CP Stock Analysis: Canadian Pacific Kansas City | NYSE
Railroads | NYSE, USA | Market Cap: 77.934m USD | 12M Return: 11.1% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 232M
EPS Trend: 96.0%
Qual. Beats: 0
Rev. Trend: 89.3%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 10.5 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: 4.41b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA -0.35 > 1.0 |
| NWC/Revenue: -10.15% < 20% (prev -5.31%; Δ -4.84% < -1%) |
| CFO/TA 0.06 > 3% & CFO 5.13b > Net Income 4.41b |
| Net Debt (24.4b) to EBITDA (9.05b): 2.69 < 3 |
| Current Ratio: 0.67 > 1.5 & < 3 |
| Outstanding Shares: last quarter (897.3m) vs 12m ago -3.96% < -2% |
| Gross Margin: 46.67% > 18% (prev 51.92%; Δ -5.24% > 0.5%) |
| Asset Turnover: 18.69% > 50% (prev 16.83%; Δ 1.86% > 0%) |
| Interest Coverage Ratio: 6.97 > 6 (EBIT TTM 6.82b / Interest Expense TTM 978.0m) |
| A: -0.02 (Total Current Assets 3.41b - Total Current Liabilities 5.08b) / Total Assets 87.9b |
| B: 0.23 (Retained Earnings 20.0b / Total Assets 87.9b) |
| C: 0.08 (EBIT TTM 6.82b / Avg Total Assets 88.0b) |
| D: 1.15 (Book Value of Equity 46.6b / Total Liabilities 40.4b) |
| Altman-Z'' = 2.35 = BBB |
| DSRI: 0.97 (Receivables 2.20b/2.04b, Revenue 16.4b/14.8b) |
| GMI: 1.11 (GM 51.92% / 46.67%) |
| AQI: 0.99 (AQ_t 0.32 / AQ_t-1 0.32) |
| SGI: 1.11 (Revenue 16.4b / 14.8b) |
| TATA: -0.01 (NI 4.41b - CFO 5.13b) / TA 87.9b) |
| Beneish M = -2.87 (Cap -4..+1) = A |
As of July 06, 2026, the stock is trading at USD 87.79 with a total of 2,854,400 shares traded. Over the past week, the price has changed by +1.08%, over one month by -2.17%, over three months by +10.67% and over the past year by +11.13%.
Current recommended Stop Loss: 85.10 (which is 3.1% or 1.4 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 | 91 | 3.6% |
Market Cap CAD = 111b (77.9b USD * 1.4203 USD.CAD)
P/E Trailing = 27.8698
P/E Forward = 27.6243
P/S = 5.2012
P/B = 2.3818
P/EG = 2.2189
Revenue TTM = 16.4b CAD
EBIT TTM = 6.82b CAD
EBITDA TTM = 9.05b CAD
Long Term Debt = 21.9b CAD (from longTermDebt, last quarter)
Short Term Debt = 2.44b CAD (from shortTermDebt, last quarter)
Debt = 24.8b CAD (from shortLongTermDebtTotal, last quarter) + Leases 410.0m
Net Debt = 24.4b CAD (calculated: Debt 24.8b - CCE 410.1m)
Enterprise Value = 135b CAD (111b + Debt 24.8b - CCE 410.1m)
Interest Coverage Ratio = 6.97 (Ebit TTM 6.82b / Interest Expense TTM 978.0m)
EV/FCF = 66.12x (Enterprise Value 135b / FCF TTM 2.04b)
FCF Yield = 1.51% (FCF TTM 2.04b / Enterprise Value 135b)
FCF Margin = 12.42% (FCF TTM 2.04b / Revenue TTM 16.4b)
Net Margin = 26.82% (Net Income TTM 4.41b / Revenue TTM 16.4b)
Gross Margin = 46.67% ((Revenue TTM 16.4b - Cost of Revenue TTM 8.77b) / Revenue TTM)
Gross Margin QoQ = 33.99% (prev 36.86%)
Tobins Q-Ratio = 1.54 (Enterprise Value 135b / Total Assets 87.9b)
Interest Expense / Debt = 3.94% (Interest Expense 978.0m / Debt 24.8b)
Taxrate = 24.59% (1.44b / 5.84b)
NOPAT = 5.14b (EBIT 6.82b * (1 - 24.59%))
Current Ratio = 0.67 (Total Current Assets 3.41b / Total Current Liabilities 5.08b)
Debt / Equity = 0.53 (Debt 24.8b / totalStockholderEquity, last quarter 46.6b)
Debt / EBITDA = 2.69 (Net Debt 24.4b / EBITDA 9.05b)
Debt / FCF = 11.93 (Net Debt 24.4b / FCF TTM 2.04b)
Total Stockholder Equity = 42.9b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.01% (Net Income 4.41b / Total Assets 87.9b)
RoE = 10.29% (Net Income TTM 4.41b / Total Stockholder Equity 42.9b)
RoCE = 10.53% (EBIT 6.82b / Capital Employed (Equity 42.9b + L.T.Debt 21.9b))
RoIC = 6.06% (NOPAT 5.14b / Invested Capital 84.9b)
WACC = 7.11% (E(111b)/V(135b) * Re(8.04%) + D(24.8b)/V(135b) * Rd(3.94%) * (1-Tc(0.25)))
Discount Rate = 8.04% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -51.11 | Cagr: -1.76%
[DCF] Terminal Value 73.41% ; FCFF base≈2.17b ; Y1≈1.93b ; Y5≈1.62b
[DCF] Fair Price = 1.63 (EV 25.8b - Net Debt 24.4b = Equity 1.45b / Shares 887.7m; r=8.35% [WACC [floored]]; 5y FCF grow -13.25% → 2.50% )
EPS Correlation: 95.98 | EPS CAGR: 10.43% | SUE: -0.35 | # QB: 0
Revenue Correlation: 89.29 | Revenue CAGR: 14.46% | SUE: 2.75 | # QB: 1
EPS current Quarter (2026-06-30): EPS=1.24 | Chg30d=-0.22% | Revisions=-48% | Analysts=23
EPS next Quarter (2026-09-30): EPS=1.32 | Chg30d=+0.39% | Revisions=+57% | Analysts=20
EPS current Year (2026-12-31): EPS=5.14 | Chg30d=+0.26% | Revisions=+18% | GrowthEPS=+11.4% | GrowthRev=+6.6%
EPS next Year (2027-12-31): EPS=5.91 | Chg30d=+0.39% | Revisions=+25% | GrowthEPS=+15.0% | GrowthRev=+6.0%
[Analyst] Revisions Ratio: -9% (up=14, down=17)