CANADIAN PACIFIC KANSAS CITY (CP) Fundamental Analysis & Valuation

NYSE:CP • CA13646K1084

Current stock price

82.235 USD
+0.88 (+1.08%)
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

  • In the past year CP was profitable.
  • In the past year CP had a positive cash flow from operations.
  • 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

  • With a decent Return On Assets value of 4.82%, CP is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 9.03%, CP is in line with its industry, outperforming 59.52% of the companies in the same 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.
  • CP had an Average Return On Invested Capital over the past 3 years of 4.95%. This is below the industry average of 7.21%.
  • 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's Profit Margin of 27.46% is amongst the best of the industry. CP outperforms 92.86% of its industry peers.
  • CP's Profit Margin has declined in the last couple of years.
  • The Operating Margin of CP (37.62%) is better than 95.24% of its industry peers.
  • In the last couple of years the Operating Margin of CP has declined.
  • With an excellent Gross Margin value of 85.38%, CP belongs to the best of the industry, outperforming 97.62% of the companies in the same industry.
  • CP's Gross Margin has been stable in the last couple of years.
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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CP is destroying value.
  • The number of shares outstanding for CP has been reduced compared to 1 year ago.
  • CP has more shares outstanding than it did 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 2.17 indicates that CP is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of CP (2.17) is comparable to the rest of the industry.
  • 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 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.
  • CP has a Debt to Equity ratio (0.46) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 10.69
Altman-Z 2.17
ROIC/WACC0.58
WACC9.26%
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.
  • Looking at the Current ratio, with a value of 0.49, CP is doing worse than 92.86% of the companies in the same industry.
  • A Quick Ratio of 0.41 indicates that CP may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.41, CP is doing worse than 92.86% of the companies in the same industry.
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

  • The Earnings Per Share has grown by an nice 8.22% over the past year.
  • The Earnings Per Share has been growing slightly by 5.46% on average over the past years.
  • 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.
  • CP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.67% yearly.
EPS Next Y15.88%
EPS Next 2Y14.98%
EPS Next 3Y14.6%
EPS Next 5Y21.59%
Revenue Next Year4.83%
Revenue Next 2Y5.57%
Revenue Next 3Y6.36%
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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 24.47, CP is valued on the expensive side.
  • CP's Price/Earnings ratio is a bit cheaper when compared to the industry. CP is cheaper than 64.29% of the companies in the same industry.
  • CP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.71, which is the current average of the S&P500 Index.
  • CP is valuated rather expensively with a Price/Forward Earnings ratio of 21.10.
  • Based on the Price/Forward Earnings ratio, CP is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
  • CP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 24.47
Fwd PE 21.1
CP Price Earnings VS Forward Price EarningsCP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as CP.
  • Based on the Price/Free Cash Flow ratio, CP is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 46.65
EV/EBITDA 15.86
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 14.60% in the coming years.
PEG (NY)1.54
PEG (5Y)4.48
EPS Next 2Y14.98%
EPS Next 3Y14.6%

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4

5. CP Dividend Analysis

5.1 Amount

  • CP has a yearly dividend return of 0.82%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.74, CP has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.91, CP's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.82%

5.2 History

  • The dividend of CP has a limited annual growth rate of 4.71%.
  • 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)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

  • CP pays out 19.22% 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.
DP19.22%
EPS Next 2Y14.98%
EPS Next 3Y14.6%
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 (3/16/2026, 11:26:08 AM)

82.235

+0.88 (+1.08%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)01-28
Earnings (Next)04-28
Inst Owners73.67%
Inst Owner Change-1.54%
Ins Owners0.03%
Ins Owner Change0%
Market Cap73.84B
Revenue(TTM)15.08B
Net Income(TTM)4.14B
Analysts82.86
Price Target91.4 (11.14%)
Short Float %0.9%
Short Ratio2.9
Dividend
Industry RankSector Rank
Dividend Yield 0.82%
Yearly Dividend0.63
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)-0.01%
PT rev (3m)2.68%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)-5.6%
EPS NY rev (1m)-1.75%
EPS NY rev (3m)-2.38%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-4.19%
Revenue NY rev (1m)-1.79%
Revenue NY rev (3m)-1.71%
Valuation
Industry RankSector Rank
PE 24.47
Fwd PE 21.1
P/S 6.71
P/FCF 46.65
P/OCF 19.06
P/B 2.21
P/tB 4.13
EV/EBITDA 15.86
EPS(TTM)3.36
EY4.09%
EPS(NY)3.9
Fwd EY4.74%
FCF(TTM)1.76
FCFY2.14%
OCF(TTM)4.31
OCFY5.25%
SpS12.25
BVpS37.28
TBVpS19.93
PEG (NY)1.54
PEG (5Y)4.48
Graham Number53.09
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 2.17
F-Score7
WACC9.26%
ROIC/WACC0.58
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 Y15.88%
EPS Next 2Y14.98%
EPS Next 3Y14.6%
EPS Next 5Y21.59%
Revenue 1Y (TTM)3.66%
Revenue growth 3Y19.6%
Revenue growth 5Y14.36%
Sales Q2Q%1.26%
Revenue Next Year4.83%
Revenue Next 2Y5.57%
Revenue Next 3Y6.36%
Revenue Next 5Y5.67%
EBIT growth 1Y7.12%
EBIT growth 3Y19.44%
EBIT growth 5Y11.37%
EBIT Next Year38.95%
EBIT Next 3Y17.83%
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 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 24.47 and the Price/Book (PB) ratio is 2.21.


Can you provide the financial health for CP stock?

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