CANADIAN PACIFIC KANSAS CITY (CP) Stock Fundamental Analysis
USA - NYSE:CP - CA13646K1084 - Common Stock
75.61 USD
0 (0%)
75.61 USD
0 (0%)
CP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 42 industry peers in the Ground Transportation industry. CP has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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.
1.2 Ratios
CP has a better Return On Assets (4.91%) than 66.67% of its industry peers.
With a Return On Equity value of 9.05%, CP perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
CP's Return On Invested Capital of 5.25% is in line compared to the rest of the industry. CP outperforms 59.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CP is below the industry average of 7.92%.
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 95.24% 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 (36.96%) is better than 92.86% of its industry peers.
In the last couple of years the Operating Margin of CP has declined.
With an excellent Gross Margin value of 85.09%, CP belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
CP's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for CP remains at a similar level compared to 1 year ago.
The number of shares outstanding for CP has been increased compared to 5 years ago.
The debt/assets ratio for CP has been reduced compared to a year ago.
2.2 Solvency
CP has an Altman-Z score of 2.19. 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.
With a Altman-Z score value of 2.19, CP perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 8.90, CP is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
CP has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.47, CP perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 8.9 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.63
WACC8.28%
2.3 Liquidity
CP has a Current Ratio of 0.93. 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 Current ratio value of 0.93, CP perfoms like the industry average, outperforming 40.48% of the companies in the same industry.
CP has a Quick Ratio of 0.93. 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 of 0.81. This is in the lower half of the industry: CP underperforms 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
CP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.31%, which is quite good.
CP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.28% yearly.
CP shows a small growth in Revenue. In the last year, the Revenue has grown by 4.77%.
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
The Earnings Per Share is expected to grow by 12.77% 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 6.01% yearly.
EPS Next Y14.57%
EPS Next 2Y14.73%
EPS Next 3Y14.2%
EPS Next 5Y12.77%
Revenue Next Year4.96%
Revenue Next 2Y5.89%
Revenue Next 3Y6.3%
Revenue Next 5Y6.01%
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
A Price/Earnings ratio of 23.41 indicates a rather expensive valuation of CP.
71.43% of the companies in the same industry are more expensive than CP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.38, CP is valued at the same level.
CP is valuated rather expensively with a Price/Forward Earnings ratio of 18.63.
Based on the Price/Forward Earnings ratio, CP is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, CP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.41 | ||
| Fwd PE | 18.63 |
4.2 Price Multiples
CP's Enterprise Value to EBITDA ratio is in line with the industry average.
CP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CP is cheaper than 69.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.34 | ||
| EV/EBITDA | 15.66 |
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 14.20% in the coming years.
PEG (NY)1.61
PEG (5Y)4.44
EPS Next 2Y14.73%
EPS Next 3Y14.2%
5. Dividend
5.1 Amount
With a yearly dividend of 0.80%, CP is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.60, CP pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.80, CP pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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
17.72% 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.
DP17.72%
EPS Next 2Y14.73%
EPS Next 3Y14.2%
75.61
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners75.84%
Inst Owner Change-1.46%
Ins Owners0.02%
Ins Owner Change0%
Market Cap69.41B
Analysts81.71
Price Target89.78 (18.74%)
Short Float %1.47%
Short Ratio4.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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)-1.39%
PT rev (3m)-0.77%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-4.25%
EPS NY rev (1m)0.46%
EPS NY rev (3m)-2.62%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-3.65%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.41 | ||
| Fwd PE | 18.63 | ||
| P/S | 6.43 | ||
| P/FCF | 38.34 | ||
| P/OCF | 17.48 | ||
| P/B | 2.08 | ||
| P/tB | 3.85 | ||
| EV/EBITDA | 15.66 |
EPS(TTM)3.23
EY4.27%
EPS(NY)4.06
Fwd EY5.37%
FCF(TTM)1.97
FCFY2.61%
OCF(TTM)4.33
OCFY5.72%
SpS11.76
BVpS36.43
TBVpS19.64
PEG (NY)1.61
PEG (5Y)4.44
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 | 2.19 |
F-Score8
WACC8.28%
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 Y14.57%
EPS Next 2Y14.73%
EPS Next 3Y14.2%
EPS Next 5Y12.77%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y22.08%
Revenue growth 5Y13.3%
Sales Q2Q%2.66%
Revenue Next Year4.96%
Revenue Next 2Y5.89%
Revenue Next 3Y6.3%
Revenue Next 5Y6.01%
EBIT growth 1Y7.05%
EBIT growth 3Y18.2%
EBIT growth 5Y11.13%
EBIT Next Year44.89%
EBIT Next 3Y19.58%
EBIT Next 5Y13.9%
FCF growth 1Y-3.55%
FCF growth 3Y3.72%
FCF growth 5Y12.37%
OCF growth 1Y19.39%
OCF growth 3Y12.63%
OCF growth 5Y12%