Stock Analysis
Canadian Pacific Kansas City LimitedCP
P/E 18.84×· 5Y range 11.84–32.66×· 44th percentile of history
Sector: Industrials · Industry: Railroads, Line-Haul Operating
AnalystsStrong Buy36 analystsP/E 18.8× sits at the 44th percentile of its 5.089664613278576-year history.
Cash covers 2% of debt · Q1 2026.
PMP Verdict
Mixed fundamentals, fairly valued
Strengths
- Quality87
- Profitability67
Risks
- Growth38
- Financial Health47
Mixed picture — no clear quality or value edge.
Bull Case
- ✓Piotroski F-Score 7/9 — high earnings quality
- ✓Revenue CAGR 17.2% — durable top-line growth
- ✓Interest coverage 11.4× — debt well covered
What's happening with CP
Profile
Strong earnings quality and moat; growth, valuation and financial health lag behind.
How is each axis scored?
- Valuation41/100 · Weak
- P/E vs own history (44th pct)12/25
- FCF yield (2.7%)5/25
- P/S (5.1x)12/25
- EV/EBIT (18.1x)12/25
- Growth38/100 · Weak
- Revenue CAGR (17.2%)20/25
- Net income CAGR (9.8%)12/25
- EPS CAGR 5Y (2.0%)6/25
- Fwd implied growth (-12.3%)0/25
- Profitability67/100 · Moderate
- ROIC (6.2%)5/25
- ROE (8.8%)12/25
- Net margin (27.2%)25/25
- Operating margin (37.0%)25/25
- Financial Health47/100 · Weak
- Altman Z (1.55)10/25
- Current ratio (0.67)0/25
- Interest coverage (11.4x)25/25
- Net cash / debt (D/A 27%)12/25
- Quality87/100 · Strong
- Piotroski F (7/9)22/25
- Beneish M (-2.70)25/25
- FCF conversion (51%)15/25
- Margin stability (σ 3.6%)25/25
- Moat76/100 · Strong
- ROIC >12% years (5/10 yrs)13/25
- Median gross margin (37.5%)13/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 25.6%)25/25
Risk Flags
- ⚠Altman Z 1.6 — distress-zone balance sheet
About Canadian Pacific Kansas City Limited
Canadian Pacific Kansas City is a Class I railroad operating on tracks that span most of Canada and into parts of the Midwestern and Northeastern United States. Show more
Following the April 2023 Kansas City Southern merger, CPKC operates new single-linehaul 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 more than 3,000 miles of rail in Mexico. CPKC 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.
Headquarters: CALGARY ALBERTA, A0 · Employees: 19,687 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
41D+P/E (TTM)18.8xB
Grade B: FairPrice / TTM EPS (own statements) — vs own 5Y history: 11.8x–32.7x · 44th pct
P/FCF44.9xC
Grade C: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative · Elevated investment — CapEx = 60% of operating cash flow, weighing on reported FCF
FCF Yield2.7%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 1.4%–6.0% · 34th pct · Elevated investment — CapEx = 60% of operating cash flow, weighing on reported FCF
P/S (TTM)5.12xC
Grade C: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 4.2x–9.8x · 30th pct
EV/EBIT18.1xC
Grade C: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 12.3x–32.6x · 28th pct
EV/Sales8.6xC
Grade C: ExpensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E21.4xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio1.65xA
Grade A: FairPrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio2.08C
Grade C: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield0.76%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio21.1%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Elevated investment: Elevated investment — CapEx = 60% of operating cash flow, weighing on reported FCF
Profitability
67BROIC6.2%D
Grade D: LowNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE8.8%D
Grade D: WeakReturn on Equity. Neg. equity = heavy buybacks
ROA4.4%D
Grade D: WeakReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin27.2%A
Grade A: HighNet Income / Revenue
Operating Margin37.0%A
Grade A: HighTTM EBIT / TTM Revenue
Gross Margin37.0%C
Grade C: AverageGross Profit / Revenue
FCF Margin13.8%C
Grade C: AverageFCF / Revenue · Elevated investment — CapEx = 60% of operating cash flow, weighing on reported FCF
True FCF Margin13.8%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost · Elevated investment — CapEx = 60% of operating cash flow, weighing on reported FCF
Growth
38DRevenue CAGR17.2%A
Grade A: HighCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR9.8%C
Grade C: OkCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)2.0%D
Grade D: LowCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth-12.3%D
Grade D: Decl.Analyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)+31.3%D
Grade D: DilutiveShare count change over 5Y
SBC / Net Income—
Stock-based comp/Net income. >30% = dilution risk
SBC / Revenue—
TTM stock-based comp / TTM Revenue
Financial Health
47D+Altman Z-Score1.55D
Grade D: DistressBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio0.67xD
Grade D: LowCurrent Assets/Liabilities
Quick Ratio0.50xC
Grade C: Ok(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage11.4xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt Repayment11.5yD
Grade D: SlowYears to repay net debt via FCF · Elevated investment — CapEx = 60% of operating cash flow, weighing on reported FCF
Net Debt/EBIT4.3xD
Grade D: HighLeverage. <2x Low, >4x High
Debt/Equity0.52xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.02xD
Grade D: ThinCash covers how much of total debt. >1 = could repay all debt from cash
Quality
87APiotroski F-Score7/9A
Grade A: StrongFinancial strength 0–9. >7 Strong
Beneish M-Score-2.70A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion50.9%C
Grade C: AverageFCF / Net Income · Elevated investment — CapEx = 60% of operating cash flow, weighing on reported FCF
Margin Stability3.6%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue20.4%D
Grade D: HeavyTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.18xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
76B+ROIC >12% Years5/10 yrsC
Grade C: ModerateShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)37.5%C
Grade C: ModerateMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor25.6%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$4.64
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$0.41
Cash & short-term investments per share (Finnhub)
Book Value / Share$52.86
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$24.32B
Total debt obligations (short + long term)
Cash & Equiv.$409.00M
Cash and short-term investments
Net Debt$23.91B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$46.45B
Shareholders' equity (book value)
Asset / Liability2.18xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$76.70B
Current Market Capitalization
Beta0.66B
Grade B: DefensivePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Mar 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Canadian Pacific Kansas City Limited (CP)
CP is up 0.52% at the last close. Canadian Pacific Kansas City Limited meets 7 of 9 Piotroski F-Score criteria, placing its fundamental strength in the top tier of US-listed stocks. Altman Z-Score of 1.55 is below the 1.81 distress threshold — an elevated financial-risk flag.
- Beneish M-Score of -2.70 suggests a low likelihood of earnings manipulation.
- Revenue has compounded at roughly 17% annually, with net income growing about 10% per year — a strong growth profile.
- Takes ~11.5 years to repay net debt from free cash flow.
See how CP ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all CP moves →Frequently Asked Questions about CP
What is the current Canadian Pacific Kansas City Limited (CP) stock price?
CP is trading at $87.36 at the last market close, up 0.52% on the session. PreMarketPrice tracks CP pre-market, intraday and after-hours prices.
Is CP stock a buy right now?
PreMarketPrice's quantitative model rates Canadian Pacific Kansas City Limited's financial health at 47/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is CP stock overvalued?
Canadian Pacific Kansas City Limited trades at a trailing P/E of 18.8 and our valuation score rates it 41/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Canadian Pacific Kansas City Limited report earnings?
No confirmed earnings date is currently scheduled for CP. The Earnings section lists recent reports and updates as dates are announced.
What sector does Canadian Pacific Kansas City Limited operate in?
Canadian Pacific Kansas City Limited operates in the Industrials sector, within the Railroads, Line-Haul Operating industry. The Related Stocks section lists sector peers for comparison.
What does Canadian Pacific Kansas City Limited do?
Canadian Pacific Kansas City is a Class I railroad operating on tracks that span most of Canada and into parts of the Midwestern and Northeastern United States.
About Canadian Pacific Kansas City Limited (CP) Stock
Canadian Pacific Kansas City Limited (CP) is a US-listed stock operating in the Industrials sector, specifically the Railroads, Line-Haul Operating industry. As of the latest update, Canadian Pacific Kansas City Limited is trading at $87.36, up 0.52% on the day with a market capitalization of $76.7 billion. The financial health score for CP is 47/100, which indicates moderate financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for CP stock.
CP Stock Analysis & Key Metrics
On PreMarketPrice, you can track Canadian Pacific Kansas City Limited (CP) across multiple dimensions:
- Pre-market price & movement: Real-time CP stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for CP with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Canadian Pacific Kansas City Limited across multiple reporting periods.
- Financial health score: A composite score of 47/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for CP.
- Sector peers: Compare CP against 6 other industrials stocks on key financial metrics.
Is CP a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Canadian Pacific Kansas City Limited (CP) as an investment. The financial health score of 47/100 suggests moderate financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Canadian Pacific Kansas City Limited (CP) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.