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Canadian Pacific Kansas CityCP 83 ROC (Joel Greenblatt) % is 9.78% as of Mar. 2026, which is 44% below its 10-year median of 17.41. GuruFocus rates CP with a GF Score™ of 83/100 and a GF Value™ of $87.17 (Fairly Valued). The stock has 10 warning signs investors should review. Among 997 Transportation companies, Canadian Pacific Kansas City ranks worse than 51.86% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Canadian Pacific Kansas City's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 9.78%.
The historical rank and industry rank for Canadian Pacific Kansas City's ROC (Joel Greenblatt) % or its related term are showing as below:
CP'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -6.25 Med: 17.41 Max: 21.74
Current: 11.36
During the past 13 years, Canadian Pacific Kansas City's highest ROC (Joel Greenblatt) % was 21.74%. The lowest was -6.25%. And the median was 17.41%.
CP's ROC (Joel Greenblatt) % is ranked worse than 51.86% of 997
companies
in the Transportation industry
Industry Median: 11.75
vs CP: 11.36
Canadian Pacific Kansas City (NYSE:CP) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
* 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 ROC (Joel Greenblatt) % Chart
CP vs UNP, CSX, NSC: ROC (Joel Greenblatt) % Comparison
For the Railroads subindustry, Canadian Pacific Kansas City's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Transportation Industry
For the Transportation industry and Industrials sector, Canadian Pacific Kansas City's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Canadian Pacific Kansas City's ROC (Joel Greenblatt) % falls into.
Canadian Pacific Kansas City ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 9.78% mean?
Canadian Pacific Kansas City (CP) has a ROC (Joel Greenblatt) % of 9.78% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Canadian Pacific Kansas City and its competitors. This is 44% below median its historical median of 17.41. According to the industry distribution chart, Canadian Pacific Kansas City ranks #517 out of 997 companies in the Transportation industry, placing it in the top 51.9%.
Is Canadian Pacific Kansas City's ROC (Joel Greenblatt) % too high?
Canadian Pacific Kansas City's current ROC (Joel Greenblatt) % of 9.78% is 44% below median its 10-year median of 17.41. The Transportation industry median ROC (Joel Greenblatt) % is 11.75. Canadian Pacific Kansas City's value of 9.78% is 16.8% below this industry median. Based on the distribution chart, Canadian Pacific Kansas City ranks #517 out of 997 companies in the Transportation industry, which is below the industry midpoint. Overall, Canadian Pacific Kansas City has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Canadian Pacific Kansas City's ROC (Joel Greenblatt) % compare to UNP and CSX?
According to the Transportation industry distribution chart, Canadian Pacific Kansas City ranks #517 out of 997 companies for ROC (Joel Greenblatt) %. This places Canadian Pacific Kansas City in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 11.75. Canadian Pacific Kansas City's value of 9.78% is 16.8% below this benchmark. While the company's 10-year median is 17.41 vs. the industry median of 11.75, 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 ROC (Joel Greenblatt) % for a Transportation company?
The median ROC (Joel Greenblatt) % among Transportation companies is 11.75, based on 997 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Canadian Pacific Kansas City's current ROC (Joel Greenblatt) % of 9.78% is 16.8% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Canadian Pacific Kansas City and its competitors. For the Transportation industry, the median ROC (Joel Greenblatt) % is 11.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canadian Pacific Kansas City's current ROC (Joel Greenblatt) % is 9.78%, which is 44% below median its own 10-year median of 17.41. 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 $87.17, compared to a current price of $91.35 — trading 4.8% above its estimated fair value. The current ROC (Joel Greenblatt) % is 9.78%, which is 44% below median its 10-year median of 17.41 and 16.8% below the Transportation industry median of 11.75. Canadian Pacific Kansas City's overall GF Score™ is 83/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Canadian Pacific Kansas City (CP), the current ROC (Joel Greenblatt) % is 9.78% 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 $91.35 is trading 4.8% above its estimated GF Value™ of $87.17.
GuruFocus considers Canadian Pacific Kansas City to be Fairly Valued.
Key valuation signals for CP:
ROC (Joel Greenblatt) %: 9.78% (44% below median its 10-year median of 17.41)
GF Value™: $87.17 vs. price of $91.35 (4.8% above fair value)
Industry Position: 16.8% below the Transportation median (#517 of 997)
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.
83GF Score
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