CANADIAN PACIFIC KANSAS CITY (CP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CP - CA13646K1084 - Common Stock
71.57 USD
-0.64 (-0.89%)
71.57 USD
0 (0%)
CP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 42 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
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.
CP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CP has a better Return On Assets (4.92%) than 71.43% of its industry peers.
Looking at the Return On Equity, with a value of 9.33%, CP is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.27%, CP is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CP 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's Profit Margin of 28.38% 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.
The Operating Margin of CP (37.47%) is better than 95.24% of its industry peers.
CP's Operating Margin has declined in the last couple of years.
CP's Gross Margin of 85.12% 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 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.
CP has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, CP has more shares outstanding
CP has a better debt/assets ratio than last year.
2.2 Solvency
CP has an Altman-Z score of 1.98. 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 has a Altman-Z score (1.98) which is in line with its industry peers.
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.
The Debt to FCF ratio of CP (9.98) is better than 69.05% of its industry peers.
CP has a Debt/Equity ratio of 0.51. This is a neutral value indicating CP is somewhat dependend on debt financing.
The Debt to Equity ratio of CP (0.51) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 9.98 | ||
| Altman-Z | 1.98 |
ROIC/WACC0.6
WACC8.81%
2.3 Liquidity
CP has a Current Ratio of 0.63. This is a bad value and indicates that CP is not financially healthy enough and could expect problems in meeting its short term obligations.
CP's Current ratio of 0.63 is on the low side compared to the rest of the industry. CP is outperformed by 88.10% of its industry peers.
A Quick Ratio of 0.54 indicates that CP may have some problems paying its short term obligations.
The Quick ratio of CP (0.54) is worse than 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 grown by an nice 10.12% over the past year.
CP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.28% yearly.
Looking at the last year, CP shows a small growth in Revenue. The Revenue has grown by 4.02% in the last 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 12.35% 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 5.81% yearly.
EPS Next Y12.91%
EPS Next 2Y13.37%
EPS Next 3Y13.41%
EPS Next 5Y12.35%
Revenue Next Year4.25%
Revenue Next 2Y5.25%
Revenue Next 3Y5.81%
Revenue Next 5Y5.81%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 21.75, the valuation of CP can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CP indicates a somewhat cheap valuation: CP is cheaper than 73.81% of the companies listed in the same industry.
CP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.15 indicates a rather expensive valuation of CP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CP indicates a somewhat cheap valuation: CP is cheaper than 78.57% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CP to the average of the S&P500 Index (23.92), we can say CP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.75 | ||
| Fwd PE | 18.15 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CP.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CP indicates a somewhat cheap valuation: CP is cheaper than 73.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.26 | ||
| EV/EBITDA | 14.58 |
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 13.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.69
PEG (5Y)4.12
EPS Next 2Y13.37%
EPS Next 3Y13.41%
5. Dividend
5.1 Amount
CP has a yearly dividend return of 0.87%, which is pretty low.
Compared to an average industry Dividend Yield of 0.72, CP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, CP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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
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%
71.57
-0.64 (-0.89%)
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 Cap64.22B
Revenue(TTM)15.03B
Net Income(TTM)4.26B
Analysts82.86
Price Target91.09 (27.27%)
Short Float %0.89%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend0.55
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)2.34%
PT rev (3m)1.67%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)0.21%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-1.45%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.75 | ||
| Fwd PE | 18.15 | ||
| P/S | 5.93 | ||
| P/FCF | 37.26 | ||
| P/OCF | 16.24 | ||
| P/B | 1.95 | ||
| P/tB | 3.72 | ||
| EV/EBITDA | 14.58 |
EPS(TTM)3.29
EY4.6%
EPS(NY)3.94
Fwd EY5.51%
FCF(TTM)1.92
FCFY2.68%
OCF(TTM)4.41
OCFY6.16%
SpS12.06
BVpS36.69
TBVpS19.26
PEG (NY)1.69
PEG (5Y)4.12
Graham Number52.11
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 | 1.98 |
F-Score7
WACC8.81%
ROIC/WACC0.6
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 5Y12.35%
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 5Y5.81%
EBIT growth 1Y8.58%
EBIT growth 3Y18.2%
EBIT growth 5Y11.13%
EBIT Next Year42.51%
EBIT Next 3Y18.75%
EBIT Next 5Y13.32%
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 21.75 and the Price/Book (PB) ratio is 1.95.
Can you provide the financial health for CP stock?
The financial health rating of CANADIAN PACIFIC KANSAS CITY (CP) is 3 / 10.