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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

TFI International, Inc.

Canadian Pacific Kansas City Ltd.

Canadian National Railway Co.

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 hold?

Overall Portfolio exposure to Canadian Pacific Kansas City Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Canadian Pacific Kansas City Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Canadian Pacific Kansas City Ltd.

-2.99%

-2.35

23.65%

S&P/TSX 60

19.1%

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)

13.61%

EBIT Growth (5y)

10.47%

EBIT to Interest (avg)

6.69

Debt to EBITDA (avg)

3.57

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

0.20

Tax Ratio

22.11%

Dividend Payout Ratio

19.10%

Pledged Shares

Institutional Holding

75.20%

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

2.18

EV to EBIT

22.13

EV to EBITDA

16.33

EV to Capital Employed

1.80

EV to Sales

8.19

PEG Ratio

1.16

Dividend Yield

ROCE (Latest)

8.16%

ROE (Latest)

9.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

9What is working for the Company

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

DIVIDEND PER SHARE(HY)

Highest at CAD 7.65

PRE-TAX PROFIT(Q)

Highest at CAD 1,610 MM

NET PROFIT(Q)

Highest at CAD 1,248.74 MM

EPS(Q)

Highest at CAD 1.33

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Operating Cash Flow

Highest at CAD 5,487 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)

Pre-Tax Profit

Highest at CAD 1,610 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 1,248.74 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 1.33

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Cash and Eqv

Highest at CAD 1,494 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at CAD 7.65

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Raw Material Cost

Fallen by -3.73% (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

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

Non Operating Income

Highest at CAD 0.29 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income