CANADIAN PACIFIC KANSAS CITY (CP.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CP - CA13646K1084 - Common Stock
101.94 CAD
-0.04 (-0.04%)
Overall CP gets a fundamental rating of 4 out of 10. We evaluated CP against 5 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 quite expensive at the moment. 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.
In the past 5 years CP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CP (4.92%) is better than 80.00% of its industry peers.
Looking at the Return On Equity, with a value of 9.33%, CP is in line with its industry, outperforming 60.00% of the companies in the same industry.
CP has a worse Return On Invested Capital (5.27%) than 60.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CP is below the industry average of 6.96%.
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
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.
In the last couple of years the Profit Margin of CP has declined.
The Operating Margin of CP (37.47%) is better than 80.00% of its industry peers.
In the last couple of years the Operating Margin of CP has declined.
CP's Gross Margin of 85.12% is amongst the best of the industry. CP outperforms 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CP is destroying value.
The number of shares outstanding for CP remains at a similar level compared to 1 year ago.
Compared to 5 years ago, CP has more shares outstanding
CP has a better debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 2.01, CP is in line with its industry, outperforming 60.00% of the companies in the same 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.
The Debt to FCF ratio of CP (9.98) is worse than 80.00% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that CP is somewhat dependend on debt financing.
CP has a Debt to Equity ratio of 0.51. This is in the better half of the industry: CP outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 9.98 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.59
WACC8.99%
2.3 Liquidity
CP has a Current 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.
Looking at the Current ratio, with a value of 0.63, CP is in line with its industry, outperforming 60.00% of the companies in the same industry.
A Quick Ratio of 0.54 indicates that CP may have some problems paying its short term obligations.
CP's Quick ratio of 0.54 is in line compared to the rest of the industry. CP outperforms 60.00% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 5.28% on average over the past years.
The Revenue has been growing slightly by 4.02% in the past year.
CP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.30% yearly.
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 12.48% yearly.
The Revenue is expected to grow by 5.93% on average over the next years.
EPS Next Y12.91%
EPS Next 2Y13.37%
EPS Next 3Y13.41%
EPS Next 5Y12.48%
Revenue Next Year4.25%
Revenue Next 2Y5.25%
Revenue Next 3Y5.81%
Revenue Next 5Y5.93%
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 22.31, CP is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as CP.
Compared to an average S&P500 Price/Earnings ratio of 26.57, CP is valued at the same level.
With a Price/Forward Earnings ratio of 18.62, CP is valued on the expensive side.
CP's Price/Forward Earnings ratio is in line with the industry average.
CP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.31 | ||
| Fwd PE | 18.62 |
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 60.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CP is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.22 | ||
| EV/EBITDA | 14.88 |
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.
A more expensive valuation may be justified as CP's earnings are expected to grow with 13.41% in the coming years.
PEG (NY)1.73
PEG (5Y)4.23
EPS Next 2Y13.37%
EPS Next 3Y13.41%
5. Dividend
5.1 Amount
With a yearly dividend of 0.85%, CP is not a good candidate for dividend investing.
CP's Dividend Yield is slightly below the industry average, which is at 2.08.
With a Dividend Yield of 0.85, CP pays less dividend than the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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 2Y13.37%
EPS Next 3Y13.41%
TSX:CP (12/24/2025, 7:00:00 PM)
101.94
-0.04 (-0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners75.8%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap91.47B
Revenue(TTM)15.03B
Net Income(TTM)4.26B
Analysts82.29
Price Target125.75 (23.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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)0.89%
PT rev (3m)1.27%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)0.42%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-1%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.31 | ||
| Fwd PE | 18.62 | ||
| P/S | 6.09 | ||
| P/FCF | 38.22 | ||
| P/OCF | 16.66 | ||
| P/B | 2 | ||
| P/tB | 3.81 | ||
| EV/EBITDA | 14.88 |
EPS(TTM)4.57
EY4.48%
EPS(NY)5.48
Fwd EY5.37%
FCF(TTM)2.67
FCFY2.62%
OCF(TTM)6.12
OCFY6%
SpS16.75
BVpS50.93
TBVpS26.74
PEG (NY)1.73
PEG (5Y)4.23
Graham Number72.37
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
WACC8.99%
ROIC/WACC0.59
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 Y12.91%
EPS Next 2Y13.37%
EPS Next 3Y13.41%
EPS Next 5Y12.48%
Revenue 1Y (TTM)4.02%
Revenue growth 3Y22.08%
Revenue growth 5Y13.3%
Sales Q2Q%3.16%
Revenue Next Year4.25%
Revenue Next 2Y5.25%
Revenue Next 3Y5.81%
Revenue Next 5Y5.93%
EBIT growth 1Y8.58%
EBIT growth 3Y18.2%
EBIT growth 5Y11.13%
EBIT Next Year42.51%
EBIT Next 3Y18.71%
EBIT Next 5Y13.77%
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 4 / 10 to CP.CA.
Can you provide the valuation status for CANADIAN PACIFIC KANSAS CITY?
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 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 12.91% 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%.