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CP

Canadian Pacific Railway TSX:CP Stock Report

Last Price

CA$95.19

Market Cap

CA$88.5b

7D

-2.2%

1Y

14.3%

Updated

24 Sep, 2022

Data

Company Financials +
CP fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance2/6
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$95.19
52 Week HighCA$106.93
52 Week LowCA$82.40
Beta0.79
1 Month Change-9.49%
3 Month Change4.66%
1 Year Change14.29%
3 Year Change63.09%
5 Year Change127.10%
Change since IPO1,460.49%

Recent News & Updates

Sep 20
Here's Why Canadian Pacific Railway (TSE:CP) Has A Meaningful Debt Burden

Here's Why Canadian Pacific Railway (TSE:CP) Has A Meaningful Debt Burden

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Aug 20
A Look At The Fair Value Of Canadian Pacific Railway Limited (TSE:CP)

A Look At The Fair Value Of Canadian Pacific Railway Limited (TSE:CP)

Does the August share price for Canadian Pacific Railway Limited ( TSE:CP ) reflect what it's really worth? Today, we...

Shareholder Returns

CPCA TransportationCA Market
7D-2.2%-2.3%-4.8%
1Y14.3%6.8%-7.2%

Return vs Industry: CP exceeded the Canadian Transportation industry which returned 6.8% over the past year.

Return vs Market: CP exceeded the Canadian Market which returned -7.2% over the past year.

Price Volatility

Is CP's price volatile compared to industry and market?
CP volatility
CP Average Weekly Movement3.0%
Transportation Industry Average Movement5.4%
Market Average Movement9.9%
10% most volatile stocks in CA Market18.3%
10% least volatile stocks in CA Market3.8%

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.

About the Company

FoundedEmployeesCEOWebsite
188112,711Keith 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$88.54b
Earnings (TTM)CA$2.36b
Revenue (TTM)CA$8.02b

37.5x

P/E Ratio

11.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CP income statement (TTM)
RevenueCA$8.02b
Cost of RevenueCA$3.57b
Gross ProfitCA$4.46b
Other ExpensesCA$2.10b
EarningsCA$2.36b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.54
Gross Margin55.53%
Net Profit Margin29.41%
Debt/Equity Ratio56.7%

How did CP perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

26%

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 DateSep 28 2022
Dividend Pay DateOct 31 2022
Days until Ex dividend2 days
Days until Dividend pay date35 days

Does CP pay a reliable dividends?

See CP dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is CP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CP?

Other financial metrics that can be useful for relative valuation.

CP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue13.6x
Enterprise Value/EBITDA25.4x
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

How does CP's PE Ratio compare to its peers?

CP PE Ratio vs Peers
The above table shows the PE ratio for CP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.3x
CNR Canadian National Railway
20.1x6.2%CA$103.2b
CSX CSX
15x2.0%US$59.3b
NSC Norfolk Southern
16.9x5.3%US$51.1b
TFII TFI International
13.2x-2.7%CA$10.9b
CP Canadian Pacific Railway
37.5x20.0%CA$88.5b

Price-To-Earnings vs Peers: CP is expensive based on its Price-To-Earnings Ratio (37.5x) compared to the peer average (16.3x).


Price to Earnings Ratio vs Industry

How does CP's PE Ratio compare vs other companies in the North American Transportation Industry?

Price-To-Earnings vs Industry: CP is expensive based on its Price-To-Earnings Ratio (37.5x) compared to the North American Transportation industry average (9x)


Price to Earnings Ratio vs Fair Ratio

What is CP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio37.5x
Fair PE Ratio38.4x

Price-To-Earnings vs Fair Ratio: CP is good value based on its Price-To-Earnings Ratio (37.5x) compared to the estimated Fair Price-To-Earnings Ratio (38.4x).


Share Price vs Fair Value

What is the Fair Price of CP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CP (CA$95.19) is trading below our estimate of fair value (CA$118.01)

Significantly Below Fair Value: CP is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Future Growth

How is Canadian Pacific Railway forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


20.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CP's forecast earnings growth (20% per year) is above the savings rate (1.6%).

Earnings vs Market: CP's earnings (20% per year) are forecast to grow faster than the Canadian market (7.5% per year).

High Growth Earnings: CP's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CP's revenue (24.7% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: CP's revenue (24.7% 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 (13.9%).


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Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


7.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CP has high quality earnings.

Growing Profit Margin: CP's current net profit margins (29.4%) are lower than last year (41.2%).


Past Earnings Growth Analysis

Earnings Trend: CP's earnings have grown by 7.7% per year over the past 5 years.

Accelerating Growth: CP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CP had negative earnings growth (-27.4%) over the past year, making it difficult to compare to the Transportation industry average (27.5%).


Return on Equity

High ROE: CP's Return on Equity (6.7%) is considered low.


Discover strong past performing companies

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$1.6B) do not cover its short term liabilities (CA$3.2B).

Long Term Liabilities: CP's short term assets (CA$1.6B) do not cover its long term liabilities (CA$31.3B).


Debt to Equity History and Analysis

Debt Level: CP's net debt to equity ratio (56.2%) is considered high.

Reducing Debt: CP's debt to equity ratio has reduced from 158.9% to 56.7% over the past 5 years.

Debt Coverage: CP's debt is not well covered by operating cash flow (12.3%).

Interest Coverage: CP's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet


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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

  • Cash Flow Coverage


0.80%

Current Dividend Yield

Upcoming Dividend Payment

TodaySep 25 2022Ex Dividend DateSep 28 2022Dividend Pay DateOct 31 202233 days from Ex DividendBuy in the next 2 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: CP's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.05%).

High Dividend: CP's dividend (0.8%) is low compared to the top 25% of dividend payers in the Canadian market (5.95%).


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?

5.6yrs

Average management tenure


CEO

Keith Creel (53 yo)

9.58yrs

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 ($USD19.70M) is above average for companies of similar size in the Canadian market ($USD8.28M).

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


Leadership Team

Experienced Management: CP's management team is seasoned and experienced (5.6 years average tenure).


Board Members

Experienced Board: CP's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

TSX:CP Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
25 Aug 22BuyCA$51,864Chad RolstadIndividual497CA$104.36
03 Jun 22SellCA$126,384Chad RolstadIndividual1,342CA$94.18
20 Dec 21BuyCA$13,515Matthew PaullIndividual190CA$71.13
20 Dec 21BuyCA$1,423Keith CreelIndividual20CA$71.13
20 Dec 21BuyCA$1,136,533Mark ReddIndividual15,978CA$71.77
05 Nov 21SellCA$111,934Chad RolstadIndividual1,175CA$95.26
01 Oct 21SellCA$78,605Nadeem VelaniIndividual944CA$83.27

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 39.5%.


Top Shareholders

Top 25 shareholders own 51.9% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
6.01%
TCI Fund Management Limited
55,860,385CA$5.3b0%11.25%
3.44%
WCM Investment Management, LLC
32,011,879CA$3.0b-5.43%5.02%
3.32%
The Vanguard Group, Inc.
30,914,025CA$2.9b2.2%0.05%
3.31%
FMR LLC
30,782,235CA$2.9b2.65%0.2%
3.27%
Massachusetts Financial Services Company
30,404,714CA$2.9b-7.14%0.55%
3.21%
Fidelity International Ltd
29,815,302CA$2.8b-1.19%1.1%
2.79%
RBC Global Asset Management Inc.
25,901,364CA$2.5b0.56%1.37%
2.75%
Egerton Capital (UK) LLP
25,555,027CA$2.4b-4.81%12.15%
2.46%
Capital Research and Management Company
22,864,241CA$2.2b49.9%0.11%
2.25%
RBC Dominion Securities Inc., Asset Management Arm
20,967,608CA$2.0b3.98%2.1%
2.01%
BMO Asset Management Corp.
18,709,535CA$1.8b-0.89%0.79%
1.79%
Veritas Asset Management LLP
16,633,390CA$1.6b-3.36%4.54%
1.64%
Mackenzie Financial Corporation
15,207,350CA$1.4b-4.95%1.33%
1.54%
Manulife Asset Management
14,330,373CA$1.4b12.79%0.94%
1.47%
1832 Asset Management L.P.
13,677,224CA$1.3b2.93%1.5%
1.46%
Parnassus Investments, LLC
13,595,859CA$1.3b2.94%2.37%
1.46%
TD Asset Management, Inc.
13,535,122CA$1.3b1.31%0.92%
1.3%
Nomura Holdings Inc, Securities & Investment Arm
12,109,716CA$1.2b-0.36%4.6%
1.25%
Artisan Partners Limited Partnership
11,648,707CA$1.1b5.23%0.82%
1.02%
CIBC Asset Management Inc.
9,481,064CA$902.5m-1.78%1.68%
1%
Norges Bank Investment Management
9,339,320CA$889.0m0%0.09%
0.9%
T. Rowe Price Group, Inc.
8,348,181CA$794.7m13%0.07%
0.85%
The Bank of Nova Scotia, Banking Investments
7,865,452CA$748.7m3.03%1.41%
0.72%
Legal & General Investment Management Limited
6,652,385CA$633.2m0.08%0.14%
0.69%
Canadian Imperial Bank of Commerce, Asset Management Arm
6,429,462CA$612.0m2.86%1.81%

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$88.535b
  • Shares outstanding: 930.09m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2001
CPNYSE (New York Stock Exchange)YesCommon SharesUSUSDAug 2001
PC8DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2001
CP NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNAug 2001
CPRL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REP 1 COM NPVBRBRLMay 2019

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
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.