Canadian Pacific Railway Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada and the United States. More Details
Proven track record average dividend payer.
Share Price & News
How has Canadian Pacific Railway's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CP is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: CP's weekly volatility (3%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: CP exceeded the Canadian Transportation industry which returned 15.3% over the past year.
Return vs Market: CP underperformed the Canadian Market which returned 29% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Canadian Pacific Railway's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StWhat Is The Ownership Structure Like For Canadian Pacific Railway Limited (TSE:CP)?
3 weeks ago | Simply Wall StDoes Canadian Pacific Railway (TSE:CP) Deserve A Spot On Your Watchlist?
1 month ago | Simply Wall StCanadian Pacific Railway (TSE:CP) Could Be A Buy For Its Upcoming Dividend
Is Canadian Pacific Railway undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CP (CA$92.64) is trading above our estimate of fair value (CA$71.31)
Significantly Below Fair Value: CP is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CP's PE Ratio (19.1x) is in line with the Canadian Transportation industry average.
PE vs Market: CP is poor value based on its PE Ratio (19.1x) compared to the Canadian market (13.6x).
Price to Earnings Growth Ratio
PEG Ratio: CP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: CP is overvalued based on its PB Ratio (6.9x) compared to the CA Transportation industry average (4.9x).
How is Canadian Pacific Railway forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CP's earnings are forecast to decline over the next 3 years (-0.01% per year).
Earnings vs Market: CP's earnings are forecast to decline over the next 3 years (-0.01% per year).
High Growth Earnings: CP's earnings are forecast to decline over the next 3 years.
Revenue vs Market: CP's revenue (5.6% per year) is forecast to grow faster than the Canadian market (5.2% per year).
High Growth Revenue: CP's revenue (5.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CP's Return on Equity is forecast to be high in 3 years time (24.1%)
How has Canadian Pacific Railway performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CP has a large one-off gain of CA$845.0M impacting its June 30 2021 financial results.
Growing Profit Margin: CP's current net profit margins (41.2%) are higher than last year (29.5%).
Past Earnings Growth Analysis
Earnings Trend: CP's earnings have grown by 11.2% per year over the past 5 years.
Accelerating Growth: CP's earnings growth over the past year (39.6%) exceeds its 5-year average (11.2% per year).
Earnings vs Industry: CP earnings growth over the past year (39.6%) underperformed the Transportation industry 39.6%.
Return on Equity
High ROE: CP's Return on Equity (36.2%) is considered high.
How is Canadian Pacific Railway's financial position?
Financial Position Analysis
Short Term Liabilities: CP's short term assets (CA$2.0B) do not cover its short term liabilities (CA$2.8B).
Long Term Liabilities: CP's short term assets (CA$2.0B) do not cover its long term liabilities (CA$12.9B).
Debt to Equity History and Analysis
Debt Level: CP's debt to equity ratio (92.1%) is considered high.
Reducing Debt: CP's debt to equity ratio has reduced from 186.1% to 92.1% over the past 5 years.
Debt Coverage: CP's debt is well covered by operating cash flow (48.6%).
Interest Coverage: CP's interest payments on its debt are well covered by EBIT (8.4x coverage).
What is Canadian Pacific Railway current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: CP's dividend (0.82%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.58%).
High Dividend: CP's dividend (0.82%) is low compared to the top 25% of dividend payers in the Canadian market (4.57%).
Stability and Growth of Payments
Stable Dividend: CP's dividends per share have been stable in the past 10 years.
Growing Dividend: CP's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (15.7%), CP's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CP's dividends in 3 years are forecast to be well covered by earnings (22.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Keith Creel (52 yo)
Mr. Keith E. Creel serves as President and Chief Executive Officer of Canadian Pacific Railway Co. (“CP”) since February 5, 2013 and January 31, 2017 respectively. Mr. Creel is responsible for providing le...
CEO Compensation Analysis
Compensation vs Market: Keith's total compensation ($USD13.48M) is above average for companies of similar size in the Canadian market ($USD6.31M).
Compensation vs Earnings: Keith's compensation has been consistent with company performance over the past year.
Experienced Management: CP's management team is considered experienced (4.5 years average tenure).
Experienced Board: CP's board of directors are considered experienced (4.6 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Canadian Pacific Railway Limited's company bio, employee growth, exchange listings and data sources
- Name: Canadian Pacific Railway Limited
- Ticker: CP
- Exchange: TSX
- Founded: 1881
- Industry: Railroads
- Sector: Transportation
- Market Cap: CA$61.777b
- Shares outstanding: 666.85m
- Website: https://www.cpr.ca
Number of Employees
- Canadian Pacific Railway Limited
- 7550 Ogden Dale Road SE
- T2C 4X9
Canadian Pacific Railway Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada and the United States. The company transports bulk commodities, including gr...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/08/01 22:29|
|End of Day Share Price||2021/07/30 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.