Canadian Pacific Railway Ltd

Find Ratings Reports
CP : NYSE : Services
$149.16 | %
Today's Range: 148.46 - 150.49
Avg. Daily Volume: 1,071,900
07/22/16 - 4:02 PM ET

Financial Analysis

CANADIAN PACIFIC RAILWAY LTD's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. CANADIAN PACIFIC RAILWAY LTD has very weak liquidity. Currently, the Quick Ratio is 0.46 which clearly 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.

During the same period, stockholders' equity ("net worth") has decreased by 10.66% 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

Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)1450.01651.0
EBITDA ($mil)712.0791.0
EBIT ($mil)551.0646.0
Net Income ($mil)328.0390.0

Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)92.0185.0
Total Assets ($mil)19068.017390.0
Total Debt ($mil)8581.06701.0
Equity ($mil)4691.05251.0

Profitability Q2 FY16 Q2 FY15
Gross Profit Margin49.147.91
EBITDA Margin49.147.91
Operating Margin38.039.13
Sales Turnover0.340.39
Return on Assets7.918.97
Return on Equity32.1829.72
Debt Q2 FY16 Q2 FY15
Current Ratio0.640.85
Interest Expense115.084.0
Interest Coverage4.797.69

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)148.4161.3
Div / share0.390.28
Book value / share31.6132.55
Institutional Own % n/a n/a
Avg Daily Volume1080790.01034270.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 16.69 for the Road & Rail industry and a discount compared to the S&P 500 average of 25.14. Conducting a second comparison, its price-to-book ratio of 4.76 indicates a significant premium versus the S&P 500 average of 2.82 and a premium versus the industry average of 3.50. 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 15.40 Peers 16.69   CP 10.82 Peers 9.40

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
CP 12.48 Peers 19.00   CP 0.65 Peers 6.55

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CP 4.76 Peers 3.50   CP 6.07 Peers 3.67

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CP 3.47 Peers 3.12   CP -4.59 Peers -5.74

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 premium to 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