CANADIAN PACIFIC RAILWAY LTD's gross profit margin for the second quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. CANADIAN PACIFIC RAILWAY LTD has weak liquidity. Currently, the Quick Ratio is 0.61 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 26.41% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||1651.0||1681.0|
|Net Income ($mil)||390.0||371.0|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||185.0||771.0|
|Total Assets ($mil)||17390.0||17012.0|
|Total Debt ($mil)||6701.0||4725.0|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||47.91||43.07|
|Return on Assets||8.97||6.06|
|Return on Equity||29.72||14.44|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||161.3||172.8|
|Div / share||0.28||0.33|
|Book value / share||32.55||41.3|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1131664.0||1017289.0|
BUY. This stock's P/E ratio indicates a premium compared to an average of 15.85 for the Road & Rail industry and a discount compared to the S&P 500 average of 19.38. Conducting a second comparison, its price-to-book ratio of 4.50 indicates a significant premium versus the S&P 500 average of 2.58 and a premium versus the industry average of 3.39. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, CANADIAN PACIFIC RAILWAY LTD proves to trade at a premium to investment alternatives within the industry.
|CP 15.87||Peers 15.85||CP 10.13||Peers 9.02|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
CP is trading at a valuation on par with its peers.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
CP is trading at a premium to its peers.
|CP 12.15||Peers 17.19||CP 0.71||Peers 1.49|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
CP is trading at a discount to its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
CP trades at a significant discount to its peers.
|CP 4.50||Peers 3.39||CP 57.33||Peers 16.39|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
CP is trading at a significant premium to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
CP is expected to have an earnings growth rate that significantly exceeds its peers.
|CP 3.50||Peers 2.74||CP 6.55||Peers 4.63|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
CP is trading at a significant premium to its industry.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
CP has a sales growth rate that significantly exceeds its peers.
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