Canadian Pacific Kansas City Ltd CP

Morningstar Rating

Company Report

Price vs Fair Value

CP is trading at a 756% premium.
Price
CAD 111.00
Fair Value
CAD 686.00
Uncertainty
Medium
1-Star Price
CAD 811.74
5-Star Price
CAD 51.50
Economic Moat
Xxcvq
Capital Allocation
Wbzzchl

Bulls Say, Bears Say

Bulls

The Kansas City Southern merger, which creates new, seamless intermodal lanes, should yield meaningful opportunities for incremental volume growth.

Bears

Canadian grain carload-volume growth will likely take a breather in 2024 on a less robust late-2023 harvest and a less favorable export backdrop (to China).

News

Trading Information

Previous Close Price
Day Range
52-Week Range
Bid/Ask
/
Market Cap
Volume/Avg
/

Key Statistics

Price/Earnings (Normalized)
27.21
Price/Sales
7.28
Dividend Yield (Trailing)
0.68%
Dividend Yield (Forward)
0.68%
Total Yield
0.68%

Company Profile

Canadian Pacific Kansas City is a Class-1 railroad operating on track that spans across most of Canada and into parts of the Midwestern and Northeastern United States. Following the April 2023 Kansas City Southern merger, CP operates new single-line-haul services from Canada and the Upper Midwest down through Texas, the Gulf of Mexico, and into Mexico. It also hauls cross border and intra Mexico freight via operating concessions on roughly 3,300 miles of rail in Mexico. CP hauls shipments of grain, intermodal containers, energy products (like crude and frac sand), chemicals, plastics, coal, fertilizer and potash, automotive products, and a diverse mix of other merchandise.
Sector
Industrials
Industry
Railroads
Stock Style Box
Large Growth
Total Number of Employees
20,441

Competitors

Valuation

Metric
CP
CSX
CNI
Price/Earnings (Normalized)
27.2118.8421.29
Price/Book Value
2.365.245.09
Price/Sales
7.284.595.86
Price/Cash Flow
21.1212.8614.40
Price/Earnings
CP
CSX
CNI

Financial Strength

Metric
CP
CSX
CNI
Quick Ratio
0.390.980.32
Current Ratio
0.511.160.63
Interest Coverage
6.576.618.69
Quick Ratio
CP
CSX
CNI

Profitability

Metric
CP
CSX
CNI
Return on Assets (Normalized)
4.30%8.45%9.80%
Return on Equity (Normalized)
8.30%28.89%25.86%
Return on Invested Capital (Normalized)
6.23%13.22%15.02%
Return on Assets
CP
CSX
CNI

Railroads Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Union Pacific Corp
UNP
RqsttrnTczw$146.6 Bil
Canadian Pacific Kansas City Ltd
CP
VxxdhjvqmBqhv$76.7 Bil
Canadian National Railway Co
CNI
RktqbctyHvmf$72.2 Bil
CSX Corp
CSX
YwvynntTvmz$66.1 Bil
Norfolk Southern Corp
NSC
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Fwhy$31.6 Bil
MTR Corp Ltd ADR
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MTR Corp Ltd
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Nlrlftn$23.8 Bil
Central Japan Railway Co
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Central Japan Railway Co ADR
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Tfznbq$22.2 Bil

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