Canadian Pacific Kansas City Ltd. provides rail freight transportation services across Canada, the U.S., and Mexico. The company boasts strong gross (50.9%) and EBITDA margins (50.8%), indicating efficient operations. However, concerns arise from a low return on equity (2.2%) and current ratio (0.59), suggesting potential liquidity issues. Despite high margins, the low ROE and overall financial health score (50/100) raise questions about long-term profitability and efficiency. The recent price decline of 1.93% may reflect these underlying concerns.
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Debt of $25.1B is 68.7x the company's cash position of $366.0M.
Gross margin expanded by 5.3 percentage points, indicating improved pricing power or cost efficiency.
Both gross margin (+5.3pp) and operating margin (+0.5pp) are expanding simultaneously, indicating the company is scaling profitably.
Operating margin of 36.8% demonstrates excellent operational efficiency.
Strong gross margin of 53.4% reflects healthy unit economics.
Excellent operating cash flow margin of 35.6% indicates high-quality earnings.
Valuation, risk assessment, competitive positioning, and key insights — all in one report.
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Based on 2026-Q2 (June 30, 2026)