Canadian Pacific Kansas CityCP -0.60%80 Pretax Margin % is 30.26% as of Mar. 2026, which is 19% below its 10-year median of 37.24. 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 1,005 Transportation companies, Canadian Pacific Kansas City ranks better than 91.74% on this metric.
The historical rank and industry rank for Canadian Pacific Kansas City's Pretax Margin % or its related term are showing as below:
CP'
s Pretax Margin % Range Over the Past 10 Years
Min: -24.32 Med: 37.24 Max: 47.03
Current: 36.05
CP's Pretax Margin % is ranked better than 91.74% of 1005
companies
in the Transportation industry
Industry Median: 6.77
vs CP: 36.05
Canadian Pacific Kansas City (NYSE:CP) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Canadian Pacific Kansas City Pretax Margin % Related Terms
Canadian Pacific Kansas City Pretax Margin % 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.
Canadian Pacific Kansas City Pretax Margin % Chart
For the Railroads subindustry, Canadian Pacific Kansas City's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Canadian Pacific Kansas City's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Canadian Pacific Kansas City's Pretax Margin % falls into.
* 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 Pretax Margin % of 30.26% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Canadian Pacific Kansas City and its competitors. This is 19% below median its historical median of 37.24. According to the industry distribution chart, Canadian Pacific Kansas City ranks #83 out of 1005 companies in the Transportation industry, placing it in the top 8.3%.
Is Canadian Pacific Kansas City's Pretax Margin % too high?
Canadian Pacific Kansas City's current Pretax Margin % of 30.26% is 19% below median its 10-year median of 37.24. The Transportation industry median Pretax Margin % is 6.77. Canadian Pacific Kansas City's value of 30.26% is 347% above this industry median. Based on the distribution chart, Canadian Pacific Kansas City ranks #83 out of 1005 companies in the Transportation industry, which is in the top quartile — a strong position 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 Pretax Margin % compare to UNP and CSX?
According to the Transportation industry distribution chart, Canadian Pacific Kansas City ranks #83 out of 1005 companies for Pretax Margin %. This places Canadian Pacific Kansas City in the top 8% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 6.77. Canadian Pacific Kansas City's value of 30.26% is 347% above this benchmark. While the company's 10-year median is 37.24 vs. the industry median of 6.77, Canadian Pacific Kansas City has consistently been above 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 Pretax Margin % for a Transportation company?
The median Pretax Margin % among Transportation companies is 6.77, based on 1,005 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Canadian Pacific Kansas City's current Pretax Margin % of 30.26% is 347% above 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Canadian Pacific Kansas City and its competitors. For the Transportation industry, the median Pretax Margin % is 6.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canadian Pacific Kansas City's current Pretax Margin % is 30.26%, which is 19% below median its own 10-year median of 37.24. 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 Pretax Margin % is 30.26%, which is 19% below median its 10-year median of 37.24 and 347% above the Transportation industry median of 6.77. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Canadian Pacific Kansas City (CP), the current Pretax Margin % is 30.26% 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:
Pretax Margin %: 30.26% (19% below median its 10-year median of 37.24)
GF Value™: $86.98 vs. price of $84.78 (2.5% below fair value)
Industry Position: 347% above the Transportation median (#83 of 1005)
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.
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