Canadian Pacific Railway Ltd.Find Ratings Reports
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 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 0.52 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.
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|Income Statement||Q4 FY17||Q4 FY16|
|Net Sales ($mil)||1713.0||1637.0|
|Net Income ($mil)||984.0||384.0|
|Balance Sheet||Q4 FY17||Q4 FY16|
|Cash & Equiv. ($mil)||338.0||164.0|
|Total Assets ($mil)||20135.0||19221.0|
|Total Debt ($mil)||8159.0||8684.0|
|Profitability||Q4 FY17||Q4 FY16|
|Gross Profit Margin||53.77||51.44|
|Return on Assets||11.94||8.31|
|Return on Equity||37.36||34.56|
|Debt||Q4 FY17||Q4 FY16|
|Share Data||Q4 FY17||Q4 FY16|
|Shares outstanding (mil)||144.9||146.3|
|Div / share||0.45||0.37|
|Book value / share||44.42||31.62|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||470730.0||509156.0|
BUY. The current P/E ratio indicates a premium compared to an average of 11.21 for the Road & Rail industry and a significant discount compared to the S&P 500 average of 24.78. For additional comparison, its price-to-book ratio of 4.22 indicates a premium versus the S&P 500 average of 3.22 and a premium versus the industry average of 3.83. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, CANADIAN PACIFIC RAILWAY LTD proves to trade at a premium to investment alternatives within the industry.
|CP 11.38||Peers 11.21||CP 12.45||Peers 13.78|
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.
|CP 12.80||Peers 20.26||CP NM||Peers 1.71|
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.
|CP 4.22||Peers 3.83||CP 55.23||Peers 154.21|
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.
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.
|CP 4.15||Peers 4.12||CP 5.16||Peers 12.12|
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