Bedrijfsoverzicht
Canadian Pacific Kansas City Limited owns and operates a transcontinental freight railway network spanning Canada, the United States, and Mexico, facilitating the transport of bulk commodities such as grain, coal, potash, fertilizers, and sulphur alongside merchandise freight. The enterprise functions within the Industrials sector, specifically in the Railroads industry, where it leverages its extensive physical infrastructure to move goods across North American supply chains. As of the latest available data, the company holds a market capitalization of $72.39B and reported trailing twelve-month revenues of $15.08B, employing a workforce of 19,479 individuals. These valuation and revenue figures underscore the company's status as a major systemically important player, reflecting a substantial asset base and operational footprint that dominates long-haul freight logistics in its region.
Financiële gezondheid
The company generated $15.08B in revenue over the trailing twelve months, with net income reaching $4.14B and EBITDA standing at $8.11B. The significant gap between the $15.08B revenue and the $4.14B net income highlights a robust cost structure where operating expenses, including cost of goods sold and overhead, consume approximately 72.5% of gross revenue before interest and taxes are factored in. Free cash flow amounts to $2.00B, providing the organization with significant financial flexibility to fund capital expenditures, repay debt obligations, or pursue strategic acquisitions without requiring external equity financing. Gross margin stands at 53.8%, indicating high pricing power and efficient utilization of its rail network relative to the cost of moving freight. Operating margin is reported at 44.0%, while profit margin sits at 27.5%, demonstrating that a substantial portion of operating earnings converts to actual net profit after all non-operating expenses and taxes. In terms of balance sheet leverage, the company holds $184.00M in cash against total debt of $23.60B, resulting in a debt-to-equity ratio of 50.40% which suggests a moderately leveraged position typical for capital-intensive infrastructure firms. The current ratio is 0.49, indicating that short-term liquid assets are currently below short-term liabilities, a common characteristic for railroads that manage liquidity through long-term financing structures rather than holding large cash reserves for immediate obligations. Return on equity is 8.6% and return on assets is 4.4%, metrics that reveal the efficiency with which management utilizes shareholders' capital and the total asset base to generate earnings.
Waarderingsbeoordeling
The trailing twelve-month P/E ratio is 24.75, while the forward P/E is projected at 18.96. This difference between the trailing and forward multiples implies that the market expects earnings growth in the future that would bring the current price-to-earnings multiple down to a lower level, or conversely, suggests that current earnings may be depressed relative to future expectations. The price-to-book ratio is 2.18, indicating that the market values the company at a significant premium over its book value, likely reflecting the intangible value of its network, brand, and contracted revenue streams that are not fully captured on the balance sheet. The price-to-sales ratio stands at 4.80, and the EV/EBITDA is 11.93; these alternative metrics suggest that the stock is valued based on cash generation capabilities and revenue scale rather than just historical earnings per share. Regarding trading ranges, the 52-week high is $89.42 and the 52-week low is $68.42, providing a context for where the current share price resides within its recent historical volatility. The beta value is 1.19, which means the stock exhibits slightly higher price volatility relative to the broader market, reacting more strongly than the general index to market-wide movements.
Growth & Income
Revenue growth year-over-year is 1.3%, whereas earnings growth year-over-year is -7.4%. The fact that earnings are shrinking at a rate of 7.4% while revenue grows marginally at 1.3% implies that operating leverage is not currently being realized, potentially due to rising fuel costs, maintenance expenses, or regulatory pressures that are compressing profit margins faster than top-line revenue can expand. For dividend payers, the company offers a dividend yield of 0.8% with a payout ratio of 19.4%. This low payout ratio indicates that the company retains the vast majority of its earnings, suggesting a strategy focused on reinvesting capital into the network or paying down debt rather than maximizing immediate shareholder returns through dividends. The sustainability of the dividend is supported by the low payout ratio, which allows the company to maintain payments even during periods of earnings contraction. Overall, the company presents a profile characterized by stable but slow revenue expansion, a current decline in earnings, a moderate dividend yield, and a balance sheet that prioritizes capital retention over aggressive shareholder payouts.