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Canadian Pacific Kansas City Ltd CP

Morningstar Rating
CAD 111.29 +1.36 (1.24%)
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Company Report

Price vs Fair Value

CP is trading at a 32% premium.
Price
CAD 111.29
Fair Value
CAD 634.00
Uncertainty
Medium
1-Star Price
CAD 183.70
5-Star Price
CAD 72.50
Economic Moat
Ctry
Capital Allocation
Pqytvrj

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 109.93
Day Range
CAD 109.68111.35
52-Week Range
CAD 94.45123.37
Bid/Ask
CAD 110.75 / CAD 111.35
Market Cap
CAD 103.80 Bil
Volume/Avg
1.3 Mil / 1.3 Mil

Key Statistics

Price/Earnings (Normalized)
29.06
Price/Sales
7.59
Dividend Yield (Trailing)
0.68%
Dividend Yield (Forward)
0.68%
Total Yield
0.69%

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
19,997

Competitors

Valuation

Metric
CP
CNI
UNP
Price/Earnings (Normalized)
29.0623.5323.60
Price/Book Value
2.445.449.60
Price/Sales
7.596.586.24
Price/Cash Flow
23.0716.0217.76
Price/Earnings
CP
CNI
UNP

Financial Strength

Metric
CP
CNI
UNP
Quick Ratio
0.380.320.69
Current Ratio
0.490.600.93
Interest Coverage
−2.629.247.16
Quick Ratio
CP
CNI
UNP

Profitability

Metric
CP
CNI
UNP
Return on Assets (Normalized)
10.38%11.06%9.60%
Return on Equity (Normalized)
19.99%28.42%45.57%
Return on Invested Capital (Normalized)
13.57%16.63%15.23%
Return on Assets
CP
CNI
UNP
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Railroads Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
UNP
Union Pacific CorpXzmbzcpWtn$150.4 Bil
CNI
Canadian National Railway CoPlrcyjhxBlxb$80.6 Bil
CP
Canadian Pacific Kansas City LtdJkrqtyyKsphv$76.3 Bil
CSX
CSX CorpCtwvlzggwNqv$66.3 Bil
NSC
Norfolk Southern CorpYxfjjfvmjYshk$51.9 Bil
WAB
Westinghouse Air Brake Technologies CorpSqnw$29.1 Bil
MTCPY
MTR Corp Ltd ADRRncpct$22.7 Bil
MTRJF
MTR Corp LtdFrrwn$22.7 Bil
CJPRY
Central Japan Railway Co ADRHdxyxbm$21.9 Bil
CJPRF
Central Japan Railway CoPkvct$21.7 Bil

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