Canadian Pacific Kansas City Ltd. (CP) — Fundamental Analysis & Key Financial Ratios

Kaplio overview: Canadian Pacific Kansas City Ltd.

Market cap $79B · 52 weeks $69 – $97 (6 % below the high) · P/E 26.7× · 2027 expected P/E 20.7× · Dividend 0.79 % · Closing price, Oct 28 · accounts published Jul 29.

• Valuation: P/E 26.7× (fairly priced).
• Business: ROIC 5 % (weak).
• Balance sheet: Net debt/EBITDA 2.8× (passes, near the threshold).
• Earnings: 1 of 8 (disappointing).

What would it be worth at its usual multiples?

At the decade median (24.0×) $81 (-10 %); at its sector median (25.8×) $87 (-3 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.

What matters in industrials: 6 of 10 pass

• ROIC 5.4 %, fails.
• FCF conversion 52.4 %, fails.
• Capex / Revenue 20.8 %, fails.
• P/E vs own 10y history 26.7×, fails.
• 5y revenue growth 7.7 %, passes.
• Operating margin 37.2 %, passes.
• Net debt / EBITDA 2.8×, passes, near the threshold.
• Altman Z-Score 2.1, passes.
• Piotroski F-Score 7 de 9, passes.
• Cycle-adjusted EV/EBITDA 15.4×, passes.

Against its peers (reference peers) — Canadian Pacific Kansas City Ltd.: P/E 26.7×; EV/EBITDA 15.4×; ROIC 5.4 %; $78.6B. Norfolk Southern Corporation (P/E 28.3×; EV/EBITDA 16.4×; ROIC 7.5 %; $75.9B), CSX Corporation (P/E 26.9×; EV/EBITDA 15.8×; ROIC 9.8 %; $96.3B), Canadian National Railway Company (P/E 22.9×; EV/EBITDA 14.0×; ROIC 8.7 %; $75.2B).

Expensive or cheap against its last ten years?

P/E at each close: today 26.7× · median 24.0× · minimum 15.0× · maximum 31.9× · cheap below 20.9× · expensive above 27.3×. It has been cheaper than today 74% of the time over its last ten years.

Dividend

tight (only raised recently) · Yield 0.79 % ($0.62 per ADS in 2025) · Years raising it 2 · 5-year growth +5 % a year · Free cash flow coverage 2.8× · With $1,000 invested today you'd collect $7.90 a year ($0.66 a month).