TSX

Canadian Pacific Kansas City Ltd.

CP.TO•Industrials•Railroads
Current Price
$124.48
Today's Change
-1.93%
Market Cap
$111.58B
Volume
149.04K

💡 Quick Take

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.

Based on 27 data points⚠️Not financial advice

📊 Key Metrics

52 Week High$133.38
52 Week Low$96.50
Avg Volume1.22M
Beta1.22
Shares Outstanding879.08M

🔥 Valuation

Market Cap$111.58B
Enterprise Value$134.46B
P/E Ratio28.02
EV/EBITDA13.99x
Dividend Yield0.83%

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🚩 Red Flags

🟠

High Debt Load

Debt of $25.1B is 68.7x the company's cash position of $366.0M.

🌟 Opportunities

🚀

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.

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