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Canadian Pacific Kansas City (CP) Stock Analysis

Here is a fundamental analysis of Canadian Pacific Kansas City (CP), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

CP
GSPC
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Canadian Pacific Kansas City (CP) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Canadian Pacific Kansas City (CP) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Canadian Pacific Kansas City (CP) metric values compared with Transportation industry-group medians
MetricCurrent stock: CPIndustry group median
1-Year Return11.72%46.94%

Risk

Drawdown

CP
GSPC
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Canadian Pacific Kansas City (CP) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Canadian Pacific Kansas City (CP) metric values compared with Transportation industry-group medians
MetricCurrent stock: CPIndustry group median
1-Year Volatility22.53%39.71%
Beta1.091.15

Company Profile

Company profile fields for Canadian Pacific Kansas City (CP)
Profile ItemCP
NameCanadian Pacific Kansas City Limited
Country/RegionCanada
GICS SectorIndustrials
GICS Industry GroupTransportation
GICS IndustryGround Transportation
GICS Sub-IndustryRail Transportation
Market Capitalization79.97 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateDecember 30, 1983
Security TypeCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

Canadian Pacific Kansas City (CP) trades at P/E ratio of 27.98, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

CP

Transportation industry group

27.98

Group distribution
Max
96.57
Q3
48.32
CP
27.98
Median
23.00
Q1
13.51
Min
0.00
Largest peers
CSX
29.18
CP
27.98
UNP
22.43
CNI
21.87
FDX
18.05
UPS
17.49
UBER
17.08
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Where Canadian Pacific Kansas City (CP) stands on P/E ratio within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

Canadian Pacific Kansas City (CP) trades at 5.34 on P/S ratio, above the industry benchmark range. The stock is being valued at an unusually rich price per dollar of trailing revenue.

CP

Transportation industry group

5.34

Group distribution
CP
5.34
Max
4.18
Q3
2.26
Median
1.11
Q1
0.60
Min
0.07
Largest peers
UNP
6.55
CSX
6.25
CP
5.34
CNI
4.18
UBER
2.61
UPS
1.04
FDX
0.88
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Where Canadian Pacific Kansas City (CP) stands on P/S ratio within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

Canadian Pacific Kansas City (CP) trades at 2.41 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

CP

Transportation industry group

2.41

Group distribution
Max
8.88
Q3
4.49
CP
2.41
Median
2.15
Q1
1.24
Min
-2.43
Largest peers
UNP
8.34
CSX
6.51
UBER
5.66
UPS
5.66
CNI
4.68
FDX
2.71
CP
2.41
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Where Canadian Pacific Kansas City (CP) stands on P/B ratio within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Canadian Pacific Kansas City (CP) metric values compared with Transportation industry-group medians
MetricCurrent stock: CPIndustry group median
Price-to-Earnings Ratio (TTM)27.9823.00
Price-to-Sales Ratio (TTM)5.341.11
Price-to-Book Ratio (MRQ)2.412.15
Free Cash Flow Yield2.38%2.63%

Profitability

Return on Equity (TTM)

Canadian Pacific Kansas City (CP) posts ROE of 8.43%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

CP

Transportation industry group

8.43%

Group distribution
Max
43.37%
Q3
20.41%
Median
10.34%
CP
8.43%
Q1
1.88%
Min
-18.53%
Largest peers
UNP
40.69%
UBER
35.31%
UPS
33.35%
CSX
23.68%
CNI
21.85%
FDX
15.87%
CP
8.43%
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Where Canadian Pacific Kansas City (CP) stands on ROE within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Net Profit Margin (TTM)

Canadian Pacific Kansas City (CP) keeps 27.21% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

CP

Transportation industry group

27.21%

Group distribution
Max
43.82%
CP
27.21%
Q3
19.14%
Median
5.11%
Q1
0.86%
Min
-9.62%
Largest peers
UNP
29.20%
CNI
27.23%
CP
27.21%
CSX
21.55%
UBER
15.91%
UPS
5.94%
FDX
4.88%
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Where Canadian Pacific Kansas City (CP) stands on net margin within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

Canadian Pacific Kansas City (CP) turns 37.56% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

CP

Transportation industry group

37.56%

Group distribution
Max
54.53%
CP
37.56%
Q3
24.85%
Median
6.34%
Q1
1.12%
Min
-33.27%
Largest peers
UNP
40.36%
CNI
38.41%
CP
37.56%
CSX
36.16%
UBER
14.57%
FDX
6.94%
UPS
6.33%
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Where Canadian Pacific Kansas City (CP) stands on operating margin within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Canadian Pacific Kansas City (CP) metric values compared with Transportation industry-group medians
MetricCurrent stock: CPIndustry group median
Return on Equity (TTM)8.43%10.34%
Return on Assets (TTM)4.30%4.02%
Net Profit Margin (TTM)27.21%5.11%
Operating Profit Margin (TTM)37.56%6.34%
Gross Profit Margin (TTM)53.85%27.82%

Financial Strength

Current Ratio (MRQ)

Canadian Pacific Kansas City (CP) has current ratio of 0.67, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

CP

Transportation industry group

0.67

Group distribution
Max
2.26
Q3
1.61
Median
1.16
Q1
0.84
CP
0.67
Min
0.42
Largest peers
FDX
1.47
UPS
1.21
UBER
1.07
CSX
0.97
UNP
0.92
CP
0.67
CNI
0.67
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Where Canadian Pacific Kansas City (CP) stands on current ratio within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

Canadian Pacific Kansas City (CP) has debt-to-equity ratio of 0.51, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

CP

Transportation industry group

0.51

Group distribution
Max
3.37
Q3
1.64
Median
0.80
CP
0.51
Q1
0.36
Min
0.00
Largest peers
UPS
1.82
UNP
1.62
CSX
1.43
FDX
1.41
CNI
1.06
CP
0.51
UBER
0.48
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Where Canadian Pacific Kansas City (CP) stands on debt-to-equity ratio within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

Canadian Pacific Kansas City (CP) metric values compared with Transportation industry-group medians
MetricCurrent stock: CPIndustry group median
Current Ratio (MRQ)0.671.16
Debt-to-Equity Ratio (MRQ)0.510.80
Net Debt / EBITDA2.962.13

Dividends

Dividend Yield (TTM)

Canadian Pacific Kansas City (CP) has dividend yield of 0.77%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

CP

Transportation industry group

0.77%

Group distribution
Max
6.07%
Q3
2.46%
Median
0.94%
CP
0.77%
Q1
0.00%
Min
0.00%
Largest peers
UPS
6.07%
CNI
2.21%
UNP
2.02%
FDX
1.44%
CSX
1.18%
CP
0.77%
UBER
0.00%
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Where Canadian Pacific Kansas City (CP) stands on dividend yield within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Canadian Pacific Kansas City (CP) has payout ratio of 20.36%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

CP

Transportation industry group

20.36%

Group distribution
Max
106.15%
Q3
45.72%
Median
20.46%
CP
20.36%
Q1
0.00%
Min
0.00%
Largest peers
UPS
106.15%
CNI
47.13%
UNP
45.10%
CSX
32.52%
FDX
30.59%
CP
20.36%
UBER
0.00%
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Where Canadian Pacific Kansas City (CP) stands on payout ratio within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Canadian Pacific Kansas City (CP) metric values compared with Transportation industry-group medians
MetricCurrent stock: CPIndustry group median
Dividend Yield (TTM)0.77%0.94%
Dividend Payout Ratio (TTM)20.36%20.46%