CANADIAN PACIFIC KANSAS CITY (CP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CP - CA13646K1084 - Common Stock
72.57 USD
+0.48 (+0.67%)
CP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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.
Each year in the past 5 years CP has been profitable.
Each year in the past 5 years CP had a positive operating cash flow.
1.2 Ratios
CP's Return On Assets of 4.92% is fine compared to the rest of the industry. CP outperforms 72.09% of its industry peers.
With a decent Return On Equity value of 9.33%, CP is doing good in the industry, outperforming 62.79% of the companies in the same industry.
The Return On Invested Capital of CP (5.27%) is better than 67.44% of its industry peers.
CP had an Average Return On Invested Capital over the past 3 years of 4.45%. This is below the industry average of 6.88%.
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
With an excellent Profit Margin value of 28.38%, CP belongs to the best of the industry, outperforming 93.02% of the companies in the same industry.
CP's Profit Margin has declined in the last couple of years.
CP's Operating Margin of 37.47% is amongst the best of the industry. CP outperforms 95.35% of its industry peers.
CP's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 85.12%, CP belongs to the top of the industry, outperforming 97.67% of the companies in the same industry.
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.
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
An Altman-Z score of 2.01 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 2.01, 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.
Looking at the Debt to FCF ratio, with a value of 9.98, CP is in the better half of the industry, outperforming 69.77% of the companies in the same industry.
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 (0.51) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 9.98 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.53
WACC9.86%
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 88.37% of its industry peers.
A Quick Ratio of 0.54 indicates that CP may have some problems paying its short term obligations.
With a Quick ratio value of 0.54, CP is not doing good in the industry: 88.37% of the companies in the same industry are doing better.
| 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.
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.
The Revenue has been growing by 13.30% on average over the past years. This is quite good.
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 22.33 indicates a rather expensive valuation of CP.
Based on the Price/Earnings ratio, CP is valued a bit cheaper than the industry average as 72.09% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.31, CP is valued at the same level.
Based on the Price/Forward Earnings ratio of 18.52, the valuation of CP can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CP is valued a bit cheaper than the industry average as 72.09% of the companies are valued more expensively.
CP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.33 | ||
| Fwd PE | 18.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CP is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, CP is valued a bit cheaper than the industry average as 72.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.37 | ||
| EV/EBITDA | 14.85 |
4.3 Compensation for Growth
CP's 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.
A more expensive valuation may be justified as CP's earnings are expected to grow with 13.68% in the coming years.
PEG (NY)1.72
PEG (5Y)4.23
EPS Next 2Y13.68%
EPS Next 3Y13.68%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, CP is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.83, CP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, 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.
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.
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%
NYSE:CP (11/28/2025, 8:21:23 PM)
72.57
+0.48 (+0.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners75.84%
Inst Owner Change-2.83%
Ins Owners0.02%
Ins Owner Change0%
Market Cap65.37B
Revenue(TTM)15.03B
Net Income(TTM)4.26B
Analysts81.11
Price Target88.97 (22.6%)
Short Float %1.24%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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)-0.7%
PT rev (3m)-2.29%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)0.42%
EPS NY rev (1m)-1.36%
EPS NY rev (3m)-3.94%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.33 | ||
| Fwd PE | 18.52 | ||
| P/S | 6.11 | ||
| P/FCF | 38.37 | ||
| P/OCF | 16.73 | ||
| P/B | 2.01 | ||
| P/tB | 3.83 | ||
| EV/EBITDA | 14.85 |
EPS(TTM)3.25
EY4.48%
EPS(NY)3.92
Fwd EY5.4%
FCF(TTM)1.89
FCFY2.61%
OCF(TTM)4.34
OCFY5.98%
SpS11.88
BVpS36.12
TBVpS18.96
PEG (NY)1.72
PEG (5Y)4.23
Graham Number51.39
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 | 2.01 |
F-Score7
WACC9.86%
ROIC/WACC0.53
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%.