground Transportation industry. CP has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, CP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year CP was profitable.
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.
1.2 Ratios
With an excellent Return On Assets value of 4.92%, CP belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
With a decent Return On Equity value of 9.33%, CP is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Return On Invested Capital of CP (5.27%) is worse than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CP is below the industry average of 6.71%.
The last Return On Invested Capital (5.27%) for CP is above the 3 year average (4.45%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 28.38%, CP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
CP's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 37.47%, CP belongs to the best 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 better Gross Margin (85.12%) than 100.00% of its industry peers.
CP's Gross Margin has been stable in the last couple of years.
| 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.
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.
The debt/assets ratio for CP has been reduced compared to a year ago.
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 has a Altman-Z score (2.01) which is comparable to the rest of the industry.
The Debt to FCF ratio of CP is 9.98, which is on the high side as it means it would take CP, 9.98 years of fcf income to pay off 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.
CP has a Debt/Equity ratio of 0.51. This is a neutral value indicating CP is somewhat dependend on debt financing.
The Debt to Equity ratio of CP (0.51) is better 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
WACC8.1%
2.3 Liquidity
A Current Ratio of 0.63 indicates that CP may have some problems paying its short term obligations.
CP has a Current ratio (0.63) which is in line with its industry peers.
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
The Earnings Per Share has grown by an nice 10.12% 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 5.28% on average per year.
Looking at the last year, CP shows a small growth in Revenue. The Revenue has grown by 4.02% in the last 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
CP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.59% yearly.
The Revenue is expected to grow by 5.98% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
CP is valuated rather expensively with a Price/Earnings ratio of 22.20.
Compared to the rest of the industry, the Price/Earnings ratio of CP is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.34. CP is around the same levels.
With a Price/Forward Earnings ratio of 18.43, CP is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as CP.
CP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.2 | ||
| Fwd PE | 18.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CP is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CP indicates a rather expensive valuation: CP more expensive than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.92 | ||
| EV/EBITDA | 14.93 |
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.
A more expensive valuation may be justified as CP's earnings are expected to grow with 13.68% in the coming years.
PEG (NY)1.71
PEG (5Y)4.21
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 3.54.
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 been paying a dividend for at least 10 years, so it has 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
18.03% of the earnings are spent on dividend by CP. This is a low number and 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 (11/12/2025, 7:00:00 PM)
101.46
+1.42 (+1.42%)
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 Cap93.14B
Revenue(TTM)15.03B
Net Income(TTM)4.26B
Analysts81.11
Price Target124.65 (22.86%)
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 | 22.2 | ||
| Fwd PE | 18.43 | ||
| P/S | 6.2 | ||
| P/FCF | 38.92 | ||
| P/OCF | 16.97 | ||
| P/B | 2.04 | ||
| P/tB | 3.88 | ||
| EV/EBITDA | 14.93 |
EPS(TTM)4.57
EY4.5%
EPS(NY)5.5
Fwd EY5.43%
FCF(TTM)2.61
FCFY2.57%
OCF(TTM)5.98
OCFY5.89%
SpS16.37
BVpS49.78
TBVpS26.14
PEG (NY)1.71
PEG (5Y)4.21
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
WACC8.1%
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%.