Canadian Pacific Railway Stock Analysis, Valuation (NYSE:CP)

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$205.4 $1.49 (0.72%) CP stock closing price Sep 19, 2018 (Closing)

Watch the robo advisor video of Canadian Pacific Railway stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for CP stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Canadian Pacific Railway Limited (USA) Stock Rating 3.6/5

Amigobulls CP stock analysis uses latest quarter 2018 Q2 financial data like Canadian Pacific Railway revenue growth, profit margins and cash flows. Canadian Pacific Railway valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Canadian Pacific Railway stock rating is our opinion about the business fundamentals of the company.

Should you buy CP stock?

  • The TTM operating margin was good at 38.87 for Canadian Pacific Railway.
  • Net margins stood at a healthy 33.9% (average) for Canadian Pacific Railway in the Trailing Twelve Months.
  • The company has an operating cash flow which is 1.612 times the net income.
  • Canadian Pacific Railway's return on invested capital of 17 is good.
  • The LTM ROE of 38.1 for Canadian Pacific Railway is attractive.
  • The company has a healthy free cash flow margin of 17.1.

Should you sell CP stock?

  • Revenue declined at a CAGR of -2.1 over the last 5 years.
  • With a debt/equity ratio of 1.29, Canadian Pacific Railway is highly leveraged in comparison to Transportation peers.
  • The company is trading at a price to sales multiple of 5.5, which is higher in comparison to the Transportation sector average of 1.4, making CP stock expensive.

Comments on this video and Canadian Pacific Railway stock

Investors can make use of the Amigobulls Canadian Pacific Railway stock analysis to ascertain how CP stock fares in fundamental analysis investment criteria. Fundamentals of a company give detailed information which helps in making invesment decisions.

Canadian Pacific Railway revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Canadian Pacific Railway stock.