CANADIAN PACIFIC KANSAS CITY (CP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CP - CA13646K1084 - Common Stock
73.08 USD
-1.04 (-1.4%)
73.08 USD
0 (0%)
Taking everything into account, CP scores 5 out of 10 in our fundamental rating. CP was compared to 43 industry peers in the Ground Transportation industry. CP scores excellent on profitability, but there are concerns on its financial health. CP has a correct valuation and a medium growth rate.
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.
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
CP has a Return On Assets of 4.92%. This is in the better half of the industry: CP outperforms 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 65.12% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.27%, CP is in the better half of the industry, outperforming 69.77% 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 6.83%.
The 3 year average ROIC (4.45%) for CP is below the current ROIC(5.27%), indicating increased profibility in the last year.
| 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
CP's Profit Margin of 28.38% is amongst the best of the industry. CP outperforms 93.02% of its industry peers.
In the last couple of years the Profit Margin of CP has declined.
CP has a better Operating Margin (37.47%) than 95.35% of its industry peers.
CP's Operating Margin has declined in the last couple of years.
CP's Gross Margin of 85.12% is amongst the best of the industry. CP outperforms 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
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.
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
An Altman-Z score of 2.01 indicates that CP is not a great score, but indicates only limited risk for bankruptcy at the moment.
CP's Altman-Z score of 2.01 is in line compared to the rest of the industry. CP outperforms 46.51% of 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.
CP's Debt to FCF ratio of 9.98 is fine compared to the rest of the industry. CP outperforms 69.77% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that CP is somewhat dependend on debt financing.
CP has a Debt to Equity ratio (0.51) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 9.98 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.61
WACC8.66%
2.3 Liquidity
A Current Ratio of 0.63 indicates that CP may have some problems paying its short term obligations.
CP's Current ratio of 0.63 is on the low side compared to the rest of the industry. CP is outperformed by 88.37% of its industry peers.
A Quick Ratio of 0.54 indicates that CP may have some problems paying its short term obligations.
The Quick ratio of CP (0.54) is worse 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.
The Revenue has been growing by 13.30% on average over the past years. This is quite good.
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
CP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.48% yearly.
CP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.93% yearly.
EPS Next Y12.9%
EPS Next 2Y13.34%
EPS Next 3Y13.58%
EPS Next 5Y12.48%
Revenue Next Year4.27%
Revenue Next 2Y5.21%
Revenue Next 3Y5.78%
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 22.08.
Compared to the rest of the industry, the Price/Earnings ratio of CP indicates a somewhat cheap valuation: CP is cheaper than 69.77% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.28, CP is valued at the same level.
With a Price/Forward Earnings ratio of 18.44, CP is valued on the expensive side.
74.42% of the companies in the same industry are more expensive than CP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CP to the average of the S&P500 Index (23.52), we can say CP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.08 | ||
| Fwd PE | 18.44 |
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 the industry average as 74.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.83 | ||
| EV/EBITDA | 14.92 |
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 13.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.71
PEG (5Y)4.18
EPS Next 2Y13.34%
EPS Next 3Y13.58%
5. Dividend
5.1 Amount
CP has a yearly dividend return of 0.85%, which is pretty low.
CP's Dividend Yield is a higher than the industry average which is at 1.60.
With a Dividend Yield of 0.85, CP pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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
CP pays out 18.03% of its income as dividend. This is a sustainable payout ratio.
The dividend of CP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP18.03%
EPS Next 2Y13.34%
EPS Next 3Y13.58%
73.08
-1.04 (-1.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners75.8%
Inst Owner Change-2.87%
Ins Owners0.02%
Ins Owner Change0%
Market Cap65.57B
Revenue(TTM)15.03B
Net Income(TTM)4.26B
Analysts82.29
Price Target89.01 (21.8%)
Short Float %0.92%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Yearly Dividend0.55
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)-0.42%
PT rev (3m)0.59%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)0.3%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-1.01%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.08 | ||
| Fwd PE | 18.44 | ||
| P/S | 6.02 | ||
| P/FCF | 37.83 | ||
| P/OCF | 16.49 | ||
| P/B | 1.98 | ||
| P/tB | 3.77 | ||
| EV/EBITDA | 14.92 |
EPS(TTM)3.31
EY4.53%
EPS(NY)3.96
Fwd EY5.42%
FCF(TTM)1.93
FCFY2.64%
OCF(TTM)4.43
OCFY6.06%
SpS12.13
BVpS36.89
TBVpS19.37
PEG (NY)1.71
PEG (5Y)4.18
Graham Number52.42
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 | 2.01 |
F-Score7
WACC8.66%
ROIC/WACC0.61
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 Y12.9%
EPS Next 2Y13.34%
EPS Next 3Y13.58%
EPS Next 5Y12.48%
Revenue 1Y (TTM)4.02%
Revenue growth 3Y22.08%
Revenue growth 5Y13.3%
Sales Q2Q%3.16%
Revenue Next Year4.27%
Revenue Next 2Y5.21%
Revenue Next 3Y5.78%
Revenue Next 5Y5.93%
EBIT growth 1Y8.58%
EBIT growth 3Y18.2%
EBIT growth 5Y11.13%
EBIT Next Year42.51%
EBIT Next 3Y18.71%
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 12.9% 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%.