Canadian Pacific Kansas City Limited Common Shares (CP)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses with durable advantages and conservative finances. CPKC is a transcontinental railway linking Canada, the United States, and Mexico. Its network is hard to replicate and moves essential freight—grain, coal, potash, fertilizers, intermodal goods—so it has the feel of a wide moat. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $4.1B, net income was $1.0B, and diluted EPS was $1.15. Revenue rose from $3.7B in fiscal Q2 2025, the quarter ended 2025-06-30, but net income fell from $1.2B and EPS from $1.33. For fiscal 2025, the year ended 2025-12-31, revenue was $15.0B, net income $4.1B, and EPS $4.51, up from fiscal 2024, the year ended 2024-12-31, when revenue was $14.4B, net income $3.7B, and EPS $3.98. Still, fiscal 2024 net income was below fiscal 2023's $3.9B, so growth has been uneven. The balance sheet shows debt-to-equity of 0.53, and FairStock's Piotroski F-Score is 7/9, but its Altman Z-Score is 1.46. Returns are modest: ROE 8.15% and ROCE 4.44%. Free cash flow is $2.4B, a 3.2% FCF yield. At the 2026-10-13 close of $85.73, FairStock's P/E is 27.93 and P/B is 2.26. Its Graham Number is $60.43, implying a -41.87% margin of safety, so the price is well above a conservative asset-and-earnings value. FairStock's Lynch category is STALWART, based on 11.1% a year profit growth over five years and 14.4% revenue growth. The quality is real, but the price already assumes a lot.

In plain English: Canadian Pacific Kansas City runs a large freight railway across Canada, the United States, and Mexico, carrying grain, coal, consumer goods, and other cargo. The business is an essential, steady transporter, but it is not growing profits smoothly right now. At the recent price of $85.73, the shares look expensive compared with the company's earnings and a conservative value estimate.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer