Canadian Pacific Railway Ltd

Find Ratings Reports
CP : NYSE : Services
$162.16 -0.23 | -0.14%
Today's Range: 161.9801 - 163.94
Avg. Daily Volume: 656300.0
07/21/17 - 4:02 PM ET

Financial Analysis


CANADIAN PACIFIC RAILWAY LTD's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. CANADIAN PACIFIC RAILWAY LTD has very weak liquidity. Currently, the Quick Ratio is 0.43 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 13.68% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near 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 www.TheStreetRatings.com.



Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)1643.01450.0
EBITDA ($mil)844.0712.0
EBIT ($mil)679.0551.0
Net Income ($mil)480.0328.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)238.092.0
Total Assets ($mil)19537.019068.0
Total Debt ($mil)8422.08581.0
Equity ($mil)5333.04691.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin51.3749.1
EBITDA Margin51.3649.1
Operating Margin41.3338.0
Sales Turnover0.330.34
Return on Assets8.47.91
Return on Equity30.7832.18
Debt Q2 FY17 Q2 FY16
Current Ratio0.580.64
Debt/Capital0.610.65
Interest Expense122.0115.0
Interest Coverage5.574.79


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)146.1148.4
Div / share0.430.39
EPS3.272.15
Book value / share36.531.61
Institutional Own % n/a n/a
Avg Daily Volume670623.0718509.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 20.89 for the Road & Rail industry and a significant discount compared to the S&P 500 average of 24.66. For additional comparison, its price-to-book ratio of 4.45 indicates a premium versus the S&P 500 average of 3.07 and a premium versus the industry average of 4.08. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. The valuation analysis reveals that, CANADIAN PACIFIC RAILWAY LTD seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CP 14.56 Peers 20.89   CP 10.36 Peers 12.37

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

CP is trading at a significant discount to its peers.

 

Discount. 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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CP 12.50 Peers 21.97   CP 1.63 Peers 2.11

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.

 

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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CP 4.45 Peers 4.08   CP 14.00 Peers 0.96

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.

 

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CP 3.69 Peers 3.75   CP 0.00 Peers 0.73

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.

 

Neutral. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

The growth rate for CP is not available.

 

 

Latest Stock Upgrades/Downgrades