5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Canadian Pacific Kansas City's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was -8.67%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
CP's 5-Year ROIIC % is ranked worse than 80.57% of 875
companies
in the Transportation industry
Industry Median: 4.84
vs CP: -8.67
Canadian Pacific Kansas City (NYSE:CP) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Canadian Pacific Kansas City 5-Year ROIIC % Related Terms
Canadian Pacific Kansas City 5-Year ROIIC % 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.
For the Railroads subindustry, Canadian Pacific Kansas City's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Transportation Industry
For the Transportation industry and Industrials sector, Canadian Pacific Kansas City's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Canadian Pacific Kansas City's 5-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Canadian Pacific Kansas City (CP) has a 5-Year ROIIC % of -8.67 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Canadian Pacific Kansas City and its competitors. According to the industry distribution chart, Canadian Pacific Kansas City ranks #705 out of 875 companies in the Transportation industry, placing it in the top 80.6%.
Is Canadian Pacific Kansas City's 5-Year ROIIC % too high?
Canadian Pacific Kansas City's current 5-Year ROIIC % is -8.67. Based on the distribution chart, Canadian Pacific Kansas City ranks #705 out of 875 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 5-Year ROIIC % compare to UNP and CSX?
According to the Transportation industry distribution chart, Canadian Pacific Kansas City ranks #705 out of 875 companies for 5-Year ROIIC %. This places Canadian Pacific Kansas City in the lower half of its industry. The industry median 5-Year ROIIC % is 4.84. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for a Transportation company?
The median 5-Year ROIIC % among Transportation companies is 4.84, based on 875 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Canadian Pacific Kansas City and its competitors. For the Transportation industry, the median 5-Year ROIIC % is 4.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canadian Pacific Kansas City's current 5-Year ROIIC % is -8.67. 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 $85.19, compared to a current price of $87.79 — trading 3.1% above its estimated fair value. The current 5-Year ROIIC % is -8.67. 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 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Canadian Pacific Kansas City (CP), the current 5-Year ROIIC % is -8.67 as of Dec. 2025. 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 $87.79 is trading 3.1% above its estimated GF Value™ of $85.19.
GuruFocus considers Canadian Pacific Kansas City to be Fairly Valued.
Key valuation signals for CP:
5-Year ROIIC %: -8.67
GF Value™: $85.19 vs. price of $87.79 (3.1% above fair value)
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
Get the complete analysis for CP
5-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
CP has been successfully added to your 
