CANADIAN PACIFIC KANSAS CITY (CP) Fundamental Analysis & Valuation

NYSE:CP • CA13646K1084

Current stock price

81.43 USD
+0.76 (+0.94%)
At close:
81.43 USD
0 (0%)
After Hours:

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.
  • CP had positive earnings in each of the past 5 years.
  • 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's Return On Assets of 4.82% is fine compared to the rest of the industry. CP outperforms 66.67% of its industry peers.
  • CP has a Return On Equity (9.03%) which is comparable to the rest of the industry.
  • CP has a better Return On Invested Capital (5.36%) 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 7.15%.
  • 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.
  • CP has a better Operating Margin (37.62%) than 95.24% of its industry peers.
  • In the last couple of years the Operating Margin of CP has declined.
  • CP's Gross Margin of 85.38% is amongst the best of 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

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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.
  • Compared to 5 years ago, CP has more shares outstanding
  • 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

  • CP has an Altman-Z score of 2.17. 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 2.17 is on the low side compared to the rest of the industry. CP is outperformed by 61.90% of its industry peers.
  • 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's Debt to FCF ratio of 10.69 is fine compared to the rest of the industry. CP outperforms 61.90% 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.
  • With a Debt to Equity ratio value of 0.46, CP perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 10.69
Altman-Z 2.17
ROIC/WACC0.6
WACC8.91%
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

  • CP has a Current 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.
  • Looking at the Current ratio, with a value of 0.49, CP is doing worse than 95.24% 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.
  • 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

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

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.
  • 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.
  • 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 Year5.01%
Revenue Next 2Y5.65%
Revenue Next 3Y6.3%
Revenue Next 5Y5.67%

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.
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

  • The Price/Earnings ratio is 24.38, which indicates a rather expensive current valuation of CP.
  • 69.05% of the companies in the same industry are more expensive than CP, based on the Price/Earnings ratio.
  • CP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.18.
  • CP is valuated rather expensively with a Price/Forward Earnings ratio of 21.12.
  • Based on the Price/Forward Earnings ratio, CP is valued a bit cheaper than 76.19% of the companies in the same industry.
  • CP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 37.96, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 24.38
Fwd PE 21.12
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 is on the same level as 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 61.90% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 46.56
EV/EBITDA 15.85
CP Per share dataCP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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 14.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.56
PEG (5Y)4.47
EPS Next 2Y14.91%
EPS Next 3Y14.66%

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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 0.81%, CP is not a good candidate for dividend investing.
  • CP's Dividend Yield is a higher than the industry average which is at 0.66.
  • With a Dividend Yield of 0.81, CP pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.81%

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.
  • 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

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CP Fundamentals: All Metrics, Ratios and Statistics

CANADIAN PACIFIC KANSAS CITY

NYSE:CP (4/13/2026, 8:18:06 PM)

After market: 81.43 0 (0%)

81.43

+0.76 (+0.94%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)01-28
Earnings (Next)04-29
Inst Owners73.46%
Inst Owner Change0.03%
Ins Owners0.03%
Ins Owner Change0%
Market Cap73.07B
Revenue(TTM)15.08B
Net Income(TTM)4.14B
Analysts82.86
Price Target92.17 (13.19%)
Short Float %0.79%
Short Ratio2.49
Dividend
Industry RankSector Rank
Dividend Yield 0.81%
Yearly Dividend0.63
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)0.84%
PT rev (3m)1.18%
EPS NQ rev (1m)-1.24%
EPS NQ rev (3m)-6.6%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-2.64%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-4.41%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-1.63%
Valuation
Industry RankSector Rank
PE 24.38
Fwd PE 21.12
P/S 6.7
P/FCF 46.56
P/OCF 19.02
P/B 2.2
P/tB 4.12
EV/EBITDA 15.85
EPS(TTM)3.34
EY4.1%
EPS(NY)3.86
Fwd EY4.74%
FCF(TTM)1.75
FCFY2.15%
OCF(TTM)4.28
OCFY5.26%
SpS12.16
BVpS36.99
TBVpS19.78
PEG (NY)1.56
PEG (5Y)4.47
Graham Number52.72
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
WACC8.91%
ROIC/WACC0.6
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 Year5.01%
Revenue Next 2Y5.65%
Revenue Next 3Y6.3%
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 4 / 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%.