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Also traded in: Canada, Germany

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 4/10

vs
industry
vs
history
Cash-to-Debt 0.02
NYSE:CP's Cash-to-Debt is ranked lower than
95% of the 806 Companies
in the Global Railroads industry.

( Industry Median: 0.34 vs. NYSE:CP: 0.02 )
Ranked among companies with meaningful Cash-to-Debt only.
NYSE:CP' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.01  Med: 0.09 Max: No Debt
Current: 0.02
Equity-to-Asset 0.26
NYSE:CP's Equity-to-Asset is ranked lower than
85% of the 807 Companies
in the Global Railroads industry.

( Industry Median: 0.45 vs. NYSE:CP: 0.26 )
Ranked among companies with meaningful Equity-to-Asset only.
NYSE:CP' s Equity-to-Asset Range Over the Past 10 Years
Min: 0.22  Med: 0.37 Max: 0.44
Current: 0.26
0.22
0.44
Interest Coverage 7.48
NYSE:CP's Interest Coverage is ranked lower than
63% of the 669 Companies
in the Global Railroads industry.

( Industry Median: 9.54 vs. NYSE:CP: 7.48 )
Ranked among companies with meaningful Interest Coverage only.
NYSE:CP' s Interest Coverage Range Over the Past 10 Years
Min: 2.9  Med: 4.59 Max: 8.18
Current: 7.48
2.9
8.18
Piotroski F-Score: 5
Altman Z-Score: 2.35
Beneish M-Score: -2.60
WACC vs ROIC
7.46%
14.41%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating Margin % 41.58
NYSE:CP's Operating Margin % is ranked higher than
94% of the 801 Companies
in the Global Railroads industry.

( Industry Median: 5.72 vs. NYSE:CP: 41.58 )
Ranked among companies with meaningful Operating Margin % only.
NYSE:CP' s Operating Margin % Range Over the Past 10 Years
Min: 16.66  Med: 22.78 Max: 41.58
Current: 41.58
16.66
41.58
Net Margin % 23.86
NYSE:CP's Net Margin % is ranked higher than
89% of the 809 Companies
in the Global Railroads industry.

( Industry Median: 3.66 vs. NYSE:CP: 23.86 )
Ranked among companies with meaningful Net Margin % only.
NYSE:CP' s Net Margin % Range Over the Past 10 Years
Min: 8.5  Med: 13.67 Max: 25.66
Current: 23.86
8.5
25.66
ROE % 30.64
NYSE:CP's ROE % is ranked higher than
95% of the 798 Companies
in the Global Railroads industry.

( Industry Median: 6.25 vs. NYSE:CP: 30.64 )
Ranked among companies with meaningful ROE % only.
NYSE:CP' s ROE % Range Over the Past 10 Years
Min: 9.93  Med: 14.04 Max: 33.94
Current: 30.64
9.93
33.94
ROA % 7.72
NYSE:CP's ROA % is ranked higher than
86% of the 818 Companies
in the Global Railroads industry.

( Industry Median: 2.77 vs. NYSE:CP: 7.72 )
Ranked among companies with meaningful ROA % only.
NYSE:CP' s ROA % Range Over the Past 10 Years
Min: 3.36  Med: 5.1 Max: 8.78
Current: 7.72
3.36
8.78
ROC (Joel Greenblatt) % 16.13
NYSE:CP's ROC (Joel Greenblatt) % is ranked higher than
70% of the 803 Companies
in the Global Railroads industry.

( Industry Median: 9.14 vs. NYSE:CP: 16.13 )
Ranked among companies with meaningful ROC (Joel Greenblatt) % only.
NYSE:CP' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 7.1  Med: 10.03 Max: 16.52
Current: 16.13
7.1
16.52
3-Year Revenue Growth Rate 6.00
NYSE:CP's 3-Year Revenue Growth Rate is ranked higher than
67% of the 689 Companies
in the Global Railroads industry.

( Industry Median: 1.60 vs. NYSE:CP: 6.00 )
Ranked among companies with meaningful 3-Year Revenue Growth Rate only.
NYSE:CP' s 3-Year Revenue Growth Rate Range Over the Past 10 Years
Min: -23.4  Med: 6 Max: 31.7
Current: 6
-23.4
31.7
3-Year EBITDA Growth Rate 24.70
NYSE:CP's 3-Year EBITDA Growth Rate is ranked higher than
86% of the 590 Companies
in the Global Railroads industry.

( Industry Median: 6.00 vs. NYSE:CP: 24.70 )
Ranked among companies with meaningful 3-Year EBITDA Growth Rate only.
NYSE:CP' s 3-Year EBITDA Growth Rate Range Over the Past 10 Years
Min: -19.4  Med: 5.1 Max: 67.8
Current: 24.7
-19.4
67.8
3-Year EPS without NRI Growth Rate 28.90
NYSE:CP's 3-Year EPS without NRI Growth Rate is ranked higher than
79% of the 530 Companies
in the Global Railroads industry.

( Industry Median: 6.50 vs. NYSE:CP: 28.90 )
Ranked among companies with meaningful 3-Year EPS without NRI Growth Rate only.
NYSE:CP' s 3-Year EPS without NRI Growth Rate Range Over the Past 10 Years
Min: -14.1  Med: 4.5 Max: 151.2
Current: 28.9
-14.1
151.2
GuruFocus has detected 4 Warning Signs with Canadian Pacific Railway Ltd $NYSE:CP.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
» NYSE:CP's 30-Y Financials

Financials (Next Earnings Date: 2017-07-20 Est.)


Revenue & Net Income
Cash & Debt
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

» Details

Guru Trades

Q2 2016

CP Guru Trades in Q2 2016

Leon Cooperman 87,500 sh (New)
Joel Greenblatt 27,248 sh (+726.20%)
John Griffin 1,691,100 sh (+10.39%)
Paul Tudor Jones 8,100 sh (unchged)
Paul Tudor Jones 19,200 sh (unchged)
Jim Simons 371,500 sh (-10.95%)
Paul Tudor Jones 40,996 sh (-16.90%)
T Rowe Price Equity Income Fund 610,000 sh (-26.79%)
Bill Ackman 9,840,890 sh (-29.41%)
Andreas Halvorsen 948,408 sh (-58.76%)
Steven Cohen 134,333 sh (-59.82%)
Louis Moore Bacon 17,914 sh (-88.25%)
» More
Q3 2016

CP Guru Trades in Q3 2016

First Eagle Investment 858,923 sh (New)
Caxton Associates 40,000 sh (New)
Andreas Halvorsen 3,594,658 sh (+279.02%)
Louis Moore Bacon 27,637 sh (+54.28%)
Steven Cohen 143,100 sh (+6.53%)
John Griffin 1,691,500 sh (+0.02%)
Leon Cooperman Sold Out
Paul Tudor Jones Sold Out
Bill Ackman Sold Out
Joel Greenblatt Sold Out
Jim Simons 209,300 sh (-43.66%)
T Rowe Price Equity Income Fund 205,000 sh (-66.39%)
» More
Q4 2016

CP Guru Trades in Q4 2016

Joel Greenblatt 8,442 sh (New)
Jim Simons 471,000 sh (+125.04%)
Caxton Associates 60,000 sh (+50.00%)
Steven Cohen 156,100 sh (+9.08%)
First Eagle Investment Sold Out
T Rowe Price Equity Income Fund Sold Out
John Griffin 1,499,700 sh (-11.34%)
Andreas Halvorsen 2,301,553 sh (-35.97%)
» More
Q1 2017

CP Guru Trades in Q1 2017

Sarah Ketterer 2,761,959 sh (New)
Joel Greenblatt 41,679 sh (+393.71%)
Steven Cohen 385,700 sh (+147.09%)
Jim Simons 835,800 sh (+77.45%)
Andreas Halvorsen 3,160,596 sh (+37.32%)
Louis Moore Bacon 31,420 sh (+13.69%)
John Griffin Sold Out
Caxton Associates 25,000 sh (-58.33%)
» More
» Details

Insider Trades

Latest Guru Trades with CP

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Business Description

Industry: Transportation & Logistics » Railroads    NAICS: 482111    SIC: 4531
Compare:OTCPK:WJRYY, OTCPK:CJPRY, NYSE:NSC, OTCPK:MTCPY, NYSE:KSU, OTCPK:TOKUY, OTCPK:EJPRY, NYSE:WAB, OTCPK:CRRRF, NYSE:GSH, NYSE:TRN, NYSE:GWR, OTCPK:CDGLF, OTCPK:BTSGY, NYSE:GBX, NAS:ARII, NAS:STB, NYSE:USDP, NAS:RAIL, NAS:FSTR » details
Traded in other countries:CP.Canada, PC8.Germany,
Headquarter Location:Canada
Canadian Pacific Railway Ltd is engaged in rail transportation. It provides freight transportation services, logistics solutions, and supply chain expertise in Canada and the United States.

Canadian Pacific is a CAD 6.2 billion railroad operating on 18,703 miles of track across most of Canada and in the Midwestern and Northeastern United States; it is the second-smallest Class I railroad by revenue and route miles. During 2016, CP hauled shipments of intermodal containers (22% of freight revenue), chemicals, plastics, and crude oil (14%), grain (24%), coal (10%), fertilizer and potash (10%), automotive products (6%), and a diverse mix of other merchandise.

Guru Investment Theses on Canadian Pacific Railway Ltd

Bill Ackman Comments on Canadian Pacific Railway - May 08, 2017

In our August 26, 2016 Investor letter, we reported the sale of our remaining 9.8 million shares of CP (NYSE:CP) on August 4, 2016, approximately five years from the inception of the investment. During the course of our investment, CP’s share price increased four times, its operating performance went from worst to nearly tied for first with Canadian National, and its credit rating improved from a weak Baa-/BBB- to a strong Baa+/BBB+. While critics often accuse activists of being short-term investors focused primarily on stock buybacks and dividends, CP is a paradigmatic example of the long- term sustainable business performance enhancements and shareholder value creation we have achieved in our core activist holdings.

During our period of ownership, Canadian Pacific’s total shareholder return, including dividends, was 318.9%.

From 2016 annual letter to shareholders of Pershing Square by Bill Ackman (Trades, Portfolio).

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Bill Ackman Comments on Canadian Pacific Railway Limited - Mar 30, 2017



In our August 26, 2016 Investor letter, we reported the sale of our remaining 9.8 million shares of CP on August 4, 2016, approximately five years from the inception of the investment. During the course of our investment, CP (NYSE:CP)’s share price increased four times, its operating performance went from worst to nearly tied for first with Canadian National, and its credit rating improved from a weak Baa-/BBB- to a strong Baa+/BBB+. While critics often accuse activists of being short-term investors focused primarily on stock buybacks and dividends, CP is a paradigmatic example of the long- term sustainable business performance enhancements and shareholder value creation we have achieved in our core activist holdings.

During our period of ownership, Canadian Pacific’s total shareholder return, including dividends, was 318.9%.

From Bill Ackman (Trades, Portfolio)'s Pershing Square 2016 annual report.


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Bill Ackman Comments on Canadian Pacific Railway - Dec 09, 2016

In our August 26, 2016 Investor letter we reported the sale of our remaining 9.8 million shares of CP (NYSE:CP) on August 4, 2016, approximately five years from the inception of the investment. During the course of our investment, CP’s share price increased nearly four times, its operating performance went from worst to nearly tied for first with Canadian National, and its credit rating improved from a weak Baa-/BBB- to a strong Baa+/BBB+. While critics often accuse activists of being short-term investors focused primarily on stock buybacks and dividends, CP is a paradigmatic example of the long-term sustainable business performance enhancements and shareholder value creation we have achieved in our core activist holdings.

From Bill Ackman (Trades, Portfolio)'s Pershing Square third-quarter shareholder letter.

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Bill Ackman Comments on Canadian Pacific - Aug 29, 2016

On August 4, 2016 we sold our remaining 9 8 million shares of Canadian Pacific (NYSE:CP). This sale marked the end of our five-year investment in CP, which was a noteworthy success. I have agreed to continue on the board up until the next annual meeting or until qualified replacement directors have joined the board.

We initiated our investment in Canadian Pacific in the fall of 2011. Prior to our investment, CP had meaningfully underperformed its closest competitor, Canadian National ("CN"), and the other North American railroads in nearly all key operating measures for more than a decade, a performance deficit best illustrated by CP's operating margin of 19%, or about half of CN's 37% margins at the time. As a result of this underperformance, CP' s shares had languished behind competitors and its potential for many years.

After performing due diligence on the Company for several months, we concluded that CP's network and assets had no structural deficiencies relative to competitors, and that with proper leadership and an operational transformation we believed that CP could produce margins approaching industry-best levels, an achievement which would lead to substantial improvements in earnings and cash flow and drive significant long-term shareholder value. These views were in stark contrast to the incumbent management team's and board's assertions that CP was structurally limited, an opinion which was widely accepted by the investment community due to years of the company's poor performance. During our research we learned about, and eventually developed a relationship with, Hunter Harrison, a legendary railroad executive who had twice before doubled the margins and transformed industry-lagging railroads. We were confident Hunter could repeat this feat for a third time if given the opportunity to fix CP.

We bought a 14% ownership stake in CP and subsequently engaged with CP's Chairman, CEO, and board of directors to explain our views on the company's underperformance and its potential for improvement under Hunter's leadership. We stated our and Hunter's view that under his leadership CP's margins could conservatively improve to 35% over four years or by 2015.

Despite our well-researched views and plans to create long-term shareholder value by installing Hunter Harrison as CEO, CP's legacy board resisted our suggestions and backed the status quo. We therefore had no choice but to run a proxy contest to solicit the support of shareholders to decide the path forward for their company. We proposed to CP's shareholders the nomination of seven new directors, including two Pershing Square representatives. In May 2012, all seven of our director nominees were elected to the CP board, each with the support of at least 85% of CP's shareholders. The six CP directors who received the fewest votes, including CP's incumbent chairman and its CEO, resigned from the board, and the new board proceeded to launch a search for a new CEO. The board shortly thereafter unanimously chose to elect Hunter Harrison as CEO.

Hunter and his successor Keith Creel proceeded to make rapid improvements to the business. Operating margins improved at a faster pace and to better levels than we had communicated to investors with CP delivering a 39% margin in 2015 and an expected 41% margin in 2016 based on the company's guidance. As a result, the company's cash flow grew rapidly allowing CP to substantially increase its investment in the railroad, improving the network, which along with the railroad's newly implemented precision scheduled operating model allowed for a dramatic improvement in service to customers.

As a result of Hunter's, Keith's and the team's efforts, CP's earnings power has more than tripled since our investment and its share price has increased from the day-before our investment price of $46 CAD (and our average cost of $56 CAD) to $197 CAD per share currently. While activist investors are often accused of focusing on shareholder value at the expense of creditors — this has not been the case with Pershing Square — CP's bonds over the course of our involvement have been rerated from barely BBB-/Baa3 to BBB+/Baal today, and its pension deficit, when we joined the board of more than $1 billion, is now in surplus.

Today, CP has a strong board and management team, has become a best-in class-operator, serves its customers with better and more timely service, has a much better maintained and significantly enhanced network, and is thus built to thrive over the long term. During our tenure at CP, all stakeholders have benefited enormously. We are incredibly grateful to Hunter and entire management team and board at CP for achieving these remarkable results.

From Bill Ackman (Trades, Portfolio)'s mid-year 2016 letter.

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Bill Ackman Comments on Canadian Pacific Railway Limited - May 11, 2016

On April 20th, CP (NYSE:CP) reported that first quarter revenue had declined 5%, as a result of the tepid macro-economic environment. On the earnings call, CP President Keith Creel highlighted that volumes will likely be down 6% for Q2, but that trends should improve in the second half of the year as comps get easier. Management expressed its view that Q2 will be the bottom for volumes and that the Canadian economy appears to be stabilizing.

Despite muted growth, CP’s operational transformation continues, as the company announced that it had achieved a record Operating Ratio (“OR”) of 58.9%. This result was a 430 bps improvement over last year, largely due to reduced headcount which was down 13% year-over-year. The winter quarters typically have higher ORs, given the lower volume levels and more challenging operating conditions caused by weather, making this record OR feat all the more impressive.

In the quarter, EPS increased 11%. The company maintained its guidance for double-digit EPS growth in 2016. It also announced a 40% increase in its dividend (to CAD$2 annually) and authorized the repurchase of an additional 5% of its shares outstanding.

In November 2015, CP proposed a merger with Norfolk Southern (NS) that would have created meaningful value for both CP and NS shareholders while improving the North American rail network and enhancing service to customers. Despite the strategic and economic logic for this transaction, it was met with strong opposition from competitors, legislators and industry lobbyists. In light of this opposition, on April 11th, the company announced that it had terminated its efforts to merge with NS.

On April 22nd, the Pershing Square funds collectively sold 4.1 million shares of CP, or approximately 30% of our position, as the price increased substantially in recent weeks and became a disproportionately large percentage of the portfolio. We continue to have tremendous confidence in CP’s management and prospects, but have sold shares for portfolio management reasons.

From Bill Ackman (Trades, Portfolio)'s first quarter shareholder letter.

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Bill Ackman Comments on Canadian Pacific - Jan 27, 2016

Many of the investment opportunities we have identified over time have been created by the fact that the market appears to value companies based principally on short-term factors rather than long-term changes in intrinsic value. For example, in light of China weakness, commodity price declines, and the events in the U.S. energy markets, current earnings and future expectations for railroad volumes have declined somewhat. We believe that this has reduced Canadian Pacific (NYSE:CP)’s intrinsic value by perhaps 10% or so while its stock price has declined ~35% from its August 2015 high. The value of a business is determined by the present value of the cash it generates over its lifetime, not based on what next year’s earnings are going to be. While the first year’s cash flows in a discounted cash flow valuation carry the most weight in the calculation, years two through 20 and thereafter contribute many multiples of year one’s value in determining the present value. This fact seems to be ignored by investors in today’s markets. The market’s short-term valuation approach coupled with the technical factors present in non-index supported companies can lead to short-term gross under-valuations and new long-term investment opportunities.

From Bill Ackman (Trades, Portfolio)'s Pershing Square Annual Investor Letter 2015.

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Bill Ackman Comments on Canadian Pacific - Jan 27, 2016

We made a similar error in not trimming our Canadian Pacific (NYSE:CP) position when it reached ~C$240 per share. While we still believed CP was trading at a discount to intrinsic value at that price and there was the potential for CP to complete an industry-transforming, value-creating merger, in light of the size of the position as a percentage of the portfolio, and concerns we had about the Chinese economy, it would have been prudent to sell a portion of our investment.

From Bill Ackman (Trades, Portfolio)'s Pershing Square Annual Investor Letter 2015.

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Bill Ackman Comments on Canadian Pacific - Dec 16, 2015

Canadian Pacific (NYSE:CP)

CP reported its third quarter results in late October. The rail environment is weak in light of developments in global commodity markets, yet results came in largely in- line with consensus. On the quarterly conference call, Hunter Harrison expressed confidence in the potential for further cost and capital expenditure reductions.

CP quarterly results showed revenue growth of 2% and the Company’s operating ratio (OR) improved 290 bps by declining to 59.9%. Net income increased 7% while EPS grew 16% as the company’s share repurchase program reduced shares outstanding. During the third quarter, CP bought back 5% of its shares as it continued to take advantage of the company’s low share price.

CP has increased its asset productivity substantially which, along with weakening commodity markets and lower volumes, has allowed the company to remove from service 15% of its rolling stock and 40% of its high power locomotives. Hunter commented that CP will not need to purchase locomotives until 2018, implying a seven-year purchase deferral since he arrived as CEO. This is better than management’s original estimates of three to four years, as the team has continued to improve locomotive productivity. These improvements are yet another illustration of the power of Hunter’s operating model and its impact on asset utilization.

Year-over- year, headcount is down through continued attrition of the workforce. CP recently reached an hourly rate agreement with its U.S. union, which should enhance efficiency. Hunter has predicted that a similar agreement could eventually be reached in Canada. Hunter remains optimistic despite current economic headwinds, explaining that CP is operating well, and that when growth picks up “we’re going to have to buy a bigger safe for the funds.”

CN announced a 53.8% OR in the third quarter, by far an industry record, highlighting the substantial opportunity ahead for CP. Hunter said he thinks CP’s OR should be 200 to 300 bps lower, even at existing volume levels. He also stated that capital expenditures would begin to come down in the coming years, as the Company has caught up to previous management’s underinvestment in the network. Given the increased efficiencies to come, the Company said it was confident in generating double-digit EPS growth next year despite the softer macroeconomic backdrop.

The CP-Norfolk Southern Merger

CP has proposed a merger with Norfolk Southern (NS), which would create significant value for both CP and NS shareholders. As importantly, CP’s proposed merger with NS would provide unsurpassed levels of safety and service to its customers and communities while also increasing competition and creating significant shareholder value. When one owns a company run by extremely able management, it almost always makes sense to get additional assets under their management if the new assets can be acquired at a fair price.

On December 8th, we participated on a conference call CP hosted to discuss the transaction, and outlined an investor’s perspective on the attractiveness of the CP offer to NS. We believe CP has put forth a highly attractive offer to NS shareholders. We estimate the offer to be worth $125 to $140 per NS share at the time of the closing of the transaction in May 2016, representing a 58% to 77% premium to NS’s undisturbed share price, a meaningfully higher value than NS could achieve as a standalone entity. For more details on the CP proposal, we encourage you to review management’s and our presentation. Please contact CP investor relations or go to www.cpr.ca for further information.

From Bill Ackman (Trades, Portfolio)'s Pershing Square Holdings third quarter 2015 letter to shareholders.

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Bill Ackman Comments on Canadian Pacific - Sep 11, 2015

Canadian Pacific (NYSE:CP)



Canadian Pacific’s second quarter earnings were strong despite a revenue decline of 2% due to reduced volumes reflecting lower grain and oil shipments as a result of lower commodity prices.



Despite the challenging short-term economic backdrop and broad railroad industry weakness, we remain confident in CP’s long-term outlook under its exemplary management team. Management continues to identify opportunities for efficiency and fluidity improvements in the railroad, which will translate into greater long-term cash flows for the company. We continue to believe that CP is an attractive investment for Pershing Square.



From Pershing Square's semi-annual 2015 report.



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Top Ranked Articles about Canadian Pacific Railway Ltd

Sarah Ketterer Gains 4 Stocks in 1st Quarter Guru releases quarterly portfolio
Causeway Capital Management’s Sarah Ketterer (Trades, Portfolio) gained four new stocks in the first quarter. They are Canadian Pacific Railway Ltd. (NYSE:CP), Flowserve Corp. (NYSE:FLS), Companhia de Saneamento Basico do Estado de Sao Paulo (NYSE:SBS) and SodaStream International Ltd. (NASDAQ:SODA). Read more...
Bill Ackman Comments on Canadian Pacific Railway Guru stock highlight
In our August 26, 2016 Investor letter, we reported the sale of our remaining 9.8 million shares of CP (NYSE:CP) on August 4, 2016, approximately five years from the inception of the investment. During the course of our investment, CP’s share price increased four times, its operating performance went from worst to nearly tied for first with Canadian National, and its credit rating improved from a weak Baa-/BBB- to a strong Baa+/BBB+. While critics often accuse activists of being short-term investors focused primarily on stock buybacks and dividends, CP is a paradigmatic example of the long- term sustainable business performance enhancements and shareholder value creation we have achieved in our core activist holdings. Read more...
Bill Ackman Comments on Canadian Pacific Railway Limited Guru stock highlight
In our August 26, 2016 Investor letter, we reported the sale of our remaining 9.8 million shares of CP on August 4, 2016, approximately five years from the inception of the investment. During the course of our investment, CP (NYSE:CP)’s share price increased four times, its operating performance went from worst to nearly tied for first with Canadian National, and its credit rating improved from a weak Baa-/BBB- to a strong Baa+/BBB+. While critics often accuse activists of being short-term investors focused primarily on stock buybacks and dividends, CP is a paradigmatic example of the long- term sustainable business performance enhancements and shareholder value creation we have achieved in our core activist holdings.

During our period of ownership, Canadian Pacific’s total shareholder return, including dividends, was 318.9%.

From Bill Ackman (Trades, Portfolio)'s Pershing Square 2016 annual report. Read more...
Bill Ackman Comments on Canadian Pacific Railway Guru stock highlight
In our August 26, 2016 Investor letter we reported the sale of our remaining 9.8 million shares of CP (NYSE:CP) on August 4, 2016, approximately five years from the inception of the investment. During the course of our investment, CP’s share price increased nearly four times, its operating performance went from worst to nearly tied for first with Canadian National, and its credit rating improved from a weak Baa-/BBB- to a strong Baa+/BBB+. While critics often accuse activists of being short-term investors focused primarily on stock buybacks and dividends, CP is a paradigmatic example of the long-term sustainable business performance enhancements and shareholder value creation we have achieved in our core activist holdings. Read more...
First Eagle Investment Management's Top 5 Stock Buys of 3rd Quarter Firm associated with legend Jean-Marie Eveillard reports portfolio positions
First Eagle, an investment firm managing around $100 billion, announced on Monday that its third-quarter trading activity included buying 26 new stocks. Read more...
Bill Ackman Comments on Canadian Pacific Guru stock highlight
On August 4, 2016 we sold our remaining 9 8 million shares of Canadian Pacific (NYSE:CP). This sale marked the end of our five-year investment in CP, which was a noteworthy success. I have agreed to continue on the board up until the next annual meeting or until qualified replacement directors have joined the board. Read more...
Ackman Raises $1.4 Billion Selling Entire Stake in Canadian Pacific Railway Close of stake comes on wave of sells by Pershing
Bill Ackman (Trades, Portfolio) is selling off 14 million shares of Canadian Pacific Railway Ltd. (NYSE:CP)(TSX:CP) – a stock making up about a fifth of his equity portfolio – ending one of his big turnaround plays. Read more...

Ratios

vs
industry
vs
history
PE Ratio 21.18
CP's PE Ratio is ranked lower than
54% of the 619 Companies
in the Global Railroads industry.

( Industry Median: 16.92 vs. CP: 21.18 )
Ranked among companies with meaningful PE Ratio only.
CP' s PE Ratio Range Over the Past 10 Years
Min: 7.48  Med: 18.27 Max: 44.37
Current: 21.18
7.48
44.37
Forward PE Ratio 18.52
CP's Forward PE Ratio is ranked higher than
55% of the 258 Companies
in the Global Railroads industry.

( Industry Median: 22.62 vs. CP: 18.52 )
Ranked among companies with meaningful Forward PE Ratio only.
N/A
PE Ratio without NRI 21.18
CP's PE Ratio without NRI is ranked lower than
54% of the 615 Companies
in the Global Railroads industry.

( Industry Median: 16.88 vs. CP: 21.18 )
Ranked among companies with meaningful PE Ratio without NRI only.
CP' s PE Ratio without NRI Range Over the Past 10 Years
Min: 7.48  Med: 18.27 Max: 44.37
Current: 21.18
7.48
44.37
Price-to-Owner-Earnings 21.55
CP's Price-to-Owner-Earnings is ranked lower than
56% of the 323 Companies
in the Global Railroads industry.

( Industry Median: 17.32 vs. CP: 21.55 )
Ranked among companies with meaningful Price-to-Owner-Earnings only.
CP' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 10.36  Med: 18.42 Max: 47.14
Current: 21.55
10.36
47.14
PB Ratio 6.16
CP's PB Ratio is ranked lower than
93% of the 791 Companies
in the Global Railroads industry.

( Industry Median: 1.22 vs. CP: 6.16 )
Ranked among companies with meaningful PB Ratio only.
CP' s PB Ratio Range Over the Past 10 Years
Min: 0.78  Med: 2.42 Max: 7.85
Current: 6.16
0.78
7.85
PS Ratio 5.06
CP's PS Ratio is ranked lower than
85% of the 791 Companies
in the Global Railroads industry.

( Industry Median: 1.07 vs. CP: 5.06 )
Ranked among companies with meaningful PS Ratio only.
CP' s PS Ratio Range Over the Past 10 Years
Min: 1.06  Med: 2.39 Max: 6.57
Current: 5.06
1.06
6.57
Price-to-Free-Cash-Flow 30.11
CP's Price-to-Free-Cash-Flow is ranked lower than
75% of the 308 Companies
in the Global Railroads industry.

( Industry Median: 15.32 vs. CP: 30.11 )
Ranked among companies with meaningful Price-to-Free-Cash-Flow only.
CP' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 19.94  Med: 42.98 Max: 159.5
Current: 30.11
19.94
159.5
Price-to-Operating-Cash-Flow 14.48
CP's Price-to-Operating-Cash-Flow is ranked lower than
73% of the 471 Companies
in the Global Railroads industry.

( Industry Median: 7.78 vs. CP: 14.48 )
Ranked among companies with meaningful Price-to-Operating-Cash-Flow only.
CP' s Price-to-Operating-Cash-Flow Range Over the Past 10 Years
Min: 5.18  Med: 14.16 Max: 25.07
Current: 14.48
5.18
25.07
EV-to-EBIT 15.00
CP's EV-to-EBIT is ranked higher than
55% of the 871 Companies
in the Global Railroads industry.

( Industry Median: 14.84 vs. CP: 15.00 )
Ranked among companies with meaningful EV-to-EBIT only.
CP' s EV-to-EBIT Range Over the Past 10 Years
Min: 7.2  Med: 14.6 Max: 29.4
Current: 15
7.2
29.4
EV-to-EBITDA 12.05
CP's EV-to-EBITDA is ranked lower than
58% of the 928 Companies
in the Global Railroads industry.

( Industry Median: 10.34 vs. CP: 12.05 )
Ranked among companies with meaningful EV-to-EBITDA only.
CP' s EV-to-EBITDA Range Over the Past 10 Years
Min: 5.2  Med: 10.8 Max: 20.3
Current: 12.05
5.2
20.3
PEG Ratio 0.89
CP's PEG Ratio is ranked higher than
76% of the 315 Companies
in the Global Railroads industry.

( Industry Median: 1.98 vs. CP: 0.89 )
Ranked among companies with meaningful PEG Ratio only.
CP' s PEG Ratio Range Over the Past 10 Years
Min: 0.38  Med: 1.84 Max: 120.17
Current: 0.89
0.38
120.17
Shiller PE Ratio 34.58
CP's Shiller PE Ratio is ranked lower than
76% of the 212 Companies
in the Global Railroads industry.

( Industry Median: 22.18 vs. CP: 34.58 )
Ranked among companies with meaningful Shiller PE Ratio only.
CP' s Shiller PE Ratio Range Over the Past 10 Years
Min: 12.09  Med: 31.35 Max: 51.2
Current: 34.58
12.09
51.2
Current Ratio 0.94
CP's Current Ratio is ranked lower than
78% of the 774 Companies
in the Global Railroads industry.

( Industry Median: 1.19 vs. CP: 0.94 )
Ranked among companies with meaningful Current Ratio only.
CP' s Current Ratio Range Over the Past 10 Years
Min: 0.58  Med: 0.87 Max: 1.62
Current: 0.94
0.58
1.62
Quick Ratio 0.77
CP's Quick Ratio is ranked lower than
81% of the 774 Companies
in the Global Railroads industry.

( Industry Median: 1.09 vs. CP: 0.77 )
Ranked among companies with meaningful Quick Ratio only.
CP' s Quick Ratio Range Over the Past 10 Years
Min: 0.47  Med: 0.74 Max: 1.47
Current: 0.77
0.47
1.47
Days Inventory 73.31
CP's Days Inventory is ranked lower than
88% of the 633 Companies
in the Global Railroads industry.

( Industry Median: 10.84 vs. CP: 73.31 )
Ranked among companies with meaningful Days Inventory only.
CP' s Days Inventory Range Over the Past 10 Years
Min: 20.06  Med: 34.11 Max: 73.79
Current: 73.31
20.06
73.79
Days Sales Outstanding 36.89
CP's Days Sales Outstanding is ranked higher than
62% of the 582 Companies
in the Global Railroads industry.

( Industry Median: 43.32 vs. CP: 36.89 )
Ranked among companies with meaningful Days Sales Outstanding only.
CP' s Days Sales Outstanding Range Over the Past 10 Years
Min: 33.63  Med: 35.8 Max: 54.32
Current: 36.89
33.63
54.32
Days Payable 135.38
CP's Days Payable is ranked higher than
86% of the 489 Companies
in the Global Railroads industry.

( Industry Median: 37.49 vs. CP: 135.38 )
Ranked among companies with meaningful Days Payable only.
CP' s Days Payable Range Over the Past 10 Years
Min: 42.41  Med: 58.77 Max: 139.65
Current: 135.38
42.41
139.65

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield % 0.96
CP's Dividend Yield % is ranked lower than
85% of the 963 Companies
in the Global Railroads industry.

( Industry Median: 2.48 vs. CP: 0.96 )
Ranked among companies with meaningful Dividend Yield % only.
CP' s Dividend Yield % Range Over the Past 10 Years
Min: 0.58  Med: 1.25 Max: 3.01
Current: 0.96
0.58
3.01
Dividend Payout Ratio 0.20
CP's Dividend Payout Ratio is ranked higher than
95% of the 517 Companies
in the Global Railroads industry.

( Industry Median: 0.39 vs. CP: 0.20 )
Ranked among companies with meaningful Dividend Payout Ratio only.
CP' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.15  Med: 0.26 Max: 0.48
Current: 0.2
0.15
0.48
3-Year Dividend Growth Rate 9.70
CP's 3-Year Dividend Growth Rate is ranked higher than
61% of the 392 Companies
in the Global Railroads industry.

( Industry Median: 6.30 vs. CP: 9.70 )
Ranked among companies with meaningful 3-Year Dividend Growth Rate only.
CP' s 3-Year Dividend Growth Rate Range Over the Past 10 Years
Min: -3.1  Med: 5.7 Max: 20.1
Current: 9.7
-3.1
20.1
Forward Dividend Yield % 1.05
CP's Forward Dividend Yield % is ranked lower than
87% of the 915 Companies
in the Global Railroads industry.

( Industry Median: 2.61 vs. CP: 1.05 )
Ranked among companies with meaningful Forward Dividend Yield % only.
N/A
5-Year Yield-on-Cost % 1.35
CP's 5-Year Yield-on-Cost % is ranked lower than
88% of the 1059 Companies
in the Global Railroads industry.

( Industry Median: 3.35 vs. CP: 1.35 )
Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
CP' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.82  Med: 1.76 Max: 4.24
Current: 1.35
0.82
4.24
3-Year Average Share Buyback Ratio 5.90
CP's 3-Year Average Share Buyback Ratio is ranked higher than
97% of the 397 Companies
in the Global Railroads industry.

( Industry Median: -2.10 vs. CP: 5.90 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
CP' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -29.8  Med: 0.1 Max: 23
Current: 5.9
-29.8
23

Valuation & Return

vs
industry
vs
history
Price-to-Tangible-Book 6.44
CP's Price-to-Tangible-Book is ranked lower than
90% of the 731 Companies
in the Global Railroads industry.

( Industry Median: 1.28 vs. CP: 6.44 )
Ranked among companies with meaningful Price-to-Tangible-Book only.
CP' s Price-to-Tangible-Book Range Over the Past 10 Years
Min: 0.92  Med: 2.06 Max: 7.78
Current: 6.44
0.92
7.78
Price-to-Intrinsic-Value-Projected-FCF 2.80
CP's Price-to-Intrinsic-Value-Projected-FCF is ranked lower than
78% of the 356 Companies
in the Global Railroads industry.

( Industry Median: 1.28 vs. CP: 2.80 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-Projected-FCF only.
CP' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 0.89  Med: 2.45 Max: 7.07
Current: 2.8
0.89
7.07
Price-to-Median-PS-Value 2.12
CP's Price-to-Median-PS-Value is ranked lower than
90% of the 684 Companies
in the Global Railroads industry.

( Industry Median: 1.08 vs. CP: 2.12 )
Ranked among companies with meaningful Price-to-Median-PS-Value only.
CP' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.5  Med: 0.91 Max: 2.65
Current: 2.12
0.5
2.65
Price-to-Peter-Lynch-Fair-Value 0.93
CP's Price-to-Peter-Lynch-Fair-Value is ranked higher than
70% of the 166 Companies
in the Global Railroads industry.

( Industry Median: 1.39 vs. CP: 0.93 )
Ranked among companies with meaningful Price-to-Peter-Lynch-Fair-Value only.
CP' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.44  Med: 1.42 Max: 6.29
Current: 0.93
0.44
6.29
Price-to-Graham-Number 2.46
CP's Price-to-Graham-Number is ranked lower than
81% of the 502 Companies
in the Global Railroads industry.

( Industry Median: 1.05 vs. CP: 2.46 )
Ranked among companies with meaningful Price-to-Graham-Number only.
CP' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.6  Med: 1.16 Max: 3.06
Current: 2.46
0.6
3.06
Earnings Yield (Greenblatt) % 6.66
CP's Earnings Yield (Greenblatt) % is ranked higher than
63% of the 1060 Companies
in the Global Railroads industry.

( Industry Median: 5.78 vs. CP: 6.66 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) % only.
CP' s Earnings Yield (Greenblatt) % Range Over the Past 10 Years
Min: 3.4  Med: 6.8 Max: 13.8
Current: 6.66
3.4
13.8
Forward Rate of Return (Yacktman) % 24.69
CP's Forward Rate of Return (Yacktman) % is ranked higher than
87% of the 472 Companies
in the Global Railroads industry.

( Industry Median: 5.16 vs. CP: 24.69 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) % only.
CP' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -0.9  Med: 7.45 Max: 26.8
Current: 24.69
-0.9
26.8

More Statistics

Revenue (TTM) (Mil) $4,735
EPS (TTM) $ 7.60
Beta1.04
Short Percentage of Float0.48%
52-Week Range $119.50 - 160.45
Shares Outstanding (Mil)146.75

Analyst Estimate

Dec17 Dec18 Dec19
Revenue (Mil $) 4,641 4,879 5,082
EPS ($) 8.37 9.35 10.45
EPS without NRI ($) 8.37 9.35 10.45
EPS Growth Rate
(Future 3Y To 5Y Estimate)
N/A
Dividends per Share ($)
» More Articles for CP

Headlines

Articles On GuruFocus.com
Sarah Ketterer Gains 4 Stocks in 1st Quarter May 19 2017 
CP commends Transport Minister for leadership on LVVR, reviewing details of Transportation Moderniza May 16 2017 
CP, TCRC-MWED reach tentative, five-year agreement May 12 2017 
CP's President and CEO to address investor conference May 24 May 11 2017 
CP announces results of annual meeting of shareholders and director elections May 10 2017 
CP Canada 150 Train #ConnectingCanada and rocking the nation this summer with cross-country block pa May 10 2017 
CP announces intention to launch new share repurchase program and increases dividend by 12.5 percent May 10 2017 
CP's Chief Financial Officer to address investor conference May 18 May 09 2017 
Bill Ackman Comments on Canadian Pacific Railway May 08 2017 
CP celebrates grand opening of K+S Potash Canada's Legacy mine; CP's most significant engineering pr May 02 2017 

More From Other Websites
Sarah Ketterer Gains 4 Stocks in 1st Quarter May 19 2017
CP reviewing details of Transportation Modernization Act, supports amendments that improve supply... May 18 2017
CP commends Transport Minister for leadership on LVVR, reviewing details of Transportation... May 16 2017
Canadian Pacific Railway: A Summary of Freight Traffic in Week 18 May 16 2017
Canadian National Railway: Non-Coal Volumes Lift Carloads in Week 18 May 16 2017
Canadian National Railway: Intermodal Growth Continues in Week 18 May 15 2017
CP, TCRC-MWED reach tentative, five-year agreement May 12 2017
CP's President and CEO to address investor conference May 24 May 11 2017
CP announces results of annual meeting of shareholders and director elections May 10 2017
CP Canada 150 Train #ConnectingCanada and rocking the nation this summer with cross-country block... May 10 2017
Coal Boosts Canadian Pacific’s Volumes in Week 17 May 10 2017
CP announces intention to launch new share repurchase program and increases dividend by 12.5 percent May 10 2017
CP's Chief Financial Officer to address investor conference May 18 May 09 2017

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