CANADIAN PACIFIC KANSAS CITY (CP.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CP - CA13646K1084 - Common Stock
100.94 CAD
+0.31 (+0.31%)
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. 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.
- In the past year CP had a positive cash flow from operations.
- 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
- With a decent Return On Assets value of 4.92%, CP is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- CP has a Return On Equity (9.33%) which is in line with its industry peers.
- CP has a worse Return On Invested Capital (5.27%) than 66.67% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CP is below the industry average of 6.87%.
- 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
- The Profit Margin of CP (28.38%) is better than 83.33% of its industry peers.
- In the last couple of years the Profit Margin of CP has declined.
- The Operating Margin of CP (37.47%) is better than 83.33% of its industry peers.
- CP's Operating Margin has declined in the last couple of years.
- With an excellent Gross Margin value of 85.12%, CP belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- 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.
- The number of shares outstanding for CP remains at a similar level compared to 1 year ago.
- CP has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, CP has an improved debt to assets ratio.
2.2 Solvency
- CP has an Altman-Z score of 2.00. 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 has a better Altman-Z score (2.00) than 66.67% of its industry peers.
- 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.
- A Debt/Equity ratio of 0.51 indicates that CP is somewhat dependend on debt financing.
- CP's Debt to Equity ratio of 0.51 is fine compared to the rest of the industry. CP outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 9.98 | ||
| Altman-Z | 2 |
ROIC/WACC0.59
WACC8.94%
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 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
- 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.
- 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
- CP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.35% yearly.
- CP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.81% yearly.
EPS Next Y12.52%
EPS Next 2Y12.98%
EPS Next 3Y12.99%
EPS Next 5Y12.35%
Revenue Next Year4.25%
Revenue Next 2Y5.25%
Revenue Next 3Y5.81%
Revenue Next 5Y5.81%
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
- The Price/Earnings ratio is 22.09, which indicates a rather expensive current valuation of CP.
- Compared to the rest of the industry, the Price/Earnings ratio of CP is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, CP is valued at the same level.
- A Price/Forward Earnings ratio of 18.56 indicates a rather expensive valuation of CP.
- CP's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, CP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.09 | ||
| Fwd PE | 18.56 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CP indicates a slightly more expensive valuation: CP is more expensive than 66.67% of the companies listed in the same industry.
- CP's Price/Free Cash Flow 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.85 | ||
| EV/EBITDA | 14.76 |
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.
- A more expensive valuation may be justified as CP's earnings are expected to grow with 12.99% in the coming years.
PEG (NY)1.76
PEG (5Y)4.18
EPS Next 2Y12.98%
EPS Next 3Y12.99%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.87%, CP is not a good candidate for dividend investing.
- CP's Dividend Yield is comparable with the industry average which is at 1.68.
- With a Dividend Yield of 0.87, CP pays less dividend than the S&P500 average, which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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
- 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 2Y12.98%
EPS Next 3Y12.99%
TSX:CP (1/16/2026, 7:00:00 PM)
100.94
+0.31 (+0.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)01-28 2026-01-28/amc
Inst Owners75.74%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap90.57B
Revenue(TTM)15.03B
Net Income(TTM)4.26B
Analysts82.86
Price Target125.91 (24.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend0.76
Dividend Growth(5Y)5.07%
DP18.03%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
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)1.37%
PT rev (3m)0.81%
EPS NQ rev (1m)-1.04%
EPS NQ rev (3m)-0.77%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-1.79%
Revenue NQ rev (1m)-0.72%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.09 | ||
| Fwd PE | 18.56 | ||
| P/S | 6.03 | ||
| P/FCF | 37.85 | ||
| P/OCF | 16.5 | ||
| P/B | 1.98 | ||
| P/tB | 3.77 | ||
| EV/EBITDA | 14.76 |
EPS(TTM)4.57
EY4.53%
EPS(NY)5.44
Fwd EY5.39%
FCF(TTM)2.67
FCFY2.64%
OCF(TTM)6.12
OCFY6.06%
SpS16.75
BVpS50.93
TBVpS26.74
PEG (NY)1.76
PEG (5Y)4.18
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 |
F-Score7
WACC8.94%
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 Y12.52%
EPS Next 2Y12.98%
EPS Next 3Y12.99%
EPS Next 5Y12.35%
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 5Y5.81%
EBIT growth 1Y8.58%
EBIT growth 3Y18.2%
EBIT growth 5Y11.13%
EBIT Next Year42.51%
EBIT Next 3Y18.75%
EBIT Next 5Y13.32%
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.
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 22.09 and the Price/Book (PB) ratio is 1.98.
Can you provide the financial health for CP stock?
The financial health rating of CANADIAN PACIFIC KANSAS CITY (CP.CA) is 3 / 10.