Canadian Pacific Kansas City Ltd

Industrials
Railroads
www.cpr.ca

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $70.35B
PE 20
Debt $21.91B
Cash $463.00M
EV $91.81B
FCF $2.12B

Earnings

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Sales & Net Margins

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Earnings	3.53B
EBIT	5.06B
ROE	8%
ROA	6%
FCF	$2.12B
Equity	45.08B
Growth Stability	100%
PE	19.91
PEG	1.58
PB	1.56
P/FCF	33.23
P/S	4.87
Price/Cash	0.01
Debt/Equity	0.49
Debt/FCF	10.35
Net Margins	24%
Op. Margins	35%
Earnings CAGR	12%
Sales Growth YoY	6%
Sales Growth QoQ	-1%
Sales CAGR	8%
FCF CAGR	15%
Equity CAGR	31%
Earnings Stability	0.87
Earnings Growth YoY	7%
Earnings Growth QoQ	-7%
Earnings CAGR 5Y	13%

Sales CAGR 5Y	14%
FCF CAGR 5Y	12%
Equity CAGR 5Y	66%
Earnings CAGR 3Y	30%
Sales CAGR 3Y	30%
FCF CAGR 3Y	1%
Equity CAGR 3Y	12%
Market Cap	$70.35B
Revenue	14.45B
Dividend Yield	1%
Payout Ratio	20%
Assets	82.23B
Total Debt	21.91B
Cash	463M
Shares Outstanding	931.11M
EV	91.81B
Earnings Score	93%
Moat Score	85%
Safety Score	77%
Final Score	85%
Working Capital	-2.73B
Current Ratio	0.53
Shares Growth 3y	5%
Equity Growth QoQ	1%
Equity Growth YoY	7%

Assets & ROA

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Stockholders Equity & ROE

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Canadian Pacific is a CAD 8 billion Class-1 railroads operating on more than 12,500 miles of track across most of Canada and into parts of the Midwestern and Northeastern United States. It is the second-smallest Class I railroad by revenue and route miles. In 2021, CP hauled shipments of grain (22% of freight revenue), intermodal containers (22%), energy products (like crude and frac sand), chemicals, and plastics (20%) coal (8%), fertilizer and potash (10%), automotive products (5%), and a diverse mix of other merchandise.

SEC Filings

Direct access to Canadian Pacific Kansas City Ltd (CP) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Canadian Pacific Kansas City Ltd compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Canadian Pacific Kansas City Ltd compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 12%

Stability 87%

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Canadian Pacific Kansas City Ltd Discounted Cash Flow

Fully customizable DCF calculator online for Canadian Pacific Kansas City Ltd.

Years

Calculation mode

= $60B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$2.1B	$2.4B	$2.8B	$3.2B	$3.7B	$4.3B	$4.9B	$5.6B	$6.5B	$7.4B	$8.5B	$85B
DCF		$2.2B	$2.3B	$2.4B	$2.5B	$2.6B	$2.8B	$2.9B	$3B	$3.2B	$3.3B	$33B
Value	$60B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	22%	20%	26%	37%	27%	31%	32%	36%	40%	31%	24%
ROA	-	14%	14%	15%	14%	16%	14%	5%	6%	5%	6%
ROE	-	28%	35%	37%	29%	35%	33%	8%	9%	9%	8%

Good Net Margins (23.56%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	9.59	9.6	10.58	7.93	6.97	9.69	10.05	8.19	15.36	10.35
Debt over Equity	1.05	1.87	1.88	1.38	1.39	1.32	1.5	0.64	0.54	0.6	0.49
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Bad Debt/FCF ratio (10.35)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.49)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	1%	-7%	5%	12%	7%	-1%	4%	10%	42%	14%
Earnings YoY growth	-	-8%	18%	50%	-19%	25%	0%	17%	23%	12%	13%
Equity YoY growth	-	-15%	-4%	39%	3%	7%	4%	362%	15%	9%	66%
FCF YoY growth	-	39%	-3%	-7%	38%	16%	-16%	91%	20%	-35%	12%