CANADIAN PACIFIC KANSAS CITY (CP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CP - CA13646K1084 - Common Stock
73.76 USD
-0.19 (-0.26%)
73.76 USD
0 (0%)
Overall CP gets a fundamental rating of 5 out of 10. We evaluated CP against 43 industry peers in the Ground Transportation industry. CP scores excellent on profitability, but 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.
CP had positive earnings in each of the past 5 years.
In the past 5 years CP always reported a positive cash flow from operatings.
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 72.09% of the companies in the same industry.
CP's Return On Equity of 9.33% is fine compared to the rest of the industry. CP outperforms 62.79% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.27%, CP is in the better half of the industry, outperforming 67.44% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CP is below the industry average of 6.88%.
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 93.02% of its industry peers.
CP's Profit Margin has declined in the last couple of years.
CP has a Operating Margin of 37.47%. This is amongst the best in the industry. CP outperforms 95.35% of its industry peers.
In the last couple of years the Operating Margin of CP has declined.
The Gross Margin of CP (85.12%) is better than 97.67% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CP is destroying value.
CP has about the same amout of shares outstanding than it did 1 year ago.
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
CP has an Altman-Z score of 2.03. 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.
Looking at the Altman-Z score, with a value of 2.03, CP is in line with its industry, outperforming 46.51% of the companies in the same industry.
The Debt to FCF ratio of CP is 9.98, which is on the high side as it means it would take CP, 9.98 years of fcf income to pay off all of its debts.
CP has a better Debt to FCF ratio (9.98) than 69.77% 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.
CP has a Debt to Equity ratio of 0.51. This is comparable to the rest of the industry: CP outperforms 44.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 9.98 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.58
WACC9.11%
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.
The Current ratio of CP (0.63) is worse than 88.37% 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 88.37% 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.
Measured over the past 5 years, CP shows a small growth in Earnings Per Share. The EPS has been growing by 5.28% on average per year.
The Revenue has been growing slightly by 4.02% in the past year.
CP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.30% yearly.
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
Based on estimates for the next years, CP will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.48% on average per year.
Based on estimates for the next years, CP will show a small growth in Revenue. The Revenue will grow by 5.93% on average per year.
EPS Next Y13.02%
EPS Next 2Y13.68%
EPS Next 3Y13.68%
EPS Next 5Y12.48%
Revenue Next Year4.34%
Revenue Next 2Y5.25%
Revenue Next 3Y5.67%
Revenue Next 5Y5.93%
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
A Price/Earnings ratio of 22.56 indicates a rather expensive valuation of CP.
CP's Price/Earnings ratio is a bit cheaper when compared to the industry. CP is cheaper than 72.09% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, CP is valued at the same level.
The Price/Forward Earnings ratio is 18.72, which indicates a rather expensive current valuation of CP.
72.09% of the companies in the same industry are more expensive than CP, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, CP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 18.72 |
4.2 Price Multiples
CP's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, CP is valued a bit cheaper than 74.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.79 | ||
| EV/EBITDA | 15.09 |
4.3 Compensation for Growth
The 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 13.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.73
PEG (5Y)4.27
EPS Next 2Y13.68%
EPS Next 3Y13.68%
5. Dividend
5.1 Amount
CP has a yearly dividend return of 0.86%, which is pretty low.
CP's Dividend Yield is a higher than the industry average which is at 1.72.
Compared to an average S&P500 Dividend Yield of 2.32, 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 been paying a dividend for at least 10 years, so it has 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 2Y13.68%
EPS Next 3Y13.68%
73.76
-0.19 (-0.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners75.84%
Inst Owner Change-2.89%
Ins Owners0.02%
Ins Owner Change0%
Market Cap66.45B
Revenue(TTM)15.03B
Net Income(TTM)4.26B
Analysts81.11
Price Target88.97 (20.62%)
Short Float %0.92%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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)-0.46%
PT rev (3m)0.54%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)0.39%
EPS NY rev (1m)-1.36%
EPS NY rev (3m)-0.91%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 18.72 | ||
| P/S | 6.18 | ||
| P/FCF | 38.79 | ||
| P/OCF | 16.91 | ||
| P/B | 2.03 | ||
| P/tB | 3.87 | ||
| EV/EBITDA | 15.09 |
EPS(TTM)3.27
EY4.43%
EPS(NY)3.94
Fwd EY5.34%
FCF(TTM)1.9
FCFY2.58%
OCF(TTM)4.36
OCFY5.91%
SpS11.94
BVpS36.31
TBVpS19.07
PEG (NY)1.73
PEG (5Y)4.27
Graham Number51.69
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 | 2.03 |
F-Score7
WACC9.11%
ROIC/WACC0.58
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 5Y12.48%
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 5Y5.93%
EBIT growth 1Y8.58%
EBIT growth 3Y18.2%
EBIT growth 5Y11.13%
EBIT Next Year44.89%
EBIT Next 3Y19.58%
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.
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%.