CANADIAN PACIFIC KANSAS CITY (CP.CA) Fundamental Analysis & Valuation

TSX:CP • CA13646K1084

Current stock price

109.83 CAD
+1.39 (+1.28%)
Last:

This CP.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. CP.CA Profitability Analysis

1.1 Basic Checks

  • In the past year CP was profitable.
  • In the past year CP had a positive cash flow from operations.
  • In the past 5 years CP has always been profitable.
  • CP had a positive operating cash flow in each of the past 5 years.
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

  • Looking at the Return On Assets, with a value of 4.82%, CP is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
  • CP's Return On Equity of 9.03% is in line compared to the rest of the industry. CP outperforms 50.00% of its industry peers.
  • With a Return On Invested Capital value of 5.36%, CP is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
  • CP had an Average Return On Invested Capital over the past 3 years of 4.95%. This is below the industry average of 6.96%.
  • The last Return On Invested Capital (5.36%) for CP is above the 3 year average (4.95%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.82%
ROE 9.03%
ROIC 5.36%
ROA(3y)4.66%
ROA(5y)4.59%
ROE(3y)8.75%
ROE(5y)8.75%
ROIC(3y)4.95%
ROIC(5y)4.45%
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's Profit Margin of 27.46% is amongst the best of the industry. CP outperforms 100.00% of its industry peers.
  • CP's Profit Margin has declined in the last couple of years.
  • CP has a better Operating Margin (37.62%) than 83.33% of its industry peers.
  • In the last couple of years the Operating Margin of CP has declined.
  • CP's Gross Margin of 85.38% is amongst the best of 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 37.62%
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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2

2. CP.CA Health Analysis

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.
  • The number of shares outstanding for CP has been reduced compared to 1 year ago.
  • Compared to 5 years ago, CP has more shares outstanding
  • CP has a worse debt/assets ratio than last year.
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 2.15. 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's Altman-Z score of 2.15 is fine compared to the rest of the industry. CP outperforms 66.67% of its industry peers.
  • The Debt to FCF ratio of CP is 10.69, which is on the high side as it means it would take CP, 10.69 years of fcf income to pay off all of its debts.
  • CP has a worse Debt to FCF ratio (10.69) than 83.33% of its industry peers.
  • CP has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of CP (0.46) is better than 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 10.69
Altman-Z 2.15
ROIC/WACC0.6
WACC8.98%
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.
  • Looking at the Current ratio, with a value of 0.49, CP is doing worse than 66.67% of the companies in the same industry.
  • CP has a Quick Ratio of 0.49. 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 of 0.41. This is in the lower half of the industry: CP underperforms 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. CP.CA Growth Analysis

3.1 Past

  • CP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.22%, which is quite good.
  • CP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.46% yearly.
  • The Revenue has been growing slightly by 3.66% in the past year.
  • The Revenue has been growing by 14.36% on average over the past years. This is quite good.
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

  • The Earnings Per Share is expected to grow by 21.59% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, CP will show a small growth in Revenue. The Revenue will grow by 5.67% on average per year.
EPS Next Y15.88%
EPS Next 2Y14.98%
EPS Next 3Y14.6%
EPS Next 5Y21.59%
Revenue Next Year4.83%
Revenue Next 2Y5.57%
Revenue Next 3Y6.36%
Revenue Next 5Y5.67%

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. CP.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 23.82, the valuation of CP can be described as rather expensive.
  • 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 25.60, which is the current average of the S&P500 Index.
  • CP is valuated rather expensively with a Price/Forward Earnings ratio of 20.56.
  • CP's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of CP to the average of the S&P500 Index (22.84), we can say CP is valued inline with the index average.
Industry RankSector Rank
PE 23.82
Fwd PE 20.56
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

  • CP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CP is more expensive than 66.67% of the companies in the same industry.
  • 66.67% of the companies in the same industry are cheaper than CP, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 45.47
EV/EBITDA 15.66
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 14.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.5
PEG (5Y)4.36
EPS Next 2Y14.98%
EPS Next 3Y14.6%

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4

5. CP.CA Dividend Analysis

5.1 Amount

  • CP has a yearly dividend return of 0.83%, which is pretty low.
  • CP's Dividend Yield is comparable with the industry average which is at 1.71.
  • With a Dividend Yield of 0.83, CP pays less dividend than the S&P500 average, which is at 1.88.
Industry RankSector Rank
Dividend Yield 0.83%

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.
  • CP has decreased its dividend 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.
  • The dividend of CP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP19.22%
EPS Next 2Y14.98%
EPS Next 3Y14.6%
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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CP.CA Fundamentals: All Metrics, Ratios and Statistics

CANADIAN PACIFIC KANSAS CITY

TSX:CP (4/2/2026, 7:00:00 PM)

109.83

+1.39 (+1.28%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)01-28
Earnings (Next)04-28
Inst Owners73.67%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap98.62B
Revenue(TTM)15.08B
Net Income(TTM)4.14B
Analysts82.86
Price Target127.67 (16.24%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.83%
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)2.16%
PT rev (3m)1.52%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-5.69%
EPS NY rev (1m)-1.75%
EPS NY rev (3m)-2.43%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-4.28%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-1.79%
Valuation
Industry RankSector Rank
PE 23.82
Fwd PE 20.56
P/S 6.54
P/FCF 45.47
P/OCF 18.58
P/B 2.15
P/tB 4.02
EV/EBITDA 15.66
EPS(TTM)4.61
EY4.2%
EPS(NY)5.34
Fwd EY4.86%
FCF(TTM)2.42
FCFY2.2%
OCF(TTM)5.91
OCFY5.38%
SpS16.79
BVpS51.09
TBVpS27.32
PEG (NY)1.5
PEG (5Y)4.36
Graham Number72.8
Profitability
Industry RankSector Rank
ROA 4.82%
ROE 9.03%
ROCE 7.09%
ROIC 5.36%
ROICexc 5.37%
ROICexgc 7.29%
OM 37.62%
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)4.95%
ROIC(5y)4.45%
ROICexc(3y)4.98%
ROICexc(5y)4.47%
ROICexgc(3y)6.83%
ROICexgc(5y)5.59%
ROCE(3y)6.57%
ROCE(5y)5.87%
ROICexgc growth 3Y25.69%
ROICexgc growth 5Y-9.35%
ROICexc growth 3Y13.7%
ROICexc growth 5Y-14.44%
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 0.46
Debt/FCF 10.69
Debt/EBITDA 2.75
Cap/Depr 155.52%
Cap/Sales 20.83%
Interest Coverage 6.57
Cash Conversion 69.03%
Profit Quality 52.38%
Current Ratio 0.49
Quick Ratio 0.41
Altman-Z 2.15
F-Score7
WACC8.98%
ROIC/WACC0.6
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 Y15.88%
EPS Next 2Y14.98%
EPS Next 3Y14.6%
EPS Next 5Y21.59%
Revenue 1Y (TTM)3.66%
Revenue growth 3Y19.6%
Revenue growth 5Y14.36%
Sales Q2Q%1.26%
Revenue Next Year4.83%
Revenue Next 2Y5.57%
Revenue Next 3Y6.36%
Revenue Next 5Y5.67%
EBIT growth 1Y7.12%
EBIT growth 3Y19.44%
EBIT growth 5Y11.37%
EBIT Next Year38.95%
EBIT Next 3Y17.83%
EBIT Next 5Y13.95%
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 Fundamental Analysis 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.


How profitable is CANADIAN PACIFIC KANSAS CITY (CP.CA) stock?

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


Can you provide the expected EPS growth for CP stock?

The Earnings per Share (EPS) of CANADIAN PACIFIC KANSAS CITY (CP.CA) is expected to grow by 15.88% in the next year.


How sustainable is the dividend of CANADIAN PACIFIC KANSAS CITY (CP.CA) stock?

The dividend rating of CANADIAN PACIFIC KANSAS CITY (CP.CA) is 4 / 10 and the dividend payout ratio is 19.22%.