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Canadian Pacific Kansas City Ltd (CP) stock analysis

CPNYSERailroads, Line-Haul OperatingFiscal year ends December 31
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Oct 29, 2026Score 6/30
$93.77−0.02 (-0.02%)

Close on Nov 11, 2026Market cap $81.54BP/E 30.5Yield 0.66%

StockData Score

Prices as of Nov 11, 2026How the score works

Value0Growth1Performance3Health2Dividend0

Weak6 of 30 checks passed

Canadian Pacific Kansas City passes 6 of the 30 checks behind our score; 15 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
0/6
Growth
1/6
Past performance
3/6
Financial health
2/6
Dividend
0/6

What stands out

  • Earnings grew over 5 years

    Net income grew 11.1% a year on average over the last five fiscal years.

  • Revenue growing 10%+ a year

    Revenue grew 19.6% a year over the last three fiscal years.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 22.3% of total debt.

  • Return on equity above the industry

    Canadian Pacific Kansas City's return on equity of 8.4% is above the Industrials median of 6.0%.

What to watch

  • Return on equity under 15%

    Return on equity was 8.4% over the last twelve months and averaged 10.1% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was 6.0%, below the 10% that usually covers the cost of capital.

  • High debt

    Debt is 56.5% of shareholders' equity, above the 40% we consider low.

  • EPS growing under 10% a year

    Diluted EPS grew 6.2% a year over the last three fiscal years.

Valuation0/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B against the industry

    Needs positive book value.

  • Price against fair value

    We could not estimate a fair value: it needs at least two valuation methods with positive inputs.

  • Margin of safety

    Depends on the fair value estimate.

Growth1/6

  • Revenue growing 10%+ a year

    Revenue grew 19.6% a year over the last three fiscal years.

  • EPS growing under 10% a year

    Diluted EPS grew 6.2% a year over the last three fiscal years.

  • Earnings growth not accelerating

    Net income grew -9.4% over the last twelve months, against a 5-year average of 11.1% a year.

  • Growing slower than the industry

    Revenue grew 6.5% over the last twelve months; the Industrials median is 7.9%.

  • Guidance issued

    The latest outlook (2026 Other components of net periodic benefit recovery, Jan 28, 2026) was issued for the first time, so it neither adds nor takes away points.

  • Gross margin trend

    This company does not report gross profit.

Past performance3/6

  • Return on equity under 15%

    Return on equity was 8.4% over the last twelve months and averaged 10.1% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was 6.0%, below the 10% that usually covers the cost of capital.

  • Return on equity above the industry

    Canadian Pacific Kansas City's return on equity of 8.4% is above the Industrials median of 6.0%.

  • Earnings grew over 5 years

    Net income grew 11.1% a year on average over the last five fiscal years.

  • Net margin below its 5-year average

    Net margin was 24.1% over the last twelve months, against a 5-year average of 32.0%.

  • Net margin above the industry

    Canadian Pacific Kansas City's net margin of 24.1% is above the Industrials median of 2.5%.

Financial health2/6

  • High debt

    Debt is 56.5% of shareholders' equity, above the 40% we consider low.

  • Debt falling against equity

    Debt to equity fell from 134% five years ago to 56.5%.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 22.3% of total debt.

  • Interest coverage

    Interest expense is not reported separately.

  • Short-term assets don't cover short-term debts

    Current assets are 0.52 times current liabilities.

  • Bankruptcy risk (Altman Z)

    Needs market value, working capital and retained earnings.

Dividend0/6

  • No dividend

    Canadian Pacific Kansas City has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

We don't publish a fair value for Canadian Pacific Kansas City. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$207.48M
Value traded per 1% price move
$181.22M

Downside

Low risk

Typical loss in a bad month
9.4%
Volatility (annualized)
23%
Sharpe ratio, 1 year
1.21
Beta to the S&P 500 (5Y)
0.62

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Operating margin

37.2%−5.7 pts over 5 years

Net margin

27.5%−4.2 pts over 5 years

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