CANADIAN PACIFIC KANSAS CITY (CP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CP - CA13646K1084 - Common Stock
74.2 USD
-0.01 (-0.01%)
74.78 USD
+0.58 (+0.78%)
CP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 correct valuation and a medium growth rate.
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.
In the past 5 years CP has always been profitable.
Each year in the past 5 years CP had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.92%, CP is doing good in the industry, outperforming 71.43% 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 64.29% of its industry peers.
With a decent Return On Invested Capital value of 5.27%, CP is doing good in the industry, outperforming 69.05% 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 6.83%.
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
The Profit Margin of CP (28.38%) is better than 92.86% of its industry peers.
CP's Profit Margin has declined in the last couple of years.
The Operating Margin of CP (37.47%) is better than 95.24% of its industry peers.
In the last couple of years the Operating Margin of CP has declined.
Looking at the Gross Margin, with a value of 85.12%, CP belongs to the top of the industry, outperforming 97.62% 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 | 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.
Compared to 5 years ago, CP has more shares outstanding
The debt/assets ratio for CP has been reduced compared to a year ago.
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.
CP's Altman-Z score of 2.01 is in line compared to the rest of the industry. CP outperforms 45.24% of its industry peers.
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.
The Debt to FCF ratio of CP (9.98) is better than 69.05% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that 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 45.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 9.98 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.59
WACC8.88%
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.
Looking at the Current ratio, with a value of 0.63, CP is doing worse than 88.10% of the companies in the same industry.
A Quick Ratio of 0.54 indicates that CP may have some problems paying 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.
CP shows a small growth in Revenue. In the last year, the Revenue has grown by 4.02%.
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 Y12.91%
EPS Next 2Y13.37%
EPS Next 3Y13.41%
EPS Next 5Y12.48%
Revenue Next Year4.25%
Revenue Next 2Y5.25%
Revenue Next 3Y5.81%
Revenue Next 5Y5.93%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 22.42, the valuation of CP can be described as rather expensive.
CP's Price/Earnings ratio is a bit cheaper when compared to the industry. CP is cheaper than 73.81% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.39, CP is valued at the same level.
The Price/Forward Earnings ratio is 18.69, which indicates a rather expensive current valuation of CP.
CP's Price/Forward 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/Forward Earnings ratio of 23.84, CP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.42 | ||
| Fwd PE | 18.69 |
4.2 Price Multiples
CP's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CP is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.38 | ||
| EV/EBITDA | 14.93 |
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 13.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.74
PEG (5Y)4.25
EPS Next 2Y13.37%
EPS Next 3Y13.41%
5. Dividend
5.1 Amount
CP has a yearly dividend return of 0.85%, which is pretty low.
CP's Dividend Yield is comparable with the industry average which is at 0.75.
With a Dividend Yield of 0.85, CP pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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 2Y13.37%
EPS Next 3Y13.41%
74.2
-0.01 (-0.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners75.8%
Inst Owner Change-2.81%
Ins Owners0.02%
Ins Owner Change0%
Market Cap66.58B
Revenue(TTM)15.03B
Net Income(TTM)4.26B
Analysts82.29
Price Target91.09 (22.76%)
Short Float %0.78%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Yearly Dividend0.55
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)2.55%
PT rev (3m)1.46%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)0.42%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-1.45%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.42 | ||
| Fwd PE | 18.69 | ||
| P/S | 6.11 | ||
| P/FCF | 38.38 | ||
| P/OCF | 16.73 | ||
| P/B | 2.01 | ||
| P/tB | 3.83 | ||
| EV/EBITDA | 14.93 |
EPS(TTM)3.31
EY4.46%
EPS(NY)3.97
Fwd EY5.35%
FCF(TTM)1.93
FCFY2.61%
OCF(TTM)4.44
OCFY5.98%
SpS12.14
BVpS36.92
TBVpS19.39
PEG (NY)1.74
PEG (5Y)4.25
Graham Number52.44
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
WACC8.88%
ROIC/WACC0.59
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 5Y12.48%
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 5Y5.93%
EBIT growth 1Y8.58%
EBIT growth 3Y18.2%
EBIT growth 5Y11.13%
EBIT Next Year42.51%
EBIT Next 3Y18.71%
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 12.91% 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%.