Canadian Pacific Kansas City Ltd. (CP) 10-Year Financial Performance & Capital Metrics

CP • • Industrial / General

IndustrialsRailroadsClass I RailroadsNorth American Class I Railroads

AboutCanadian Pacific Kansas City Ltd. engages in the provision of rail freight transportation services. It offers rail services linking Canada, the United States and Mexico. The company was founded on June 22, 2001, and is headquartered in Calgary, Canada.Show more

Revenue $14.55B +15.9%
EBITDA $7.08B +19.4%
Net Income $3.72B -5.3%
EPS (Diluted) 3.98 -5.5%
Gross Margin 51.86% +1.1%
EBITDA Margin 48.67% +3.0%
Operating Margin 35.6% +1.9%
Net Margin 25.56% -18.3%
ROE 8.14% -15.7%
ROIC 5.72% +6.9%
Debt/Equity 0.47 -12.7%
Interest Coverage 6.47 +13.6%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong Piotroski F-Score: 7/9
✓FCF machine: 16.5% free cash flow margin
✓High quality earnings: Operating CF exceeds net income
✓Strong 5Y sales CAGR of 13.3%
✓Healthy 5Y average net margin of 32.8%
✓Trading at only 1.4x book value

✗Weaknesses

✗Low asset turnover indicates capital-intensive operations

Price & Volume

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Growth Metrics

Revenue CAGR

10Y8.19%

5Y13.3%

3Y22.08%

TTM4.02%

Profit (Net Income) CAGR

10Y9.68%

5Y8.79%

3Y9.24%

TTM20.48%

EPS CAGR

10Y8.94%

5Y2.6%

3Y-1.62%

TTM21.11%

ROCE

10Y Avg11.47%

5Y Avg8.19%

3Y Avg5.84%

Latest6.58%

Peer Comparison

North American Class I Railroads

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
NSCNorfolk Southern Corporation	65.24B	290.77	25.13	-0.27%	24.22%	19.56%	2.56%	1.22
UNPUnion Pacific Corporation	136.73B	230.51	20.79	0.54%	28.73%	40.75%	4.31%	1.92
CSXCSX Corporation	67.6B	36.30	20.28	-0.8%	19.21%	22.57%	4.02%	1.52
CPCanadian Pacific Kansas City Ltd.	65.21B	72.39	18.19	15.86%	28.38%	12.73%	3.69%	0.47
CNICanadian National Railway Company	61.08B	99.23	14.16	1.3%	26.62%	21.19%	5.16%	1.02

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	6.71B	6.23B	6.55B	7.32B	7.79B	7.71B	8B	8.81B	12.55B	14.55B
Revenue Growth %	0.01%	-0.07%	0.05%	0.12%	0.07%	-0.01%	0.04%	0.1%	0.42%	0.16%
Cost of Goods Sold+	3.42B	2.9B	2.98B	3.28B	3.45B	3.28B	3.41B	4.22B	6.11B	7B
COGS % of Revenue	0.51%	0.47%	0.45%	0.45%	0.44%	0.43%	0.43%	0.48%	0.49%	0.48%
Gross Profit+	3.29B	3.33B	3.58B	4.04B	4.34B	4.43B	4.59B	4.59B	6.44B	7.54B
Gross Margin %	0.49%	0.53%	0.55%	0.55%	0.56%	0.57%	0.57%	0.52%	0.51%	0.52%
Gross Profit Growth %	0.1%	0.01%	0.07%	0.13%	0.08%	0.02%	0.03%	0%	0.4%	0.17%
Operating Expenses+	599M	923M	1.06B	1.2B	1.22B	1.12B	1.38B	1.26B	2.05B	2.36B
OpEx % of Revenue	0.09%	0.15%	0.16%	0.16%	0.16%	0.15%	0.17%	0.14%	0.16%	0.16%
Selling, General & Admin	0	0	0	0	556M	0	0	0	0	0
SG&A % of Revenue	-	-	-	-	0.07%	-	-	-	-	-
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	530M	860M	1B	1.16B	664M	1.12B	1.38B	1.26B	2.05B	2.36B
Operating Income+	2.69B	2.41B	2.52B	2.83B	3.12B	3.31B	3.21B	3.33B	4.39B	5.18B
Operating Margin %	0.4%	0.39%	0.38%	0.39%	0.4%	0.43%	0.4%	0.38%	0.35%	0.36%
Operating Income Growth %	0.15%	-0.1%	0.04%	0.12%	0.1%	0.06%	-0.03%	0.04%	0.32%	0.18%
EBITDA+	3.28B	3.05B	3.18B	3.53B	3.83B	4.09B	4.02B	4.18B	5.93B	7.08B
EBITDA Margin %	0.49%	0.49%	0.49%	0.48%	0.49%	0.53%	0.5%	0.47%	0.47%	0.49%
EBITDA Growth %	0.14%	-0.07%	0.04%	0.11%	0.09%	0.07%	-0.02%	0.04%	0.42%	0.19%
D&A (Non-Cash Add-back)	595M	640M	661M	696M	706M	779M	811M	853M	1.54B	1.9B
EBIT	2.35B	2.62B	2.97B	3.04B	3.6B	3.66B	4.06B	4.8B	-2.28B	5.57B
Net Interest Income+	-394M	-471M	-473M	-453M	-448M	-458M	-440M	-652M	-771M	-801M
Interest Income	0	0	0	0	6M	0	0	0	0	0
Interest Expense	394M	471M	473M	453M	454M	458M	440M	652M	771M	801M
Other Income/Expense	-729M	-259M	-21M	-243M	22M	-109M	414M	816M	-7.44B	-407M
Pretax Income+	1.96B	2.15B	2.5B	2.59B	3.15B	3.2B	3.62B	4.14B	-3.05B	4.77B
Pretax Margin %	0.29%	0.35%	0.38%	0.35%	0.4%	0.42%	0.45%	0.47%	-0.24%	0.33%
Income Tax+	607M	553M	93M	637M	706M	758M	768M	628M	-6.98B	1.06B
Effective Tax Rate %	0.69%	0.74%	0.96%	0.75%	0.78%	0.76%	0.79%	0.85%	-1.29%	0.78%
Net Income+	1.35B	1.6B	2.4B	1.95B	2.44B	2.44B	2.85B	3.52B	3.93B	3.72B
Net Margin %	0.2%	0.26%	0.37%	0.27%	0.31%	0.32%	0.36%	0.4%	0.31%	0.26%
Net Income Growth %	-0.08%	0.18%	0.5%	-0.19%	0.25%	0%	0.17%	0.23%	0.12%	-0.05%
Net Income (Continuing)	1.35B	1.6B	2.4B	1.95B	2.44B	2.44B	2.85B	3.52B	3.92B	3.71B
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	919M	998M
EPS (Diluted)+	1.68	2.13	3.29	2.72	3.50	3.59	4.18	3.77	4.21	3.98
EPS Growth %	-0.01%	0.27%	0.54%	-0.17%	0.29%	0.03%	0.16%	-0.1%	0.12%	-0.05%
EPS (Basic)	1.69	2.14	3.30	2.73	3.52	3.61	4.20	3.78	4.22	3.98
Diluted Shares Outstanding	805M	752.5M	731.5M	716.5M	696.5M	680M	682.8M	932.9M	933.7M	934.6M
Basic Shares Outstanding	798.5M	748M	729.5M	714.5M	694M	677.5M	679.7M	930M	931.3M	933M
Dividend Payout Ratio	0.17%	0.16%	0.13%	0.18%	0.17%	0.19%	0.18%	0.2%	0.18%	0.19%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	1.54B	1.01B	1.27B	1.12B	1.21B	1.32B	1.35B	1.89B	3B	3.38B
Cash & Short-Term Investments	650M	164M	338M	61M	133M	147M	82M	451M	464M	739M
Cash Only	650M	164M	338M	61M	133M	147M	82M	451M	464M	739M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	460M	591M	687M	815M	805M	825M	819M	1.02B	1.89B	1.97B
Days Sales Outstanding	25.01	34.61	38.26	40.66	37.71	39.06	37.39	42.07	54.86	49.38
Inventory	188M	184M	152M	173M	182M	208M	235M	284M	400M	457M
Days Inventory Outstanding	20.04	23.17	18.62	19.25	19.27	23.16	25.17	24.56	23.88	23.82
Other Current Assets	239M	70M	97M	68M	90M	141M	216M	138M	251M	220M
Total Non-Current Assets+	18.1B	18.47B	18.99B	20.35B	21.35B	22.5B	67B	71.86B	77.39B	85.02B
Property, Plant & Equipment	16.27B	16.69B	17.02B	18.42B	19.51B	20.74B	21.49B	22.65B	52.09B	56.39B
Fixed Asset Turnover	0.41x	0.37x	0.39x	0.40x	0.40x	0.37x	0.37x	0.39x	0.24x	0.26x
Goodwill	198M	191M	178M	194M	194M	329M	328M	344M	17.73B	19.35B
Intangible Assets	13M	11M	9M	8M	12M	37M	43M	42M	2.97B	3.15B
Long-Term Investments	152M	194M	182M	203M	341M	199M	42.52B	45.31B	533M	586M
Other Non-Current Assets	63M	1.13B	1.48B	1.31B	1.1B	1.02B	2.45B	3.25B	3.57B	4.89B
Total Assets+	19.64B	19.48B	20.26B	21.47B	22.56B	23.82B	68.35B	73.75B	80.39B	88.4B
Asset Turnover	0.34x	0.32x	0.32x	0.34x	0.35x	0.32x	0.12x	0.12x	0.16x	0.16x
Asset Growth %	0.16%	-0.01%	0.04%	0.06%	0.05%	0.06%	1.87%	0.08%	0.09%	0.1%
Total Current Liabilities+	1.45B	1.35B	1.98B	1.96B	2.29B	2.65B	3.16B	3.21B	5.71B	5.66B
Accounts Payable	339M	352M	402M	474M	453M	401M	432M	503M	680M	768M
Days Payables Outstanding	36.13	44.33	49.25	52.73	47.95	44.65	46.27	43.5	40.6	40.03
Short-Term Debt	30M	25M	746M	506M	668M	1.25B	1.61B	1.58B	3.25B	2.93B
Deferred Revenue (Current)	0	0	0	0	1000K	1000K	1000K	0	0	0
Other Current Liabilities	147M	751M	692M	793M	667M	613M	683M	730M	1.27B	1.27B
Current Ratio	1.06x	0.75x	0.64x	0.57x	0.53x	0.50x	0.43x	0.59x	0.53x	0.60x
Quick Ratio	0.93x	0.61x	0.57x	0.48x	0.45x	0.42x	0.35x	0.50x	0.46x	0.52x
Cash Conversion Cycle	8.92	13.45	7.63	7.18	9.02	17.57	16.29	23.14	38.14	33.17
Total Non-Current Liabilities+	13.39B	13.5B	11.84B	12.88B	13.2B	13.85B	31.36B	31.65B	32.27B	33.85B
Long-Term Debt	8.93B	8.5B	7.27B	8.04B	8.01B	8.45B	18.54B	18.11B	19.32B	19.78B
Capital Lease Obligations	171M	162M	147M	154M	429M	383M	260M	232M	273M	275M
Deferred Tax Liabilities	3.39B	3.83B	3.45B	3.73B	3.7B	3.84B	11.52B	12.45B	11.54B	12.63B
Other Non-Current Liabilities	872M	941M	938M	918M	1.04B	1.11B	975M	802M	1.05B	1.07B
Total Liabilities	14.84B	14.85B	13.82B	14.83B	15.49B	16.5B	34.52B	34.86B	37.98B	39.51B
Total Debt+	9.13B	8.68B	8.16B	8.7B	9.11B	10.08B	20.41B	19.92B	22.84B	22.99B
Net Debt	8.48B	8.52B	7.82B	8.63B	8.98B	9.94B	20.33B	19.47B	22.37B	22.25B
Debt / Equity	1.90x	1.88x	1.27x	1.31x	1.29x	1.38x	0.60x	0.51x	0.54x	0.47x
Debt / EBITDA	2.78x	2.85x	2.57x	2.47x	2.38x	2.47x	5.08x	4.76x	3.85x	3.25x
Net Debt / EBITDA	2.58x	2.79x	2.46x	2.45x	2.34x	2.43x	5.06x	4.66x	3.77x	3.14x
Interest Coverage	6.82x	5.12x	5.33x	6.25x	6.88x	7.23x	7.29x	5.11x	5.69x	6.47x
Total Equity+	4.8B	4.63B	6.44B	6.64B	7.07B	7.32B	33.83B	38.89B	42.41B	48.89B
Equity Growth %	-0.15%	-0.04%	0.39%	0.03%	0.07%	0.04%	3.62%	0.15%	0.09%	0.15%
Book Value per Share	5.96	6.15	8.80	9.26	10.15	10.76	49.54	41.68	45.42	52.31
Total Shareholders' Equity	4.8B	4.63B	6.44B	6.64B	7.07B	7.32B	33.83B	38.89B	41.49B	47.89B
Common Stock	2.06B	2B	2.03B	2B	1.99B	1.98B	25.48B	25.52B	25.6B	25.69B
Retained Earnings	4.17B	4.37B	6.1B	6.63B	7.55B	8.1B	10.39B	13.2B	16.42B	19.43B
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	-1.48B	-1.8B	-1.74B	-2.04B	-2.52B	-2.81B	-2.1B	91M	-618M	2.68B
Minority Interest	0	0	0	0	0	0	0	0	919M	998M

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	2.46B	2.09B	2.18B	2.71B	2.99B	2.8B	3.69B	4.14B	4.14B	5.27B
Operating CF Margin %	0.37%	0.34%	0.33%	0.37%	0.38%	0.36%	0.46%	0.47%	0.33%	0.36%
Operating CF Growth %	0.16%	-0.15%	0.04%	0.24%	0.1%	-0.06%	0.32%	0.12%	-0%	0.27%
Net Income	1.35B	1.6B	2.4B	1.95B	2.44B	2.44B	2.85B	3.52B	3.93B	3.71B
Depreciation & Amortization	595M	640M	661M	696M	706M	779M	811M	853M	1.54B	1.9B
Stock-Based Compensation	66M	51M	0	0	0	0	0	113M	0	0
Deferred Taxes	234M	320M	-210M	256M	181M	221M	242M	136M	-7.88B	28M
Other Non-Cash Items	-63M	-466M	-536M	-256M	-311M	-253M	-151M	-385M	6.86B	-396M
Working Capital Changes	275M	-55M	-138M	65M	-26M	-389M	-66M	-92M	-308M	24M
Change in Receivables	80M	44M	-91M	-107M	27M	-61M	32M	-147M	-317M	-133M
Change in Inventory	15M	14M	9M	-11M	-8M	-15M	-14M	-27M	1M	-36M
Change in Payables	0	-95M	-30M	153M	-21M	-308M	-108M	95M	57M	202M
Cash from Investing+	-1.12B	-1.07B	-1.29B	-1.46B	-1.8B	-2.03B	-13.73B	-1.5B	-2.16B	-2.8B
Capital Expenditures	-1.52B	-1.18B	-1.34B	-1.55B	-1.65B	-1.67B	-1.53B	-1.56B	-2.5B	-2.86B
CapEx % of Revenue	0.23%	0.19%	0.2%	0.21%	0.21%	0.22%	0.19%	0.18%	0.2%	0.2%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	118M	-3M	3M	15M	18M	20M	101M	3M	32M	67M
Cash from Financing+	-957M	-1.49B	-700M	-1.54B	-1.11B	-764M	9.94B	-2.3B	-1.96B	-2.25B
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-226M	-255M	-310M	-348M	-412M	-467M	-507M	-707M	-707M	-709M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	0	-3M	-22M	0	538M	286M	-75M	0	-17M	2M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	937M	907M	842M	1.16B	1.34B	1.13B	2.16B	2.58B	1.64B	2.41B
FCF Margin %	0.14%	0.15%	0.13%	0.16%	0.17%	0.15%	0.27%	0.29%	0.13%	0.17%
FCF Growth %	0.39%	-0.03%	-0.07%	0.38%	0.16%	-0.16%	0.91%	0.2%	-0.37%	0.47%
FCF per Share	1.16	1.21	1.15	1.62	1.93	1.66	3.16	2.77	1.75	2.57
FCF Conversion (FCF/Net Income)	1.82x	1.31x	0.91x	1.39x	1.23x	1.15x	1.29x	1.18x	1.05x	1.42x
Interest Paid	336M	488M	475M	463M	444M	443M	426M	641M	825M	814M
Taxes Paid	176M	322M	425M	318M	506M	582M	552M	408M	906M	958M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	25.99%	33.94%	43.48%	29.85%	35.61%	33.97%	13.86%	9.67%	9.66%	8.14%
Return on Invested Capital (ROIC)	16.51%	13.69%	13.79%	14.38%	14.96%	14.91%	6.73%	4.44%	5.35%	5.72%
Gross Margin	48.97%	53.5%	54.55%	55.15%	55.75%	57.48%	57.37%	52.11%	51.31%	51.86%
Net Margin	20.14%	25.66%	36.7%	26.67%	31.31%	31.7%	35.67%	39.9%	31.28%	25.56%
Debt / Equity	1.90x	1.88x	1.27x	1.31x	1.29x	1.38x	0.60x	0.51x	0.54x	0.47x
Interest Coverage	6.82x	5.12x	5.33x	6.25x	6.88x	7.23x	7.29x	5.11x	5.69x	6.47x
FCF Conversion	1.82x	1.31x	0.91x	1.39x	1.23x	1.15x	1.29x	1.18x	1.05x	1.42x
Revenue Growth	1.39%	-7.15%	5.17%	11.63%	6.51%	-1.05%	3.7%	10.24%	42.44%	15.86%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Cargo and Freight	-	-	-	7.15B	7.61B	7.54B	7.82B	8.63B	12.28B	14.22B
Cargo and Freight Growth	-	-	-	-	6.45%	-0.95%	3.65%	10.38%	42.36%	15.81%
Grain Revenue	-	-	-	-	1.68B	1.83B	1.68B	1.78B	2.5B	3.01B
Grain Revenue Growth	-	-	-	-	-	8.61%	-7.93%	5.46%	40.54%	20.67%
Energy, Chemicals and Plastic Revenue	-	-	-	-	1.53B	1.52B	1.56B	1.39B	2.3B	2.85B
Energy, Chemicals and Plastic Revenue Growth	-	-	-	-	-	-0.98%	2.90%	-10.81%	65.06%	23.90%
Intermodal	-	-	-	-	1.59B	1.56B	1.72B	2.24B	2.46B	2.52B
Intermodal Growth	-	-	-	-	-	-1.88%	10.30%	30.05%	9.95%	2.39%
Metals, Minerals and Consumer Products Revenue	-	-	-	-	752M	629M	728M	884M	1.58B	1.78B
Metals, Minerals and Consumer Products Revenue Growth	-	-	-	-	-	-16.36%	15.74%	21.43%	78.62%	12.54%
Automotive	-	-	-	-	352M	324M	376M	438M	934M	1.28B
Automotive Growth	-	-	-	-	-	-7.95%	16.05%	16.49%	113.24%	37.04%
Coal Revenue	-	-	-	-	682M	566M	625M	577M	859M	943M
Coal Revenue Growth	-	-	-	-	-	-17.01%	10.42%	-7.68%	48.87%	9.78%
Forest Products Revenue	-	-	-	-	304M	328M	348M	403M	696M	816M
Forest Products Revenue Growth	-	-	-	-	-	7.89%	6.10%	15.80%	72.70%	17.24%
Potash Revenue	-	-	-	-	462M	493M	463M	581M	566M	614M
Potash Revenue Growth	-	-	-	-	-	6.71%	-6.09%	25.49%	-2.58%	8.48%
Fertilizer and Sulphur Revenue	-	-	-	-	250M	290M	305M	332M	385M	406M
Fertilizer and Sulphur Revenue Growth	-	-	-	-	-	16.00%	5.17%	8.85%	15.96%	5.45%
Non-freight excluding leasing revenues	-	-	-	-	-	107M	100M	103M	161M	191M
Non-freight excluding leasing revenues Growth	-	-	-	-	-	-	-6.54%	3.00%	56.31%	18.63%
Non-Freight	-	-	-	164M	-	-	-	-	-	-
Non-Freight Growth	-	-	-	-	-	-	-	-	-	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
CANADA	4.66B	4.47B	4.67B	5.23B	5.67B	5.83B	5.99B	6.42B	6.65B	6.94B
CANADA Growth	-	-4.05%	4.34%	12.11%	8.47%	2.71%	2.80%	7.19%	3.55%	4.29%
UNITED STATES	2.05B	1.76B	1.89B	2.08B	2.12B	1.88B	2B	2.39B	4.26B	4.99B
UNITED STATES Growth	-	-14.20%	7.28%	10.44%	1.58%	-11.15%	6.49%	19.37%	78.04%	17.17%
MEXICO	-	-	-	-	-	-	-	-	1.65B	2.62B
MEXICO Growth	-	-	-	-	-	-	-	-	-	59.20%

Frequently Asked Questions

Valuation & Price

Canadian Pacific Kansas City Ltd. (CP) has a price-to-earnings (P/E) ratio of 18.2x. This is roughly in line with market averages.

Growth & Financials

Canadian Pacific Kansas City Ltd. (CP) reported $15.03B in revenue for fiscal year 2024. This represents a 190% increase from $5.18B in 2011.

Canadian Pacific Kansas City Ltd. (CP) grew revenue by 15.9% over the past year. This is strong growth.

Yes, Canadian Pacific Kansas City Ltd. (CP) is profitable, generating $4.26B in net income for fiscal year 2024 (25.6% net margin).

Dividend & Returns

Yes, Canadian Pacific Kansas City Ltd. (CP) pays a dividend with a yield of 1.05%. This makes it attractive for income-focused investors.

Canadian Pacific Kansas City Ltd. (CP) has a return on equity (ROE) of 8.1%. This is below average, suggesting room for improvement.

Canadian Pacific Kansas City Ltd. (CP) generated $2.39B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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