Is Canadian Pacific Stock a Good Investment?
Canadian Pacific Investment Advice | CP |
- Examine Canadian Pacific's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Canadian Pacific's leadership team and their track record. Good management can help Canadian Pacific navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Ground Transportation space and any emerging trends that could impact Canadian Pacific's business and its evolving consumer preferences.
- Compare Canadian Pacific's performance and market position to its competitors. Analyze how Canadian Pacific is positioned in terms of product offerings, innovation, and market share.
- Check if Canadian Pacific pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Canadian Pacific's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Canadian Pacific Railway stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Canadian Pacific Railway is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Canadian Pacific Stock
Researching Canadian Pacific's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 76.0% of the company shares are held by institutions such as insurance companies. The book value of Canadian Pacific was currently reported as 47.3. The company has Price/Earnings To Growth (PEG) ratio of 2.37. Canadian Pacific Railway last dividend was issued on the 27th of December 2024. The entity had 5:1 split on the 14th of May 2021.
To determine if Canadian Pacific is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Canadian Pacific's research are outlined below:
| Canadian Pacific generated a negative expected return over the last 90 days | |
| Canadian Pacific Railway reports 22.84 B of total liabilities with total debt to equity ratio (D/E) of 0.54, which is normal for its line of buisiness. Canadian Pacific Railway has a current ratio of 0.57, implying that it has not enough working capital to pay out debt commitments in time. Note however, debt could still be an excellent tool for Canadian to invest in growth at high rates of return. | |
| Over 76.0% of Canadian Pacific shares are held by institutions such as insurance companies | |
| On 28th of October 2024 Canadian Pacific paid $ 0.1371 per share dividend to its current shareholders | |
| Latest headline from pbs.org: News Wrap Pacific Northwest cleaning up after bomb cyclone |
Canadian Pacific Quarterly Cash And Short Term Investments |
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Canadian Pacific uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Canadian Pacific Railway. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Canadian Pacific's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 30th of January 2024 Upcoming Quarterly Report | View | |
| 24th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 30th of January 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Canadian Pacific's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Canadian Pacific's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2004-07-29 | 2004-06-30 | 0.09 | 0.1 | 0.01 | 11 | ||
2003-07-23 | 2003-06-30 | 0.07 | 0.08 | 0.01 | 14 | ||
2010-07-28 | 2010-06-30 | 0.16 | 0.18 | 0.02 | 12 | ||
2010-04-28 | 2010-03-31 | 0.1 | 0.12 | 0.02 | 20 | ||
2010-01-28 | 2009-12-31 | 0.16 | 0.18 | 0.02 | 12 | ||
2009-04-23 | 2009-03-31 | 0.07 | 0.05 | -0.02 | 28 | ||
2006-10-24 | 2006-09-30 | 0.17 | 0.19 | 0.02 | 11 | ||
2006-04-25 | 2006-03-31 | 0.11 | 0.13 | 0.02 | 18 |
Know Canadian Pacific's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Canadian Pacific is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Canadian Pacific Railway backward and forwards among themselves. Canadian Pacific's institutional investor refers to the entity that pools money to purchase Canadian Pacific's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | 1832 Asset Management L.p | 2024-09-30 | 14.5 M | Norges Bank | 2024-06-30 | 13 M | Capital World Investors | 2024-09-30 | 13 M | Veritas Asset Management Llp | 2024-09-30 | 12.2 M | Manufacturers Life Insurance Co | 2024-09-30 | 11.4 M | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 10.6 M | Fidelity International Ltd | 2024-06-30 | 10.1 M | Egerton Capital Llp | 2024-06-30 | 9.2 M | Dz Bank Ag Deutsche Zentral-genossenschaftsbank Frankfurt Am Main | 2024-06-30 | 9 M | Tci Fund Management Limited | 2024-06-30 | 54.9 M | Royal Bank Of Canada | 2024-06-30 | 51.3 M |
Canadian Pacific's market capitalization trends
The company currently falls under 'Large-Cap' category with a market capitalization of 70.35 B.Market Cap |
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Canadian Pacific's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.07 | 0.05 | |
| Return On Capital Employed | 0.06 | 0.08 | |
| Return On Assets | 0.05 | 0.05 | |
| Return On Equity | 0.09 | 0.14 |
Determining Canadian Pacific's profitability involves analyzing its financial statements and using various financial metrics to determine if Canadian Pacific is a good buy. For example, gross profit margin measures Canadian Pacific's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Canadian Pacific's profitability and make more informed investment decisions.
Evaluate Canadian Pacific's management efficiency
Canadian Pacific Railway has Return on Asset (ROA) of 0.044 % which means that for every $100 of assets, it generated a profit of $0.044. This is way below average. Likewise, it shows a return on total equity (ROE) of 0.0809 %, which means that it produced $0.0809 on every 100 dollars invested by current stockholders. Canadian Pacific's management efficiency ratios could be used to measure how well Canadian Pacific manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Canadian Pacific's Return On Capital Employed is relatively stable compared to the past year. As of 11/22/2024, Return On Equity is likely to grow to 0.14, while Return On Tangible Assets are likely to drop 0.05. At this time, Canadian Pacific's Total Current Liabilities is relatively stable compared to the past year. As of 11/22/2024, Liabilities And Stockholders Equity is likely to grow to about 83.9 B, while Non Current Liabilities Other is likely to drop slightly above 104.5 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 45.54 | 47.82 | |
| Tangible Book Value Per Share | 23.31 | 24.47 | |
| Enterprise Value Over EBITDA | (164.17) | (155.97) | |
| Price Book Value Ratio | 2.35 | 2.63 | |
| Enterprise Value Multiple | (164.17) | (155.97) | |
| Price Fair Value | 2.35 | 2.63 | |
| Enterprise Value | 49.1 B | 51.6 B |
Effective leadership at Canadian Pacific drives its competitive edge in the market. Our analysis focuses on how this translates to financial performance and stock value.
Dividend Yield 0.0075 | Forward Dividend Yield 0.0075 | Forward Dividend Rate 0.55 | Beta 0.789 |
Basic technical analysis of Canadian Stock
As of the 22nd of November, Canadian Pacific shows the Standard Deviation of 1.1, risk adjusted performance of (0.05), and Mean Deviation of 0.9041. Canadian Pacific Railway technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Canadian Pacific's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Canadian Pacific insiders, such as employees or executives, is commonly permitted as long as it does not rely on Canadian Pacific's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Canadian Pacific insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Nadeem Velani over two months ago Acquisition by Nadeem Velani of tradable shares of Canadian Pacific at 146.52 subject to Rule 16b-3 | ||
John Brooks over six months ago Acquisition by John Brooks of tradable shares of Canadian Pacific at 159.79 subject to Rule 16b-3 | ||
Edwards Peter John over six months ago Acquisition by Edwards Peter John of 10300 shares of Canadian Pacific at 37.28 subject to Rule 16b-3 |
Canadian Pacific's Outstanding Corporate Bonds
Canadian Pacific issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Canadian Pacific Railway uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Canadian bonds can be classified according to their maturity, which is the date when Canadian Pacific Railway has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand Canadian Pacific's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Canadian Pacific's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.05) | |||
| Market Risk Adjusted Performance | (0.16) | |||
| Mean Deviation | 0.9041 | |||
| Coefficient Of Variation | (1,342) | |||
| Standard Deviation | 1.1 | |||
| Variance | 1.22 | |||
| Information Ratio | (0.17) | |||
| Jensen Alpha | (0.15) | |||
| Total Risk Alpha | (0.24) | |||
| Treynor Ratio | (0.17) | |||
| Maximum Drawdown | 4.89 | |||
| Value At Risk | (1.66) | |||
| Potential Upside | 2.07 | |||
| Skewness | 0.2404 | |||
| Kurtosis | (0.48) |
| Risk Adjusted Performance | (0.05) | |||
| Market Risk Adjusted Performance | (0.16) | |||
| Mean Deviation | 0.9041 | |||
| Coefficient Of Variation | (1,342) | |||
| Standard Deviation | 1.1 | |||
| Variance | 1.22 | |||
| Information Ratio | (0.17) | |||
| Jensen Alpha | (0.15) | |||
| Total Risk Alpha | (0.24) | |||
| Treynor Ratio | (0.17) | |||
| Maximum Drawdown | 4.89 | |||
| Value At Risk | (1.66) | |||
| Potential Upside | 2.07 | |||
| Skewness | 0.2404 | |||
| Kurtosis | (0.48) |
Consider Canadian Pacific's intraday indicators
Canadian Pacific intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Canadian Pacific stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 166049.0 | |||
| Daily Balance Of Power | 0.7895 | |||
| Rate Of Daily Change | 1.02 | |||
| Day Median Price | 76.21 | |||
| Day Typical Price | 76.37 | |||
| Price Action Indicator | 1.23 | |||
| Period Momentum Indicator | 1.5 |
Canadian Pacific Corporate Filings
10Q | 24th of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 23rd of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 27th of June 2024 Other Reports | ViewVerify | |
10K | 29th of April 2024 An amendment to a previously filed Form 10-K | ViewVerify |
Canadian Stock media impact
Far too much social signal, news, headlines, and media speculation about Canadian Pacific that are available to investors today. That information is available publicly through Canadian media outlets and privately through word of mouth or via Canadian internal channels. However, regardless of the origin, that massive amount of Canadian data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Canadian Pacific news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Canadian Pacific relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Canadian Pacific's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Canadian Pacific alpha.
Canadian Pacific Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Canadian Pacific can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Canadian Pacific Railway Historical Investor Sentiment
Investor biases related to Canadian Pacific's public news can be used to forecast risks associated with an investment in Canadian. The trend in average sentiment can be used to explain how an investor holding Canadian can time the market purely based on public headlines and social activities around Canadian Pacific Railway. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Canadian Pacific's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Canadian Pacific and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Canadian Pacific news discussions. The higher the estimate score, the more favorable the investor's outlook on Canadian Pacific.
Canadian Pacific Corporate Directors
| Gillian Denham | Independent Director | Profile | |
| Jane Peverett | Independent Director | Profile | |
| Edward Hamberger | Independent Director | Profile | |
| John Baird | Independent Director | Profile |
Additional Tools for Canadian Stock Analysis
When running Canadian Pacific's price analysis, check to measure Canadian Pacific's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Canadian Pacific is operating at the current time. Most of Canadian Pacific's value examination focuses on studying past and present price action to predict the probability of Canadian Pacific's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Canadian Pacific's price. Additionally, you may evaluate how the addition of Canadian Pacific to your portfolios can decrease your overall portfolio volatility.