Canadian Pacific Kansas City Ltd. (CP) Financial Ratios
29 years of historical data (1997–2025) · Industrials · Railroads
EV/EBITDA
↓
17.37
+9% vs avg
5yr avg: 15.87
30Y Low2.9·High82.6
P/FCF
↑
50.48
↑+64% vs avg
5yr avg: 30.80
30Y Low2.5·High97.8
P/B Ratio
↓
2.39
↑+53% vs avg
5yr avg: 1.56
30Y Low0.5·High6.4
ROE
↓
8.7%
-13% vs avg
5yr avg: 10.0%
30Y Low2%·High43%
Debt/EBITDA
↓
3.04
↓-24% vs avg
5yr avg: 4.00
30Y Low1.2·High36.0
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
CP Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Canadian Pacific Kansas City Ltd. trades at 27.0x earnings, 50% above its 5-year average of 18.1x, sitting at the 93rd percentile of its historical range. Compared to the Industrials sector median P/E of 25.6x, the stock trades at a premium of 6%. On a free-cash-flow basis, the stock trades at 50.5x P/FCF, 64% above the 5-year average of 30.8x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $77.2B | $67.5B | $67.6B | $73.8B | $69.6B | $49.1B | $47.2B | $35.5B | $25.5B | $26.7B | $21.5B |
| Enterprise Value | $93.5B | $90.5B | $89.9B | $96.2B | $89.1B | $69.4B | $57.1B | $44.5B | $34.1B | $34.6B | $30.0B |
| P/E Ratio → | 27.04 | 16.33 | 18.18 | 18.78 | 19.79 | 17.21 | 19.31 | 14.57 | 13.06 | 11.11 | 13.40 |
| P/S Ratio | 7.26 | 4.48 | 4.65 | 5.88 | 7.89 | 6.14 | 6.12 | 4.56 | 3.48 | 4.08 | 3.45 |
| P/B Ratio | 2.39 | 1.44 | 1.38 | 1.74 | 1.79 | 1.45 | 6.44 | 5.02 | 3.84 | 4.15 | 4.64 |
| P/FCF | 50.48 | 31.13 | 28.11 | 45.07 | 26.92 | 22.78 | 41.69 | 26.44 | 21.92 | 31.75 | 23.69 |
| P/OCF | 20.62 | 12.72 | 12.84 | 17.84 | 16.80 | 13.32 | 16.83 | 11.88 | 9.38 | 12.25 | 10.28 |
P/E links to full P/E history page with 30-year chart
CP EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Canadian Pacific Kansas City Ltd.'s enterprise value stands at 17.4x EBITDA, 9% above its 5-year average of 15.9x. The Industrials sector median is 13.9x, placing the stock at a 25% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.00 | 6.18 | 7.66 | 10.10 | 8.69 | 7.40 | 5.71 | 4.66 | 5.27 | 4.81 |
| EV / EBITDA | 17.37 | 11.87 | 12.70 | 16.22 | 21.29 | 17.29 | 13.96 | 11.62 | 9.66 | 10.87 | 9.83 |
| EV / EBIT | 23.62 | 14.24 | 16.13 | — | 18.56 | 17.11 | 15.60 | 12.36 | 11.20 | 11.62 | 11.43 |
| EV / FCF | — | 41.74 | 37.36 | 58.73 | 34.45 | 32.21 | 50.47 | 33.13 | 29.36 | 41.04 | 33.08 |
CP Profitability
Margins and return-on-capital ratios measuring operating efficiency
Canadian Pacific Kansas City Ltd. earns an operating margin of 37.2%, significantly above the Industrials sector average of 4.3%. Operating margins have expanded from 35.0% to 37.2% over the past 3 years, signaling improving operational efficiency. ROE of 8.7% is modest. ROIC of 6.0% represents adequate returns on invested capital versus a sector median of 6.1%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 52.2% | 52.2% | 51.9% | 51.3% | 52.1% | 57.4% | 57.5% | 55.7% | 55.2% | 54.5% | 53.5% |
| Operating Margin | 37.2% | 37.2% | 35.6% | 35.0% | 37.8% | 40.1% | 42.9% | 40.1% | 38.7% | 38.4% | 38.7% |
| Net Profit Margin | 27.5% | 27.5% | 25.6% | 31.3% | 39.9% | 35.7% | 31.7% | 31.3% | 26.7% | 36.7% | 25.7% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.7% | 8.7% | 8.1% | 9.7% | 9.7% | 13.9% | 34.0% | 35.6% | 29.8% | 43.5% | 33.9% |
| ROA | 4.8% | 4.8% | 4.4% | 5.1% | 5.0% | 6.2% | 10.5% | 11.1% | 9.4% | 12.1% | 8.2% |
| ROIC | 6.0% | 6.0% | 5.7% | 5.3% | 4.4% | 6.7% | 14.9% | 15.0% | 14.4% | 13.8% | 13.7% |
| ROCE | 6.9% | 6.9% | 6.6% | 6.0% | 4.9% | 7.4% | 16.0% | 15.7% | 15.0% | 13.8% | 13.3% |
CP Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Canadian Pacific Kansas City Ltd. carries a Debt/EBITDA ratio of 3.0x, which is moderately leveraged (6% below the sector average of 3.2x). Net debt stands at $23.0B ($23.2B total debt minus $184M cash). Interest coverage of 7.3x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.50 | 0.50 | 0.47 | 0.54 | 0.51 | 0.60 | 1.38 | 1.29 | 1.31 | 1.27 | 1.88 |
| Debt / EBITDA | 3.04 | 3.04 | 3.25 | 3.85 | 4.76 | 5.08 | 2.47 | 2.38 | 2.47 | 2.57 | 2.85 |
| Net Debt / Equity | — | 0.49 | 0.46 | 0.53 | 0.50 | 0.60 | 1.36 | 1.27 | 1.30 | 1.22 | 1.84 |
| Net Debt / EBITDA | 3.02 | 3.02 | 3.14 | 3.77 | 4.66 | 5.06 | 2.43 | 2.34 | 2.45 | 2.46 | 2.79 |
| Debt / FCF | — | 10.61 | 9.25 | 13.66 | 7.53 | 9.43 | 8.78 | 6.69 | 7.44 | 9.29 | 9.39 |
| Interest Coverage | 7.26 | 7.26 | 6.96 | -2.96 | 7.36 | 9.23 | 7.99 | 7.93 | 6.72 | 6.29 | 5.57 |
CP Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.49x is below 1.0, meaning current liabilities exceed current assets.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.49 | 0.49 | 0.60 | 0.53 | 0.59 | 0.43 | 0.50 | 0.53 | 0.57 | 0.64 | 0.75 |
| Quick Ratio | 0.41 | 0.41 | 0.52 | 0.46 | 0.50 | 0.35 | 0.42 | 0.45 | 0.48 | 0.57 | 0.61 |
| Cash Ratio | 0.03 | 0.03 | 0.13 | 0.08 | 0.14 | 0.03 | 0.06 | 0.06 | 0.03 | 0.17 | 0.12 |
| Asset Turnover | — | 0.18 | 0.16 | 0.16 | 0.12 | 0.12 | 0.32 | 0.35 | 0.34 | 0.32 | 0.32 |
| Inventory Turnover | 14.37 | 14.37 | 15.32 | 15.28 | 14.86 | 14.50 | 15.76 | 18.95 | 18.97 | 19.60 | 15.75 |
| Days Sales Outstanding | — | 49.12 | 49.38 | 54.86 | 42.07 | 37.39 | 39.06 | 37.71 | 40.66 | 38.26 | 34.61 |
CP Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Canadian Pacific Kansas City Ltd. returns 4.3% to shareholders annually — split between a 0.7% dividend yield and 3.6% buyback yield. The payout ratio of 19.2% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 3.7% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.7% | 1.2% | 1.0% | 1.0% | 1.0% | 1.0% | 1.0% | 1.2% | 1.4% | 1.2% | 1.2% |
| Payout Ratio | 19.2% | 19.2% | 19.1% | 18.0% | 20.1% | 17.8% | 19.1% | 16.9% | 17.8% | 12.9% | 15.9% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.7% | 6.1% | 5.5% | 5.3% | 5.1% | 5.8% | 5.2% | 6.9% | 7.7% | 9.0% | 7.5% |
| FCF Yield | 2.0% | 3.2% | 3.6% | 2.2% | 3.7% | 4.4% | 2.4% | 3.8% | 4.6% | 3.1% | 4.2% |
| Buyback Yield | 3.6% | 5.8% | 0.0% | 0.0% | 0.0% | 0.0% | 3.2% | 3.2% | 4.3% | 1.4% | 5.6% |
| Total Shareholder Yield | 4.3% | 7.0% | 1.0% | 1.0% | 1.0% | 1.0% | 4.2% | 4.4% | 5.7% | 2.6% | 6.8% |
| Shares Outstanding | — | $917M | $935M | $934M | $933M | $683M | $680M | $697M | $717M | $732M | $753M |
Peer Comparison
Compare CP with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 CPYou | $77B | 27.0 | 17.4 | 50.5 | 52.2% | 37.2% | 8.7% | 6.0% | 3.0 |
 CNI | $69B | 21.3 | 14.1 | 29.0 | 44.9% | 38.1% | 22.1% | 11.6% | 2.6 |
 UNP | $153B | 21.5 | 14.9 | 27.7 | 59.4% | 40.1% | 40.4% | 15.2% | 2.6 |
 CSX | $85B | 29.6 | 17.8 | 49.6 | 33.2% | 32.1% | 22.5% | 10.9% | 3.3 |
 NSC | $67B | 23.5 | 15.4 | 31.2 | 42.4% | 32.9% | 19.2% | 9.8% | 3.2 |
 WAB | $46B | 40.1 | 21.6 | 31.0 | 31.5% | 16.7% | 11.0% | 9.6% | 2.3 |
 GATX | $6B | 19.4 | 14.3 | — | 48.6% | 30.7% | 11.0% | 3.7% | 13.0 |
 TRN | $3B | 11.3 | 12.0 | — | 26.6% | 16.6% | 20.6% | 4.1% | 8.2 |
 UPS | $89B | 16.0 | 9.5 | 18.7 | 18.5% | 9.6% | 33.8% | 16.1% | 2.6 |
 FDX | $78B | 19.4 | 10.6 | 26.1 | 21.6% | 6.9% | 14.7% | 7.7% | 3.6 |
 XPO | $23B | 75.6 | 22.3 | 71.2 | 12.0% | 8.9% | 18.3% | 9.3% | 3.8 |
| Industrials Median | — | 25.6 | 13.9 | 20.0 | 32.0% | 4.3% | 8.2% | 6.1% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 29 years · Updated daily
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CP — Frequently Asked Questions
Quick answers to the most common questions about buying CP stock.
What is Canadian Pacific Kansas City Ltd.'s P/E ratio?
Canadian Pacific Kansas City Ltd.'s current P/E ratio is 27.0x. The historical average is 15.2x. This places it at the 93th percentile of its historical range.
What is Canadian Pacific Kansas City Ltd.'s EV/EBITDA?
Canadian Pacific Kansas City Ltd.'s current EV/EBITDA is 17.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.6x.
What is Canadian Pacific Kansas City Ltd.'s ROE?
Canadian Pacific Kansas City Ltd.'s return on equity (ROE) is 8.7%. The historical average is 17.0%.
Is CP stock overvalued?
Based on historical data, Canadian Pacific Kansas City Ltd. is trading at a P/E of 27.0x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Canadian Pacific Kansas City Ltd.'s dividend yield?
Canadian Pacific Kansas City Ltd.'s current dividend yield is 0.71% with a payout ratio of 19.2%.
What are Canadian Pacific Kansas City Ltd.'s profit margins?
Canadian Pacific Kansas City Ltd. has 52.2% gross margin and 37.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Canadian Pacific Kansas City Ltd. have?
Canadian Pacific Kansas City Ltd.'s Debt/EBITDA ratio is 3.0x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.