Canadian Pacific Railway Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada and the United States. More Details
Average dividend payer with mediocre balance sheet.
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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: CP exceeded the Canadian Transportation industry which returned 33% over the past year.
Return vs Market: CP exceeded the Canadian Market which returned -4.2% over the past year.
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 StHave Insiders Been Buying Canadian Pacific Railway Limited (TSE:CP) Shares?
2 weeks ago | Simply Wall StInvestors Who Bought Canadian Pacific Railway (TSE:CP) Shares Five Years Ago Are Now Up 103%
1 month ago | Simply Wall StBe Sure To Check Out Canadian Pacific Railway Limited (TSE:CP) Before It Goes Ex-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$414.17) is trading above our estimate of fair value (CA$299.61)
Significantly Below Fair Value: CP is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CP is good value based on its PE Ratio (24.5x) compared to the CA Transportation industry average (24.8x).
PE vs Market: CP is poor value based on its PE Ratio (24.5x) compared to the Canadian market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: CP is poor value based on its PEG Ratio (3.1x)
Price to Book Ratio
PB vs Industry: CP is overvalued based on its PB Ratio (7.5x) compared to the CA Transportation industry average (3x).
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 forecast earnings growth (7.9% per year) is above the savings rate (1.7%).
Earnings vs Market: CP's earnings (7.9% per year) are forecast to grow slower than the Canadian market (21.1% per year).
High Growth Earnings: CP's earnings are forecast to grow, but not significantly.
Revenue vs Market: CP's revenue (4.9% per year) is forecast to grow slower than the Canadian market (5.8% per year).
High Growth Revenue: CP's revenue (4.9% 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 (28.8%)
How has Canadian Pacific Railway performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CP has high quality earnings.
Growing Profit Margin: CP's current net profit margins (29.7%) are lower than last year (30%).
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 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 (-0.7%) over the past year, making it difficult to compare to the Transportation industry average (-17.5%).
Return on Equity
High ROE: Whilst CP's Return on Equity (30.43%) is high, this metric is skewed due to their high level of debt.
How is Canadian Pacific Railway's financial position?
Financial Position Analysis
Short Term Liabilities: CP's short term assets (CA$1.3B) do not cover its short term liabilities (CA$2.2B).
Long Term Liabilities: CP's short term assets (CA$1.3B) do not cover its long term liabilities (CA$14.0B).
Debt to Equity History and Analysis
Debt Level: CP's debt to equity ratio (119%) is considered high.
Reducing Debt: CP's debt to equity ratio has reduced from 168.8% to 119% over the past 5 years.
Debt Coverage: CP's debt is well covered by operating cash flow (31.6%).
Interest Coverage: CP's interest payments on its debt are well covered by EBIT (7.9x coverage).
What is Canadian Pacific Railway current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CP's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.69%).
High Dividend: CP's dividend (0.92%) is low compared to the top 25% of dividend payers in the Canadian market (5.78%).
Stability and Growth of Payments
Stable Dividend: CP's dividends per share have been stable in the past 10 years.
Growing Dividend: CP's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (20.3%), CP's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CP's dividends in 3 years are forecast to be well covered by earnings (18.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Keith Creel (51 yo)
Mr. Keith E. Creel serves as President and Chief Executive Officer of Canadian Pacific Railway Co. (“CP”) On January 31, 2017, where he is responsible for providing leadership and strategic vision for CP l ...
CEO Compensation Analysis
Compensation vs Market: Keith's total compensation ($USD11.54M) is above average for companies of similar size in the Canadian market ($USD7.07M).
Compensation vs Earnings: Keith's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|CEO, President & Director||3.75yrs||CA$15.15m||0.013% |
|Executive VP & CFO||4yrs||CA$4.72m||0.00075% |
|Executive Vice President of Operations||1.08yrs||CA$2.39m||0.00066% |
|Executive VP & Chief Marketing Officer||3.67yrs||CA$3.76m||0.0015% |
|Senior VP & Chief Risk Officer||6yrs||CA$2.56m||0.000060% |
|Vice President of Financial Planning & Accounting||2.75yrs||no data||0% |
|Chief Information Officer & VP||8yrs||no data||0.0021% |
|Assistant Vice President of Investor Relations||4.08yrs||no data||no data|
|Chief Legal Officer & Corporate Secretary||4.92yrs||CA$1.58m||0.00064% |
|VP of Human Resources & Chief Culture Officer||1.67yrs||no data||0.00038% |
|Senior Vice-President of Engineering||8yrs||no data||0% |
|Senior Vice-President of Strategic Planning & Technology Transformation||1.08yrs||no data||0.0017% |
Experienced Management: CP's management team is considered experienced (3.9 years average tenure).
|CEO, President & Director||3.75yrs||CA$15.15m||0.013% |
|Independent Director||4.75yrs||CA$305.81k||0.0022% |
|Independent Director||1.83yrs||CA$266.09k||no data|
|Independent Chairman||1.42yrs||CA$440.37k||0.00066% |
|Independent Director||3.75yrs||CA$285.78k||no data|
|Independent Director||8.42yrs||CA$301.69k||no data|
|Independent Director||3.83yrs||CA$301.69k||no data|
|Independent Director||4.08yrs||CA$262.47k||no data|
|Independent Director||5.42yrs||CA$262.47k||no data|
|Independent Director||1.25yrs||CA$120.16k||no data|
|Independent Director||1.25yrs||CA$122.73k||no data|
Experienced Board: CP's board of directors are considered experienced (3.8 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$55.705b
- Shares outstanding: 134.50m
- Website: https://www.cpr.ca
Number of Employees
- Canadian Pacific Railway Limited
- 7550 Ogden Dale Road SE
- T2C 4X9
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|CP||TSX (The Toronto Stock Exchange)||Yes||Common Shares||CA||CAD||Aug 2001|
|CP||NYSE (New York Stock Exchange)||Yes||Common Shares||US||USD||Aug 2001|
|PC8||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Aug 2001|
|CPRL34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 4 REP 1 COM NPV||BR||BRL||May 2019|
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||2020/10/22 00:52|
|End of Day Share Price||2020/10/21 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.