Canadian Pacific Kansas City Ltd. (CP.TO) stock analysis

In our weekly check, Canadian Pacific Kansas City Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 3, red flags: 4.

About Canadian Pacific Kansas City Ltd.

Canadian Pacific Kansas City Ltd. is an Industrials company (Railroads) based in Canada, listed on TSX as CP.TO.

What our checks show for CP.TO

Red flags

• The net margin fell by 10.6 points over 5 years, to 25%: the company keeps less of each sale as profit.
• The gross margin fell by 9.7 points, to 47.7%: costs are rising faster than prices.
• The stock has fallen as much as 63% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.5 years.

Warning signs

• Analysts expect only about 3.8% a year of growth in revenue.
• Beta 1.22: the stock usually moves more than the market, both up and down.
• Return on capital (ROCE) is only 7.5%.

Strengths

• Operating cash flow is 1.42x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 15.8% a year over the next years.
• Analysts expect the net margin to improve by 8.7 points from today's 25%.
• Revenue grew 24.2% a year over the last 3 years.
• The company keeps 25% of its revenue as net profit.
• Free cash flow is 15.2% of revenue: cash for dividends, buybacks or growth.

Next earnings report: 2026-10-28

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CNI · NSC · CSX · WAB · UNP

Questions

What grade does Canadian Pacific Kansas City Ltd. (CP.TO) have?

In our weekly check, Canadian Pacific Kansas City Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 3, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of CP.TO stock?

This week's biggest flags for Canadian Pacific Kansas City Ltd.: Margins falling, Gross margin falling, Deep past fall. In total 7 of 25 checks show a warning or a red flag.

What does Canadian Pacific Kansas City Ltd. do?

Canadian Pacific Kansas City Ltd. is an Industrials company (Railroads) based in Canada, listed on TSX as CP.TO.

When does Canadian Pacific Kansas City Ltd. report earnings next?

The next earnings report is expected on 2026-10-28. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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