Canadian Pacific Kansas City (CP.TO)
Industrials · TSX · Canada
Fundamentals
Valuation and ratings
Canadian Pacific Kansas City trades at C$130.46, which is 60% above the C$52.04 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 68 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 28.5 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Canadian Pacific Kansas City
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. The company was formerly known as Canadian Pacific Railway Limited and changed its name to Canadian Pacific Kansas City Limited in April 2023. Canadian Pacific Kansas City Limited was founded in 1881 and is headquartered in Calgary, Canada.
CP.TO passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Canadian Pacific Kansas City (CP.TO) undervalued?
Against our discounted cash flow estimate of C$52.04, CP.TO at C$130.46 is 60% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is CP.TO's P/E ratio?
CP.TO trades at 28.5 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.