Overview Dividends

(CP) Canadian Pacific Railway - Ratings and Ratios

Exchange: NYSE • Country: Canada • Currency: USD • Type: Common Stock • ISIN: CA13646K1084

Freight, Commodities, Intermodal, Transportation, Services

CP EPS (Earnings per Share)

EPS Growth (3Y CAGR): 12.93%
EPS Trend (3Y Correlation): 8.4%

CP Revenue

Revenue Growth (3Y CAGR): 18.64%
Revenue Trend (3Y Correlation): 85.1%

Description: CP Canadian Pacific Railway

Canadian Pacific Kansas City Limited is a transcontinental freight railway operator in North America, transporting various commodities, including bulk goods, merchandise freight, and intermodal traffic. The companys diverse revenue streams are derived from a broad range of industries, such as agriculture, energy, and consumer goods.

Key performance indicators (KPIs) for CP include revenue ton-miles, which measures the total freight hauled, and operating ratio, a measure of operating efficiency. The companys extensive network of approximately 20,000 miles of rail lines serves major business centers across Canada, the United States, and Mexico, providing a competitive advantage through its geographic reach and economies of scale.

From a financial perspective, CPs market capitalization is substantial, and its price-to-earnings ratio is relatively high, indicating investor confidence in the companys growth prospects. Return on equity (RoE) is a key metric to monitor, as it reflects the companys ability to generate profits from shareholder capital. Other important metrics include revenue growth, operating income margin, and free cash flow yield, which can provide insights into CPs financial health and ability to invest in its operations.

To further evaluate CPs performance, its essential to analyze its revenue mix, average revenue per ton-mile, and carload volumes, as well as its fuel price exposure and operating expenses. By examining these KPIs, investors can gain a deeper understanding of the companys strengths, weaknesses, and growth opportunities, ultimately informing their investment decisions.

CP Stock Overview

Market Cap in USD	69,904m
Sub-Industry	Rail Transportation
IPO / Inception	1983-12-30

CP Stock Ratings

Growth Rating	10.8%
Fundamental	63.9%
Dividend Rating	30.8%
Return 12m vs S&P 500	-26.8%
Analyst Rating	4.13 of 5

CP Dividends

Dividend Yield 12m	0.97%
Yield on Cost 5y	1.26%
Annual Growth 5y	0.85%
Payout Consistency	94.5%
Payout Ratio	13.7%

CP Growth Ratios

Growth Correlation 3m	-71.5%
Growth Correlation 12m	-15.4%
Growth Correlation 5y	61.1%
CAGR 5y	1.61%
CAGR/Max DD 3y	0.06
CAGR/Mean DD 3y	0.17
Sharpe Ratio 12m	-1.89
Alpha	-30.66
Beta	0.963
Volatility	21.86%
Current Volume	1571k
Average Volume 20d	2539.6k
Stop Loss	72.8 (-3%)
Signal	-0.21

Piotroski VR‑10 (Strict, 0-10) 5.0

Net Income (4.18b TTM) > 0 and > 6% of Revenue (6% = 895.0m TTM)

FCFTA 0.03 (>2.0%) and ΔFCFTA 0.71pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -1.70% (prev -21.59%; Δ 19.89pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.06 (>3.0%) and CFO 5.49b > Net Income 4.18b (YES >=105%, WARN >=100%)

Net Debt (21.47b) to EBITDA (8.11b) ratio: 2.65 <= 3.0 (WARN <= 3.5)

Current Ratio 0.93 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (924.8m) change vs 12m ago -1.05% (target <= -2.0% for YES)

Gross Margin 48.15% (prev 52.33%; Δ -4.19pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 17.76% (prev 17.20%; Δ 0.56pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 7.52 (EBITDA TTM 8.11b / Interest Expense TTM 819.0m) >= 6 (WARN >= 3)

Altman Z'' 2.51

(A) -0.00 = (Total Current Assets 3.52b - Total Current Liabilities 3.78b) / Total Assets 85.18b

(B) 0.23 = Retained Earnings (Balance) 19.86b / Total Assets 85.18b

(D) 1.21 = Book Value of Equity 46.10b / Total Liabilities 38.03b

Total Rating: 2.51 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 63.88

1. Piotroski 5.0pt = 0.0

2. FCF Yield 2.12% = 1.06

3. FCF Margin 16.77% = 4.19

4. Debt/Equity 0.48 = 2.39

5. Debt/Ebitda 2.75 = -1.38

6. ROIC - WACC -0.96% = -1.21

7. RoE 8.97% = 0.75

8. Rev. Trend 85.06% = 4.25

9. Rev. CAGR 18.64% = 2.33

10. EPS Trend 8.44% = 0.21

11. EPS CAGR 12.93% = 1.29

What is the price of CP shares?

As of September 13, 2025, the stock is trading at USD 75.08 with a total of 1,570,982 shares traded.
Over the past week, the price has changed by -2.02%, over one month by +0.15%, over three months by -7.29% and over the past year by -12.83%.

Is Canadian Pacific Railway a good stock to buy?

Neither. Based on ValueRay´s Fundamental Analyses, Canadian Pacific Railway is currently (September 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of 63.88 and therefor a neutral outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of CP is around 64.75 USD . This means that CP is currently overvalued and has a potential downside of -13.76%.

Is CP a buy, sell or hold?

Canadian Pacific Railway has received a consensus analysts rating of 4.13. Therefore, it is recommended to buy CP.

Strong Buy: 16
Buy: 7
Hold: 7
Sell: 1
Strong Sell: 1

What are the forecasts/targets for the CP price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	89.7	19.5%
Analysts Target Price	89.7	19.5%
ValueRay Target Price	71.8	-4.4%

Last update: 2025-09-10 04:35

CP Fundamental Data Overview

Market Cap CAD = 96.71b (69.90b USD * 1.3835 USD.CAD)
CCE Cash And Equivalents = 799.0m CAD (Cash And Short Term Investments, last quarter)
P/E Trailing = 23.5031
P/E Forward = 19.4553
P/S = 4.6862
P/B = 2.1002
P/EG = 2.3684
Beta = 1.033
Revenue TTM = 14.92b CAD
EBIT TTM = 6.16b CAD
EBITDA TTM = 8.11b CAD
Long Term Debt = 21.23b CAD (from longTermDebt, last quarter)
Short Term Debt = 1.04b CAD (from shortTermDebt, last quarter)
Debt = 22.27b CAD (Calculated: Short Term 1.04b + Long Term 21.23b)
Net Debt = 21.47b CAD (from netDebt column, last quarter)
Enterprise Value = 118.18b CAD (96.71b + Debt 22.27b - CCE 799.0m)
Interest Coverage Ratio = 7.52 (Ebit TTM 6.16b / Interest Expense TTM 819.0m)
FCF Yield = 2.12% (FCF TTM 2.50b / Enterprise Value 118.18b)
FCF Margin = 16.77% (FCF TTM 2.50b / Revenue TTM 14.92b)
Net Margin = 28.04% (Net Income TTM 4.18b / Revenue TTM 14.92b)
Gross Margin = 48.15% ((Revenue TTM 14.92b - Cost of Revenue TTM 7.74b) / Revenue TTM)
Tobins Q-Ratio = 2.56 (Enterprise Value 118.18b / Book Value Of Equity 46.10b)
Interest Expense / Debt = 0.93% (Interest Expense 208.0m / Debt 22.27b)
Taxrate = 22.19% (1.06b / 4.77b)
NOPAT = 4.79b (EBIT 6.16b * (1 - 22.19%))
Current Ratio = 0.93 (Total Current Assets 3.52b / Total Current Liabilities 3.78b)
Debt / Equity = 0.48 (Debt 22.27b / last Quarter total Stockholder Equity 46.20b)
Debt / EBITDA = 2.75 (Net Debt 21.47b / EBITDA 8.11b)
Debt / FCF = 8.90 (Debt 22.27b / FCF TTM 2.50b)
Total Stockholder Equity = 46.62b (last 4 quarters mean)
RoA = 4.91% (Net Income 4.18b, Total Assets 85.18b )
RoE = 8.97% (Net Income TTM 4.18b / Total Stockholder Equity 46.62b)
RoCE = 9.07% (Ebit 6.16b / (Equity 46.62b + L.T.Debt 21.23b))
RoIC = 6.94% (NOPAT 4.79b / Invested Capital 68.99b)
WACC = 7.91% (E(96.71b)/V(118.98b) * Re(9.56%)) + (D(22.27b)/V(118.98b) * Rd(0.93%) * (1-Tc(0.22)))
Shares Correlation 3-Years: 47.33 | Cagr: -0.08%
Discount Rate = 9.56% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 75.85% ; FCFE base≈2.24b ; Y1≈2.63b ; Y5≈3.99b
Fair Price DCF = 57.07 (DCF Value 52.39b / Shares Outstanding 918.0m; 5y FCF grow 18.49% → 3.0% )
Revenue Correlation: 85.06 | Revenue CAGR: 18.64%
Rev Growth-of-Growth: -25.62
EPS Correlation: 8.44 | EPS CAGR: 12.93%
EPS Growth-of-Growth: 28.90

Additional Sources for CP Stock

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