CP Stock Analysis: Canadian Pacific Kansas City | NYSE
Railroads | NYSE, USA | Market Cap: 77.500m USD | 12M Return: 20.5% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 216M
EPS Trend: 92.4%
Qual. Beats: 1
Rev. Trend: 85.0%
Qual. Beats: 2
Warnings
Tailwinds
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Canadian Pacific Kansas City Limited (CP) is a Class I freight railroad that operates a transcontinental network spanning Canada, the United States, and Mexico. The company transports bulk commodities such as grain, coal, potash, fertilizers, and sulphur, alongside merchandise freight including forest products, energy, chemicals, metals, automotive, and consumer goods, as well as intermodal retail goods in overseas containers. Its rail network covers approximately 20,000 miles connecting major business centers across the three countries.
The company was founded in 1881 and is headquartered in Calgary, Canada. It was formerly known as Canadian Pacific Railway Limited before adopting its current name in April 2023, following the merger that created the first single-line rail network linking Canada, the United States, and Mexico. As a Class I railroad within the Industrials sector, CPKC operates in an industry characterized by high infrastructure barriers to entry and limited competition, which typically supports pricing power and long-term capital intensity.
- Grain and potash volumes lift bulk segment revenue
- KCS merger synergies drive operating ratio toward fifty-five percent
- USMCA cross-border intermodal volumes accelerate post-merger
| Net Income: 4.20b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -0.24 > 1.0 |
| NWC/Revenue: -10.54% < 20% (prev -1.70%; Δ -8.84% < -1%) |
| CFO/TA 0.06 > 3% & CFO 5.50b > Net Income 4.20b |
| Net Debt (25.2b) to EBITDA (8.82b): 2.86 < 3 |
| Current Ratio: 0.59 > 1.5 & < 3 |
| Outstanding Shares: last quarter (887.1m) vs 12m ago -4.08% < -2% |
| Gross Margin: 60.08% > 18% (prev 52.30%; Δ 7.78% > 0.5%) |
| Asset Turnover: 25.67% > 50% (prev 17.51%; Δ 8.15% > 0%) |
| Interest Coverage Ratio: 6.52 > 6 (EBIT TTM 6.56b / Interest Expense TTM 1.01b) |
| A: -0.03 (Total Current Assets 3.45b - Total Current Liabilities 5.81b) / Total Assets 89.3b |
| B: 0.22 (Retained Earnings 19.7b / Total Assets 89.3b) |
| C: 0.08 (EBIT TTM 6.56b / Avg Total Assets 87.2b) |
| D: 1.12 (Book Value of Equity 46.6b / Total Liabilities 41.7b) |
| Altman-Z'' = 2.23 = BBB |
| DSRI: 0.75 (Receivables 2.25b/2.00b, Revenue 22.4b/14.9b) |
| GMI: 0.87 (GM 52.30% / 60.08%) |
| AQI: 1.01 (AQ_t 0.32 / AQ_t-1 0.32) |
| SGI: 1.50 (Revenue 22.4b / 14.9b) |
| TATA: -0.01 (NI 4.20b - CFO 5.50b) / TA 89.3b) |
| Beneish M = -2.99 (Cap -4..+1) = A |
As of August 03, 2026, the stock is trading at USD 88.89 with a total of 2,242,884 shares traded. Over the past week, the price has changed by -3.76%, over one month by +1.25%, over three months by +7.16% and over the past year by +20.52%.
Current recommended Stop Loss: 86.30 (which is 2.9% or 1.3 ATR below the current price).
Canadian Pacific Kansas City has received a consensus analysts rating of 4.29. Therefore, it is recommended to buy CP.
- StrongBuy: 14
- Buy: 9
- Hold: 4
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 100.5 | 13% |
Market Cap CAD = 109b (77.5b USD * 1.4017 USD.CAD)
P/E Trailing = 29.9864
P/E Forward = 25.1256
P/S = 5.1722
P/B = 2.4521
P/EG = 2.2189
Revenue TTM = 22.4b CAD
EBIT TTM = 6.56b CAD
EBITDA TTM = 8.82b CAD
Long Term Debt = 22.2b CAD (from longTermDebt, last quarter)
Short Term Debt = 2.90b CAD (from shortTermDebt, last quarter)
Debt = 25.6b CAD (from shortLongTermDebtTotal, last quarter) + Leases 410.0m
Net Debt = 25.2b CAD (calculated: Debt 25.6b - CCE 366.0m)
Enterprise Value = 134b CAD (109b + Debt 25.6b - CCE 366.0m)
Interest Coverage Ratio = 6.52 (Ebit TTM 6.56b / Interest Expense TTM 1.01b)
EV/FCF = 55.69x (Enterprise Value 134b / FCF TTM 2.40b)
FCF Yield = 1.80% (FCF TTM 2.40b / Enterprise Value 134b)
FCF Margin = 10.73% (FCF TTM 2.40b / Revenue TTM 22.4b)
Net Margin = 18.76% (Net Income TTM 4.20b / Revenue TTM 22.4b)
Gross Margin = 60.08% ((Revenue TTM 22.4b - Cost of Revenue TTM 8.94b) / Revenue TTM)
Gross Margin QoQ = 80.24% (prev 33.99%)
Tobins Q-Ratio = 1.50 (Enterprise Value 134b / Total Assets 89.3b)
Interest Expense / Debt = 3.94% (Interest Expense 1.01b / Debt 25.6b)
Taxrate = 25.20% (1.41b / 5.61b)
NOPAT = 4.91b (EBIT 6.56b * (1 - 25.20%))
Current Ratio = 0.59 (Total Current Assets 3.45b / Total Current Liabilities 5.81b)
Debt / Equity = 0.55 (Debt 25.6b / totalStockholderEquity, last quarter 46.6b)
Debt / EBITDA = 2.86 (Net Debt 25.2b / EBITDA 8.82b)
Debt / FCF = 10.48 (Net Debt 25.2b / FCF TTM 2.40b)
Total Stockholder Equity = 43.0b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.82% (Net Income 4.20b / Total Assets 89.3b)
RoE = 9.78% (Net Income TTM 4.20b / Total Stockholder Equity 43.0b)
RoCE = 10.06% (EBIT 6.56b / Capital Employed (Equity 43.0b + L.T.Debt 22.2b))
RoIC = 5.71% (NOPAT 4.91b / Invested Capital 86.0b)
WACC = 6.69% (E(109b)/V(134b) * Re(7.57%) + D(25.6b)/V(134b) * Rd(3.94%) * (1-Tc(0.25)))
Discount Rate = 7.57% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -89.71 | Cagr: -2.28%
[DCF] Terminal Value 74.89% ; FCFF base≈2.44b ; Y1≈2.37b ; Y5≈2.35b
[DCF] Fair Price = 13.24 (EV 36.8b - Net Debt 25.2b = Equity 11.6b / Shares 879.1m; r=8.35% [WACC [floored]]; 5y FCF grow -3.92% → 2.50% )
EPS Correlation: 92.37 | EPS CAGR: 7.70% | SUE: 0.95 | # QB: 1
Revenue Correlation: 85.04 | Revenue CAGR: 16.64% | SUE: 4.0 | # QB: 2
EPS current Quarter (2026-09-30): EPS=1.34 | Chg30d=+1.47% | Revisions=+62% | Analysts=25
EPS current Year (2026-12-31): EPS=5.17 | Chg30d=+0.71% | Revisions=+18% | GrowthEPS=+12.2% | GrowthRev=+8.7%
EPS next Year (2027-12-31): EPS=5.98 | Chg30d=+1.15% | Revisions=+50% | GrowthEPS=+15.5% | GrowthRev=+5.5%
[Analyst] Revisions Ratio: +52% (up=16, down=4)