Canadian Pacific Kansas City (NYSE:CP) GF Value Rank

: 5 (As of Today)

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Canadian Pacific Kansas City has the GF Value Rank of 5.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison

For the Railroads subindustry, Canadian Pacific Kansas City's GF Value Rank, along with its competitors' market caps and GF Value Rank 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.

Annual Data Quarterly Data

Canadian Pacific Kansas City GF Value Rank Distribution

For the Transportation industry and Industrials sector, Canadian Pacific Kansas City's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Canadian Pacific Kansas City's GF Value Rank falls in comparison to its industry or sector. The grey bar indicates the GF Value Rank's extreme value range as defined by GuruFocus.

Canadian Pacific Kansas City GF Value Rank Related Terms

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Canadian Pacific Kansas City (NYSE:CP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Canadian Pacific Kansas City Ltd (NYSE:CP) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

CP:Canada CPRL34:Brazil

Address

7550 Ogden Dale Road S.E., Calgary, AB, CAN, T2C 4X9

Website

https://www.cpr.ca

Canadian Pacific Kansas City is a Class-1 railroad operating on track that spans across most of Canada and into parts of the Midwestern and Northeastern United States. Following the April 2023 Kansas City Southern merger, CP operates new single-line-haul 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 3,300 miles of rail in Mexico. CP 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.

Executives

John Kenneth Brooks	officer: SVP & Chief Marketing Officer	7550 OGDEN DALE ROAD S.E., CALGARY A0 T2C 4X9
Clements James Dominic Luther	officer: VP Planning & Transportation	7550 OGDEN DALE ROAD S.E., CALGARY A0 T2C 4X9
Mike Foran	officer: VP Network Transportation	7550 OGDEN DALE ROAD S.E., CALGARY A0 T2C 4X9
Trafton Gordon T. Ii	director	2632 SUTTON CIRCLE, NAPERVILLE IL 60564
Jane L Peverett	director	1489 MARINE DRIVE, SUITE 802, WEST VANCOUVER A1 V7T 1B8
John E Derry	officer: Vice-President Human Resources	7550 OGDEN DALE ROAD S.E., CALGARY A0 T2C 4X9
Robert Allen Johnson	officer: Executive VP Operations	7550 OGDEN DALE ROAD S.E., CALGARY A0 T2C 4X9
Gillian H Denham	director	C/O CANADIAN PACIFIC RAILWAY LIMITED, 7550 OGDEN DALE ROAD S.E., CALGARY A0 T2C 4X9
William R. Fatt	director	129 ROCHESTER AVENUE, TORONTO A6 M4N 1N9
Nadeem Velani	officer: Interim VP and CFO	7550 OGDEN DALE ROAD S. E., CALGARY A0 T2C 4X9
Matthew H Paull	director	MCDONALDS CORP, 2915 JORIE BLVD, OAK BROOK IL 60523
Andrew Fitzpatrick Reardon	director	C/O CANADIAN PACIFIC RAILWAY LIMITED, 7550 OGDEN DALE ROAD S.E., CALGARY A0 T2C 4X9
Anthony Ronald Melman	director	150 BLOOR STREET WEST, TORONTO A6 M5S 2X9
Laird Joseph Pitz	officer: VP & Chief Risk Officer	7550 OGDEN DALE ROAD S.E., CALGARY A0 T2C 4X9
Peter John Edwards	officer: VP HR & Labour Relations	7550 OGDEN DALE ROAD S.E., CALGARY A0 T2C 4X9