(CP) Canadian Pacific Railway - Ratings and Ratios
Bulk Freight, Merchandise Freight, Intermodal Containers, Rail Network
CP EPS (Earnings per Share)
CP Revenue
Description: CP Canadian Pacific Railway
Canadian Pacific Kansas City Limited (CP) operates a transcontinental freight railway network spanning roughly 20,000 miles across Canada, the United States, and Mexico. The railroad moves a broad mix of bulk commodities-grain, coal, potash, fertilizers, and sulphur-alongside merchandise freight such as forest products, energy, chemicals, plastics, metals, minerals, consumer goods, and automotive parts. Intermodal services also carry retail goods in overseas containers, positioning CP as a full-service carrier for North-American supply chains.
Formed in 1881 and headquartered in Calgary, the company rebranded from Canadian Pacific Railway Limited to Canadian Pacific Kansas City Limited in April 2023 following its merger with Kansas City Southern, creating the first rail network that directly links Canada, the United States, and Mexico. This strategic integration is expected to capture cross-border trade growth, especially as NAFTA-successor agreements stimulate freight volumes.
Key performance indicators from the most recent fiscal year show a revenue of US$15.5 billion and an operating ratio of 66.5%, reflecting efficient cost management relative to peers. Intermodal volumes grew 7% YoY, driven by e-commerce demand, while the company’s coal haulage declined 12% as the energy transition reduces reliance on thermal coal. CP’s balance sheet remains strong, with a net debt-to-EBITDA of 2.2×, giving it flexibility for capital projects and dividend sustainability.
Sector-wide, rail transportation benefits from the “supply-chain resilience” trend, where shippers favor rail’s cost advantage and lower carbon footprint over trucking for long-haul moves. However, macro-economic uncertainty-particularly in commodity price volatility and potential trade policy shifts-adds downside risk to freight volume forecasts.
For a deeper quantitative dive into CP’s valuation metrics and scenario analysis, the ValueRay platform offers a robust toolkit worth exploring.
CP Stock Overview
| Market Cap in USD | 71,399m |
| Sub-Industry | Rail Transportation |
| IPO / Inception | 1983-12-30 |
CP Stock Ratings
| Growth Rating | 17.3% |
| Fundamental | 63.8% |
| Dividend Rating | 27.8% |
| Return 12m vs S&P 500 | -18.5% |
| Analyst Rating | 4.13 of 5 |
CP Dividends
| Dividend Yield 12m | 0.80% |
| Yield on Cost 5y | 0.98% |
| Annual Growth 5y | 1.07% |
| Payout Consistency | 94.5% |
| Payout Ratio | 13.7% |
CP Growth Ratios
| Growth Correlation 3m | -18% |
| Growth Correlation 12m | 3.2% |
| Growth Correlation 5y | 58% |
| CAGR 5y | 4.58% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.18 |
| CAGR/Mean DD 3y (Pain Ratio) | 0.46 |
| Sharpe Ratio 12m | -1.12 |
| Alpha | -22.08 |
| Beta | 1.038 |
| Volatility | 20.36% |
| Current Volume | 2003.9k |
| Average Volume 20d | 2852.6k |
| Stop Loss | 72.6 (-3.1%) |
| Signal | -0.32 |
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 52.30% (prev 52.33%; Δ -0.04pp) >=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 |
| (C) 0.07 = EBIT TTM 6.16b / Avg Total Assets 83.99b |
| (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) 63.83
| 1. Piotroski 5.0pt = 0.0 |
| 2. FCF Yield 2.06% = 1.03 |
| 3. FCF Margin 16.77% = 4.19 |
| 4. Debt/Equity 0.48 = 2.39 |
| 5. Debt/Ebitda 2.65 = -1.22 |
| 6. ROIC - WACC (= -1.26)% = -1.57 |
| 7. RoE 8.97% = 0.75 |
| 8. Rev. Trend 85.06% = 6.38 |
| 9. EPS Trend 37.68% = 1.88 |
What is the price of CP shares?
Over the past week, the price has changed by -3.18%, over one month by -0.02%, over three months by -7.51% and over the past year by -7.80%.
Is Canadian Pacific Railway a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of CP is around 69.30 USD . This means that CP is currently overvalued and has a potential downside of -7.48%.
Is CP a buy, sell or hold?
- 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 | 88.3 | 17.9% |
| Analysts Target Price | 88.3 | 17.9% |
| ValueRay Target Price | 77.1 | 2.9% |
Last update: 2025-10-10 02:25
CP Fundamental Data Overview
P/E Trailing = 24.118
P/E Forward = 19.5695
P/S = 4.7864
P/B = 2.0987
P/EG = 2.3684
Beta = 1.038
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 (from shortLongTermDebtTotal, last quarter)
Net Debt = 21.47b CAD (from netDebt column, last quarter)
Enterprise Value = 121.46b CAD (99.99b + Debt 22.27b - CCE 799.0m)
Interest Coverage Ratio = 7.52 (Ebit TTM 6.16b / Interest Expense TTM 819.0m)
FCF Yield = 2.06% (FCF TTM 2.50b / Enterprise Value 121.46b)
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 = 52.30% ((Revenue TTM 14.92b - Cost of Revenue TTM 7.12b) / Revenue TTM)
Gross Margin QoQ = 53.04% (prev 51.23%)
Tobins Q-Ratio = 1.43 (Enterprise Value 121.46b / Total Assets 85.18b)
Interest Expense / Debt = 0.93% (Interest Expense 208.0m / Debt 22.27b)
Taxrate = 22.44% (357.0m / 1.59b)
NOPAT = 4.77b (EBIT 6.16b * (1 - 22.44%))
Current Ratio = 0.93 (Total Current Assets 3.52b / Total Current Liabilities 3.78b)
Debt / Equity = 0.48 (Debt 22.27b / totalStockholderEquity, last quarter 46.20b)
Debt / EBITDA = 2.65 (Net Debt 21.47b / EBITDA 8.11b)
Debt / FCF = 8.58 (Net Debt 21.47b / FCF TTM 2.50b)
Total Stockholder Equity = 46.62b (last 4 quarters mean from totalStockholderEquity)
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 / Capital Employed (Equity 46.62b + L.T.Debt 21.23b))
RoIC = 6.92% (NOPAT 4.77b / Invested Capital 68.99b)
WACC = 8.18% (E(99.99b)/V(122.26b) * Re(9.84%) + D(22.27b)/V(122.26b) * Rd(0.93%) * (1-Tc(0.22)))
Discount Rate = 9.84% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.48%
[DCF Debug] Terminal Value 74.98% ; FCFE base≈2.24b ; Y1≈2.63b ; Y5≈3.99b
Fair Price DCF = 54.67 (DCF Value 50.18b / Shares Outstanding 918.0m; 5y FCF grow 18.49% → 3.0% )
EPS Correlation: 37.68 | EPS CAGR: 3.83% | SUE: -0.15 | # QB: 0
Revenue Correlation: 85.06 | Revenue CAGR: 18.64% | SUE: -0.15 | # QB: 0
Additional Sources for CP Stock
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Fund Manager Positions: Dataroma | Stockcircle