TSX:CP

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Canadian Pacific Railway

Market Cap

CA$61.8b

Last Updated

2021/08/01 22:29 UTC

Data Sources

Company Financials +

Executive Summary

Canadian Pacific Railway Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada and the United States. More Details


Snowflake Analysis

Proven track record average dividend payer.


Similar Companies

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.


Market Performance


7 Day Return

-0.2%

CP

1.4%

CA Transportation

1.4%

CA Market


1 Year Return

25.7%

CP

15.3%

CA Transportation

29.1%

CA Market

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.


Shareholder returns

CPIndustryMarket
7 Day-0.2%1.4%1.4%
30 Day-3.0%1.7%-0.5%
90 Day0.9%2.3%3.0%
1 Year26.8%25.7%17.0%15.3%33.0%29.1%
3 Year82.3%77.0%48.0%41.1%31.5%18.7%
5 Year156.5%144.0%114.0%97.8%51.9%29.5%

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

Valuation

Is Canadian Pacific Railway undervalued compared to its fair value and its price relative to the market?

19.12x

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).


Future Growth

How is Canadian Pacific Railway forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

-0.01%

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%)


Past Performance

How has Canadian Pacific Railway performed over the past 5 years?

11.2%

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.


Financial Health

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).


Balance Sheet


Dividend

What is Canadian Pacific Railway current dividend yield, its reliability and sustainability?

0.82%

Current Dividend Yield


Upcoming Dividend Payment

TodayAug 02 2021Ex Dividend DateSep 23 2021Dividend Pay DateOct 25 202132 days from Ex DividendBuy in the next 51 days to receive the upcoming dividend

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).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Keith Creel (52 yo)

4.5yrs

Tenure

CA$16,816,196

Compensation

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.


Leadership Team

Experienced Management: CP's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: CP's board of directors are considered experienced (4.6 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Canadian Pacific Railway Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Canadian Pacific Railway Limited
  • 7550 Ogden Dale Road SE
  • Calgary
  • Alberta
  • T2C 4X9
  • Canada

Listings


Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:29
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.