CANADIAN PACIFIC KANSAS CITY (CP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CP - CA13646K1084 - Common Stock
72.39 USD
+0.32 (+0.44%)
72.39 USD
0 (0%)
Overall CP gets a fundamental rating of 5 out of 10. We evaluated CP against 42 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.
- In the past 5 years CP has always been profitable.
- 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.
- CP has a better Return On Equity (9.33%) than 61.90% 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 66.67% 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 6.93%.
- 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.
- 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 has a Gross Margin of 85.12%. This is amongst the best in 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 1.99. 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 of 1.99. This is comparable to the rest of the industry: CP outperforms 40.48% of 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.
- 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.
- CP has a Debt/Equity ratio of 0.51. This is a neutral value indicating CP is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.51, CP is in line with its industry, outperforming 45.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 9.98 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.6
WACC8.82%
2.3 Liquidity
- A Current Ratio of 0.63 indicates that CP may have some problems paying its short term obligations.
- CP has a worse Current ratio (0.63) than 88.10% of its industry peers.
- CP has a Quick 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 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
- 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.
- The Earnings Per Share has been growing slightly by 5.28% on average over the past years.
- 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
- CP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.35% yearly.
- 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
- 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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 22.00 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 76.19% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.54, CP is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 18.38, the valuation of CP can be described as rather expensive.
- CP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CP is cheaper than 78.57% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of CP to the average of the S&P500 Index (24.31), we can say CP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22 | ||
| Fwd PE | 18.38 |
4.2 Price Multiples
- CP's Enterprise Value to EBITDA ratio is in line with 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 73.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.74 | ||
| EV/EBITDA | 14.73 |
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.
- A more expensive valuation may be justified as CP's earnings are expected to grow with 13.41% in the coming years.
PEG (NY)1.7
PEG (5Y)4.17
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.
- With a Dividend Yield of 0.87, CP pays less dividend than the S&P500 average, which is at 1.92.
| 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 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
- 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 2Y13.37%
EPS Next 3Y13.41%
72.39
+0.32 (+0.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)01-28 2026-01-28/amc
Inst Owners75.74%
Inst Owner Change0%
Ins Owners0.02%
Ins Owner Change0%
Market Cap64.95B
Revenue(TTM)15.03B
Net Income(TTM)4.26B
Analysts82.86
Price Target91.09 (25.83%)
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 | 22 | ||
| Fwd PE | 18.38 | ||
| P/S | 6.01 | ||
| P/FCF | 37.74 | ||
| P/OCF | 16.45 | ||
| P/B | 1.98 | ||
| P/tB | 3.76 | ||
| EV/EBITDA | 14.73 |
EPS(TTM)3.29
EY4.54%
EPS(NY)3.94
Fwd EY5.44%
FCF(TTM)1.92
FCFY2.65%
OCF(TTM)4.4
OCFY6.08%
SpS12.05
BVpS36.63
TBVpS19.23
PEG (NY)1.7
PEG (5Y)4.17
Graham Number52.07
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 | 1.99 |
F-Score7
WACC8.82%
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 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 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 22 and the Price/Book (PB) ratio is 1.98.
Can you provide the financial health for CP stock?
The financial health rating of CANADIAN PACIFIC KANSAS CITY (CP) is 3 / 10.