CANADIAN PACIFIC KANSAS CITY (CP) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:CP • CA13646K1084

74.34 USD
-1.5 (-1.98%)
At close: Jan 30, 2026
75.8026 USD
+1.46 (+1.97%)
After Hours: 1/30/2026, 8:04:00 PM
Fundamental Rating

4

Overall CP gets a fundamental rating of 4 out of 10. We evaluated CP 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 valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year CP was profitable.
  • CP had a positive operating cash flow in the past year.
  • CP had positive earnings in 4 of the past 5 years.
  • Of the past 5 years CP 4 years had a positive operating cash flow.
CP Yearly Net Income VS EBIT VS OCF VS FCFCP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

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 71.43% of the companies in the same industry.
  • The Return On Equity of CP (9.33%) is better than 61.90% of its industry peers.
  • With a decent Return On Invested Capital value of 5.27%, CP is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for CP is below the industry average of 6.90%.
  • The 3 year average ROIC (4.45%) for CP is below the current ROIC(5.27%), indicating increased profibility in the last year.
Industry RankSector 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%
CP Yearly ROA, ROE, ROICCP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

  • CP's Profit Margin of 28.38% is amongst the best of the industry. CP outperforms 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.
  • 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.
  • CP's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
CP Yearly Profit, Operating, Gross MarginsCP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

More info and screens

3

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CP is destroying value.
  • There is no outstanding debt for CP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
CP Yearly Shares OutstandingCP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
CP Yearly Total Debt VS Total AssetsCP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

2.2 Solvency

  • An Altman-Z score of 1.99 indicates that CP is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of CP (1.99) is comparable to the rest of the industry.
  • 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.
  • With a Debt to Equity ratio value of 0.51, CP perfoms like the industry average, outperforming 45.24% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.51
Debt/FCF 9.98
Altman-Z 1.99
ROIC/WACC0.6
WACC8.86%
CP Yearly LT Debt VS Equity VS FCFCP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

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.
  • With a Current ratio value of 0.63, CP is not doing good in the industry: 88.10% of the companies in the same industry are doing better.
  • 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: 88.10% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.63
Quick Ratio 0.54
CP Yearly Current Assets VS Current LiabilitesCP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

More info and screens

3

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 7.24% over the past year.
  • Measured over the past 5 years, CP shows a small growth in Earnings Per Share. The EPS has been growing by 5.27% on average per year.
EPS 1Y (TTM)7.24%
EPS 3Y6.99%
EPS 5Y5.27%
EPS Q2Q%-0.12%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.48%

3.2 Future

  • Based on estimates for the next years, CP will show a very strong growth in Earnings Per Share. The EPS will grow by 21.81% on average per year.
  • Based on estimates for the next years, CP will show a small growth in Revenue. The Revenue will grow by 6.21% on average per year.
EPS Next Y19.02%
EPS Next 2Y15.98%
EPS Next 3Y15.81%
EPS Next 5Y21.81%
Revenue Next Year6.27%
Revenue Next 2Y6.6%
Revenue Next 3Y6.92%
Revenue Next 5Y6.21%

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.
CP Yearly Revenue VS EstimatesCP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5B 10B 15B
CP Yearly EPS VS EstimatesCP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 5 10

More info and screens

5

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 21.99, which indicates a rather expensive current valuation of CP.
  • 78.57% of the companies in the same industry are more expensive than CP, based on the Price/Earnings ratio.
  • CP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.32.
  • Based on the Price/Forward Earnings ratio of 18.49, the valuation of CP can be described as rather expensive.
  • Based on the Price/Forward Earnings ratio, CP is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
  • CP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 21.99
Fwd PE 18.49
CP Price Earnings VS Forward Price EarningsCP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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.
  • CP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CP is cheaper than 73.81% of the companies in the same industry.
Industry RankSector Rank
P/FCF 37.7
EV/EBITDA 14.71
CP Per share dataCP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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.
  • CP's earnings are expected to grow with 15.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.16
PEG (5Y)4.17
EPS Next 2Y15.98%
EPS Next 3Y15.81%

More info and screens

5

5. Dividend

5.1 Amount

  • CP has a yearly dividend return of 0.90%, which is pretty low.
  • CP's Dividend Yield is a higher than the industry average which is at 0.71.
  • Compared to an average S&P500 Dividend Yield of 1.83, CP's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.9%

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.
  • The dividend of CP decreased recently.
Dividend Growth(5Y)5.07%
Div Incr Years0
Div Non Decr Years1
CP Yearly Dividends per shareCP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

  • 18.03% of the earnings are spent on dividend by CP. This is a low number and sustainable payout ratio.
  • CP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.03%
EPS Next 2Y15.98%
EPS Next 3Y15.81%
CP Yearly Income VS Free CF VS DividendCP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B
CP Dividend Payout.CP Dividend Payout, showing the Payout Ratio.CP Dividend Payout.PayoutRetained Earnings

More info and screens

CANADIAN PACIFIC KANSAS CITY / CP FAQ

Can you provide the ChartMill fundamental rating for CANADIAN PACIFIC KANSAS CITY?

ChartMill assigns a fundamental rating of 4 / 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 6 / 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 21.99 and the Price/Book (PB) ratio is 1.97.


Can you provide the financial health for CP stock?

The financial health rating of CANADIAN PACIFIC KANSAS CITY (CP) is 3 / 10.