Wide-moat Canadian Pacific Kansas City's first-quarter pro-forma revenue (combining CP and Kansas City Southern results) grew 2% year over year on higher yields, partly offset by lower consolidated volumes. Revenue came in slightly shy of our expected run rate, but that's mostly because of coal activity, which should see some recovery.
The Kansas City Southern merger, which creates new, seamless intermodal lanes, should yield meaningful opportunities for incremental volume growth.
Canadian grain carload-volume growth will likely take a breather in 2024 on a less robust late-2023 harvest and a less favorable export backdrop (to China).
|
Metric
|
CP
|
CSX
|
UNP
|
|---|---|---|---|
Price/Earnings (Normalized) | 28.64 | 18.61 | 22.66 |
Price/Book Value | 2.41 | 5.23 | 9.74 |
Price/Sales | 7.48 | 4.58 | 5.98 |
Price/Cash Flow | 22.74 | 12.52 | 16.61 |
|
Metric
|
CP
|
CSX
|
UNP
|
|---|---|---|---|
Quick Ratio | 0.41 | 0.88 | 0.62 |
Current Ratio | 0.53 | 1.05 | 0.81 |
Interest Coverage | −2.96 | 6.95 | 7.11 |
|
Metric
|
CP
|
CSX
|
UNP
|
|---|---|---|---|
Return on Assets (Normalized) | 10.38% | 8.83% | 9.63% |
Return on Equity (Normalized) | 19.99% | 30.10% | 47.89% |
Return on Invested Capital (Normalized) | 13.57% | 13.72% | 15.34% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
UNP
| Union Pacific Corp | Qdzbrlvyh | Xdxhn | $141.5 Bil | |
CNI
| Canadian National Railway Co | Cjtbnfff | Ttmld | $78.4 Bil | |
CSX
| CSX Corp | Lyxlszbl | Txf | $65.8 Bil | |
NSC
| Norfolk Southern Corp | Jcpskksx | Gsfsh | $53.4 Bil | |
WAB
| Westinghouse Air Brake Technologies Corp | — | Mrmvtr | $28.9 Bil | |
CJPRY
| Central Japan Railway Co ADR | — | Cxrsnp | $23.3 Bil | |
CJPRF
| Central Japan Railway Co | — | Dvgzy | $23.2 Bil | |
EJPRF
| East Japan Railway Co | — | Zvyptb | $21.3 Bil | |
EJPRY
| East Japan Railway Co ADR | — | Xyjzcpt | $21.3 Bil |
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