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. ?

Flat results in Jun 26

INVENTORY TURNOVER RATIO(HY) Lowest at 18.68 times
DEBT-EQUITY RATIO (HY) Highest at 53.15 %
DEBTORS TURNOVER RATIO(HY) Lowest at 7.26 times

With ROE of 8.87%, it has a expensive valuation with a 2.31 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 20.28%, its profits have risen by 4.8% ; the PEG ratio of the company is 3

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Canadian Pacific Kansas City Ltd.

23.2%

-2.07

22.15%

S&P/TSX 60

29.63%

2.33

12.07%

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)

6.51

Debt to EBITDA (avg)

3.73

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

0.21

Tax Ratio

24.59%

Dividend Payout Ratio

19.36%

Pledged Shares

Institutional Holding

75.57%

ROCE (avg)

7.09%

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

2.31

EV to EBIT

23.41

EV to EBITDA

17.19

EV to Capital Employed

1.86

EV to Sales

8.75

PEG Ratio

3.03

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 5,500 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 23.22%

DIVIDEND PER SHARE(HY)

Highest at CAD 7.26

NET SALES(Q)

Highest at CAD 4,164 MM

-4What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 18.68 times

DEBT-EQUITY RATIO (HY)

Highest at 53.15 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.26 times

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

Operating Cash Flow

Highest at CAD 5,500 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 4,164 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Dividend per share

Highest at CAD 7.26

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Dividend Payout Ratio

Highest at 23.22%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

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

Inventory Turnover Ratio

Lowest at 18.68 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

Debt-Equity Ratio

Highest at 53.15 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 7.26 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio