Canadian Pacific Railway Ltd.

Find Ratings Reports
CP : NYSE : Transportation
$177.81 | %
Today's Range: 176.5851 - 178.71
Avg. Daily Volume: 471700.0
03/16/18 - 4:02 PM ET

Financial Analysis

CANADIAN PACIFIC RAILWAY LTD's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. CANADIAN PACIFIC RAILWAY LTD has weak liquidity. Currently, the Quick Ratio is 0.52 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 39.14% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit

Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)1713.01637.0
EBITDA ($mil)921.0842.0
EBIT ($mil)753.0680.0
Net Income ($mil)984.0384.0

Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)338.0164.0
Total Assets ($mil)20135.019221.0
Total Debt ($mil)8159.08684.0
Equity ($mil)6437.04626.0

Profitability Q4 FY17 Q4 FY16
Gross Profit Margin53.7751.44
EBITDA Margin53.7651.43
Operating Margin43.9641.54
Sales Turnover0.330.32
Return on Assets11.948.31
Return on Equity37.3634.56
Debt Q4 FY17 Q4 FY16
Current Ratio0.640.75
Interest Expense116.0116.0
Interest Coverage6.495.86

Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)144.9146.3
Div / share0.450.37
Book value / share44.4231.62
Institutional Own % n/a n/a
Avg Daily Volume496247.0524115.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 11.23 for the Road & Rail industry and a significant discount compared to the S&P 500 average of 25.58. For additional comparison, its price-to-book ratio of 4.01 indicates a premium versus the S&P 500 average of 3.27 and a premium versus the industry average of 3.67. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CP 10.83 Peers 11.23   CP 11.84 Peers 12.98

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.


Average. 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 valuation on par to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
CP 12.19 Peers 21.00   CP NM Peers 0.94

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 significant discount to its peers.


Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CP 4.01 Peers 3.67   CP 55.23 Peers 143.27

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

CP is trading at a valuation on par with its peers.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, CP is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CP 3.94 Peers 3.91   CP 5.16 Peers 11.47

Average. 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 valuation on par with its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

CP significantly trails its peers on the basis of sales growth



Latest Stock Upgrades/Downgrades