Obermatt

Canadian Pacific Railway

TOR:CP · CA13646K1084
Road & RailX-Large

360

36
EV / EBIT41
Price / Owner Earnings27
Owner Earnings Yield67
Dividend Yield57
Price/Sales7
EV / Gross Profit8
Price/Book50
Return on Capital59
Cash Return on Capital65
Return on Equity43
EBIT Margin93
Gross Profitability24
Cash Conversion23
Accruals58
Owner Earnings Margin94
Sales growth44
Profit Growth85
Long-Term EPS Growth80
Owner Earnings Growth40
Reinvestment35
Price momentum26
Debt load70
Refinancing51
Debt Payback59
Liquidity73
Analyst ratings72
Opinion Changes33
Price Target Upside39
Market mood100
Value Creation8/20creating some value
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Canadian Pacific Railway clears its cost of capital, but the record is mixed across the five tests. Real value creation, just not yet consistent.

Profile

CountryCanada
IndustryRoad & Rail
SizeX-Large
TypePublic Company
ExchangeTSX
Founded1881
Employees2,354
ISINCA13646K1084
Last UpdateApr 2, 2026
Themes
BiofuelAnimal FeedLivestockPackaging ServicesMarine TransportationFreight ServiceForestryBusiness DevelopmentEducationFinance

Description

Canadian Pacific Kansas City Limited (‘CPKC’) owns and operates the only freight railway spanning Canada, the United States (‘U.S.’), and Mexico. CPKC provides rail and intermodal transportation services over a network of approximately 20,000 miles,…

Analysis

Hope premium

Canadian Pacific Kansas City Limited carries what we call a hope premium: an average business trading at an ambitious price.

The price is expensive. You pay 36.1× its owner earnings: the cash an owner could take out each year, which is in the historically expensive zone. At today's price, the market is assuming roughly 14% yearly growth; analysts expect 14%. The price, in other words, assumes less than the experts do.

The trajectory is moderate and the balance sheet is adequate. The company scores 8/20 on our value-creation score: creating some value. Analyst sentiment is cautious.

What to watch: The financial cushion is thinner than comfortable. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
55
2023202420252026

All-time high

87

Sep 2025

All-time low

1

Jan 2023

Average rank

49

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
7
3
5
3
Price/Earnings
41
28
28
21
Price/Book
50
51
49
17
Dividend Yield
57
46
46
50
Value (overall)
35
25
20
11

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →