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

TSX:CP • CA13646K1084

112.69 CAD
-3.92 (-3.36%)
Last: Mar 6, 2026, 07:00 PM
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This CP.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

Taking everything into account, CP scores 4 out of 10 in our fundamental rating. CP was compared to 6 industry peers in the Ground Transportation industry. There are concerns on the financial health of CP while its profitability can be described as average. CP is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. CP.CA Profitability Analysis

1.1 Basic Checks

  • CP had positive earnings in the past year.
  • CP had a positive operating cash flow in the past year.
  • Each year in the past 5 years CP has been profitable.
  • In the past 5 years CP always reported a positive cash flow from operatings.
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

  • With a decent Return On Assets value of 4.82%, CP is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • With a Return On Equity value of 9.03%, CP perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
  • The Return On Invested Capital of CP (5.36%) 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 6.96%.
  • The 3 year average ROIC (4.95%) for CP is below the current ROIC(5.36%), indicating increased profibility in the last year.
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

  • Looking at the Profit Margin, with a value of 27.46%, 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.
  • With an excellent Operating Margin value of 37.62%, 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.
  • With an excellent Gross Margin value of 85.38%, CP belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • CP's Gross Margin has been stable in the last couple of years.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. CP.CA Health Analysis

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 has been reduced compared to 1 year ago.
  • The number of shares outstanding for CP has been increased compared to 5 years ago.
  • 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 2.24. 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 2.24 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.
  • The Debt to FCF ratio of CP (10.69) is worse than 83.33% of its industry peers.
  • A Debt/Equity ratio of 0.46 indicates that CP is not too dependend on debt financing.
  • CP has a Debt to Equity ratio of 0.46. This is in the better half of the industry: CP outperforms 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 10.69
Altman-Z 2.24
ROIC/WACC0.57
WACC9.41%
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

  • CP has a Current 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's Current ratio of 0.49 is on the low side compared to the rest of the industry. CP is outperformed by 66.67% of its industry peers.
  • 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.
  • With a Quick ratio value of 0.41, CP is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
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.
  • The Earnings Per Share has been growing slightly by 5.46% on average over the past years.
  • The Revenue has been growing slightly by 3.66% in the past year.
  • CP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.36% yearly.
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
  • CP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.97% yearly.
EPS Next Y17.95%
EPS Next 2Y15.45%
EPS Next 3Y15.46%
EPS Next 5Y21.59%
Revenue Next Year4.87%
Revenue Next 2Y5.56%
Revenue Next 3Y6.4%
Revenue Next 5Y5.97%

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.
  • 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.
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

  • CP is valuated rather expensively with a Price/Earnings ratio of 24.44.
  • CP's Price/Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 26.29, CP is valued at the same level.
  • Based on the Price/Forward Earnings ratio of 20.73, the valuation of CP can be described as rather expensive.
  • The rest of the industry has a similar Price/Forward Earnings ratio as CP.
  • CP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.57.
Industry RankSector Rank
PE 24.44
Fwd PE 20.73
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

  • 66.67% of the companies in the same industry are cheaper than CP, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CP indicates a slightly more expensive valuation: CP is more expensive than 66.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 46.64
EV/EBITDA 16.45
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.
  • CP has a very decent profitability rating, which may justify a higher PE ratio.
  • CP's earnings are expected to grow with 15.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.36
PEG (5Y)4.48
EPS Next 2Y15.45%
EPS Next 3Y15.46%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. CP.CA Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.76%, CP is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.60, CP has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, CP's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.76%

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.
  • The dividend of CP decreased 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.
  • CP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP19.22%
EPS Next 2Y15.45%
EPS Next 3Y15.46%
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 (3/6/2026, 7:00:00 PM)

112.69

-3.92 (-3.36%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)01-28
Earnings (Next)04-28
Inst Owners75.74%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap101.16B
Revenue(TTM)15.08B
Net Income(TTM)4.14B
Analysts82.86
Price Target125.26 (11.15%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.76%
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)-0.51%
PT rev (3m)0.41%
EPS NQ rev (1m)-4.79%
EPS NQ rev (3m)-6.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.23%
Revenue NQ rev (1m)-3.78%
Revenue NQ rev (3m)-4.49%
Revenue NY rev (1m)-1.75%
Revenue NY rev (3m)-1.74%
Valuation
Industry RankSector Rank
PE 24.44
Fwd PE 20.73
P/S 6.71
P/FCF 46.64
P/OCF 19.05
P/B 2.21
P/tB 4.12
EV/EBITDA 16.45
EPS(TTM)4.61
EY4.09%
EPS(NY)5.44
Fwd EY4.82%
FCF(TTM)2.42
FCFY2.14%
OCF(TTM)5.91
OCFY5.25%
SpS16.8
BVpS51.11
TBVpS27.33
PEG (NY)1.36
PEG (5Y)4.48
Graham Number72.81
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 2.24
F-Score7
WACC9.41%
ROIC/WACC0.57
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 Y17.95%
EPS Next 2Y15.45%
EPS Next 3Y15.46%
EPS Next 5Y21.59%
Revenue 1Y (TTM)3.66%
Revenue growth 3Y19.6%
Revenue growth 5Y14.36%
Sales Q2Q%1.26%
Revenue Next Year4.87%
Revenue Next 2Y5.56%
Revenue Next 3Y6.4%
Revenue Next 5Y5.97%
EBIT growth 1Y7.12%
EBIT growth 3Y19.44%
EBIT growth 5Y11.37%
EBIT Next Year38.95%
EBIT Next 3Y17.83%
EBIT Next 5Y14.35%
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 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.


What is the profitability of CP stock?

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


What are the PE and PB ratios of CANADIAN PACIFIC KANSAS CITY (CP.CA) stock?

The Price/Earnings (PE) ratio for CANADIAN PACIFIC KANSAS CITY (CP.CA) is 24.44 and the Price/Book (PB) ratio is 2.21.


Can you provide the financial health for CP stock?

The financial health rating of CANADIAN PACIFIC KANSAS CITY (CP.CA) is 2 / 10.