Canadian Pacific Kansas City Ltd. (CP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Canadian National Railway Co.

TFI International, Inc.

Canadian Pacific Kansas City Ltd.

Why is Canadian Pacific Kansas City Ltd. ?

Flat results in Mar 26

INVENTORY TURNOVER RATIO(HY) Lowest at 17.96 times
DEBTORS TURNOVER RATIO(HY) Lowest at 7.07 times
INTEREST COVERAGE RATIO(Q) Lowest at 780.26

With ROE of 8.87%, it has a expensive valuation with a 2.41 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 9.52%, its profits have risen by 4.8% ; the PEG ratio of the company is 3.2

Underperformed the market in the last 1 year

The stock has generated a return of 9.52% in the last 1 year, much lower than market (S&P/TSX 60) returns of 29.60%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Canadian Pacific Kansas City Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Canadian Pacific Kansas City Ltd.

9.52%

-2.17

22.25%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.46%

EBIT Growth (5y)

11.27%

EBIT to Interest (avg)

6.69

Debt to EBITDA (avg)

3.57

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

0.21

Tax Ratio

22.11%

Dividend Payout Ratio

19.36%

Pledged Shares

Institutional Holding

75.57%

ROCE (avg)

9.41%

ROE (avg)

13.44%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.41

EV to EBIT

24.22

EV to EBITDA

17.78

EV to Capital Employed

1.93

EV to Sales

9.05

PEG Ratio

3.16

Dividend Yield

ROCE (Latest)

7.96%

ROE (Latest)

8.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at CAD 7.07

-11What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 17.96 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.07 times

INTEREST COVERAGE RATIO(Q)

Lowest at 780.26

OPERATING PROFIT(Q)

Lowest at CAD 1,779 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 48.07 %

PRE-TAX PROFIT(Q)

Lowest at CAD 1,129 MM

NET PROFIT(Q)

Lowest at CAD 852.79 MM

EPS(Q)

Lowest at CAD 0.94

Here's what is working for Canadian Pacific Kansas City Ltd.

Dividend per share

Highest at CAD 7.07

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Here's what is not working for Canadian Pacific Kansas City Ltd.

Interest Coverage Ratio

Lowest at 780.26

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 17.96 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 7.07 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at CAD 1,779 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 48.07 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CAD 1,129 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD 852.79 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD 0.94

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)