Canadian Pacific Kansas CityCP -0.60%80 Interest Coverage is 5.52 as of Mar. 2026, which is 10% below its 10-year median of 6.13. GuruFocus rates CP with a GF Score™ of 80/100 and a GF Value™ of $86.98 (Fairly Valued). The stock has 7 warning signs investors should review. Among 846 Transportation companies, Canadian Pacific Kansas City ranks worse than 118203.19% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Canadian Pacific Kansas City's
Operating Income
for the
three
months ended in Mar. 2026 was $917 Mil. Canadian Pacific Kansas City's Interest Expense for the
three
months ended in Mar. 2026 was $-166 Mil.
Canadian Pacific Kansas City's interest coverage for the quarter that ended in Mar. 2026 was 5.52.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Canadian Pacific Kansas City's Interest Coverage or its related term are showing as below:
CP's Interest Coverage is not ranked *
in the Transportation industry.
Industry Median: 5.67 * Ranked among companies with meaningful Interest Coverage only.
Canadian Pacific Kansas City (NYSE:CP) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Canadian Pacific Kansas City Interest Coverage Related Terms
Canadian Pacific Kansas City Interest Coverage Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
Canadian Pacific Kansas City Interest Coverage Chart
For the Railroads subindustry, Canadian Pacific Kansas City's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Canadian Pacific Kansas City Interest Coverage vs Transportation Industry
For the Transportation industry and Industrials sector, Canadian Pacific Kansas City's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Canadian Pacific Kansas City's Interest Coverage falls into.
Canadian Pacific Kansas City Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Canadian Pacific Kansas City (CP) has a Interest Coverage of 5.52 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Canadian Pacific Kansas City and its competitors. This is 10% below median its historical median of 6.13. According to the industry distribution chart, Canadian Pacific Kansas City ranks #999999 out of 846 companies in the Transportation industry.
Is Canadian Pacific Kansas City's Interest Coverage too high?
Canadian Pacific Kansas City's current Interest Coverage of 5.52 is 10% below median its 10-year median of 6.13. The Transportation industry median Interest Coverage is 5.67. Canadian Pacific Kansas City's value of 5.52 is 2.6% below this industry median. Based on the distribution chart, Canadian Pacific Kansas City ranks #999999 out of 846 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Canadian Pacific Kansas City has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Canadian Pacific Kansas City's Interest Coverage compare to UNP and CSX?
According to the Transportation industry distribution chart, Canadian Pacific Kansas City ranks #999999 out of 846 companies for Interest Coverage. This places Canadian Pacific Kansas City in the lower half of its industry. The industry median Interest Coverage is 5.67. Canadian Pacific Kansas City's value of 5.52 is 2.6% below this benchmark. While the company's 10-year median is 6.13 vs. the industry median of 5.67, Canadian Pacific Kansas City has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Transportation company?
The median Interest Coverage among Transportation companies is 5.67, based on 846 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Canadian Pacific Kansas City's current Interest Coverage of 5.52 is 2.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Canadian Pacific Kansas City and its competitors. For the Transportation industry, the median Interest Coverage is 5.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canadian Pacific Kansas City's current Interest Coverage is 5.52, which is 10% below median its own 10-year median of 6.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Canadian Pacific Kansas City stock overvalued right now?
Based on GuruFocus' analysis, Canadian Pacific Kansas City (CP) is currently considered Fairly Valued. The stock's GF Value™ is $86.98, compared to a current price of $84.78 — trading 2.5% below its estimated fair value. The current Interest Coverage is 5.52, which is 10% below median its 10-year median of 6.13 and 2.6% below the Transportation industry median of 5.67. Canadian Pacific Kansas City's overall GF Score™ is 80/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Canadian Pacific Kansas City (CP), the current Interest Coverage is 5.52 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Canadian Pacific Kansas City (CP) Overvalued in 2026?
Based on GuruFocus' analysis, Canadian Pacific Kansas City stock appears to be undervalued.
The current stock price of $84.78 is trading 2.5% below its estimated GF Value™ of $86.98.
GuruFocus considers Canadian Pacific Kansas City to be Fairly Valued.
Key valuation signals for CP:
Interest Coverage: 5.52 (10% below median its 10-year median of 6.13)
GF Value™: $86.98 vs. price of $84.78 (2.5% below fair value)
Industry Position: 2.6% below the Transportation median (#999999 of 846)
No single metric tells the full story. See the CP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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. Following the April 2023 Kansas City Southern merger, CPKC operates new single-linehaul services from Canada and the Upper Midwest down through Texas, the Gulf of Mexico, and into Mexico. It also hauls cross-border and intra-Mexico freight via operating concessions on more than 3,000 miles of rail in Mexico. CPKC hauls shipments of grain, intermodal containers, energy products (like crude and frac sand), chemicals, plastics, coal, fertilizer and potash, automotive products, and a diverse mix of other merchandise.
80GF Score
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