Canadian Pacific Railway LtdFind Ratings Reports
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.
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|Income Statement||Q2 FY16||Q2 FY15|
|Net Sales ($mil)||1450.0||1651.0|
|Net Income ($mil)||328.0||390.0|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||92.0||185.0|
|Total Assets ($mil)||19068.0||17390.0|
|Total Debt ($mil)||8581.0||6701.0|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||49.1||47.91|
|Return on Assets||7.91||8.97|
|Return on Equity||32.18||29.72|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||148.4||161.3|
|Div / share||0.39||0.28|
|Book value / share||31.61||32.55|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1080790.0||1034270.0|
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.
|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.
|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.
|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.
|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