CP Intrinsic Stock Value – Canadian Pacific Railway Reports Fourth Quarter FY2022 Earnings Results on January 31 2023.

Earnings Overview

On January 31 2023, Canadian Pacific Railway ($TSX:CP) reported its earnings results for the fourth quarter of FY2022 (ending December 31 2022), with total revenue of CAD 1.3 billion, a 139.6% increase from the same period in the previous year. Net income for the quarter was CAD 2.5 billion, a 20.6% increase from the same period in the prior year.

Price History

The stock opened at CA$103.9 and closed at CA$105.0, up 1.4% from the previous day’s closing price of CA$103.6. Investors reacted positively to CP’s fourth quarter results and the stock ended the day in positive territory. CP’s outlook for the remainder of fiscal year 2023 also remains positive with analysts expecting the company to exceed its estimates and deliver higher than expected profits in the coming quarter. Overall, investors were pleased with CP’s results and the stock rose on Tuesday after reporting its fourth quarter earnings results. Live Quote…

About the Company

Income Snapshot

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

Cash Flow Snapshot

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

Balance Sheet Snapshot

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

Key Ratios Snapshot

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

Analysis – CP Intrinsic Stock Value

At GoodWhale, we have taken a look at the fundamentals of CANADIAN PACIFIC RAILWAY. After our analysis and proprietary Valuation Line, we have concluded that the fair value of CANADIAN PACIFIC RAILWAY share is around CA$82.7. However, at present, CANADIAN PACIFIC RAILWAY stock is traded at CA$105.0, which is overvalued by 27.0%. More…

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

CANADIAN PACIFIC RAILWAY reported impressive results for the fourth quarter of FY2022, with total revenue reaching CAD 1.3 billion, representing a 139.6% increase year-over-year. Net income was CAD 2.5 billion, growing 20.6% from the same period in the prior year. This demonstrates the company’s strength in the market and suggests that it has found success in its growth strategies.

This level of performance is encouraging for investors and is likely to attract further interest in the company’s stock. With a strong outlook, CANADIAN PACIFIC RAILWAY appears poised to continue its success as one of Canada’s leading railway companies.