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

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$173.29 $4.56 (2.56%) CP stock closing price Mar 22, 2018 (Closing)
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Canadian Pacific Railway
Updated on : Mar 23, 2018
previous close
CP 173.3 (0%)
S&P 500 2643.7 (0%)
Closing Price On: Mar 22, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Sector :
5 Quarter Revenue
Revenue Growth
Compared to the industry
Long Term Growth
5 Year CAGR:
Operating Profit
Operating Margin:
Sector Average:
5 Quarter Net Profit
Net Margins
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt/Equity Ratio:
Compared to the industry
Cash Flow
Operating cash flow:
Net Income:
Dividend Yield
CP dividend yield:
Operating Margins
Net Margins
FCF Margin
Long Term Growth
High Debt Burden
Cash Flow
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
Industry PS :
Sector:   Transportation.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
Return on Equity:
Free Cash Flow Margin:
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CP Stock Analysis

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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 3.7/5

Amigobulls CP stock analysis uses latest quarter 2017 Q4 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?

  • Canadian Pacific Railway had a healthy average operating margin of 42.6% over the last 4 quarters.
  • Net margins stood at a healthy 36.9% (average) for Canadian Pacific Railway in the Trailing Twelve Months.
  • Canadian Pacific Railway generates a high return on invested capital of 18.6%.
  • The LTM ROE of 45.1% for Canadian Pacific Railway is attractive.
  • Canadian Pacific Railway has a healthy FCF (Free Cash Flow) margin of 16.1%.

Should you sell CP stock?

  • Sales declined by -2.3% annually over the last 5 years.
  • Canadian Pacific Railway is debt laden and has a high debt/equity ratio of  1.27.
  • Cash flow from operations is low at 0.7 times the net income.
  • The company is trading at a price to sales multiple of 5.1, which is overvalued in comparison to the Transportation-Rail industry average multiple of 1.4.

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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.