CANADIAN PACIFIC KANSAS CITY (CP) Stock Fundamental Analysis
USA - NYSE:CP - CA13646K1084 - Common Stock
70.7 USD
-0.45 (-0.63%)
70.86 USD
+0.16 (+0.23%)
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. While CP belongs to the best of the industry regarding profitability, there are concerns on its financial health. CP has a decent growth rate and is not valued too expensively.
1. Profitability
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.
In the past 5 years CP always reported a positive cash flow from operatings.
1.2 Ratios
CP has a Return On Assets of 4.92%. This is in the better half of the industry: CP outperforms 69.77% of its industry peers.
With a decent Return On Equity value of 9.33%, CP is doing good in the industry, outperforming 60.47% of the companies in the same industry.
CP's Return On Invested Capital of 5.27% is fine compared to the rest of the industry. CP outperforms 65.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CP is below the industry average of 7.44%.
The last Return On Invested Capital (5.27%) for CP is above the 3 year average (4.45%), which is a sign of increasing profitability.
| 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 93.02% of its industry peers.
CP's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 37.47%, CP belongs to the top of the industry, outperforming 95.35% of the companies in the same industry.
CP's Operating Margin has declined in the last couple of years.
The Gross Margin of CP (85.12%) is better than 95.35% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CP is destroying value.
Compared to 1 year ago, CP has about the same amount of shares outstanding.
The number of shares outstanding for CP has been increased compared to 5 years ago.
Compared to 1 year ago, CP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.00 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 2.00, CP perfoms like the industry average, outperforming 46.51% 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.
Looking at the Debt to FCF ratio, with a value of 9.98, CP is in the better half of the industry, outperforming 69.77% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that CP is somewhat dependend on debt financing.
CP's Debt to Equity ratio of 0.51 is in line compared to the rest of the industry. CP outperforms 46.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 9.98 | ||
| Altman-Z | 2 |
ROIC/WACC0.66
WACC8.02%
2.3 Liquidity
A Current Ratio of 0.63 indicates that CP may have some problems paying its short term obligations.
With a Current ratio value of 0.63, CP is not doing good in the industry: 88.37% of the companies in the same industry are doing better.
A Quick Ratio of 0.54 indicates that CP may have some problems paying its short term obligations.
CP's Quick ratio of 0.54 is on the low side compared to the rest of the industry. CP is outperformed by 88.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
CP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.12%, which is quite good.
CP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.28% yearly.
The Revenue has been growing slightly by 4.02% in the past year.
Measured over the past years, CP shows a quite strong growth in Revenue. The Revenue has been growing by 13.30% on average per year.
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
The Earnings Per Share is expected to grow by 12.59% on average over the next years. This is quite good.
CP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.98% yearly.
EPS Next Y13.02%
EPS Next 2Y13.68%
EPS Next 3Y13.68%
EPS Next 5Y12.59%
Revenue Next Year4.34%
Revenue Next 2Y5.25%
Revenue Next 3Y5.67%
Revenue Next 5Y5.98%
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
With a Price/Earnings ratio of 21.69, CP is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CP indicates a somewhat cheap valuation: CP is cheaper than 72.09% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, CP is valued at the same level.
A Price/Forward Earnings ratio of 18.01 indicates a rather expensive valuation of CP.
Based on the Price/Forward Earnings ratio, CP is valued a bit cheaper than the industry average as 74.42% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, CP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 18.01 |
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 72.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.03 | ||
| EV/EBITDA | 14.82 |
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 13.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.67
PEG (5Y)4.11
EPS Next 2Y13.68%
EPS Next 3Y13.68%
5. Dividend
5.1 Amount
CP has a yearly dividend return of 0.88%, which is pretty low.
CP's Dividend Yield is a higher than the industry average which is at 1.74.
With a Dividend Yield of 0.88, CP pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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.
CP has decreased its dividend 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.
CP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.03%
EPS Next 2Y13.68%
EPS Next 3Y13.68%
70.7
-0.45 (-0.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners75.84%
Inst Owner Change-1%
Ins Owners0.02%
Ins Owner Change0%
Market Cap64.90B
Revenue(TTM)15.03B
Net Income(TTM)4.26B
Analysts81.11
Price Target88.83 (25.64%)
Short Float %1.79%
Short Ratio5.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend0.54
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)-0.85%
PT rev (3m)-2.44%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)1%
EPS NY rev (1m)-1.36%
EPS NY rev (3m)-3.94%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 18.01 | ||
| P/S | 6.05 | ||
| P/FCF | 38.03 | ||
| P/OCF | 16.58 | ||
| P/B | 1.99 | ||
| P/tB | 3.79 | ||
| EV/EBITDA | 14.82 |
EPS(TTM)3.26
EY4.61%
EPS(NY)3.93
Fwd EY5.55%
FCF(TTM)1.86
FCFY2.63%
OCF(TTM)4.26
OCFY6.03%
SpS11.68
BVpS35.51
TBVpS18.64
PEG (NY)1.67
PEG (5Y)4.11
Graham Number51.03
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 |
F-Score7
WACC8.02%
ROIC/WACC0.66
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 Y13.02%
EPS Next 2Y13.68%
EPS Next 3Y13.68%
EPS Next 5Y12.59%
Revenue 1Y (TTM)4.02%
Revenue growth 3Y22.08%
Revenue growth 5Y13.3%
Sales Q2Q%3.16%
Revenue Next Year4.34%
Revenue Next 2Y5.25%
Revenue Next 3Y5.67%
Revenue Next 5Y5.98%
EBIT growth 1Y8.58%
EBIT growth 3Y18.2%
EBIT growth 5Y11.13%
EBIT Next Year44.89%
EBIT Next 3Y19.58%
EBIT Next 5Y13.85%
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 13.02% 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%.