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Canadian Pacific Kansas City LimitedNYSE:CP Stock Report

Market Cap US$76.9b
Share Price
n/a
1Y17.2%
7D-2.6%
1D-1.5%
Portfolio Value
​
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Canadian Pacific Kansas City Limited

NYSE:CP Stock Report

Market Cap: US$76.9b

Canadian Pacific Kansas City (CP) Stock Overview

Owns and operates a transcontinental freight railway in Canada, the United States, and Mexico. More details

CP fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance2/6
Financial Health3/6
Dividends4/6

Rewards

Price-To-Earnings ratio (27.8x) is below the Transportation industry average (32.6x)

Earnings are forecast to grow 10.08% per year

Risk Analysis

Has a high level of debt


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Canadian Pacific Kansas City Limited Competitors

Price History & Performance

Summary of share price highs, lows and changes for Canadian Pacific Kansas City
Historical stock prices
Current Share PriceCA$87.48
52 Week HighCA$96.90
52 Week LowCA$68.42
Beta1.22
1 Month Change-9.53%
3 Month Change2.57%
1 Year Change17.22%
3 Year Change13.79%
5 Year Change30.78%
Change since IPO2,190.05%

Recent News & Updates

Seeking Alpha • Sep 04

Canadian Pacific: Underperformance To Market, Despite Results

Summary Canadian Pacific Kansas City Limited offers unmatched North American rail infrastructure, but the current valuation is excessive relative to normalized growth prospects. Despite strong revenue and EPS growth, CP's operating efficiency has deteriorated, raising concerns about the sustainability of recent performance. CP trades at a substantial premium to historical P/E and FCF multiples, with a fair entry price target of $100/share and a reiterated 'Hold' rating. Sector-wide, railroads face structural growth limits and capital intensity, making overpaying for CP particularly risky at present valuation levels. Read the full article on Seeking Alpha

Recent updates

Seeking Alpha • Sep 04

Canadian Pacific: Underperformance To Market, Despite Results

Summary Canadian Pacific Kansas City Limited offers unmatched North American rail infrastructure, but the current valuation is excessive relative to normalized growth prospects. Despite strong revenue and EPS growth, CP's operating efficiency has deteriorated, raising concerns about the sustainability of recent performance. CP trades at a substantial premium to historical P/E and FCF multiples, with a fair entry price target of $100/share and a reiterated 'Hold' rating. Sector-wide, railroads face structural growth limits and capital intensity, making overpaying for CP particularly risky at present valuation levels. Read the full article on Seeking Alpha
Seeking Alpha • Apr 25

Canadian Pacific: 2025 EPS To Grow Double Digits Regardless Of Potential Tariff Outcomes

Summary The merger of Canadian Pacific and Kansas City Southern in 2023 created a unique rail network linking Canada, the U.S., and Mexico, driving substantial market benefits. CPKC achieved over $800 million in revenue synergies and 11% EPS growth in 2024, despite labor disruptions and a challenging freight market. Historical resilience to trade policy uncertainties and accelerated nearshoring highlight CPKC's robust earnings potential, with management guiding 12%-18% EPS growth in 2025. Under top-tier management, CPKC is poised for double-digit earnings and free cash flow per share growth in the coming years. Read the full article on Seeking Alpha
Seeking Alpha • Mar 27

Canadian Pacific Kansas City: It's Time To Wait And See

Summary Canadian Pacific is one of the leading railroad companies in North America. Not only because of its strong presence in the US, but also because it is the only company that conducts business in all three North American countries. Average train weight closed 4Q2024 at 9,083 tons, compared to 8,732 tons in 4Q2023. Regarding average train length, 2024 closed the last quarter at 7,606 feet, compared to 7,345 feet. If we compare the full year, we can see that Canadian generated a total of $14.223 billion in revenue in 2024 compared to $12.281 billion in 2023. While in 4Q2024 the Net Income generated by the company was $1,704 million, in 4Q2023 it was $1,336 million. Looking at the full year, the values ​​rise to $5,269 million and $4,137 million in 2024 and 2023. Read the full article on Seeking Alpha
Seeking Alpha • Feb 09

Canadian Pacific Kansas City Rail Tariff Fears Are Overblown

Summary Canadian Pacific Kansas City faces near-term tariff risks, but its unique North American rail network offers long-term growth potential amid geopolitical shifts and nearshoring trends. Despite recent tariff threats, CP's Q4 2024 earnings showed revenue growth, improved EPS, and a stable operating ratio. Management sees over $5 billion in new revenue opportunities, driven by GDP growth, price increases, and high switching costs in the rail industry. The recent tariff fears are overblown; the integrated supply chains between Canada, the U.S., and Mexico are too complex to change quickly. Read the full article on Seeking Alpha
Seeking Alpha • Jan 03

Canadian Pacific Kansas City: Twice As Expensive As The S&P 500

Summary Avoid Canadian Pacific Kansas City Limited stock due to mixed financial performance, high debt, and overvaluation compared to peers and the S&P 500. The merger with Kansas City Southern increased net income, but also significantly ballooned long-term debt and diluted shares by 580%. The stock's price-to-sales ratio is over twice that of the S&P 500, making it a poor value investment in 2025. Treasury Notes offer a better risk-adjusted return, with the stock's dividend needing an unrealistic 37.8% CAGR to match Treasury income. Read the full article on Seeking Alpha
Seeking Alpha • Dec 16

Canadian Pacific: The Underdog Stock Destined To Dominate

Summary Canadian Pacific Kansas City's unique North American network positions it for long-term growth, despite recent underperformance and trade-related concerns. The Kansas City Southern merger offers significant synergies, particularly in high-margin markets like automotive and energy shipments. Short-term headwinds like tariff uncertainties are often overblown; history suggests North American trade fundamentals remain strong. CPKC's operational improvements and strategic measures make it a compelling choice for patient, long-term investors seeking sustainable growth. Read the full article on Seeking Alpha
Seeking Alpha • Oct 24

Don't Sleep On Canadian Pacific, One Of My Favorite Dividend Stocks

Summary Canadian Pacific Kansas City shows resilience and operational excellence, benefiting from post-merger synergies and a wide moat in North American transportation. Despite cyclical headwinds and a low dividend yield, CPKC's strong revenue growth and efficiency improvements position it for future stock price breakout and dividend growth. Canadian Pacific expects double-digit EPS growth beyond 2026, driven by bulk, auto segments, and infrastructure projects, enhancing its long-term value generation. Once leverage targets are met, aggressive dividend hikes and buybacks are anticipated, making CP stock a compelling long-term investment despite short-term pressures. Read the full article on Seeking Alpha
Seeking Alpha • Sep 13

Canadian Pacific: Cautious Amid Sectoral And Valuation Headwinds

Summary Canadian Pacific Kansas City Limited has surged, lending an opportunity to assess the stock's prospects. Although I find the company's recent operating results commendable, I'm worried about the headwinds faced by the commodity and industrial cycles. Some of the company's expenses might diminish in late 2024 and early 2025, but labor concerns seem far from over. The Kansas City Southern acquisition aims for $1 billion in annual synergies, but the 34% premium raises questions about the benefit to ordinary shareholders. CP's valuation multiples and dividend attributes are unconvincing from a relative standpoint. Read the full article on Seeking Alpha
Seeking Alpha • Sep 02

Canadian Pacific: Cross-Border Advantage, But Now A Hold

Summary Canadian Pacific Kansas City, the only railroad connecting Canada, the US, and Mexico, offers unmatched cross-border service reliability and premium pricing due to its seamless network. Recent labor disputes highlight operational risks, but Q2 results show strong revenue growth, improved operating ratio, and enhanced productivity, driving profitability. Valuation suggests limited upside with a target price of $106.40 per share in 2027, making the stock a hold compared to more attractive alternatives like Canadian National. Key risks include regulatory hurdles, economic sensitivity, and operational disruptions, but the company’s strategic position in the North American railroad market remains strong. Read the full article on Seeking Alpha
Seeking Alpha • Aug 08

Canadian Pacific: Idiosyncratic Growth Opportunities Should Drive Outperformance

Summary Canadian Pacific Kansas City Limited is well-positioned for growth with revenue synergies from the CP-KCS merger and strong Canadian grain harvest. Q2 2024 revenue growth driven by volume increases in bulk, merchandise, and intermodal businesses, validating growth prospects. Margins may face temporary pressure in Q3 due to higher expenses, but the medium to long-term outlook remains favorable, with benefits from volume leverage and synergies. Read the full article on Seeking Alpha
Seeking Alpha • Jul 31

Why Canadian Pacific Remains One Of My All-Time Favorite Dividend Plays

Summary Canadian Pacific Kansas City Limited has shown strong revenue growth and operating improvements in its recent quarterly earnings report. Canadian Pacific's business mix and operational efficiency have contributed to its success, with a focus on higher-margin bulk and merchandise freight. The company is generating significant shareholder value through investments in safety, capacity expansion, and reducing leverage to improve future dividend growth and buybacks. Read the full article on Seeking Alpha
Seeking Alpha • May 10

Canadian Pacific: Unique Assets And Good Management, But Valuation Is High

Summary Canadian Pacific Kansas City Limited has transformed into a railroad business that can lead to strong shareholder returns. CP's management has demonstrated operational excellence and improved performance over the years. The combination of CP and Kansas City Southern creates a rail network that connects Canada, the United States, and Mexico, providing growth opportunities. CP trades at a high valuation and new investors should wait for more opportunistic times to initiate a position. I rate CP a hold. Read the full article on Seeking Alpha
Seeking Alpha • Apr 25

Canadian Pacific - One Of My Favorite "Win-Win" Investments

Summary In my article, I explore a win-win investment strategy centered on dividend stocks like CP. The approach capitalizes on both stock appreciation and buying opportunities during dips. CP stands out for its resilient operations, diverse revenue streams, and strategic positioning. Despite short-term challenges, CP maintains solid financials, offering the potential for long-term returns. Overall, CP presents compelling prospects for investors seeking stable returns and dividend growth, but prudent evaluation and risk management are paramount in navigating its investment landscape. Read the full article on Seeking Alpha
Seeking Alpha • Feb 29

Canadian Pacific: There Are Many Reasons To Like And Buy The Stock

Summary Canadian Pacific is focused on achieving synergies and more efficient operations following its acquisition of Kansas City Southern. The company reported a 4% growth in total revenue and improved efficiency in its Q4 earnings report. Canadian Pacific is set to benefit from several macrotrends while focusing on becoming a leaner and more efficient company. Read the full article on Seeking Alpha
Seeking Alpha • Jan 31

Canadian Pacific Kansas City: The More It Drops, The More I Buy

Summary Canadian Pacific Kansas City reported a robust financial performance in the fourth quarter, with a 4% increase in revenues and improved operational efficiency. Canadian Pacific's network is impressive, with the lowest FRA Train Accident Frequency and improvements in key operating metrics. CPKC's outlook is positive, with expectations of double-digit core adjusted combined earnings growth in 2024 and strong free cash flow. CP stock's valuation is a bit tricky, but long-term returns are expected to be between 10% and 14%. Read the full article on Seeking Alpha
Seeking Alpha • Jan 22

Canadian Pacific Kansas City Looking Good Rolling Into Earnings

Summary Canadian Pacific Kansas City Limited announces earnings with predicted EPS of $0.83 and revenue of $2.74 billion. The company has a history of beating earnings but missing revenue. Analyst estimates for EPS range from $0.77 to $0.86, while revenue estimates range from $2.64 billion to $2.85 billion. Read the full article on Seeking Alpha
Seeking Alpha • Jan 12

Canadian Pacific: Laying The Tracks For Growth

Summary Canadian Pacific Kansas City is a key player in the North American Railroad business, with operations spanning across the US, Mexico, and Canada. The company has solid growth prospects, including taking advantage of near-shoring trends and expanding rail capacity in strategic locations. Canadian Pacific operates with significant cost advantages over alternative transportation methods and has a clear competitive advantage in the industry. Read the full article on Seeking Alpha
Seeking Alpha • Dec 01

Canadian Pacific: Why I Just Bought Shares Of This Blue Chip Railroad

Summary Canadian Pacific Kansas City Limited is an attractive compounder in the industrial sector. Class-1 railroads have wide moats, making it difficult for competitors to disrupt them. CP has the potential to compound its free cash flow at a 20% annual rate over the next 5 years. Read the full article on Seeking Alpha

Shareholder Returns

CPUS TransportationUS Market
7D-2.6%-3.1%-0.1%
1Y17.2%0.6%11.9%

Return vs Industry: CP exceeded the US Transportation industry which returned 0.6% over the past year.

Return vs Market: CP exceeded the US Market which returned 11.9% over the past year.

Price Volatility

Is CP's price volatile compared to industry and market?
CP volatility
CP Average Weekly Movement2.9%
Transportation Industry Average Movement5.8%
Market Average Movement6.8%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.9%

Stable Share Price: CP has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: CP's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188119,687Keith Creelwww.cpkcr.com

Canadian Pacific Kansas City Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada, the United States, and Mexico. The transports bulk commodities, including grain, coal, potash, fertilizers, and sulphur; merchandise freight consists of industrial and consumer products, such as forest products, energy, chemicals and plastics, metals, minerals, consumer products, and automotive; and intermodal traffic comprising retail goods in overseas containers. The company also provides rail and intermodal transportation services through a network of approximately 20,000 miles serving business centers.

Canadian Pacific Kansas City Limited Fundamentals Summary

How do Canadian Pacific Kansas City's earnings and revenue compare to its market cap?
CP fundamental statistics
Market capUS$76.91b
Earnings (TTM)US$2.76b
Revenue (TTM)US$11.04b
27.8x
P/E Ratio
7.0x
P/S Ratio

Is CP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
CP income statement (TTM)
RevenueCA$15.45b
Cost of RevenueCA$7.20b
Gross ProfitCA$8.25b
Other ExpensesCA$4.38b
EarningsCA$3.87b

Last Reported Earnings

Jun 30, 2026

Next Earnings Date

n/a

Earnings per share (EPS)4.40
Gross Margin53.40%
Net Profit Margin25.03%
Debt/Equity Ratio52.8%

How did CP perform over the long term?

See historical performance and comparison

Dividends

0.9%
Current Dividend Yield
22%
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 Kansas City dividend dates
Ex Dividend DateSep 25 2026
Dividend Pay DateOct 26 2026
Days until Ex dividend4 days
Days until Dividend pay date35 days

Does CP pay a reliable dividends?

See CP dividend history and benchmarks

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/09/21 03:52
End of Day Share Price 2026/09/18 00:00
Earnings2026/06/30
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Canadian Pacific Kansas City Limited is covered by 49 analysts. 25 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Will ChienAccountability Research Corporation
John EadeArgus Research Company
Christopher MurrayATB Cormark