Canadian Pacific Kansas City Ltd.
- Open
- 89.86
- Day high
- 90.26
- Day low
- 89.64
- Prev close
- 89.54
- Volume
- 105K
- Mkt cap
- $78.9B
- P/E (TTM)
- 28.9
- EPS (TTM)
- $3.10
- P/B
- 2.4
- P/S
- 7.1
- Yield
- 0.76%
- Per share
- $0.68
Canadian Pacific Kansas City Ltd. (CP) is a Industrials company listed on NYSE. The stock is up 16% over the past year. Drillr has 1 published research article covering CP.
Canadian Pacific Kansas City Ltd. (CP) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 7 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
CP earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 29, 2026 | $0.89 | $0.92 | +3.4% | $2.9B | +1.3% |
| Apr 29, 2026 | $0.78 | $0.76 | -2.6% | $2.7B | -1.4% |
| Jan 28, 2026 | $0.99 | $0.95 | -4.0% | $3.9B | +41.3% |
| Oct 29, 2025 | $0.81 | $0.80 | -1.2% | $3.7B | +38.8% |
| Jul 30, 2025 | $0.82 | $0.81 | -1.2% | $2.7B | -3.1% |
| Apr 30, 2025 | $0.74 | $0.74 | +0.0% | $2.7B | +2.2% |
| Jan 29, 2025 | $0.87 | $0.92 | +5.7% | $2.7B | +0.0% |
| Oct 23, 2024 | $0.74 | $0.73 | -1.4% | $2.6B | -1.4% |
| Jan 30, 2024 | $0.83 | $0.87 | +4.8% | $2.8B | +2.8% |
| Oct 25, 2023 | $0.68 | $0.69 | +1.5% | $2.5B | -0.6% |
| Jul 27, 2023 | $0.69 | $0.62 | -10.1% | $2.4B | -3.7% |
| Jan 31, 2023 | $0.79 | $0.81 | +2.5% | $1.8B | +1.4% |
CP insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 5, 2017 | Peverett Jane Ldirector | Grant | 303 | — |
| Jul 5, 2017 | PAULL MATTHEW Hdirector | Grant | 393 | — |
| Jul 5, 2017 | DENHAM GILLIAN Hdirector | Grant | 283 | — |
| Jul 5, 2017 | TRAFTON GORDON T. IIdirector | Grant | 373 | — |
| Jul 5, 2017 | Fatt William R.director | Grant | 319 | — |
| Jul 5, 2017 | Courville Isabelledirector | Grant | 159 | — |
| Jul 5, 2017 | Baird John Russelldirector | Grant | 282 | — |
| Jul 5, 2017 | Reardon Andrew Fitzpatrickdirector | Grant | 626 | — |
| Jul 5, 2017 | MacDonald Ubavka Rebeccadirector | Grant | 319 | — |
| May 10, 2017 | Johnson Robert Allenofficer: Executive VP Operations | Option | 2,457 | — |
| May 10, 2017 | Velani Nadeemofficer: VP and CFO | Option | 819 | — |
| May 10, 2017 | Redeker Michael Johnofficer: VP & Chief Information Officer | Option | 2,048 | — |
| May 10, 2017 | Foran Mikeofficer: VP Network Transportation | Option | 921 | — |
| May 10, 2017 | Clements James Dominic Lutherofficer: VP Planning & Transportation | Option | 870 | $151.16 |
| Apr 26, 2017 | Peverett Jane Ldirector | Grant | 1 | — |
Source: CP SEC Form 4 filings, latest Jul 5, 2017. For informational purposes only — not investment advice.
See the full CP insider & 13F page →Canadian Pacific Kansas City Ltd. company profile
Overview
Canadian Pacific Kansas City Limited (NYSE:CP) is a major North American freight railway company formed through the 2023 merger of Canadian Pacific Railway and Kansas City Southern. Founded originally as Canadian Pacific Railway in 1881, the company has evolved into the first and only single-line railway connecting Canada, the United States, and Mexico. Headquartered in Calgary, Canada, CPKC operates approximately 20,000 miles of track across the continent, making it a critical piece of North American trade infrastructure. The merger created the first transcontinental railway network spanning three countries, positioning the company as a unique facilitator of continental commerce.
Business
CPKC operates in the freight railroad industry, providing essential transportation services for bulk commodities and manufactured goods across North America. The railroad industry serves as the backbone of continental commerce, moving large volumes of goods efficiently over long distances at lower costs than trucking for many commodity types. The company's core business involves transporting freight via rail across its extensive network. Bulk commodities represent a significant portion of operations, including grain (wheat, canola, soybeans), potash (a key fertilizer ingredient), coal for energy generation, and other agricultural products. These commodities are typically shipped in specialized rail cars designed for efficient loading and unloading of loose materials. Merchandise freight encompasses a diverse range of manufactured and semi-finished goods including energy products (crude oil, refined petroleum), chemicals and plastics, metals and minerals, automotive parts and finished vehicles, forest products (lumber, paper), and consumer goods. This segment requires more complex logistics coordination as shipments vary significantly in size, destination, and handling requirements. Intermodal transportation involves moving shipping containers and truck trailers on rail cars, effectively combining the efficiency of rail transport for long distances with the flexibility of trucking for final delivery. This service is particularly important for retail goods arriving in overseas containers at ports, which are then transported inland via rail before final truck delivery. The company operates through these three primary business segments, with bulk commodities and merchandise freight each representing roughly 40-45% of revenues, while intermodal accounts for approximately 15-20% based on recent financial reports.
Revenue model
CPKC generates revenue primarily through freight transportation services, charging customers based on the volume of goods transported, distance traveled, and type of commodity. The company operates under long-term contracts with many customers, providing revenue stability, while also handling spot market shipments at prevailing rates. The customer base includes major commodity producers, manufacturers, and logistics companies. Grain elevators and agricultural cooperatives ship harvested crops to processing facilities and export terminals. Mining companies transport potash, coal, and other minerals to domestic and international markets. Energy companies move crude oil and refined products between production sites, refineries, and distribution centers. Automotive manufacturers rely on the railroad to transport parts between facilities and finished vehicles to dealers. Retail and logistics companies use intermodal services to move consumer goods from ports to distribution centers. Revenue generation benefits from several factors that can increase margins. Operational efficiency improvements through better asset utilization, reduced fuel consumption, and optimized routing directly improve profitability. Pricing power exists due to the essential nature of rail transport for many commodities and limited competition on specific routes. Volume growth from economic expansion, particularly in North American trade, leverages the company's fixed infrastructure investments. Conversely, margins face pressure from fuel cost volatility, as diesel represents a significant operating expense. Labor costs can increase substantially during contract negotiations with unionized workers. Regulatory compliance requires ongoing capital investment in safety systems and environmental controls. Economic downturns reduce shipping volumes, particularly for discretionary goods, while fixed costs remain largely unchanged. Competition from trucking for shorter hauls and pipeline capacity for energy products can limit pricing flexibility in certain markets.
Competitive moat
CPKC possesses a substantial economic moat based on its unique geographic position and significant barriers to entry. The company's network effects create the strongest competitive advantage - as the only railroad connecting Canada, the United States, and Mexico in a single system, CPKC offers routing options that competitors cannot match. This tri-national connectivity became particularly valuable following the USMCA trade agreement, which increased North American trade integration. The high capital requirements for railroad infrastructure create formidable barriers to entry. Building new rail lines requires enormous upfront investment, extensive regulatory approval, and often decades of development time. Existing competitors would need to invest billions to replicate CPKC's network coverage, making new entry economically unfeasible in most markets. Switching costs for customers provide additional protection. Many shippers have built facilities specifically designed around rail access, including specialized loading equipment, storage facilities, and logistics systems. Changing transportation providers often requires significant capital investment and operational disruption, encouraging customer loyalty. However, the moat faces several challenges. Trucking competition remains viable for shorter distances and time-sensitive shipments, particularly as autonomous vehicle technology advances. Pipeline infrastructure competes directly for energy product transportation. Regulatory risk is substantial, as government agencies can impose service requirements, rate regulations, or environmental restrictions that affect profitability. The company also faces labor union negotiations that can disrupt operations and increase costs significantly. The merger with Kansas City Southern strengthened the moat by creating unique routing options, but integration challenges and the need to maintain service quality during the transition period present ongoing risks to competitive positioning.
Risks & safety
CPKC demonstrates a moderate margin of safety with strong operational cash flows but elevated debt levels from the recent merger. • Liquidity position: $695 million in cash and short-term investments with $1.2 billion in operating cash flow generation provides adequate liquidity for operations • Debt levels: Debt-to-equity ratio of 0.46 reflects significant leverage from merger financing, though manageable given cash flow generation • Solvency: Current ratio of 0.81 indicates tight working capital management but no immediate solvency concerns given strong cash flow from operations • Valuation metrics: Trading at 18x forward earnings and 11.4x EV/EBITDA, representing reasonable but not compelling valuation for a capital-intensive infrastructure business • Free cash flow: Generated $433 million in Q1 2025, demonstrating ability to fund capital requirements and return cash to shareholders • Other considerations: Cyclical nature of commodity shipping creates earnings volatility, while regulatory oversight adds operational risk
Recent development
CPKC has undergone significant transformation over the past few years, centered around the landmark merger with Kansas City Southern completed in 2023. This $31 billion transaction created the first railroad network spanning Canada, the United States, and Mexico, fundamentally changing the company's strategic position in North American trade. The integration has enabled new service offerings that were previously impossible. The company launched Mexico Midwest Express service, connecting Mexican manufacturing centers directly to U.S. Midwest markets. Closed-loop automotive services now transport parts and finished vehicles between all three countries using a single railroad system. These new routing options have generated substantial revenue synergies, with management reporting progress toward $800 million in annual synergies. Operationally, CPKC has focused heavily on network optimization and safety improvements. The company achieved record safety performance with the lowest train accident frequency in the industry. Locomotive productivity improved 8% through better asset utilization and routing optimization. Terminal dwell times decreased significantly as the company streamlined operations across the combined network. Infrastructure investments have supported growth, including completion of a second bridge span at Laredo, a critical border crossing between the U.S. and Mexico. The company opened a new Dallas automotive compound with capacity for 160,000-180,000 vehicles annually, supporting the growing automotive trade between Mexico and the United States. The company has also advanced environmental initiatives, including development of hydrogen-powered locomotives and participation in sustainability indices. These efforts address regulatory requirements while positioning CPKC for potential carbon pricing or emission regulations. Recent quarters have shown strong operational momentum with volume growth consistently exceeding industry averages and operating ratio improvements demonstrating successful integration execution.
CP company profile · for informational purposes only — not investment advice.
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