Canadian Pacific Kansas City LimitedCP
NYSE•Industrials•Railroads
Canadian Pacific Kansas City Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada, the United States, and Mexico. The transports bulk commodities, including grain, coal, potash, fertilizers, and sulphur; merchandise freight consists of industrial and consumer products, such as forest products, energy, chemicals and plastics, metals, minerals, consumer products, and automotive; and intermodal traffic comprising retail goods in overseas containers. The company also provides rail and intermodal transportation services through a network of approximately 20,000 miles serving business centers. The company was formerly known as Canadian Pacific Railway Limited and changed its name to Canadian Pacific Kansas City Limited in April 2023. Canadian Pacific Kansas City Limited was founded in 1881 and is headquartered in Calgary, Canada.
Canadian Pacific Kansas City Li (CP) reported trailing twelve months revenue of $14.98B as of March 2026, a 1.1% increase year-over-year. Quarterly revenue reached $3.70B, reflecting continued top-line momentum.
Canadian Pacific Kansas City Li generated $4.08B in TTM net income, with quarterly EBITDA of $1.77B. The operating margin contracted from 34.7% to 34.0%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (34.0%) and net margin (22.9%) indicates moderate non-operating costs. Net margin has narrowed from 24.0% a year ago, reflecting increased costs or interest expense.
CP trades at a P/E of 17.1x (in line with broad market averages) and a P/S of 4.6x. The price-to-book ratio of 1.5x reflects a moderate premium to book value.
The company generated $312.00M in free cash flow over the trailing twelve months, a 29.9% decrease year-over-year, indicating cash generation ability. The balance sheet shows $87.68B in total assets with $21.88B in long-term debt against $46.45B in stockholders equity for a debt-to-equity ratio of 0.5, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~36.5%, suggesting durable pricing power and cost discipline.
ROE is positive at ~8.5% on average, adequate but below the threshold typically associated with wide moats.
8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (6 of 7 quarters up), with ~5.2% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~37.0% — no sign of cost or pricing stress.
FCF consistently trails net income (avg 0.6x) — earnings may be inflated by non-cash items or aggressive accounting.
D/E ratio is 0.5 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 3.9% — net buybacks are reducing shares outstanding and boosting per-share value.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation