Canadian Pacific Kansas City Limited

Railroads, Line-Haul Operating

CPMixed8 of 11 basics passed

$84.46

+0.13%

Market cap $74.3B

$84.46

+0.13%

Market cap $74.3B

Canadian Pacific Kansas City is a Class I railroad operating on tracks that span most of Canada and into parts of the Midwestern and Northeastern United States.

It is a $74.3B industrial company. Revenue grew 1.1% over the last year, it keeps 27¢ of every dollar of sales as profit, and its net debt equals ~11.1 years of free cash flow. It trades at 27.3× earnings.

Website: cpkcr.com
Location: Calgary Alberta, A0
Employees: 19 687
Sector: Industrials

Share price · 3 years

$72.88 → $84.46+15.9%

price only — dividends excluded

Key facts · TTM

Revenue: total sales; $15.0B
Profit: keeps 27¢ of every $1 sold; $4.08B
Free cash flow: cash left after running the business; $2.07B
Net debt: debt minus cash on hand; $23.0B
P/E: years of profit in the price; 27.3
EPS: earnings per share, TTM; $4.45
Dividend: pays out 21% of profit · 28% of FCF; 0.77%
Shares: up 22% since 2016 — dilution; 917.1M
Volatility: beta vs the market — under 1 swings less; 0.69

Revenue, last 10 years

52-week range

Low $68.88$84.46High $96.69

Today's price is 56% of the way from the year's low to its high.

Valuation vs own history

P/E

18.2×

61%

P/S

5.0×

79%

EV/EBITDA

17.7×

81%

P/B

1.6×

70%

FCF yield

2.8%

38%

Share of the last ~5 years that was pricier than today (cheaper than usual). Based on the daily valuation record.

Standing in Industrials

Size$74.3Btop 15%
Revenue growth+20%top 5%
Net margin25%top 3%
Return on equity8%top 88%
P/E27.3×top 53%
Dividend yield0.77%top 70%

Ranked against 130 Industrials companies with a full CV — for P/E, lower ranks higher.

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Strong quality and moat; Valuation and Health lag behind.

Valuation49

P/E vs own history40th pct · 20/25
FCF yield2.8% · 5/25
P/S6.8x · 12/25
EV/EBITDA16.8x · 12/25

Growth58

Revenue CAGR17.2% · 20/25
Net income CAGR9.8% · 12/25
EPS CAGR ~5Y4.7% · 6/25
Fwd implied growth27.2% · 20/25

Profitability67

ROIC6.0% · 5/25
ROE8.4% · 12/25
Net margin27.2% · 25/25
Operating margin36.8% · 25/25

Health47

Altman Z1.51 · 10/25
Current ratio0.59 · 0/25
Interest coverage11.4x · 25/25
Net cash / debtD/A 27% · 12/25

Quality87

Piotroski F7/9 · 22/25
Beneish M-2.70 · 25/25
FCF conversion51% · 15/25
Margin stabilityσ 3.6% · 25/25

Moat76

ROIC >12% years5/10 yrs · 13/25
Median gross margin37.5% · 13/25
FCF-positive years10/10 yrs · 25/25
Worst-year net marginworst 25.6% · 25/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

FY2025Financial
Best year on record
$4.14B net income
2025Acquisition
CPKC became one of the companies that has most strongly opposed the proposed merger between UP and…
Nov 16, 2024Milestone
The agreement became effective on November 16, 2024
2024Product
As part of the company's first anniversary celebrations, the Steam locomotive CPR #2816 known as "The…
FY2023Financial
Revenue crossed $10B
$12.6B for the year
Jun 28, 2023Acquisition
CPKC announced the intent to jointly acquire with CSX Transportation the Meridian and Bigbee…
Dec 10, 2021Acquisition
KCS's shareholders voted to approve the merger on December 10, 2021
FY2016Financial
Profitable every year on record
10 consecutive profitable years in our data
FY2016Financial
Revenue already above $1B
$6.23B in first reported year
FY2016Financial
Positive free cash flow every year since
10-year streak
1988Acquisition
CPKC informed the STB that UP was blocking the use of trackage and haulage rights dating back to the 1988 merger…

Achievements

Verifiable track record, straight from the reported numbers.

#20 largest of 130 Industrials companies by market cap

$10 000 invested in 2021 would be worth ~$12 321 today — price return only

$15.1B revenue in FY2025

Profitable 10 years in a row

Positive free cash flow 10 years in a row

19 687 employees

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

High gross margin (84.4%)
Strongly profitable — 27.2% net margin
Interest covered 11.4× by operating earnings
Piotroski F-Score 7/9 — fundamentally strong checklist

Watch-outs

Altman Z-Score 1.51 — elevated financial-distress risk
Net debt would take ~11.5 years of free cash flow to repay
Net debt equals ~11.1 years of free cash flow

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

8 of 11 checks passed

Revenue growing — the company sells more than a year ago+1.1% YoY
Profitable — makes more than it spends$4.08B TTM
Profit growing — earnings are higher than last year+6.2% YoY
Generates cash — cash left after running and investing$2.07B TTM
Debt under control — could handle its obligations~11.1y of cash flow to repay
Established company — not a micro-cap — lower blow-up risk$74.3B market cap
Not printing shares — share count not ballooning — you keep your slice+34.9% shares over ~5y
Proven track record — years of profitability behind it10/10 profitable years
Financially stable — balance sheet not near distressAltman Z 1.5 — distress
Pays a dividend — returns cash to shareholdersyield 0.77%
Valuation not extreme — price not wildly above earningsP/E 27.3

Peer comparisonCanadian Pacific Kansas City Limited vs 6 largest industrials peers — cap, P/E, growth and margin side by sideOpen ▾

Company	Market cap	P/E	Revenue growth	Net margin	Profile
CP this company	$74.3B	27.3	+1.1%	27.2%	Mixed
LRCX Lam Research Corp	$399.2B	54.9	+26.0%	31.3%	Strong
CAT Caterpillar Inc.	$368.0B	33.9	+18.4%	14.5%	Solid
RTX RTX Corporation	$251.3B	32.4	+11.8%	8.3%	Strained
DE Deere & Company	$167.7B	34.4	+8.3%	10.2%	Solid
ETN Eaton Corporation, plc	$167.2B	43.6	+15.5%	12.8%	Mixed
UNP Union Pacific Corp.	$166.8B	22.6	+4.2%	28.8%	Strained

Head-to-head: CP vs LRCX · CP vs CAT · CP vs RTX

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 8Buy 22Hold 6

Appendix · Financial records

The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.

Profit & lossRevenue $15.0B · net income $4.08B (TTM)Open ▾

Profit & loss

Revenue and profit over the company's career — the income statement, visualised.

How FY2025 revenue flows to profit

RevenueNet income

Revenue (TTM)

$15.0B

YoY 1.1%

Net income (TTM)

$4.08B

Margin 27.2%

Gross margin

84.4%

Operating margin

36.8%

P/E ratio

27.3

Dividend yield

0.77%

Income statement — full detail

Figures in USD billions · EPS in USD

	2020	2021	2022	2023	2024	2025
Revenue	7.7	8.0	8.8	12.6	14.5	15.1
Gross profit	3.3	3.2	3.3	4.4	5.2	5.6
Operating income (EBIT)	3.3	3.2	3.3	4.4	5.2	5.6
Net income	2.4	2.9	3.5	3.9	3.7	4.1
EPS (diluted)	3.59	4.18	3.77	4.21	3.98	4.52

Cash flowFree cash flow $2.07B · operating cash flow $5.13B (TTM)Open ▾

Cash flow statement

Cash generated by the business and what is left after investment — year by year.

Operating cash flowFree cash flow

Free cash flow (TTM)

$2.07B

Margin 13.8%

Operating cash flow (TTM)

$5.13B

FCF margin

13.8%

Cash flow statement — full detail

Figures in USD billions

	2020	2021	2022	2023	2024	2025
Operating cash flow	2.8	3.7	4.1	4.1	5.3	5.3
Capital expenditure	-1.7	-1.5	-1.6	-2.5	-2.8	-3.1
Free cash flow	1.1	2.2	2.6	1.7	2.4	2.2
FCF margin	14.7%	27.0%	29.3%	13.3%	16.8%	14.6%

Balance sheetAssets $85.9B · net debt $23.0B (FY2025)Open ▾

Balance sheet

How the balance sheet is built — what it owns versus how it is financed.

How $85.9B of assets is financed

46%

54%

Liabilities $39.1B — borrowed moneyEquity $45.9B — owners' stake

Cash vs debt

Total debt $23.2B − cash $184M = net debt $23.0B

Cash on hand covers 1% of debt.

Altman Z-Score

1.51

Distress zone

Debt repayment

11.5 yrs

Years of free cash flow to clear net debt

Interest coverage

11.4x

EBIT ÷ interest expense

ROE

8.4%

Profit per $1 of equity

Balance sheet — full detail

Figures in USD billions

	2020	2021	2022	2023	2024	2025
Cash & equivalents	0.1	0.1	0.5	0.5	0.7	0.2
Total assets	23.6	68.2	73.5	79.9	87.7	85.9
Total liabilities	16.3	34.3	34.6	37.5	38.9	39.1
Total debt	9.8	20.1	19.7	22.5	22.6	23.2
Equity	7.3	33.8	38.9	41.5	47.9	45.9
Net debt	9.6	20.1	19.2	22.0	21.9	23.0

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of CP on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $84.46 · market cap $74.3B.