CANADIAN PACIFIC KANSAS CITY (CP) Stock Fundamental Analysis
USA - NYSE:CP - CA13646K1084 - Common Stock
76.18 USD
+0.25 (+0.33%)
CP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
CP had positive earnings in the past year.
In the past year CP had a positive cash flow from operations.
CP had positive earnings in each of the past 5 years.
Each year in the past 5 years CP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CP (4.91%) is better than 66.67% of its industry peers.
CP has a Return On Equity of 9.05%. This is comparable to the rest of the industry: CP outperforms 57.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.25%, CP is in line with its industry, outperforming 59.52% of the companies in the same industry.
CP had an Average Return On Invested Capital over the past 3 years of 4.45%. This is below the industry average of 7.92%.
The 3 year average ROIC (4.45%) for CP is below the current ROIC(5.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.91% | ||
| ROE | 9.05% | ||
| ROIC | 5.25% |
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
Looking at the Profit Margin, with a value of 28.04%, CP belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
CP's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 36.96%, CP belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Operating Margin of CP has declined.
Looking at the Gross Margin, with a value of 85.09%, CP belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
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 | 36.96% | ||
| PM (TTM) | 28.04% | ||
| GM | 85.09% |
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.
CP has more shares outstanding than it did 5 years ago.
CP has a better debt/assets ratio than last year.
2.2 Solvency
CP has an Altman-Z score of 2.19. 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 (2.19) which is in line with its industry peers.
CP has a debt to FCF ratio of 8.90. This is a slightly negative value and a sign of low solvency as CP would need 8.90 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.90, CP is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that CP is not too dependend on debt financing.
CP's Debt to Equity ratio of 0.47 is in line compared to the rest of the industry. CP outperforms 47.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 8.9 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.63
WACC8.35%
2.3 Liquidity
A Current Ratio of 0.93 indicates that CP may have some problems paying its short term obligations.
CP has a Current ratio (0.93) which is comparable to the rest of the industry.
A Quick Ratio of 0.81 indicates that CP may have some problems paying its short term obligations.
With a Quick ratio value of 0.81, CP is not doing good in the industry: 69.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.31% over the past year.
The Earnings Per Share has been growing slightly by 5.28% on average over the past years.
CP shows a small growth in Revenue. In the last year, the Revenue has grown by 4.77%.
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)9.31%
EPS 3Y4.29%
EPS 5Y5.28%
EPS Q2Q%6.67%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y22.08%
Revenue growth 5Y13.3%
Sales Q2Q%2.66%
3.2 Future
The Earnings Per Share is expected to grow by 12.77% 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 6.01% yearly.
EPS Next Y14.05%
EPS Next 2Y14.78%
EPS Next 3Y14.6%
EPS Next 5Y12.77%
Revenue Next Year4.96%
Revenue Next 2Y5.89%
Revenue Next 3Y6.3%
Revenue Next 5Y6.01%
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
The Price/Earnings ratio is 23.59, which indicates a rather expensive current valuation of CP.
Compared to the rest of the industry, the Price/Earnings ratio of CP indicates a somewhat cheap valuation: CP is cheaper than 69.05% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.27. CP is around the same levels.
With a Price/Forward Earnings ratio of 18.76, CP is valued on the expensive side.
CP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CP is cheaper than 66.67% of the companies in the same industry.
CP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.59 | ||
| Fwd PE | 18.76 |
4.2 Price Multiples
CP's Enterprise Value to EBITDA ratio is in line with the industry average.
71.43% of the companies in the same industry are more expensive than CP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.65 | ||
| EV/EBITDA | 15.72 |
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 14.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.68
PEG (5Y)4.47
EPS Next 2Y14.78%
EPS Next 3Y14.6%
5. Dividend
5.1 Amount
CP has a yearly dividend return of 0.80%, which is pretty low.
Compared to an average industry Dividend Yield of 1.59, CP pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.80, CP pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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 17.72% 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.
DP17.72%
EPS Next 2Y14.78%
EPS Next 3Y14.6%
NYSE:CP (9/16/2025, 3:41:06 PM)
76.18
+0.25 (+0.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners75.63%
Inst Owner Change-1.46%
Ins Owners0.02%
Ins Owner Change0%
Market Cap69.93B
Analysts81.71
Price Target89.78 (17.85%)
Short Float %1.47%
Short Ratio4.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Yearly Dividend0.55
Dividend Growth(5Y)5.07%
DP17.72%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.52%
Min EPS beat(2)-3.79%
Max EPS beat(2)-1.24%
EPS beat(4)1
Avg EPS beat(4)-2.1%
Min EPS beat(4)-4.38%
Max EPS beat(4)1.02%
EPS beat(8)3
Avg EPS beat(8)-1.12%
EPS beat(12)3
Avg EPS beat(12)-2.7%
EPS beat(16)4
Avg EPS beat(16)-3.57%
Revenue beat(2)0
Avg Revenue beat(2)-3.67%
Min Revenue beat(2)-5.44%
Max Revenue beat(2)-1.89%
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)-3.13%
Revenue beat(12)0
Avg Revenue beat(12)-3.66%
Revenue beat(16)0
Avg Revenue beat(16)-3.98%
PT rev (1m)-1.39%
PT rev (3m)-0.77%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-4.25%
EPS NY rev (1m)-3.06%
EPS NY rev (3m)-3.06%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-3.65%
Revenue NY rev (1m)-1.28%
Revenue NY rev (3m)-1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.59 | ||
| Fwd PE | 18.76 | ||
| P/S | 6.48 | ||
| P/FCF | 38.65 | ||
| P/OCF | 17.62 | ||
| P/B | 2.09 | ||
| P/tB | 3.88 | ||
| EV/EBITDA | 15.72 |
EPS(TTM)3.23
EY4.24%
EPS(NY)4.06
Fwd EY5.33%
FCF(TTM)1.97
FCFY2.59%
OCF(TTM)4.32
OCFY5.68%
SpS11.76
BVpS36.42
TBVpS19.64
PEG (NY)1.68
PEG (5Y)4.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.91% | ||
| ROE | 9.05% | ||
| ROCE | 6.77% | ||
| ROIC | 5.25% | ||
| ROICexc | 5.3% | ||
| ROICexgc | 7.19% | ||
| OM | 36.96% | ||
| PM (TTM) | 28.04% | ||
| GM | 85.09% | ||
| FCFM | 16.77% |
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%
ROICexcg growth 3Y21.06%
ROICexcg 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-Score8
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 8.9 | ||
| Debt/EBITDA | 2.89 | ||
| Cap/Depr | 152.58% | ||
| Cap/Sales | 20.02% | ||
| Interest Coverage | 6.71 | ||
| Cash Conversion | 73.44% | ||
| Profit Quality | 59.8% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.19 |
F-Score8
WACC8.35%
ROIC/WACC0.63
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)9.31%
EPS 3Y4.29%
EPS 5Y5.28%
EPS Q2Q%6.67%
EPS Next Y14.05%
EPS Next 2Y14.78%
EPS Next 3Y14.6%
EPS Next 5Y12.77%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y22.08%
Revenue growth 5Y13.3%
Sales Q2Q%2.66%
Revenue Next Year4.96%
Revenue Next 2Y5.89%
Revenue Next 3Y6.3%
Revenue Next 5Y6.01%
EBIT growth 1Y7.05%
EBIT growth 3Y18.2%
EBIT growth 5Y11.13%
EBIT Next Year45.73%
EBIT Next 3Y20.54%
EBIT Next 5Y13.9%
FCF growth 1Y-3.55%
FCF growth 3Y3.72%
FCF growth 5Y12.37%
OCF growth 1Y19.39%
OCF growth 3Y12.63%
OCF growth 5Y12%