# Canadian Pacific Kansas City Limited (CP) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Industrials / Road & Rail. Price $91.60, market value $80.5 billion.

## Valuation
- **P/E (trailing): 29.5×** (5-yr avg 17.7×, 3-yr avg 17.6×). Canadian Pacific Kansas City Limited trades at 29.5× trailing earnings, well above its own five-year average of 17.7×: investors are paying up relative to the company's past. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 21.1×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.59**. A PEG of 1.59 is in the range usually read as fairly priced for its growth.
- **Price / sales: 6.6×**. Each dollar of revenue is priced at 6.6×.
- **Price / book: 2.4×**. The shares trade at 2.4× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 15.1×**. Enterprise value is 15.1× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 2.3%** (5-yr avg 3.5%). Free cash flow equals 2.3% of the market value, below its five-year average of 3.5%, so the shares are pricier on cash than usual.
- **Earnings yield: 3.4%**. The inverse of the P/E: 3.4% of the price is earned each year.

## Profitability
- **Gross margin: 47.7%**. Canadian Pacific Kansas City Limited keeps 47.7% of revenue after the direct cost of what it sells.
- **Operating margin: 36.9%**. 36.9% of revenue is left after running the business, an exceptional level.
- **Net margin: 27.5%**. 27.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 9.0%**. 9.0% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 6.8%**. Return on all capital, debt included, is 6.8%.
- **Return on assets: 4.9%**. Each dollar of assets produces 4.9% of profit.

## Growth
- **Revenue growth (1 yr): 3.7%** (3-yr 19.6%/yr, 5-yr 14.4%/yr). Revenue grew 3.7% over the last year, against 14.4% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 13.3%** (3-yr 6.2%/yr, 5-yr 4.7%/yr). Earnings per share rose 13.3%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -5.7%/yr**. Free cash flow has compounded at -5.7% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.51**. Debt is 0.51 times equity, moderate leverage.
- **Net debt / EBITDA: 2.6×**. It would take 2.6 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 6.2×**. Operating profit covers interest 6.2× over, a safe margin.
- **Current ratio: 0.49** (quick 0.41). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 2.33**. A Z-score of 2.33 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.83%** ($0.76 per share, trailing). Canadian Pacific Kansas City Limited yields 0.83%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 19%** (35% of free cash flow). 19% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 1**. 1 straight year of increases.
- **Dividend growth (5 yr): 2.7%/yr** (1-yr 9.7%). The dividend has grown 2.7% a year over five years.
- **Shareholder yield: 5.1%**. Dividends plus net buybacks return 5.1% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (13 analysts). 13 analysts cover Canadian Pacific Kansas City Limited; the consensus is buy, with an average price target of $101.03 (+10% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 20.1%** (YTD 24.9%, 3-mo 2.1%). The shares are up 20.1% over twelve months including dividends.
- **From 52-week high: -5.5%** (33.9% above the low). Trading 5% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 48**. An RSI of 48 is neutral.
- **Beta (1 yr): 0.52** (volatility 23%). Beta of 0.52 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CP · Page: https://foliofundamentals.com/stocks/cp

Not investment advice.