CANADIAN PACIFIC KANSAS CITY (CP) Fundamental Analysis & Valuation

NYSE:CP • CA13646K1084

85.26 USD
-1.55 (-1.79%)
At close: Mar 5, 2026
84.6 USD
-0.66 (-0.77%)
After Hours: 3/5/2026, 7:00:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to CP. CP was compared to 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.


Dividend Valuation Growth Profitability Health

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.
  • Each year in the past 5 years CP had a positive operating cash flow.
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

  • The Return On Assets of CP (4.82%) is better than 66.67% of its industry peers.
  • CP has a Return On Equity (9.03%) which is in line with its industry peers.
  • The Return On Invested Capital of CP (5.36%) is better than 61.90% of its industry peers.
  • CP had an Average Return On Invested Capital over the past 3 years of 4.95%. This is below the industry average of 7.32%.
  • 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

  • CP's Profit Margin of 27.46% is amongst the best of 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.
  • The Gross Margin of CP (85.38%) is better than 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

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3

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.
  • CP has less shares outstanding than it did 1 year ago.
  • 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.
  • CP's Altman-Z score of 2.27 is in line compared to the rest of the industry. CP outperforms 42.86% 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 better Debt to FCF ratio (10.69) than 66.67% of its industry peers.
  • CP has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
  • 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 2.27
ROIC/WACC0.57
WACC9.33%
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.
  • CP has a worse Current ratio (0.49) than 92.86% of its industry peers.
  • A Quick Ratio of 0.41 indicates that CP may have some problems paying its short term obligations.
  • CP's Quick ratio of 0.41 is on the low side compared to the rest of the industry. CP is outperformed by 92.86% 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

  • 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.
  • 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.
  • The Revenue has been growing slightly by 3.66% in the past year.
  • Measured over the past years, CP shows a quite strong growth in Revenue. The Revenue has been growing by 14.36% on average per year.
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.
  • The Revenue is expected to grow by 5.97% on average over the next years.
EPS Next Y17.95%
EPS Next 2Y15.45%
EPS Next 3Y15.46%
EPS Next 5Y21.59%
Revenue Next Year4.87%
Revenue Next 2Y5.56%
Revenue Next 3Y6.4%
Revenue Next 5Y5.97%

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.
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

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4

4. CP Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 25.22, CP can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of CP indicates a somewhat cheap valuation: CP is cheaper than 69.05% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of CP to the average of the S&P500 Index (26.74), we can say CP is valued inline with the index average.
  • The Price/Forward Earnings ratio is 21.42, which indicates a rather expensive current 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.
  • When comparing the Price/Forward Earnings ratio of CP to the average of the S&P500 Index (24.82), we can say CP is valued inline with the index average.
Industry RankSector Rank
PE 25.22
Fwd PE 21.42
CP Price Earnings VS Forward Price EarningsCP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100

4.2 Price Multiples

  • CP's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Based on the Price/Free Cash Flow ratio, CP is valued a bit cheaper than 66.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 48.19
EV/EBITDA 16.68
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.
  • 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 15.46% in the coming years.
PEG (NY)1.41
PEG (5Y)4.62
EPS Next 2Y15.45%
EPS Next 3Y15.46%

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

5

5. CP Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.76%, CP is not a good candidate for dividend investing.
  • CP's Dividend Yield is a higher than the industry average which is at 0.67.
  • With a Dividend Yield of 0.76, CP pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.76%

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.
  • CP has decreased its dividend recently.
Dividend Growth(5Y)4.71%
Div Incr Years0
Div Non Decr Years1
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 2Y15.45%
EPS Next 3Y15.46%
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 (3/5/2026, 7:00:00 PM)

After market: 84.6 -0.66 (-0.77%)

85.26

-1.55 (-1.79%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)01-28
Earnings (Next)04-28
Inst Owners75.74%
Inst Owner Change-1.46%
Ins Owners0.02%
Ins Owner Change0%
Market Cap76.54B
Revenue(TTM)15.08B
Net Income(TTM)4.14B
Analysts82.86
Price Target91.4 (7.2%)
Short Float %0.85%
Short Ratio2.89
Dividend
Industry RankSector Rank
Dividend Yield 0.76%
Yearly Dividend0.64
Dividend Growth(5Y)4.71%
DP19.22%
Div Incr Years0
Div Non Decr Years1
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)0.7%
PT rev (3m)2.73%
EPS NQ rev (1m)-4.79%
EPS NQ rev (3m)-6.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.23%
Revenue NQ rev (1m)-3.78%
Revenue NQ rev (3m)-4.49%
Revenue NY rev (1m)-1.75%
Revenue NY rev (3m)-1.74%
Valuation
Industry RankSector Rank
PE 25.22
Fwd PE 21.42
P/S 6.93
P/FCF 48.19
P/OCF 19.69
P/B 2.28
P/tB 4.26
EV/EBITDA 16.68
EPS(TTM)3.38
EY3.96%
EPS(NY)3.98
Fwd EY4.67%
FCF(TTM)1.77
FCFY2.07%
OCF(TTM)4.33
OCFY5.08%
SpS12.3
BVpS37.42
TBVpS20.01
PEG (NY)1.41
PEG (5Y)4.62
Graham Number53.34
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
WACC9.33%
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 Y17.95%
EPS Next 2Y15.45%
EPS Next 3Y15.46%
EPS Next 5Y21.59%
Revenue 1Y (TTM)3.66%
Revenue growth 3Y19.6%
Revenue growth 5Y14.36%
Sales Q2Q%1.26%
Revenue Next Year4.87%
Revenue Next 2Y5.56%
Revenue Next 3Y6.4%
Revenue Next 5Y5.97%
EBIT growth 1Y7.12%
EBIT growth 3Y19.44%
EBIT growth 5Y11.37%
EBIT Next Year38.95%
EBIT Next 3Y17.83%
EBIT Next 5Y14.35%
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 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.


What is the profitability of CP stock?

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


What are the PE and PB ratios of CANADIAN PACIFIC KANSAS CITY (CP) stock?

The Price/Earnings (PE) ratio for CANADIAN PACIFIC KANSAS CITY (CP) is 25.22 and the Price/Book (PB) ratio is 2.28.


Can you provide the financial health for CP stock?

The financial health rating of CANADIAN PACIFIC KANSAS CITY (CP) is 3 / 10.