CANADIAN PACIFIC KANSAS CITY (CP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CP - CA13646K1084 - Common Stock
72.21 USD
+1.73 (+2.45%)
72.4 USD
+0.19 (+0.26%)
Taking everything into account, CP scores 5 out of 10 in our fundamental rating. 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 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.
Each year in the past 5 years CP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.92%, CP is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
CP has a better Return On Equity (9.33%) than 61.90% of its industry peers.
CP's Return On Invested Capital of 5.27% is fine compared to the rest of the industry. CP outperforms 66.67% 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 6.93%.
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 has a better Profit Margin (28.38%) than 92.86% of its industry peers.
In the last couple of years the Profit Margin of CP has declined.
CP's Operating Margin of 37.47% is amongst the best of the industry. CP outperforms 95.24% of its industry peers.
In the last couple of years the Operating Margin of CP has declined.
CP has a Gross Margin of 85.12%. 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 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CP is destroying value.
The number of shares outstanding for CP remains at a similar level compared to 1 year ago.
Compared to 5 years ago, CP has more shares outstanding
Compared to 1 year ago, CP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.95 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 1.95, CP perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
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 69.05% 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 of 0.51. This is comparable to the rest of the industry: CP outperforms 45.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 9.98 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.59
WACC8.98%
2.3 Liquidity
A Current Ratio of 0.63 indicates that CP may have some problems paying its short term obligations.
CP has a Current ratio of 0.63. This is amonst the worse of the industry: CP underperforms 88.10% of its industry peers.
A Quick Ratio of 0.54 indicates that CP may have some problems paying its short term obligations.
With a Quick ratio value of 0.54, CP is not doing good in the industry: 88.10% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been growing slightly by 5.28% on average over the past years.
CP shows a small growth in Revenue. In the last year, the Revenue has grown by 4.02%.
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.
The Revenue is expected to grow by 5.93% on average over the next years.
EPS Next Y12.91%
EPS Next 2Y13.37%
EPS Next 3Y13.41%
EPS Next 5Y12.48%
Revenue Next Year4.25%
Revenue Next 2Y5.25%
Revenue Next 3Y5.81%
Revenue Next 5Y5.93%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CP is valuated rather expensively with a Price/Earnings ratio of 21.82.
CP's Price/Earnings ratio is a bit cheaper when compared to the industry. CP is cheaper than 76.19% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.00, CP is valued at the same level.
Based on the Price/Forward Earnings ratio of 18.21, the valuation of CP can be described as rather expensive.
CP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CP is cheaper than 76.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.70. CP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.82 | ||
| Fwd PE | 18.21 |
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 73.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.39 | ||
| EV/EBITDA | 14.34 |
4.3 Compensation for Growth
CP's 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.
CP's earnings are expected to grow with 13.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.69
PEG (5Y)4.13
EPS Next 2Y13.37%
EPS Next 3Y13.41%
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 comparable with the industry average which is at 0.76.
Compared to an average S&P500 Dividend Yield of 1.94, CP's dividend is way lower than the S&P500 average.
| 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.
The dividend of CP decreased recently.
Dividend Growth(5Y)5.07%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
18.03% of the earnings are spent on dividend by CP. This is a low number and sustainable payout ratio.
The dividend of CP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP18.03%
EPS Next 2Y13.37%
EPS Next 3Y13.41%
72.21
+1.73 (+2.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners75.74%
Inst Owner Change0%
Ins Owners0.02%
Ins Owner Change0%
Market Cap64.79B
Revenue(TTM)15.03B
Net Income(TTM)4.26B
Analysts82.29
Price Target91.09 (26.15%)
Short Float %0.89%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend0.56
Dividend Growth(5Y)5.07%
DP18.03%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
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)2.39%
PT rev (3m)1.46%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)0.36%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-1.45%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.69%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.82 | ||
| Fwd PE | 18.21 | ||
| P/S | 5.95 | ||
| P/FCF | 37.39 | ||
| P/OCF | 16.3 | ||
| P/B | 1.96 | ||
| P/tB | 3.73 | ||
| EV/EBITDA | 14.34 |
EPS(TTM)3.31
EY4.58%
EPS(NY)3.96
Fwd EY5.49%
FCF(TTM)1.93
FCFY2.67%
OCF(TTM)4.43
OCFY6.13%
SpS12.13
BVpS36.88
TBVpS19.37
PEG (NY)1.69
PEG (5Y)4.13
Graham Number52.41
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 | 1.95 |
F-Score7
WACC8.98%
ROIC/WACC0.59
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 Y12.91%
EPS Next 2Y13.37%
EPS Next 3Y13.41%
EPS Next 5Y12.48%
Revenue 1Y (TTM)4.02%
Revenue growth 3Y22.08%
Revenue growth 5Y13.3%
Sales Q2Q%3.16%
Revenue Next Year4.25%
Revenue Next 2Y5.25%
Revenue Next 3Y5.81%
Revenue Next 5Y5.93%
EBIT growth 1Y8.58%
EBIT growth 3Y18.2%
EBIT growth 5Y11.13%
EBIT Next Year42.51%
EBIT Next 3Y18.75%
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.
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 21.82 and the Price/Book (PB) ratio is 1.96.
Can you provide the financial health for CP stock?
The financial health rating of CANADIAN PACIFIC KANSAS CITY (CP) is 3 / 10.