CANADIAN PACIFIC RAILWAY Reports Record Breaking Q4 Earnings of CAD 1.3 Billion, 139.6% Increase YOY.

February 7, 2023

Categories: Earnings Report, RailroadsTags: , , Views: 80

Earnings report

CANADIAN PACIFIC RAILWAY ($TSX:CP), a Canadian transportation and logistics company, reported record-breaking Q4 earnings of CAD 1.3 billion for their FY2022, a 139.6% increase year-over-year. The company’s net income for the period was CAD 2.5 billion, a 20.6% increase from the prior year period. CANADIAN PACIFIC RAILWAY is the second largest freight railway network in Canada, and the only transcontinental railway in North America with direct links to the Atlantic and Pacific Oceans. It transports a variety of goods, including grain, minerals, coal, intermodal containers, and automotive products. The company reported that its revenue was mainly driven by strong market demand in the fourth quarter of its FY2022, coupled with increased shipments of non-bulk commodities, such as automotive parts. It also noted strong demand for its intermodal services and increased shipments of bulk commodities such as grain and minerals.

The company attributed its success in the quarter to its strategic investments in technology, its focus on providing enhanced customer service, and its commitment to safety, efficiency, and sustainability. It also noted its commitment to reducing its environmental footprint and supporting sustainability initiatives throughout its operations. Overall, CANADIAN PACIFIC RAILWAY’s Q4 earnings report was an impressive demonstration of the company’s ability to deliver strong financial performance and remain competitive in a rapidly changing freight transportation industry. With continued investments in technology and sustainability initiatives, CANADIAN PACIFIC RAILWAY is well positioned to continue to deliver strong results for shareholders in the future.

Stock Price

On Tuesday, CANADIAN PACIFIC RAILWAY reported record breaking earnings of CAD 1.3 billion for the fourth quarter, showing a 139.6% increase year over year. The company’s stock opened at CA$103.9 and closed at CA$105.0, up by 1.4% from the last closing price of CA$103.6. This was mainly attributed to increased volumes and strong pricing in its freight business. Despite this, the railway company’s operating margin still increased by 3 percentage points from a year earlier.

The company’s net earnings of CAD 1.3 billion was a record breaking amount for the fourth quarter and was up 139.6% from the same quarter last year. This was mainly attributed to the increase in revenue and strong cost management initiatives. The company’s stock opened at CA$103.9 and closed at CA$105.0, up by 1.4% from the last closing price of CA$103.6. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for CP. More…

    Total Revenues Net Income Net Margin
    8.81k 3.52k 39.9%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for CP. More…

    Operations Investing Financing
    4.14k -1.5k -2.3k
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for CP. More…

    Total Assets Total Liabilities Book Value Per Share
    73.5k 34.61k 40.66
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for CP are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    4.2% 0.8% 54.4%
    FCF Margin ROE ROA
    29.3% 7.8% 4.1%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis

    GoodWhale can provide investors with an insight into the financials of CANADIAN PACIFIC RAILWAY. GoodWhale’s Risk Rating analyses the company’s financial and business aspects to determine its risk profile. According to GoodWhale, CANADIAN PACIFIC RAILWAY is a medium risk investment. GoodWhale’s analysis also looks for potential risks and warnings in the company’s balance sheet and cashflow statement. GoodWhale has detected 2 risk warnings in these areas, which investors can review when they register with GoodWhale. GoodWhale’s platform provides investors with a comprehensive view of the company they are investing in. Investors can use GoodWhale to compare the company’s financials against industry benchmarks, as well as assess its growth potential, debt levels and other financial metrics. GoodWhale also offers insights into the company’s competitive landscape, risk management strategies and overall financial health. Investors who choose to invest in CANADIAN PACIFIC RAILWAY can take comfort in knowing that GoodWhale has done a thorough analysis of the company’s financials and business aspects, and has given it a medium risk rating. By registering with GoodWhale, investors can also review the 2 risk warnings in the company’s balance sheet and cashflow statement. With this information, investors can make an informed decision about whether to invest in CANADIAN PACIFIC RAILWAY. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis


  • Peers

    The company was founded in 1881 and is headquartered in Calgary, Alberta. The Canadian Pacific Railway is the second largest railway company in North America by revenue, after Union Pacific Corporation. The company’s main competitors are CSX Corporation, Canadian National Railway Company, and Union Pacific Corporation.

    – CSX Corp ($NASDAQ:CSX)

    CSX Corp is a publicly traded company with a market capitalization of $61.1 billion as of 2022. The company has a return on equity of 29.02%. CSX Corp is a diversified transportation company that provides rail, intermodal, and coal transportation services throughout the United States. The company operates approximately 21,000 route miles of track and serves more than 2,000 customers. CSX Corp’s customers include major shippers, such as General Electric, Procter & Gamble, and Ford Motor Company.

    – Canadian National Railway Co ($TSX:CNR)

    Canadian National Railway Co has a market cap of 109.41B as of 2022. The company has a return on equity of 20.67%. It is engaged in the operation of rail transportation services in Canada and the United States.

    – Union Pacific Corp ($NYSE:UNP)

    Union Pacific Corporation is an American railroad conglomerate based in Omaha, Nebraska that operates 8,300 locomotives over 32,200 miles of track in 23 states west of Chicago and New Orleans. Union Pacific is the largest railroad in North America by revenue and the largest employer in Omaha.

    Summary

    Investing in Canadian Pacific Railway (CP) is a popular option for investors due to the company’s strong fiscal performance. In its fourth quarter of FY2022, CP reported total revenue of CAD 1.3 billion, a 139.6% increase year-over-year. Net income was CAD 2.5 billion, a 20.6% increase year-over-year. The company is also well-positioned to benefit from the increasing demand for freight transportation as the global economy continues to recover from the pandemic.

    In addition to its strong financial results, CP has taken steps to ensure its long-term sustainability and competitive advantage by investing in digital solutions, expanding its customer base, and improving operational efficiency. Overall, CP is an attractive investment option for those looking for long-term growth potential and income generation. The company’s strong financial performance, proactive approach to sustainability, and commitment to innovation make it a good choice for investors seeking exposure to the rail industry.

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