CANADIAN PACIFIC RAILWAY LTD's gross profit margin for the fourth quarter of its fiscal year 2014 has increased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. CANADIAN PACIFIC RAILWAY LTD has weak liquidity. Currently, the Quick Ratio is 0.66 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.
During the same period, stockholders' equity ("net worth") has decreased by 20.95% 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||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||1760.0||1607.0|
|Net Income ($mil)||451.0||82.0|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||226.0||887.0|
|Total Assets ($mil)||16640.0||17060.0|
|Total Debt ($mil)||5793.0||4876.0|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||48.13||43.0|
|Return on Assets||8.87||5.12|
|Return on Equity||26.31||12.32|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||166.1||175.4|
|Div / share||0.3||0.33|
|Book value / share||33.77||40.46|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1060562.0||901097.0|
BUY. The current P/E ratio indicates a discount compared to an average of 21.53 for the Road & Rail industry and a premium compared to the S&P 500 average of 19.47. Conducting a second comparison, its price-to-book ratio of 5.40 indicates a significant premium versus the S&P 500 average of 2.75 and a premium versus the industry average of 4.53. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.
|CP 21.49||Peers 21.53||CP 14.28||Peers 12.64|
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 14.02||Peers 19.08||CP 0.68||Peers 1.25|
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 5.40||Peers 4.53||CP 70.48||Peers 62.46|
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 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 exceeds its peers.
|CP 4.58||Peers 3.59||CP 7.94||Peers 9.64|
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.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
CP trails its peers on the basis of sales growth
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