CANADIAN PACIFIC KANSAS CITY (CP) Stock Fundamental Analysis
USA - NYSE:CP - CA13646K1084 - Common Stock
70.89 USD
+1.99 (+2.89%)
70.89 USD
0 (0%)
CP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 43 industry peers in the Ground Transportation industry. CP has an excellent profitability rating, but there are concerns on its financial health. CP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
CP had positive earnings in the past year.
In the past year CP had a positive cash flow from operations.
CP had positive earnings in each of the past 5 years.
CP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.91%, CP is doing good in the industry, outperforming 72.09% of the companies in the same industry.
CP has a Return On Equity of 9.05%. This is in the better half of the industry: CP outperforms 60.47% of its industry peers.
The Return On Invested Capital of CP (5.25%) is better than 65.12% of its industry peers.
CP had an Average Return On Invested Capital over the past 3 years of 4.45%. This is below the industry average of 7.65%.
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
CP has a Profit Margin of 28.04%. This is amongst the best in the industry. CP outperforms 93.02% of its industry peers.
CP's Profit Margin has declined in the last couple of years.
CP has a Operating Margin of 36.96%. This is amongst the best in the industry. CP outperforms 95.35% of its industry peers.
In the last couple of years the Operating Margin of CP has declined.
CP's Gross Margin of 85.09% is amongst the best of the industry. CP outperforms 95.35% 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
An Altman-Z score of 2.08 indicates that CP is not a great score, but indicates only limited risk for bankruptcy at the moment.
CP has a Altman-Z score of 2.08. This is comparable to the rest of the industry: CP outperforms 48.84% of its industry peers.
The Debt to FCF ratio of CP is 8.90, which is on the high side as it means it would take CP, 8.90 years of fcf income to pay off 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 69.77% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that CP is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.47, CP perfoms like the industry average, outperforming 46.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 8.9 | ||
| Altman-Z | 2.08 |
ROIC/WACC0.65
WACC8.05%
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 in the lower half of the industry: CP underperforms 62.79% of its industry peers.
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.
With a Quick ratio value of 0.81, CP is not doing good in the industry: 69.77% 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.
The Earnings Per Share has been growing slightly by 5.28% on average over the past years.
The Revenue has been growing slightly by 4.77% in the past 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)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 12.49% yearly.
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
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
Based on the Price/Earnings ratio of 22.43, the valuation of CP can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CP indicates a somewhat cheap valuation: CP is cheaper than 72.09% of the companies listed in the same industry.
CP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
The Price/Forward Earnings ratio is 17.81, which indicates a rather expensive current valuation of CP.
74.42% of the companies in the same industry are more expensive than CP, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, CP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.43 | ||
| Fwd PE | 17.81 |
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 74.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.67 | ||
| EV/EBITDA | 14.76 |
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.
A more expensive valuation may be justified as CP's earnings are expected to grow with 14.20% in the coming years.
PEG (NY)1.54
PEG (5Y)4.25
EPS Next 2Y14.73%
EPS Next 3Y14.2%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, CP is not a good candidate for dividend investing.
CP's Dividend Yield is a higher than the industry average which is at 1.70.
With a Dividend Yield of 0.86, CP pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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 2Y14.73%
EPS Next 3Y14.2%
70.89
+1.99 (+2.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners75.84%
Inst Owner Change-0.92%
Ins Owners0.02%
Ins Owner Change0%
Market Cap65.08B
Revenue(TTM)14.92B
Net Income(TTM)4.18B
Analysts81.18
Price Target89.38 (26.08%)
Short Float %1.79%
Short Ratio5.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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)-0.44%
PT rev (3m)0.14%
EPS NQ rev (1m)-3.9%
EPS NQ rev (3m)-4.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.62%
Revenue NQ rev (1m)-0.96%
Revenue NQ rev (3m)-2.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.43 | ||
| Fwd PE | 17.81 | ||
| P/S | 6.15 | ||
| P/FCF | 36.67 | ||
| P/OCF | 16.71 | ||
| P/B | 1.98 | ||
| P/tB | 3.68 | ||
| EV/EBITDA | 14.76 |
EPS(TTM)3.16
EY4.46%
EPS(NY)3.98
Fwd EY5.61%
FCF(TTM)1.93
FCFY2.73%
OCF(TTM)4.24
OCFY5.98%
SpS11.53
BVpS35.72
TBVpS19.26
PEG (NY)1.54
PEG (5Y)4.25
Graham Number50.39
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 | 2.08 |
F-Score8
WACC8.05%
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 5 / 10 and the dividend payout ratio is 17.72%.