CANADIAN PACIFIC KANSAS CITY (CP) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:CP • CA13646K1084
73.9 USD
-0.44 (-0.59%)
Last: Feb 2, 2026, 01:14 PM
We assign a fundamental rating of 4 out of 10 to CP. CP was compared to 42 industry peers in the Ground Transportation industry. There are concerns on the financial health of CP while its profitability can be described as average. CP is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year CP was profitable.
- CP had a positive operating cash flow in the past year.
- Of the past 5 years CP 4 years were profitable.
- Of the past 5 years CP 4 years had a positive operating cash flow.
1.2 Ratios
- CP has a Return On Assets of 4.92%. This is in the better half of the industry: CP outperforms 71.43% of its industry peers.
- CP has a better Return On Equity (9.33%) than 61.90% of its industry peers.
- CP has a better Return On Invested Capital (5.27%) than 66.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CP is below the industry average of 6.90%.
- 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 92.86% of its industry peers.
- In the last couple of years the Profit Margin of CP has declined.
- With an excellent Operating Margin value of 37.47%, CP belongs to the best of the industry, outperforming 95.24% 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 97.62% 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
- CP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- There is no outstanding debt for CP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 1.99 indicates that CP is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 1.99, CP is in line with its industry, outperforming 50.00% 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 | 1.99 |
ROIC/WACC0.6
WACC8.86%
2.3 Liquidity
- A Current Ratio of 0.63 indicates that CP may have some problems paying its short term obligations.
- The Current ratio of CP (0.63) is worse than 88.10% of its industry peers.
- 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 88.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.24% over the past year.
- CP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.27% yearly.
EPS 1Y (TTM)7.24%
EPS 3Y6.99%
EPS 5Y5.27%
EPS Q2Q%-0.12%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.48%
3.2 Future
- The Earnings Per Share is expected to grow by 21.81% on average over the next years. This is a very strong growth
- CP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.21% yearly.
EPS Next Y19.02%
EPS Next 2Y15.98%
EPS Next 3Y15.81%
EPS Next 5Y21.81%
Revenue Next Year6.27%
Revenue Next 2Y6.6%
Revenue Next 3Y6.92%
Revenue Next 5Y6.21%
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 21.86, 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 78.57% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, CP is valued a bit cheaper.
- The Price/Forward Earnings ratio is 18.38, 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 rather cheap valuation: CP is cheaper than 83.33% of the companies listed in the same industry.
- CP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.86 | ||
| Fwd PE | 18.38 |
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 | 37.47 | ||
| EV/EBITDA | 14.71 |
4.3 Compensation for Growth
- CP's 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 15.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)4.15
EPS Next 2Y15.98%
EPS Next 3Y15.81%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.90%, CP is not a good candidate for dividend investing.
- CP's Dividend Yield is a higher than the industry average which is at 0.71.
- Compared to an average S&P500 Dividend Yield of 1.83, CP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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
- CP pays out 18.03% 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.
DP18.03%
EPS Next 2Y15.98%
EPS Next 3Y15.81%
CANADIAN PACIFIC KANSAS CITY / CP FAQ
Can you provide the ChartMill fundamental rating for CANADIAN PACIFIC KANSAS CITY?
ChartMill assigns a fundamental rating of 4 / 10 to CP.
What is the valuation status of CANADIAN PACIFIC KANSAS CITY (CP) stock?
ChartMill assigns a valuation rating of 5 / 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 6 / 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 21.86 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.