# Canadian Pacific Kansas City Limited (CP) — Stock CV

Canadian Pacific Kansas City Limited is a $74.3B industrial company. Revenue grew 1.1% over the last year, it keeps 27¢ of every dollar of sales as profit, and its net debt equals ~11.1 years of free cash flow. It trades at 27.3× earnings.

> Canadian Pacific Kansas City is a Class I railroad operating on tracks that span most of Canada and into parts of the Midwestern and Northeastern United States.

## Identity

- **Ticker**: CP
- **Sector**: Industrials
- **Industry**: Railroads, Line-Haul Operating
- **Headquarters**: CALGARY ALBERTA, A0
- **Employees**: 19 687
- **Website**: https://www.cpkcr.com
- **Market cap**: $74.3B
- **Last price**: $84.46
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $15.0B
- **Net income**: $4.08B
- **Free cash flow**: $2.07B
- **Net debt**: $23.0B
- **P/E**: 27.3
- **Revenue growth (YoY)**: 1.1%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 49 |
| Growth | 58 |
| Profitability | 67 |
| Health | 47 |
| Quality | 87 |
| Moat | 76 |

## Qualifications (beginner checklist) — 8 of 11 passed

- [x] Revenue growing — +1.1% YoY
- [x] Profitable — $4.08B TTM
- [x] Profit growing — +6.2% YoY
- [x] Generates cash — $2.07B TTM
- [ ] Debt under control — ~11.1y of cash flow to repay
- [x] Established company — $74.3B market cap
- [ ] Not printing shares — +34.9% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — Altman Z 1.5 — distress
- [x] Pays a dividend — yield 0.77%
- [x] Valuation not extreme — P/E 27.3

## Experience (career milestones)

- **FY2025** — Best year on record: $4.14B net income
- **2025** — CPKC became one of the companies that has most strongly opposed the proposed merger between UP and…
- **Nov 16, 2024** — The agreement became effective on November 16, 2024
- **2024** — As part of the company's first anniversary celebrations, the Steam locomotive CPR #2816 known as "The…
- **FY2023** — Revenue crossed $10B: $12.6B for the year
- **Jun 28, 2023** — CPKC announced the intent to jointly acquire with CSX Transportation the Meridian and Bigbee…
- **Dec 10, 2021** — KCS's shareholders voted to approve the merger on December 10, 2021
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $1B: $6.23B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **1988** — CPKC informed the STB that UP was blocking the use of trackage and haulage rights dating back to the 1988 merger…

## Strengths

- High gross margin (84.4%)
- Strongly profitable — 27.2% net margin
- Interest covered 11.4× by operating earnings
- Piotroski F-Score 7/9 — fundamentally strong checklist

## Watch-outs

- Altman Z-Score 1.51 — elevated financial-distress risk
- Net debt would take ~11.5 years of free cash flow to repay
- Net debt equals ~11.1 years of free cash flow

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $8.00B | $2.85B | $2.16B |
| FY2022 | $8.81B | $3.52B | $2.58B |
| FY2023 | $12.6B | $3.93B | $1.67B |
| FY2024 | $14.5B | $3.72B | $2.44B |
| FY2025 | $15.1B | $4.14B | $2.21B |

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Source: https://stockcv.com/CP — derived from company filings; may be delayed or incomplete. Information, not investment advice.