Canadian Pacific Railway Ltd (CP) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Canadian Pacific Railway Ltd stock (CP) is currently trading at $78.24. Canadian Pacific Railway Ltd PE ratio is 24.30. Canadian Pacific Railway Ltd PS ratio (Price-to-Sales) is 4.76. Analyst consensus price target for CP is $88.19. WallStSmart rates CP as Hold.
- CP PE ratio analysis and historical PE chart
- CP PS ratio (Price-to-Sales) history and trend
- CP intrinsic value — DCF, Graham Number, EPV models
- CP stock price prediction 2025 2026 2027 2028 2029 2030
- CP fair value vs current price
- CP insider transactions and insider buying
- Is CP undervalued or overvalued?
- Canadian Pacific Railway Ltd financial analysis — revenue, earnings, cash flow
- CP Piotroski F-Score and Altman Z-Score
- CP analyst price target and Smart Rating
Canadian Pacific Railway
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CP Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Canadian Pacific Railway Ltd (CP)
CP trades 275% above its Graham fair value of $22.37, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Canadian Pacific Railway Ltd (CP) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, operating margin, profit margin. Concerns around return on equity and revenue growth. Fundamentals are solid but monitor weak areas for improvement.
Canadian Pacific Railway Ltd (CP) Key Strengths (4)
Keeps $44 of every $100 in revenue after operating costs
Keeps $28 of every $100 in revenue as net profit
73.66% of shares held by major funds and institutions
Large-cap company with substantial market presence
Canadian Pacific Railway Ltd (CP) Areas to Watch (6)
Earnings declining -7.40%, profits shrinking
Revenue growing slowly at 1.30% annually
Low profitability relative to shareholder equity
Paying a premium for growth, expensive relative to earnings expansion
Premium valuation at 4.8x annual revenue
Fairly priced relative to book value
Supporting Valuation Data
Canadian Pacific Railway Ltd (CP) Detailed Analysis Report
Overall Assessment
This company scores 56/100 in our Smart Analysis, earning a C grade. Out of 10 metrics analyzed, 4 register as strengths (avg 9.8/10) while 6 fall into concern territory (avg 3.2/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Operating Margin, Profit Margin, Institutional Own.. Profitability is solid with Operating Margin at 44.00%, Profit Margin at 27.50%.
The Bear Case
The primary concerns are EPS Growth, Revenue Growth, Return on Equity. Some valuation metrics including PEG Ratio (2.22), Price/Sales (4.76), Price/Book (2.16) suggest expensive pricing. Growth concerns include Revenue Growth at 1.30%, EPS Growth at -7.40%, which may limit upside. Profitability pressure is visible in Return on Equity at 8.64%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 8.64% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 1.30% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Operating Margin, Profit Margin) and negatives (EPS Growth, Revenue Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
WallStSmart Analysis Synopsis
Data-driven financial summary for Canadian Pacific Railway Ltd (CP) · INDUSTRIALS › RAILROADS
The Big Picture
Canadian Pacific Railway Ltd is a strong growth company balancing expansion with improving profitability. Revenue reached 15.1B with 130% growth year-over-year. Profit margins are strong at 27.5%, reflecting pricing power and operational efficiency.
Key Findings
Revenue growing at 130% YoY, reaching 15.1B. This pace significantly outperforms most RAILROADS peers.
ROE of 864.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
What to Watch Next
Growth sustainability: can Canadian Pacific Railway Ltd maintain 130%+ revenue growth, or will competition slow it down?
Sector dynamics: monitor RAILROADS industry trends, competitive moves, and regulatory changes that could impact Canadian Pacific Railway Ltd.
Bottom Line
Canadian Pacific Railway Ltd offers an attractive blend of growth (130% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(0 last 3 months)
Data sourced from SEC Form 4 filings
Last updated: 11:47:17 AM
About Canadian Pacific Railway Ltd(CP)
NYSE
INDUSTRIALS
RAILROADS
USA
Canadian Pacific Railway Limited, owns and operates a transcontinental freight railway in Canada and the United States. The company is headquartered in Calgary, Canada.