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

TFI International, Inc.

Canadian National Railway Co.

Canadian Pacific Kansas City Ltd.

Why is Canadian Pacific Kansas City Ltd. ?

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at CAD 5,487 MM
RAW MATERIAL COST(Y) Fallen by -3.73% (YoY)
CASH AND EQV(HY) Highest at CAD 1,494 MM

With ROE of 9.21%, it has a expensive valuation with a 2.11 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 -9.83%, its profits have risen by 20.6% ; the PEG ratio of the company is 1.1

High Institutional Holdings at 75.2%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 0.91% over the previous quarter.

Below par performance in long term as well as near term

Along with generating -9.83% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

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.

1.44%

-2.35

23.65%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.36%

EBIT Growth (5y)

11.43%

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

76.18%

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

2.16

EV to EBIT

21.53

EV to EBITDA

15.88

EV to Capital Employed

1.77

EV to Sales

8.10

PEG Ratio

1.65

Dividend Yield

ROCE (Latest)

8.24%

ROE (Latest)

9.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 5,309 MM

RAW MATERIAL COST(Y)

Fallen by -1.44% (YoY

DIVIDEND PER SHARE(HY)

Highest at CAD 7.54

NET SALES(Q)

Highest at CAD 3,923 MM

OPERATING PROFIT(Q)

Highest at CAD 2,143 MM

OPERATING PROFIT MARGIN(Q)

Highest at 54.63 %

-5What is not working for the Company

INTEREST(HY)

At CAD 452 MM has Grown at 14.43%

INVENTORY TURNOVER RATIO(HY)

Lowest at 18.77 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.54 times

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

Operating Cash Flow

Highest at CAD 5,309 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Sales

Highest at CAD 3,923 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 2,143 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 54.63 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Dividend per share

Highest at CAD 7.54

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Raw Material Cost

Fallen by -1.44% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 519 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

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

Interest

At CAD 452 MM has Grown at 14.43%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Inventory Turnover Ratio

Lowest at 18.77 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 7.54 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio