CANADIAN PACIFIC KANSAS CITY (CP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CP - CA13646K1084 - Common Stock
72.23 USD
+0.7 (+0.98%)
CP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 43 industry peers in the Ground Transportation industry. While CP has a great profitability rating, there are quite some 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.
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 72.09% of its industry peers.
Looking at the Return On Equity, with a value of 9.33%, CP is in the better half of the industry, outperforming 62.79% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.27%, CP is doing good in the industry, outperforming 67.44% of the companies in the same industry.
CP had an Average Return On Invested Capital over the past 3 years of 4.45%. This is below the industry average of 6.88%.
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 93.02% of its industry peers.
CP's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 37.47%, CP belongs to the top of the industry, outperforming 95.35% of the companies in the same industry.
In the last couple of years the Operating Margin of CP has declined.
CP has a better Gross Margin (85.12%) than 97.67% 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
CP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CP has about the same amount of shares outstanding.
CP has more shares outstanding than it did 5 years ago.
CP has a better debt/assets ratio than last year.
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 Altman-Z score (2.00) which is in line with its industry peers.
CP has a debt to FCF ratio of 9.98. This is a negative value and a sign of low solvency as CP would need 9.98 years to pay back of all of its debts.
The Debt to FCF ratio of CP (9.98) is better than 69.77% of its industry peers.
CP has a Debt/Equity ratio of 0.51. This is a neutral value indicating CP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, CP perfoms like the industry average, outperforming 44.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 9.98 | ||
| Altman-Z | 2 |
ROIC/WACC0.54
WACC9.84%
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 doing worse than 88.37% 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 worse Quick ratio (0.54) than 88.37% of its industry peers.
| 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.
Looking at the last year, CP shows a small growth in Revenue. The Revenue has grown by 4.02% in the last year.
Measured over the past years, CP shows a quite strong growth in Revenue. The Revenue has been growing by 13.30% on average per year.
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
The Earnings Per Share is expected to grow by 12.48% on average over the next years. This is quite good.
CP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.93% yearly.
EPS Next Y13.02%
EPS Next 2Y13.68%
EPS Next 3Y13.68%
EPS Next 5Y12.48%
Revenue Next Year4.34%
Revenue Next 2Y5.25%
Revenue Next 3Y5.67%
Revenue Next 5Y5.93%
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.
4. Valuation
4.1 Price/Earnings Ratio
CP is valuated rather expensively with a Price/Earnings ratio of 22.29.
Based on the Price/Earnings ratio, CP is valued a bit cheaper than the industry average as 72.09% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.98. CP is around the same levels.
CP is valuated rather expensively with a Price/Forward Earnings ratio of 18.52.
Based on the Price/Forward Earnings ratio, CP is valued a bit cheaper than 72.09% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CP to the average of the S&P500 Index (35.79), we can say CP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.29 | ||
| Fwd PE | 18.52 |
4.2 Price Multiples
CP's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CP is valued a bit cheaper than 72.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.37 | ||
| EV/EBITDA | 14.81 |
4.3 Compensation for Growth
The 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 13.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.71
PEG (5Y)4.22
EPS Next 2Y13.68%
EPS Next 3Y13.68%
5. Dividend
5.1 Amount
CP has a yearly dividend return of 0.90%, which is pretty low.
Compared to an average industry Dividend Yield of 1.83, CP pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.90, CP pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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.
The dividend of CP decreased 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 2Y13.68%
EPS Next 3Y13.68%
NYSE:CP (11/26/2025, 1:13:09 PM)
72.23
+0.7 (+0.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners75.84%
Inst Owner Change-2.83%
Ins Owners0.02%
Ins Owner Change0%
Market Cap65.07B
Revenue(TTM)15.03B
Net Income(TTM)4.26B
Analysts81.11
Price Target88.97 (23.18%)
Short Float %1.24%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend0.54
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)-0.7%
PT rev (3m)-2.29%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)0.42%
EPS NY rev (1m)-1.36%
EPS NY rev (3m)-3.94%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.29 | ||
| Fwd PE | 18.52 | ||
| P/S | 6.11 | ||
| P/FCF | 38.37 | ||
| P/OCF | 16.73 | ||
| P/B | 2.01 | ||
| P/tB | 3.83 | ||
| EV/EBITDA | 14.81 |
EPS(TTM)3.24
EY4.49%
EPS(NY)3.9
Fwd EY5.4%
FCF(TTM)1.88
FCFY2.61%
OCF(TTM)4.32
OCFY5.98%
SpS11.82
BVpS35.95
TBVpS18.87
PEG (NY)1.71
PEG (5Y)4.22
Graham Number51.19
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
WACC9.84%
ROIC/WACC0.54
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 Y13.02%
EPS Next 2Y13.68%
EPS Next 3Y13.68%
EPS Next 5Y12.48%
Revenue 1Y (TTM)4.02%
Revenue growth 3Y22.08%
Revenue growth 5Y13.3%
Sales Q2Q%3.16%
Revenue Next Year4.34%
Revenue Next 2Y5.25%
Revenue Next 3Y5.67%
Revenue Next 5Y5.93%
EBIT growth 1Y8.58%
EBIT growth 3Y18.2%
EBIT growth 5Y11.13%
EBIT Next Year44.89%
EBIT Next 3Y19.58%
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 FAQ
Can you provide the ChartMill fundamental rating for CANADIAN PACIFIC KANSAS CITY?
ChartMill assigns a fundamental rating of 5 / 10 to CP.
Can you provide the valuation status for CANADIAN PACIFIC KANSAS CITY?
ChartMill assigns a valuation rating of 4 / 10 to CANADIAN PACIFIC KANSAS CITY (CP). This can be considered as Fairly Valued.
What is the profitability of CP stock?
CANADIAN PACIFIC KANSAS CITY (CP) has a profitability rating of 7 / 10.
What is the earnings growth outlook for CANADIAN PACIFIC KANSAS CITY?
The Earnings per Share (EPS) of CANADIAN PACIFIC KANSAS CITY (CP) is expected to grow by 13.02% in the next year.
Is the dividend of CANADIAN PACIFIC KANSAS CITY sustainable?
The dividend rating of CANADIAN PACIFIC KANSAS CITY (CP) is 5 / 10 and the dividend payout ratio is 18.03%.