CANADIAN PACIFIC KANSAS CITY (CP) Stock Fundamental Analysis
NYSE:CP - New York Stock Exchange, Inc. - CA13646K1084 - Common Stock - Currency: USD
Overall CP gets a fundamental rating of 5 out of 10. We evaluated CP against 40 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 has a decent growth rate and is not valued too expensively.
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.
CP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CP's Return On Assets of 4.91% is fine compared to the rest of the industry. CP outperforms 62.50% of its industry peers.
CP has a Return On Equity (9.05%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 5.25%, CP perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CP is below the industry average of 8.43%.
The last Return On Invested Capital (5.25%) for CP is above the 3 year average (4.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.91% | ||
| ROE | 9.05% | ||
| ROIC | 5.25% |
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 28.04%, CP belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
In the last couple of years the Profit Margin of CP has declined.
CP has a better Operating Margin (36.96%) than 92.50% of its industry peers.
CP's Operating Margin has declined in the last couple of years.
The Gross Margin of CP (85.09%) is better than 95.00% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.96% | ||
| PM (TTM) | 28.04% | ||
| GM | 85.09% |
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.
CP has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, CP has more shares outstanding
The debt/assets ratio for CP has been reduced compared to a year ago.
2.2 Solvency
CP has an Altman-Z score of 2.17. 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 Altman-Z score (2.17) which is in line with its industry peers.
CP has a debt to FCF ratio of 8.90. This is a slightly negative value and a sign of low solvency as CP would need 8.90 years to pay back of all of its debts.
CP's Debt to FCF ratio of 8.90 is fine compared to the rest of the industry. CP outperforms 67.50% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that CP is not too dependend on debt financing.
The Debt to Equity ratio of CP (0.47) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 8.9 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.63
WACC8.31%
2.3 Liquidity
A Current Ratio of 0.93 indicates that CP may have some problems paying its short term obligations.
CP has a Current ratio of 0.93. This is comparable to the rest of the industry: CP outperforms 42.50% of its industry peers.
A Quick Ratio of 0.81 indicates that CP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.81, CP is doing worse than 72.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.31% 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 4.77% 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)9.31%
EPS 3Y4.29%
EPS 5Y5.28%
EPS Q2Q%6.67%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y22.08%
Revenue growth 5Y13.3%
Sales Q2Q%2.66%
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 12.93% yearly.
The Revenue is expected to grow by 6.18% on average over the next years.
EPS Next Y17.65%
EPS Next 2Y16.41%
EPS Next 3Y15.96%
EPS Next 5Y12.93%
Revenue Next Year6.32%
Revenue Next 2Y6.41%
Revenue Next 3Y6.55%
Revenue Next 5Y6.18%
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
Based on the Price/Earnings ratio of 22.89, the valuation of CP can be described as rather expensive.
Based on the Price/Earnings ratio, CP is valued a bit cheaper than 70.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.86, CP is valued at the same level.
A Price/Forward Earnings ratio of 17.70 indicates a rather expensive valuation of CP.
70.00% of the companies in the same industry are more expensive than CP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CP to the average of the S&P500 Index (34.94), we can say CP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.89 | ||
| Fwd PE | 17.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CP is valued a bit more expensive than 62.50% of the companies in the same industry.
65.00% of the companies in the same industry are more expensive than CP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.51 | ||
| EV/EBITDA | 15.49 |
4.3 Compensation for Growth
The 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 15.96% in the coming years.
PEG (NY)1.3
PEG (5Y)4.34
EPS Next 2Y16.41%
EPS Next 3Y15.96%
5. Dividend
5.1 Amount
CP has a yearly dividend return of 0.82%, which is pretty low.
Compared to an average industry Dividend Yield of 1.60, CP has a dividend in line with its industry peers.
With a Dividend Yield of 0.82, CP pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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 17.72% 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.
DP17.72%
EPS Next 2Y16.41%
EPS Next 3Y15.96%
NYSE:CP (8/21/2025, 10:43:41 AM)
73.695
-0.6 (-0.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners75.63%
Inst Owner Change-1.46%
Ins Owners0.02%
Ins Owner Change0%
Market Cap67.65B
Analysts81.71
Price Target91.05 (23.55%)
Short Float %1.35%
Short Ratio4.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend0.55
Dividend Growth(5Y)5.07%
DP17.72%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.52%
Min EPS beat(2)-3.79%
Max EPS beat(2)-1.24%
EPS beat(4)1
Avg EPS beat(4)-2.1%
Min EPS beat(4)-4.38%
Max EPS beat(4)1.02%
EPS beat(8)3
Avg EPS beat(8)-1.12%
EPS beat(12)3
Avg EPS beat(12)-2.7%
EPS beat(16)4
Avg EPS beat(16)-3.57%
Revenue beat(2)0
Avg Revenue beat(2)-3.67%
Min Revenue beat(2)-5.44%
Max Revenue beat(2)-1.89%
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)-3.13%
Revenue beat(12)0
Avg Revenue beat(12)-3.66%
Revenue beat(16)0
Avg Revenue beat(16)-3.98%
PT rev (1m)0.82%
PT rev (3m)1.74%
EPS NQ rev (1m)-0.97%
EPS NQ rev (3m)-4.24%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1%
Revenue NQ rev (3m)-3.05%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.89 | ||
| Fwd PE | 17.7 | ||
| P/S | 6.29 | ||
| P/FCF | 37.51 | ||
| P/OCF | 17.1 | ||
| P/B | 2.03 | ||
| P/tB | 3.77 | ||
| EV/EBITDA | 15.49 |
EPS(TTM)3.22
EY4.37%
EPS(NY)4.16
Fwd EY5.65%
FCF(TTM)1.96
FCFY2.67%
OCF(TTM)4.31
OCFY5.85%
SpS11.72
BVpS36.3
TBVpS19.57
PEG (NY)1.3
PEG (5Y)4.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.91% | ||
| ROE | 9.05% | ||
| ROCE | 6.77% | ||
| ROIC | 5.25% | ||
| ROICexc | 5.3% | ||
| ROICexgc | 7.19% | ||
| OM | 36.96% | ||
| PM (TTM) | 28.04% | ||
| GM | 85.09% | ||
| FCFM | 16.77% |
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%
ROICexcg growth 3Y21.06%
ROICexcg 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-Score8
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 8.9 | ||
| Debt/EBITDA | 2.89 | ||
| Cap/Depr | 152.58% | ||
| Cap/Sales | 20.02% | ||
| Interest Coverage | 6.71 | ||
| Cash Conversion | 73.44% | ||
| Profit Quality | 59.8% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.17 |
F-Score8
WACC8.31%
ROIC/WACC0.63
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)9.31%
EPS 3Y4.29%
EPS 5Y5.28%
EPS Q2Q%6.67%
EPS Next Y17.65%
EPS Next 2Y16.41%
EPS Next 3Y15.96%
EPS Next 5Y12.93%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y22.08%
Revenue growth 5Y13.3%
Sales Q2Q%2.66%
Revenue Next Year6.32%
Revenue Next 2Y6.41%
Revenue Next 3Y6.55%
Revenue Next 5Y6.18%
EBIT growth 1Y7.05%
EBIT growth 3Y18.2%
EBIT growth 5Y11.13%
EBIT Next Year45.73%
EBIT Next 3Y20.54%
EBIT Next 5Y14.07%
FCF growth 1Y-3.55%
FCF growth 3Y3.72%
FCF growth 5Y12.37%
OCF growth 1Y19.39%
OCF growth 3Y12.63%
OCF growth 5Y12%