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CP

Canadian Pacific Railway TSX:CP Stock Report

Last Price

CA$88.34

Market Cap

CA$82.1b

7D

-1.3%

1Y

-9.6%

Updated

21 May, 2022

Data

Company Financials +
CP fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance3/6
Financial Health2/6
Dividends0/6

CP Stock Overview

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

Canadian Pacific Railway Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Canadian Pacific Railway
Historical stock prices
Current Share PriceCA$88.34
52 Week HighCA$105.46
52 Week LowCA$82.12
Beta0.81
1 Month Change-9.71%
3 Month Change-4.32%
1 Year Change-9.65%
3 Year Change47.13%
5 Year Change106.65%
Change since IPO1,348.20%

Recent News & Updates

May 17
Are Investors Undervaluing Canadian Pacific Railway Limited (TSE:CP) By 31%?

Are Investors Undervaluing Canadian Pacific Railway Limited (TSE:CP) By 31%?

Today we will run through one way of estimating the intrinsic value of Canadian Pacific Railway Limited ( TSE:CP ) by...

Shareholder Returns

CPCA TransportationCA Market
7D-1.3%-0.6%0.8%
1Y-9.6%0.2%4.8%

Return vs Industry: CP underperformed the Canadian Transportation industry which returned 0.2% over the past year.

Return vs Market: CP underperformed the Canadian Market which returned 4.8% over the past year.

Price Volatility

Is CP's price volatile compared to industry and market?
CP volatility
CP Average Weekly Movement4.1%
Transportation Industry Average Movement4.8%
Market Average Movement9.9%
10% most volatile stocks in CA Market16.9%
10% least volatile stocks in CA Market4.4%

Stable Share Price: CP is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CP's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188111,942Keith Creelhttps://www.cpr.ca

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 grain, coal, potash, fertilizers, and sulphur; and merchandise freight, such as energy, chemicals and plastics, metals, minerals and consumer, automotive, and forest products. It also transports intermodal traffic comprising retail goods in overseas containers.

Canadian Pacific Railway Fundamentals Summary

How do Canadian Pacific Railway's earnings and revenue compare to its market cap?
CP fundamental statistics
Market CapCA$82.15b
Earnings (TTM)CA$2.84b
Revenue (TTM)CA$7.87b

28.9x

P/E Ratio

10.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CP income statement (TTM)
RevenueCA$7.87b
Cost of RevenueCA$3.40b
Gross ProfitCA$4.47b
Other ExpensesCA$1.63b
EarningsCA$2.84b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.05
Gross Margin56.79%
Net Profit Margin36.07%
Debt/Equity Ratio57.9%

How did CP perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

20%

Payout Ratio

Does CP pay a reliable dividends?

See CP dividend history and benchmarks
When do you need to buy CP by to receive an upcoming dividend?
Canadian Pacific Railway dividend dates
Ex Dividend DateJun 23 2022
Dividend Pay DateJul 25 2022
Days until Ex dividend32 days
Days until Dividend pay date64 days

Does CP pay a reliable dividends?

See CP dividend history and benchmarks

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


32.5%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CP (CA$88.34) is trading below our estimate of fair value (CA$131.08)

Significantly Below Fair Value: CP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CP is poor value based on its PE Ratio (28.9x) compared to the Canadian Transportation industry average (15.1x).

PE vs Market: CP is poor value based on its PE Ratio (28.9x) compared to the Canadian market (11.5x).


Price to Earnings Growth Ratio

PEG Ratio: CP is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: CP is good value based on its PB Ratio (2.4x) compared to the CA Transportation industry average (2.8x).


Future Growth

How is Canadian Pacific Railway forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


17.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CP's forecast earnings growth (17.6% per year) is above the savings rate (1.6%).

Earnings vs Market: CP's earnings (17.6% per year) are forecast to grow faster than the Canadian market (7.5% per year).

High Growth Earnings: CP's earnings are forecast to grow, but not significantly.

Revenue vs Market: CP's revenue (25.2% per year) is forecast to grow faster than the Canadian market (6.4% per year).

High Growth Revenue: CP's revenue (25.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CP's Return on Equity is forecast to be low in 3 years time (13.6%).


Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


9.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CP has high quality earnings.

Growing Profit Margin: CP's current net profit margins (36.1%) are higher than last year (34.6%).


Past Earnings Growth Analysis

Earnings Trend: CP's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: CP's earnings growth over the past year (7.7%) is below its 5-year average (9.9% per year).

Earnings vs Industry: CP earnings growth over the past year (7.7%) underperformed the Transportation industry 37.1%.


Return on Equity

High ROE: CP's Return on Equity (8.4%) is considered low.


Financial Health

How is Canadian Pacific Railway's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CP's short term assets (CA$1.4B) do not cover its short term liabilities (CA$3.2B).

Long Term Liabilities: CP's short term assets (CA$1.4B) do not cover its long term liabilities (CA$30.4B).


Debt to Equity History and Analysis

Debt Level: CP's net debt to equity ratio (57.6%) is considered high.

Reducing Debt: CP's debt to equity ratio has reduced from 172.2% to 57.9% over the past 5 years.

Debt Coverage: CP's debt is not well covered by operating cash flow (18.9%).

Interest Coverage: CP's interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.86%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 22 2022Ex Dividend DateJun 23 2022Dividend Pay DateJul 25 202232 days from Ex DividendBuy in the next 32 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: CP's dividend (0.86%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: CP's dividend (0.86%) is low compared to the top 25% of dividend payers in the Canadian market (4.91%).


Stability and Growth of Payments

Stable Dividend: CP is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: CP is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: CP is not paying a notable dividend for the Canadian market.


Cash Payout to Shareholders

Cash Flow Coverage: CP is not paying a notable dividend for the Canadian market.


Discover strong dividend paying companies

Management

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

5.3yrs

Average management tenure


CEO

Keith Creel (52 yo)

9.25yrs

Tenure

CA$26,728,981

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 ($USD20.82M) is above average for companies of similar size in the Canadian market ($USD7.51M).

Compensation vs Earnings: Keith's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: CP's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: CP's board of directors are considered experienced (5.7 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 been diluted in the past year, with total shares outstanding growing by 39.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: Canadian Pacific Railway Limited
  • Ticker: CP
  • Exchange: TSX
  • Founded: 1881
  • Industry: Railroads
  • Sector: Transportation
  • Implied Market Cap: CA$82.145b
  • Shares outstanding: 929.87m
  • Website: https://www.cpr.ca

Number of Employees


Location

  • Canadian Pacific Railway Limited
  • 7550 Ogden Dale Road S.E.
  • Calgary
  • Alberta
  • T2C 4X9
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/21 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.