CANADIAN PACIFIC KANSAS CITY (CP) Fundamental Analysis & Valuation

NYSE:CP • CA13646K1084

Current stock price

82.69 USD
+0.99 (+1.21%)
Last:

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

  • CP had positive earnings in the past year.
  • CP had a positive operating cash flow in the past year.
  • In the past 5 years CP has always been profitable.
  • CP had a positive operating cash flow in each of the past 5 years.
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.
  • The Return On Equity of CP (9.03%) is comparable to the rest of the industry.
  • Looking at the Return On Invested Capital, with a value of 5.36%, CP is in the better half of 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 7.15%.
  • The 3 year average ROIC (4.95%) for CP is below the current ROIC(5.36%), indicating increased profibility in the last year.
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

  • CP has a Profit Margin of 27.46%. This is amongst the best in the industry. CP outperforms 92.86% of its industry peers.
  • In the last couple of years the Profit Margin of CP has declined.
  • The Operating Margin of CP (37.62%) is better than 95.24% of its industry peers.
  • CP's Operating Margin has declined in the last couple of years.
  • CP has a Gross Margin of 85.38%. This is amongst the best in the industry. CP outperforms 97.62% 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 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. CP Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CP is destroying value.
  • CP has less 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 is higher compared to a year ago.
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

  • An Altman-Z score of 2.18 indicates that CP is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • With a Altman-Z score value of 2.18, CP is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
  • CP has a debt to FCF ratio of 10.69. This is a negative value and a sign of low solvency as CP would need 10.69 years to pay back of all of its debts.
  • CP has a Debt to FCF ratio of 10.69. This is in the better half of the industry: CP outperforms 61.90% of its industry peers.
  • A Debt/Equity ratio of 0.46 indicates that CP is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.46, CP is in line with its industry, outperforming 42.86% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 10.69
Altman-Z 2.18
ROIC/WACC0.57
WACC9.4%
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

  • A Current Ratio of 0.49 indicates that CP may have some problems paying its short term obligations.
  • The Current ratio of CP (0.49) is worse than 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.
  • The Quick ratio of CP (0.41) is worse than 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

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. CP Growth Analysis

3.1 Past

  • CP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.22%, which is quite good.
  • CP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.46% yearly.
  • Looking at the last year, CP shows a small growth in Revenue. The Revenue has grown by 3.66% in the last year.
  • CP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.36% yearly.
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

  • CP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.59% yearly.
  • Based on estimates for the next years, CP will show a small growth in Revenue. The Revenue will grow by 5.67% on average per year.
EPS Next Y15.63%
EPS Next 2Y14.91%
EPS Next 3Y14.66%
EPS Next 5Y21.59%
Revenue Next Year5.31%
Revenue Next 2Y5.73%
Revenue Next 3Y6.39%
Revenue Next 5Y5.67%

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 5B 10B 15B
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 5 10

More info and screens

Find the best growth stocksShow best growing peers

5

4. CP Valuation Analysis

4.1 Price/Earnings Ratio

  • CP is valuated rather expensively with a Price/Earnings ratio of 24.54.
  • Based on the Price/Earnings ratio, CP is valued a bit cheaper than the industry average as 73.81% of the companies are valued more expensively.
  • CP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.95, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 21.24, which indicates a rather expensive current valuation of CP.
  • 83.33% 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 (38.68), we can say CP is valued slightly cheaper.
Industry RankSector Rank
PE 24.54
Fwd PE 21.24
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 ratio is in line with the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CP indicates a somewhat cheap valuation: CP is cheaper than 66.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 46.85
EV/EBITDA 15.89
CP Per share dataCP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The 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 14.66% in the coming years.
PEG (NY)1.57
PEG (5Y)4.49
EPS Next 2Y14.91%
EPS Next 3Y14.66%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. CP Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.83%, CP is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.65, CP pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.81, CP's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.83%

5.2 History

  • The dividend of CP has a limited annual growth rate of 4.71%.
  • CP has been paying a dividend for at least 10 years, so it has 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

  • 19.22% of the earnings are spent on dividend by CP. This is a low number and 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

More info and screens

Find the best dividend stocksShow peers with best dividend

CP Fundamentals: All Metrics, Ratios and Statistics

CANADIAN PACIFIC KANSAS CITY

NYSE:CP (4/21/2026, 3:27:49 PM)

82.69

+0.99 (+1.21%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)01-28
Earnings (Next)04-29
Inst Owners73.46%
Inst Owner Change0.06%
Ins Owners0.03%
Ins Owner Change0%
Market Cap74.20B
Revenue(TTM)15.08B
Net Income(TTM)4.14B
Analysts82.86
Price Target92.53 (11.9%)
Short Float %0.99%
Short Ratio3.01
Dividend
Industry RankSector Rank
Dividend Yield 0.83%
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)-2.83%
EPS NQ rev (3m)-7.49%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-1.96%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-4.03%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)-1.34%
Valuation
Industry RankSector Rank
PE 24.54
Fwd PE 21.24
P/S 6.74
P/FCF 46.85
P/OCF 19.14
P/B 2.21
P/tB 4.14
EV/EBITDA 15.89
EPS(TTM)3.37
EY4.08%
EPS(NY)3.89
Fwd EY4.71%
FCF(TTM)1.77
FCFY2.13%
OCF(TTM)4.32
OCFY5.22%
SpS12.27
BVpS37.33
TBVpS19.96
PEG (NY)1.57
PEG (5Y)4.49
Graham Number53.2057 (-35.66%)
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 2.18
F-Score7
WACC9.4%
ROIC/WACC0.57
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 5Y21.59%
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 5Y5.67%
EBIT growth 1Y7.12%
EBIT growth 3Y19.44%
EBIT growth 5Y11.37%
EBIT Next Year39.09%
EBIT Next 3Y17.84%
EBIT Next 5Y13.95%
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 5 / 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%.