CANADIAN PACIFIC KANSAS CITY (CP) Fundamental Analysis & Valuation

NYSE:CP • CA13646K1084

Current stock price

87.36 USD
+0.47 (+0.54%)
At close:
87.36 USD
0 (0%)
After Hours:

This CP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. CP Profitability Analysis

1.1 Basic Checks

  • In the past year CP was profitable.
  • CP had a positive operating cash flow in the past year.
  • In the past 5 years CP has always been profitable.
  • In the past 5 years CP always reported a positive cash flow from operatings.
CP Yearly Net Income VS EBIT VS OCF VS FCFCP 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

  • CP has a Return On Assets of 4.82%. This is in the better half of the industry: CP outperforms 66.67% of its industry peers.
  • CP has a Return On Equity of 9.03%. This is comparable to the rest of the industry: CP outperforms 59.52% of its industry peers.
  • With a decent Return On Invested Capital value of 5.36%, CP is doing good in the industry, outperforming 61.90% 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 7.17%.
  • The last Return On Invested Capital (5.36%) for CP is above the 3 year average (4.95%), which is a sign of increasing profitability.
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 Yearly ROA, ROE, ROICCP 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 92.86% of the companies in the same industry.
  • CP's Profit Margin has declined in the last couple of years.
  • CP has a Operating Margin of 37.62%. This is amongst the best in the industry. CP outperforms 95.24% of its industry peers.
  • CP's Operating Margin has declined in the last couple of years.
  • The Gross Margin of CP (85.38%) is better than 97.62% of its industry peers.
  • 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 Yearly Profit, Operating, Gross MarginsCP 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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2

2. CP Health Analysis

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 less shares outstanding
  • CP has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, CP has a worse debt to assets ratio.
CP Yearly Shares OutstandingCP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
CP Yearly Total Debt VS Total AssetsCP 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 2.27. 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.
  • The Altman-Z score of CP (2.27) is worse than 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.
  • CP has a Debt to FCF ratio (10.69) which is in line with its industry peers.
  • A Debt/Equity ratio of 0.46 indicates that CP is not too dependend on debt financing.
  • With a Debt to Equity ratio value of 0.46, CP perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 10.69
Altman-Z 2.27
ROIC/WACC0.58
WACC9.29%
CP Yearly LT Debt VS Equity VS FCFCP 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 95.24% 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.
  • CP has a Quick ratio of 0.41. This is amonst the worse of the industry: CP underperforms 95.24% of its industry peers.
Industry RankSector Rank
Current Ratio 0.49
Quick Ratio 0.41
CP Yearly Current Assets VS Current LiabilitesCP 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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5

3. CP Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 8.22% 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 5.46% on average per year.
  • CP shows a small growth in Revenue. In the last year, the Revenue has grown by 3.66%.
  • The Revenue has been growing by 14.36% on average over the past years. This is quite good.
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

  • Based on estimates for the next years, CP will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.07% on average per year.
  • The Revenue is expected to grow by 5.19% on average over the next years.
EPS Next Y15.63%
EPS Next 2Y14.91%
EPS Next 3Y14.66%
EPS Next 5Y11.07%
Revenue Next Year5.31%
Revenue Next 2Y5.73%
Revenue Next 3Y6.39%
Revenue Next 5Y5.19%

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 Yearly Revenue VS EstimatesCP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 5B 10B 15B 20B
CP Yearly EPS VS EstimatesCP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2 4 6 8

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4

4. CP Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 25.77, which means the current valuation is very expensive for CP.
  • CP's Price/Earnings ratio is a bit cheaper when compared to the industry. CP is cheaper than 69.05% of the companies in the same industry.
  • CP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 22.29 indicates a rather expensive valuation of CP.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CP indicates a somewhat cheap valuation: CP is cheaper than 73.81% of the companies listed in the same industry.
  • CP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.12, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 25.77
Fwd PE 22.29
CP Price Earnings VS Forward Price EarningsCP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

  • CP's Enterprise Value to EBITDA is on the same level as the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as CP.
Industry RankSector Rank
P/FCF 49.15
EV/EBITDA 16.7
CP Per share dataCP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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 14.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.65
PEG (5Y)4.72
EPS Next 2Y14.91%
EPS Next 3Y14.66%

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5

5. CP Dividend Analysis

5.1 Amount

  • CP has a yearly dividend return of 0.77%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.62, CP pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.77, CP pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.77%

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 in the last 3 years.
Dividend Growth(5Y)4.71%
Div Incr Years1
Div Non Decr Years2
CP Yearly Dividends per shareCP 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 2Y14.91%
EPS Next 3Y14.66%
CP Yearly Income VS Free CF VS DividendCP 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 Dividend Payout.CP Dividend Payout, showing the Payout Ratio.CP Dividend Payout.PayoutRetained Earnings

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CP Fundamentals: All Metrics, Ratios and Statistics

CANADIAN PACIFIC KANSAS CITY

NYSE:CP (4/27/2026, 8:04:00 PM)

After market: 87.36 0 (0%)

87.36

+0.47 (+0.54%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)01-28
Earnings (Next)04-29
Inst Owners73.46%
Inst Owner Change0.4%
Ins Owners0.03%
Ins Owner Change0%
Market Cap78.39B
Revenue(TTM)15.08B
Net Income(TTM)4.14B
Analysts82.86
Price Target92.53 (5.92%)
Short Float %1.19%
Short Ratio3.94
Dividend
Industry RankSector Rank
Dividend Yield 0.77%
Yearly Dividend0.64
Dividend Growth(5Y)4.71%
DP19.22%
Div Incr Years1
Div Non Decr Years2
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)1.24%
PT rev (3m)1.95%
EPS NQ rev (1m)-2.55%
EPS NQ rev (3m)-7.49%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-1.96%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-4.03%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)-1.34%
Valuation
Industry RankSector Rank
PE 25.77
Fwd PE 22.29
P/S 7.07
P/FCF 49.15
P/OCF 20.08
P/B 2.32
P/tB 4.35
EV/EBITDA 16.7
EPS(TTM)3.39
EY3.88%
EPS(NY)3.92
Fwd EY4.49%
FCF(TTM)1.78
FCFY2.03%
OCF(TTM)4.35
OCFY4.98%
SpS12.36
BVpS37.59
TBVpS20.1
PEG (NY)1.65
PEG (5Y)4.72
Graham Number53.5483 (-38.7%)
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 2.27
F-Score7
WACC9.29%
ROIC/WACC0.58
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 Y15.63%
EPS Next 2Y14.91%
EPS Next 3Y14.66%
EPS Next 5Y11.07%
Revenue 1Y (TTM)3.66%
Revenue growth 3Y19.6%
Revenue growth 5Y14.36%
Sales Q2Q%1.26%
Revenue Next Year5.31%
Revenue Next 2Y5.73%
Revenue Next 3Y6.39%
Revenue Next 5Y5.19%
EBIT growth 1Y7.12%
EBIT growth 3Y19.44%
EBIT growth 5Y11.37%
EBIT Next Year39.09%
EBIT Next 3Y17.84%
EBIT Next 5Y11.09%
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 Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for CANADIAN PACIFIC KANSAS CITY?

ChartMill assigns a fundamental rating of 5 / 10 to CP.


What is the valuation status of CANADIAN PACIFIC KANSAS CITY (CP) stock?

ChartMill assigns a valuation rating of 4 / 10 to CANADIAN PACIFIC KANSAS CITY (CP). This can be considered as Fairly Valued.


How profitable is CANADIAN PACIFIC KANSAS CITY (CP) stock?

CANADIAN PACIFIC KANSAS CITY (CP) has a profitability rating of 7 / 10.


Can you provide the expected EPS growth for CP stock?

The Earnings per Share (EPS) of CANADIAN PACIFIC KANSAS CITY (CP) is expected to grow by 15.63% in the next year.


How sustainable is the dividend of CANADIAN PACIFIC KANSAS CITY (CP) stock?

The dividend rating of CANADIAN PACIFIC KANSAS CITY (CP) is 5 / 10 and the dividend payout ratio is 19.22%.