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Canadian Pacific Railway

TSX:CP
Snowflake Description

Proven track record with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CP
TSX
CA$35B
Market Cap
  1. Home
  2. CA
  3. Transportation
Company description

Canadian Pacific Railway Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada and the United States. The last earnings update was 59 days ago. More info.


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CP Share Price and Events
7 Day Returns
-5.1%
TSX:CP
-1.9%
CA Transportation
-1.3%
CA Market
1 Year Returns
5.2%
TSX:CP
2.5%
CA Transportation
-11.4%
CA Market
CP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Canadian Pacific Railway (CP) -5.1% -12.2% -9.9% 5.2% 40.5% 50.1%
CA Transportation -1.9% -9.3% -9.6% 2.5% 35.6% 64.6%
CA Market -1.3% -4.5% -10.6% -11.4% 12.6% 3.3%
1 Year Return vs Industry and Market
  • CP outperformed the Transportation industry which returned 2.5% over the past year.
  • CP outperformed the Market in Canada which returned -11.4% over the past year.
Price Volatility
CP
Industry
5yr Volatility vs Market

Value

 Is Canadian Pacific Railway undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Canadian Pacific Railway to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Canadian Pacific Railway.

TSX:CP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 27 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.3%
Perpetual Growth Rate 10-Year CA Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:CP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 7.7%
Transportation Unlevered Beta Simply Wall St/ S&P Global 0.88
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.881 (1 + (1- 26.5%) (23.7%))
1.035
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.34% + (1.035 * 7.66%)
10.26%

Discounted Cash Flow Calculation for TSX:CP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Canadian Pacific Railway is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:CP DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (CAD, Millions) 1,383.55 1,633.33 1,530.00 1,792.00 1,813.08
Source Analyst x11 Analyst x6 Analyst x2 Analyst x1 Est @ 1.18%
Present Value
Discounted (@ 10.26%)
1,254.75 1,343.39 1,141.26 1,212.26 1,112.34
Present value of next 5 years cash flows CA$6,064.00
TSX:CP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= CA$1,813.08 × (1 + 2.34%) ÷ (10.26% – 2.34%)
CA$23,414.74
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= CA$23,414.74 ÷ (1 + 10.26%)5
CA$14,365.14
TSX:CP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= CA$6,064.00 + CA$14,365.14
CA$20,429.14
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$20,429.14 / 142.60
CA$143.26
TSX:CP Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$143.26
Current discount Discount to share price of CA$242.16
= -1 x (CA$242.16 - CA$143.26) / CA$143.26
-69%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Canadian Pacific Railway is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Canadian Pacific Railway's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Canadian Pacific Railway's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:CP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in CAD CA$16.64
TSX:CP Share Price ** TSX (2018-12-17) in CAD CA$242.16
North America Transportation Industry PE Ratio Median Figure of 29 Publicly-Listed Transportation Companies 9.32x
Canada Market PE Ratio Median Figure of 551 Publicly-Listed Companies 13.2x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Canadian Pacific Railway.

TSX:CP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:CP Share Price ÷ EPS (both in CAD)

= 242.16 ÷ 16.64

14.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Canadian Pacific Railway is overvalued based on earnings compared to the North America Transportation industry average.
  • Canadian Pacific Railway is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Canadian Pacific Railway's expected growth come at a high price?
Raw Data
TSX:CP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.55x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts
8.8%per year
North America Transportation Industry PEG Ratio Median Figure of 26 Publicly-Listed Transportation Companies 1.41x
Canada Market PEG Ratio Median Figure of 265 Publicly-Listed Companies 0.89x

*Line of best fit is calculated by linear regression .

TSX:CP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.55x ÷ 8.8%

1.66x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Canadian Pacific Railway is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Canadian Pacific Railway's assets?
Raw Data
TSX:CP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in CAD CA$49.99
TSX:CP Share Price * TSX (2018-12-17) in CAD CA$242.16
Canada Transportation Industry PB Ratio Median Figure of 6 Publicly-Listed Transportation Companies 3.22x
Canada Market PB Ratio Median Figure of 2,286 Publicly-Listed Companies 1.38x
TSX:CP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:CP Share Price ÷ Book Value per Share (both in CAD)

= 242.16 ÷ 49.99

4.84x

* Primary Listing of Canadian Pacific Railway.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Canadian Pacific Railway is overvalued based on assets compared to the CA Transportation industry average.
X
Value checks
We assess Canadian Pacific Railway's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Transportation industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Transportation industry average (and greater than 0)? (1 check)
  5. Canadian Pacific Railway has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Canadian Pacific Railway expected to perform in the next 1 to 3 years based on estimates from 27 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Canadian Pacific Railway expected to grow at an attractive rate?
  • Canadian Pacific Railway's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Canadian Pacific Railway's earnings growth is positive but not above the Canada market average.
  • Canadian Pacific Railway's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:CP Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:CP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts 8.8%
TSX:CP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 27 Analysts 6.5%
North America Transportation Industry Earnings Growth Rate Market Cap Weighted Average 3.6%
North America Transportation Industry Revenue Growth Rate Market Cap Weighted Average 4.9%
Canada Market Earnings Growth Rate Market Cap Weighted Average 16.5%
Canada Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:CP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:CP Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 9,062 3,597 2
2021-12-31 8,759 3,407 2,566 3
2020-12-31 8,348 3,321 2,467 20
2019-12-31 7,827 3,100 2,264 27
2018-12-31 7,226 2,689 1,990 27
TSX:CP Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-09-30 7,023 2,514 2,390
2018-06-30 6,720 2,368 2,278
2018-03-31 6,613 2,268 2,322
2017-12-31 6,554 2,182 2,405
2017-09-30 6,478 2,217 1,805
2017-06-30 6,437 2,281 1,642
2017-03-31 6,244 2,182 1,490
2016-12-31 6,232 2,089 1,599
2016-09-30 6,282 1,944 1,534
2016-06-30 6,437 2,049 1,510
2016-03-31 6,638 2,122 1,572
2015-12-31 6,712 2,459 1,352

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Canadian Pacific Railway's earnings are expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).
  • Canadian Pacific Railway's revenue is expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:CP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below

All data from Canadian Pacific Railway Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CP Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 19.69 19.69 19.69 1.00
2020-12-31 18.23 18.97 17.58 10.00
2019-12-31 16.24 16.75 15.78 12.00
2018-12-31 13.92 14.07 13.74 11.00
TSX:CP Past Financials Data
Date (Data in CAD Millions) EPS *
2018-09-30 16.64
2018-06-30 15.77
2018-03-31 15.97
2017-12-31 16.48
2017-09-30 12.34
2017-06-30 11.19
2017-03-31 10.07
2016-12-31 10.69
2016-09-30 10.14
2016-06-30 9.82
2016-03-31 10.03
2015-12-31 8.47

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Canadian Pacific Railway is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Canadian Pacific Railway's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the North America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Canadian Pacific Railway has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Canadian Pacific Railway's growth in the last year to its industry (Transportation).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Canadian Pacific Railway's year on year earnings growth rate has been positive over the past 5 years.
  • Canadian Pacific Railway's 1-year earnings growth exceeds its 5-year average (32.4% vs 18.2%)
  • Canadian Pacific Railway's earnings growth has not exceeded the North America Transportation industry average in the past year (32.4% vs 192.1%).
Earnings and Revenue History
Canadian Pacific Railway's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Canadian Pacific Railway Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CP Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 7,023.00 2,390.00
2018-06-30 6,720.00 2,278.00
2018-03-31 6,613.00 2,322.00
2017-12-31 6,554.00 2,405.00
2017-09-30 6,478.00 1,805.00
2017-06-30 6,437.00 1,642.00
2017-03-31 6,244.00 1,490.00
2016-12-31 6,232.00 1,599.00
2016-09-30 6,282.00 1,534.00
2016-06-30 6,437.00 1,510.00
2016-03-31 6,638.00 1,572.00
2015-12-31 6,712.00 1,352.00
2015-09-30 6,785.00 1,484.00
2015-06-30 6,746.00 1,561.00
2015-03-31 6,776.00 1,542.00
2014-12-31 6,620.00 1,476.00
2014-09-30 6,467.00 1,107.00
2014-06-30 6,331.00 1,031.00
2014-03-31 6,147.00 912.00
2013-12-31 6,133.00 875.00
2013-09-30 6,028.00 808.00
2013-06-30 5,945.00 708.00
2013-03-31 5,814.00 559.00
2012-12-31 5,695.00 484.00
2012-09-30 5,601.00 690.00
2012-06-30 5,491.00 653.00
2012-03-31 5,390.00 678.00
2011-12-31 5,177.00 570.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Canadian Pacific Railway has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Canadian Pacific Railway used its assets more efficiently than the North America Transportation industry average last year based on Return on Assets.
  • Canadian Pacific Railway's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Canadian Pacific Railway's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Transportation industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Canadian Pacific Railway has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Canadian Pacific Railway's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Canadian Pacific Railway's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Canadian Pacific Railway's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Canadian Pacific Railway's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Canadian Pacific Railway's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Canadian Pacific Railway Company Filings, last reported 2 months ago.

TSX:CP Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 7,128.00 8,286.00 150.00
2018-06-30 6,574.00 8,483.00 51.00
2018-03-31 6,434.00 8,393.00 125.00
2017-12-31 6,437.00 8,214.00 338.00
2017-09-30 5,565.00 8,192.00 142.00
2017-06-30 5,333.00 8,481.00 238.00
2017-03-31 5,038.00 8,681.00 201.00
2016-12-31 4,626.00 8,753.00 164.00
2016-09-30 4,669.00 9,023.00 103.00
2016-06-30 4,691.00 8,725.00 92.00
2016-03-31 5,290.00 8,565.00 571.00
2015-12-31 4,796.00 9,017.00 650.00
2015-09-30 3,992.00 8,745.00 661.00
2015-06-30 5,251.00 6,723.00 185.00
2015-03-31 5,418.00 6,505.00 184.00
2014-12-31 5,610.00 5,784.00 226.00
2014-09-30 7,092.00 4,884.00 315.00
2014-06-30 7,136.00 4,725.00 369.00
2014-03-31 7,263.00 4,869.00 279.00
2013-12-31 7,097.00 4,839.00 476.00
2013-09-30 6,028.00 4,768.00 329.00
2013-06-30 5,725.00 4,864.00 442.00
2013-03-31 5,449.00 4,744.00 347.00
2012-12-31 5,097.00 4,690.00 333.00
2012-09-30 5,231.00 4,656.00 207.00
2012-06-30 4,938.00 4,797.00 82.00
2012-03-31 4,826.00 4,732.00 77.00
2011-12-31 4,649.00 4,772.00 47.00
  • Canadian Pacific Railway's level of debt (116.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (79% vs 116.2% today).
  • Debt is well covered by operating cash flow (30.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.6x coverage).
X
Financial health checks
We assess Canadian Pacific Railway's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Canadian Pacific Railway has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.07%
Current annual income from Canadian Pacific Railway dividends. Estimated to be 1.16% next year.
If you bought CA$2,000 of Canadian Pacific Railway shares you are expected to receive CA$21 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Canadian Pacific Railway's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.23%).
  • Canadian Pacific Railway's dividend is below the markets top 25% of dividend payers in Canada (6.38%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:CP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below
North America Transportation Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.7%
Canada Market Average Dividend Yield Market Cap Weighted Average of 330 Stocks 3.8%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2.2%
Canada Top 25% Dividend Yield 75th Percentile 6.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:CP Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 3.84 1.00
2021-12-31 3.49 1.00
2020-12-31 3.22 10.00
2019-12-31 2.80 14.00
2018-12-31 2.47 16.00
TSX:CP Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2018-09-17 2.600 0.968
2018-05-10 2.600 1.028
2018-02-15 2.250 0.983
2017-11-22 2.250 0.991
2017-07-17 2.250 1.097
2017-05-10 2.250 1.071
2017-02-14 2.000 0.995
2016-12-13 2.000 1.024
2016-07-11 2.000 1.024
2016-04-20 2.000 1.164
2016-02-23 1.400 0.810
2015-12-15 1.400 0.839
2015-07-24 1.400 0.730
2015-05-13 1.400 0.680
2015-02-19 1.400 0.599
2014-12-16 1.400 0.627
2014-07-24 1.400 0.632
2014-05-01 1.400 0.740
2014-02-20 1.400 0.831
2013-11-27 1.400 0.857
2013-07-19 1.400 1.036
2013-04-30 1.400 1.073
2013-02-22 1.400 1.108
2012-11-30 1.400 1.307
2012-09-06 1.400 1.594
2012-04-23 1.400 1.814
2012-02-28 1.200 1.584
2011-12-13 1.200 1.699
2011-08-05 1.200 2.114
2011-05-11 1.200 2.014
2011-02-24 1.080 1.732
2010-12-14 1.080 1.632
2010-08-06 1.080 1.684
2010-05-20 1.080 1.828
2010-02-24 0.990 1.738
2009-12-16 0.990 1.841
2009-07-29 0.990 1.935
2009-05-21 0.990 2.263
2009-02-18 0.990 2.542
2008-12-18 0.990 2.523

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Canadian Pacific Railway is not paying a notable dividend for Canada, therefore no need to check if the payments are stable.
  • Canadian Pacific Railway is not paying a notable dividend for Canada, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Canadian Pacific Railway's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Canadian Pacific Railway's dividends as it is not paying a notable one for Canada.
Future Payout to shareholders
  • No need to calculate the sustainability of Canadian Pacific Railway's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess Canadian Pacific Railway's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Canadian Pacific Railway afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Canadian Pacific Railway has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Canadian Pacific Railway's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Keith Creel
COMPENSATION CA$20,105,600
AGE 49
TENURE AS CEO 1.9 years
CEO Bio

Mr. Keith E. Creel serves as President and Chief Executive Officer of Canadian Pacific Railway Co. (“CP”) On January 31, 2017, where he is responsible for providing leadership and strategic vision for CP leading CP’s transition from a corporate turnaround to a growth-focused company. Mr. Creel was appointed President and Chief Operating Officer of Canadian Pacific Railway Co. (“CP”) from February, 2013 to January 2017 and serves as its Board of Directors since May 14, 2015. He has been a Member of the Board of TTX Company since 2014. Prior to joining CP, he was Executive Vice-President and Chief Operating Officer at Canadian National Railway Company from 2010 to 2013. He held various positions at CN including Executive Vice-President, Operations, Senior Vice-President eastern region, Senior Vice-President western region, and Vice-President of the prairie division from 2002 to 2010. He began his railroad career at Burlington Northern Railway in 1992 as an intermodal ramp Manager in Birmingham, Alabama. He also spent part of his career at Grand Trunk Western Railroad as a Superintendent and General Manager from 1999 to 2002 and at Illinois Central Railroad as a trainmaster and Director of corridor operations, prior to its merger with CN in 1999. In 2017 Mr. Creel focused on the following key areas: Strategic direction, Employee engagement and Team development, Business development, Operating and safety performance and Stakeholder engagement. He also completed the Advanced Management Program at the Harvard Business School. He has a military background as a commissioned officer in the US Army, during which time he served in the Persian Gulf War in Saudi Arabia. In Recognition for his leadership at CP, he was named by Progressive Railroading as “Railroad Innovator” for 2014. He is a Representative of American Association of Railroads. He has extensive railroad operating experience and expertise in executive management and marketing and sales. He obtained a Bachelor of Science in Marketing from Jacksonville State University.

CEO Compensation
  • Keith's compensation has increased by more than 20% in the past year.
  • Keith's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Canadian Pacific Railway management team in years:

2.7
Average Tenure
50
Average Age
  • The tenure for the Canadian Pacific Railway management team is about average.
Management Team

Keith Creel

TITLE
President
COMPENSATION
CA$20M
AGE
49
TENURE
1.9 yrs

Nadeem Velani

TITLE
Executive VP & CFO
COMPENSATION
CA$2M
AGE
45
TENURE
2.2 yrs

Robert Johnson

TITLE
Executive Vice President of Operations
COMPENSATION
CA$3M
AGE
56
TENURE
2.7 yrs

Jeff Ellis

TITLE
Chief Legal Officer & Corporate Secretary
COMPENSATION
CA$2M
AGE
50
TENURE
3.1 yrs

Laird Pitz

TITLE
Senior VP & Chief Risk Officer
COMPENSATION
CA$2M
AGE
73
TENURE
4.2 yrs

Mike Redeker

TITLE
Chief Information Officer & VP
AGE
57
TENURE
6.2 yrs

Maeghan Albiston

TITLE
Assistant Vice President of Investor Relations
TENURE
2.3 yrs

John Brooks

TITLE
Chief Marketing Officer & Senior VP
AGE
47
TENURE
1.8 yrs

Stanley MacDonald

TITLE
Senior Vice-President of Operations - System
TENURE
6.2 yrs

Tony Marquis

TITLE
Senior Vice President of Operations - Eastern Region
COMPENSATION
CA$2M
Board of Directors Tenure

Average tenure and age of the Canadian Pacific Railway board of directors in years:

3.4
Average Tenure
59
Average Age
  • The tenure for the Canadian Pacific Railway board of directors is about average.
Board of Directors

Andrew Reardon

TITLE
Chairman of the Board
COMPENSATION
CA$519K
AGE
72
TENURE
3.4 yrs

Keith Creel

TITLE
President
COMPENSATION
CA$20M
AGE
49
TENURE
3.6 yrs

Ubavka MacDonald

TITLE
Independent Director
COMPENSATION
CA$267K
AGE
64
TENURE
6.6 yrs

Isabelle Courville

TITLE
Independent Director
COMPENSATION
CA$267K
AGE
55
TENURE
5.6 yrs

Matthew Paull

TITLE
Independent Director
COMPENSATION
CA$328K
AGE
67
TENURE
2.9 yrs

Jane Peverett

TITLE
Independent Director
COMPENSATION
CA$256K
AGE
59
TENURE
2 yrs

John Baird

TITLE
Independent Director
COMPENSATION
CA$237K
AGE
48
TENURE
3.6 yrs

Jill Denham

TITLE
Independent Director
COMPENSATION
CA$237K
AGE
57
TENURE
2.3 yrs

Gordon Trafton

TITLE
Independent Director
COMPENSATION
CA$309K
AGE
64
TENURE
1.9 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Canadian Pacific Railway insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
01. Nov 18 Buy Chad Rolstad Individual 31. Oct 18 31. Oct 18 125 CA$269.64 CA$33,706
30. May 18 Sell Mark Redd Individual 31. Aug 17 31. Aug 17 -150 CA$193.89 CA$-29,084
X
Management checks
We assess Canadian Pacific Railway's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Canadian Pacific Railway has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

What does Canadian Pacific Railway Limited's (TSE:CP) Balance Sheet Tell Us About Its Future?

Investors pursuing a solid, dependable stock investment can often be led to Canadian Pacific Railway Limited (TSE:CP), a large-cap worth CA$36b. … I will provide an overview of Canadian Pacific Railway’s financial liquidity and leverage to give you an idea of Canadian Pacific Railway’s position to take advantage of potential acquisitions or comfortably endure future downturns. … See our latest analysis for Canadian Pacific Railway

Simply Wall St -

Is Now The Time To Look At Buying Canadian Pacific Railway Limited (TSE:CP)?

Canadian Pacific Railway Limited (TSE:CP). … A question to answer is whether Canadian Pacific Railway's current trading price of CA$269.96 reflective of the actual value of the? … Let’s take a look at Canadian Pacific Railway’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Should We Worry About Canadian Pacific Railway Limited's (TSE:CP) P/E Ratio?

We'll show how you can use Canadian Pacific Railway Limited's (TSE:CP) P/E ratio to inform your assessment of the investment opportunity. … Canadian Pacific Railway has a P/E ratio of 16.57, based on the last twelve months. … How Do I Calculate Canadian Pacific Railway's Price To Earnings Ratio

Simply Wall St -

Could Canadian Pacific Railway Limited's (TSE:CP) Investor Composition Influence The Stock Price?

If you want to know who really controls Canadian Pacific Railway Limited (TSE:CP), then you'll have to look at the makeup of its share registry. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Canadian Pacific Railway is a pretty big company.

Simply Wall St -

Is Canadian Pacific Railway Limited's (TSE:CP) 35% Better Than Average?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand Canadian Pacific Railway Limited (TSE:CP). … Canadian Pacific Railway has a ROE of 35%, based on the last twelve months.

Simply Wall St -

Canadian Pacific Railway Limited (TSE:CP): What Are Investors Earning On Their Capital?

and looking to gauge the potential return on investment in Canadian Pacific Railway Limited (TSE:CP). … Thus, to understand how your money can grow by investing in Canadian Pacific Railway, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE) … Canadian Pacific Railway's Return On Capital Employed

Simply Wall St -

Is Canadian Pacific Railway Limited (TSE:CP) Undervalued?

Let's talk about the popular Canadian Pacific Railway Limited (TSE:CP). … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Today I will analyse the most recent data on Canadian Pacific Railway’s outlook and valuation to see if the opportunity still exists.

Simply Wall St -

Is Canadian Pacific Railway Limited (TSE:CP) Attractive At Its Current PE Ratio?

Canadian Pacific Railway Limited (TSE:CP) trades with a trailing P/E of 16.2x, which is higher than the industry average of 15.6x. … While this makes CP appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio. … See our latest analysis for Canadian Pacific Railway

Simply Wall St -

What Do Investors Need To Know About Canadian Pacific Railway Limited's (TSE:CP) Future?

After Canadian Pacific Railway Limited's (TSE:CP) recent earnings announcement in March 2018, … as a -18.83% fall in profits is expected in the upcoming year … the past 5-year average growth rate of 20.89%.

Simply Wall St -

Should You Be Happy With Canadian Pacific Railway Limited's (TSE:CP) Performance Lately?

After reading Canadian Pacific Railway Limited's (TSE:CP) latest earnings update (31 March 2018), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … View out our latest analysis for Canadian Pacific Railway? … CP's trailing twelve-month earnings (from 31 March 2018) of CA$2.32b has

Simply Wall St -

Company Info

Map
Description

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 finished vehicles and machineries, automotive parts, chemicals and plastics, petroleum and crude products, and metals and minerals, as well as forest, industrial, and consumer products. It also transports intermodal traffic comprising retail goods in overseas containers that could be transported by train, ship, and truck, as well as in domestic containers and trailers that could be moved by train and truck. The company offers rail and intermodal transportation services through a network of approximately 12,500 miles serving business centers in Montreal, Quebec and Vancouver, British Columbia, Canada; and the United States Northeast and Midwest regions. In addition, it offers transload, leasing, and logistics services. Canadian Pacific Railway Limited was founded in 1881 and is headquartered in Calgary, Canada.

Details
Name: Canadian Pacific Railway Limited
CP
Exchange: TSX
Founded: 1881
CA$34,967,344,466
142,601,625
Website: http://www.cpr.ca
Address: Canadian Pacific Railway Limited
7550 Ogden Dale Road S.E.,
Calgary,
Alberta, T2C 4X9,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX CP Common Shares The Toronto Stock Exchange CA CAD 21. Aug 2001
NYSE CP Common Shares New York Stock Exchange US USD 21. Aug 2001
DB PC8 Common Shares Deutsche Boerse AG DE EUR 21. Aug 2001
Number of employees
Current staff
Staff numbers
13,000
Canadian Pacific Railway employees.
Industry
Railroads
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/12/17 23:33
End of day share price update: 2018/12/17 00:00
Last estimates confirmation: 2018/12/04
Last earnings filing: 2018/10/19
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.