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Canadian Pacific Kansas City Ltd CP

Morningstar Rating
CAD 111.76 −0.38 (0.34%)
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Company Report

Price vs Fair Value

CP is trading at a 19% premium.
Price
CAD 119.77
Fair Value
CAD 116.00
Uncertainty
Medium
1-Star Price
CAD 649.72
5-Star Price
CAD 89.80
Economic Moat
Twdb
Capital Allocation
Pqmqfqxv

Bulls Say, Bears Say

Bulls

The Kansas City Southern merger, which creates new, seamless intermodal lanes, should yield meaningful opportunities for incremental volume growth.

Bears

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).

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News

Trading Information

Previous Close Price
CAD 112.14
Day Range
CAD 111.50112.43
52-Week Range
CAD 94.45123.37
Bid/Ask
CAD 111.75 / CAD 111.79
Market Cap
CAD 104.32 Bil
Volume/Avg
482,142 / 1.2 Mil

Key Statistics

Price/Earnings (Normalized)
29.05
Price/Sales
7.58
Dividend Yield (Trailing)
0.68%
Dividend Yield (Forward)
0.68%
Total Yield
0.68%

Company Profile

Canadian Pacific Kansas City is a Class-1 railroad operating on track that spans across most of Canada and into parts of the Midwestern and Northeastern United States. Following the April 2023 Kansas City Southern merger, CP operates new single-line-haul services from Canada and the Upper Midwest down through Texas, the Gulf of Mexico, and into Mexico. It also hauls cross border and intra Mexico freight via operating concessions on roughly 3,300 miles of rail in Mexico. CP hauls shipments of grain, intermodal containers, energy products (like crude and frac sand), chemicals, plastics, coal, fertilizer and potash, automotive products, and a diverse mix of other merchandise.
Sector
Industrials
Industry
Railroads
Stock Style Box
Large Growth
Total Number of Employees
20,038

Competitors

Valuation

Metric
CP
UNP
CSX
Price/Earnings (Normalized)
29.0523.3118.81
Price/Book Value
2.449.495.28
Price/Sales
7.586.164.63
Price/Cash Flow
23.0617.5512.65
Price/Earnings
CP
UNP
CSX

Financial Strength

Metric
CP
UNP
CSX
Quick Ratio
0.380.690.88
Current Ratio
0.490.931.05
Interest Coverage
−2.627.166.95
Quick Ratio
CP
UNP
CSX

Profitability

Metric
CP
UNP
CSX
Return on Assets (Normalized)
10.38%9.60%8.83%
Return on Equity (Normalized)
19.99%45.57%30.10%
Return on Invested Capital (Normalized)
13.57%15.23%13.72%
Return on Assets
CP
UNP
CSX
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Railroads Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
UNP
Union Pacific CorpHytsykbkjVdrx$141.5 Bil
CNI
Canadian National Railway CoZpjxtpdhMtjl$79.1 Bil
CP
Canadian Pacific Kansas City LtdYsvltmzmWsfb$76.3 Bil
CSX
CSX CorpWppqzdhrLvq$65.8 Bil
NSC
Norfolk Southern CorpWpjllhkjkHnqmq$54.4 Bil
WAB
Westinghouse Air Brake Technologies CorpJpjdlc$28.8 Bil
CJPRF
Central Japan Railway CoMjwls$22.7 Bil
CJPRY
Central Japan Railway Co ADRLkqsl$22.7 Bil
EJPRF
East Japan Railway CoHljcnl$21.0 Bil
EJPRY
East Japan Railway Co ADRBhzdk$21.0 Bil

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