Canadian Pacific Kansas CityCP +0.24%80 Return-on-Tangible-Asset is 5.27% as of Mar. 2026, which is 29% below its 10-year median of 7.44. GuruFocus rates CP with a GF Score™ of 80/100 and a GF Value™ of $86.81 (Fairly Valued). The stock has 7 warning signs investors should review. Among 1,009 Transportation companies, Canadian Pacific Kansas City ranks better than 70.27% on this metric.
The historical rank and industry rank for Canadian Pacific Kansas City's Return-on-Tangible-Asset or its related term are showing as below:
CP'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 4.99 Med: 7.44 Max: 12.34
Current: 6.31
During the past 13 years, Canadian Pacific Kansas City's highest Return-on-Tangible-Asset was 12.34%. The lowest was 4.99%. And the median was 7.44%.
CP's Return-on-Tangible-Asset is ranked better than 70.27% of 1009
companies
in the Transportation industry
Industry Median: 3.76
vs CP: 6.31
Canadian Pacific Kansas City (NYSE:CP) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Canadian Pacific Kansas City Return-on-Tangible-Asset Related Terms
Canadian Pacific Kansas City Return-on-Tangible-Asset 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 Return-on-Tangible-Asset Chart
CP vs UNP, CSX, NSC: Return-on-Tangible-Asset Comparison
For the Railroads subindustry, Canadian Pacific Kansas City's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Transportation Industry
For the Transportation industry and Industrials sector, Canadian Pacific Kansas City's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Canadian Pacific Kansas City's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 5.27% mean?
Canadian Pacific Kansas City (CP) has a Return-on-Tangible-Asset of 5.27% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Canadian Pacific Kansas City and its competitors. This is 29% below median its historical median of 7.44. Over the past decade, Canadian Pacific Kansas City's Return-on-Tangible-Asset has ranged from 4.99 to 12.34. According to the industry distribution chart, Canadian Pacific Kansas City ranks #300 out of 1009 companies in the Transportation industry, placing it in the top 29.7%.
Is Canadian Pacific Kansas City's Return-on-Tangible-Asset too high?
Canadian Pacific Kansas City's current Return-on-Tangible-Asset of 5.27% is 29% below median its 10-year median of 7.44. Over the past 10 years, this metric has ranged from a low of 4.99 to a high of 12.34. The Transportation industry median Return-on-Tangible-Asset is 3.76. Canadian Pacific Kansas City's value of 5.27% is 40.2% above this industry median. Based on the distribution chart, Canadian Pacific Kansas City ranks #300 out of 1009 companies in the Transportation industry, which is above the industry midpoint. 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 Return-on-Tangible-Asset compare to UNP and CSX?
According to the Transportation industry distribution chart, Canadian Pacific Kansas City ranks #300 out of 1009 companies for Return-on-Tangible-Asset. This puts Canadian Pacific Kansas City in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.76. Canadian Pacific Kansas City's value of 5.27% is 40.2% above this benchmark. Historically, Canadian Pacific Kansas City's own Return-on-Tangible-Asset has ranged from 4.99 to 12.34 over the past decade. While the company's 10-year median is 7.44 vs. the industry median of 3.76, 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 Return-on-Tangible-Asset for a Transportation company?
The median Return-on-Tangible-Asset among Transportation companies is 3.76, based on 1,009 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Canadian Pacific Kansas City's current Return-on-Tangible-Asset of 5.27% is 40.2% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Canadian Pacific Kansas City and its competitors. For the Transportation industry, the median Return-on-Tangible-Asset is 3.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canadian Pacific Kansas City's current Return-on-Tangible-Asset is 5.27%, which is 29% below median its own 10-year median of 7.44. 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 $86.81, compared to a current price of $88.00 — trading 1.4% above its estimated fair value. The current Return-on-Tangible-Asset is 5.27%, which is 29% below median its 10-year median of 7.44 and 40.2% above the Transportation industry median of 3.76. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Canadian Pacific Kansas City (CP), the current Return-on-Tangible-Asset is 5.27% 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 overvalued.
The current stock price of $88.00 is trading 1.4% above its estimated GF Value™ of $86.81.
GuruFocus considers Canadian Pacific Kansas City to be Fairly Valued.
Key valuation signals for CP:
Return-on-Tangible-Asset: 5.27% (29% below median its 10-year median of 7.44)
GF Value™: $86.81 vs. price of $88.00 (1.4% above fair value)
Industry Position: 40.2% above the Transportation median (#300 of 1009)
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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