CANADIAN PACIFIC KANSAS CITY (CP) Stock Fundamental Analysis
USA - NYSE:CP - CA13646K1084 - Common Stock
75.49 USD
-0.45 (-0.59%)
75 USD
-0.49 (-0.65%)
Overall CP gets a fundamental rating of 5 out of 10. We evaluated CP against 42 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.
CP had a positive operating cash flow in the past year.
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 69.05% of its industry peers.
CP has a Return On Equity of 9.05%. This is comparable to the rest of the industry: CP outperforms 59.52% of its industry peers.
CP has a better Return On Invested Capital (5.25%) than 64.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CP is below the industry average of 7.75%.
The 3 year average ROIC (4.45%) for CP is below the current ROIC(5.25%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 28.04%, CP belongs to the best 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.
CP has a Operating Margin of 36.96%. This is amongst the best in the industry. CP outperforms 92.86% of its industry peers.
CP's Operating Margin has declined in the last couple of years.
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.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
CP has a better debt/assets ratio than last year.
2.2 Solvency
CP has an Altman-Z score of 2.21. 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 (2.21) is comparable to the rest of the 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.
The Debt to FCF ratio of CP (8.90) is better than 69.05% of its industry peers.
CP has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
CP has a Debt to Equity ratio of 0.47. This is comparable to the rest of the industry: CP outperforms 45.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 8.9 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.65
WACC8.07%
2.3 Liquidity
A Current Ratio of 0.93 indicates that CP may have some problems paying its short term obligations.
CP's Current ratio of 0.93 is on the low side compared to the rest of the industry. CP is outperformed by 64.29% of its industry peers.
A Quick Ratio of 0.81 indicates that CP may have some problems paying its short term obligations.
With a Quick ratio value of 0.81, CP is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| 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%.
The Revenue has been growing by 13.30% on average over the past years. This is quite good.
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 12.49% on average over the next years. This is quite good.
Based on estimates for the next years, CP will show a small growth in Revenue. The Revenue will grow by 5.90% on average per year.
EPS Next Y14.57%
EPS Next 2Y14.73%
EPS Next 3Y14.2%
EPS Next 5Y12.49%
Revenue Next Year4.78%
Revenue Next 2Y5.55%
Revenue Next 3Y5.81%
Revenue Next 5Y5.9%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 23.74, which indicates a rather expensive current valuation of CP.
69.05% of the companies in the same industry are more expensive than CP, based on the Price/Earnings ratio.
CP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.89.
CP is valuated rather expensively with a Price/Forward Earnings ratio of 18.88.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CP indicates a somewhat cheap valuation: CP is cheaper than 69.05% 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 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.74 | ||
| Fwd PE | 18.88 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CP.
CP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CP is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.86 | ||
| EV/EBITDA | 15.84 |
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 14.20% in the coming years.
PEG (NY)1.63
PEG (5Y)4.5
EPS Next 2Y14.73%
EPS Next 3Y14.2%
5. Dividend
5.1 Amount
CP has a yearly dividend return of 0.79%, which is pretty low.
CP's Dividend Yield is comparable with the industry average which is at 1.65.
With a Dividend Yield of 0.79, CP pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
The dividend of CP has a limited annual growth rate of 5.07%.
CP has been paying a dividend for at least 10 years, so it has 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
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 2Y14.73%
EPS Next 3Y14.2%
75.49
-0.45 (-0.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners75.84%
Inst Owner Change-0.07%
Ins Owners0.02%
Ins Owner Change0%
Market Cap69.30B
Revenue(TTM)14.92B
Net Income(TTM)4.18B
Analysts81.18
Price Target89.6 (18.69%)
Short Float %1.66%
Short Ratio5.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend0.54
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)-0.21%
PT rev (3m)0.38%
EPS NQ rev (1m)-3.48%
EPS NQ rev (3m)-4.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.62%
Revenue NQ rev (1m)-0.88%
Revenue NQ rev (3m)-2.48%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.74 | ||
| Fwd PE | 18.88 | ||
| P/S | 6.52 | ||
| P/FCF | 38.86 | ||
| P/OCF | 17.71 | ||
| P/B | 2.1 | ||
| P/tB | 3.9 | ||
| EV/EBITDA | 15.84 |
EPS(TTM)3.18
EY4.21%
EPS(NY)4
Fwd EY5.3%
FCF(TTM)1.94
FCFY2.57%
OCF(TTM)4.26
OCFY5.65%
SpS11.59
BVpS35.89
TBVpS19.35
PEG (NY)1.63
PEG (5Y)4.5
Graham Number50.67
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%
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-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 | 2.21 |
F-Score8
WACC8.07%
ROIC/WACC0.65
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 5Y12.49%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y22.08%
Revenue growth 5Y13.3%
Sales Q2Q%2.66%
Revenue Next Year4.78%
Revenue Next 2Y5.55%
Revenue Next 3Y5.81%
Revenue Next 5Y5.9%
EBIT growth 1Y7.05%
EBIT growth 3Y18.2%
EBIT growth 5Y11.13%
EBIT Next Year44.89%
EBIT Next 3Y19.58%
EBIT Next 5Y13.69%
FCF growth 1Y-3.55%
FCF growth 3Y3.72%
FCF growth 5Y12.37%
OCF growth 1Y19.39%
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 14.57% in the next year.
Is the dividend of CANADIAN PACIFIC KANSAS CITY sustainable?
The dividend rating of CANADIAN PACIFIC KANSAS CITY (CP) is 4 / 10 and the dividend payout ratio is 17.72%.