Analysts Give Canadian Pacific Railway Positive Ratings
January 15, 2023
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CP Intrinsic Value – Canadian Pacific Railway ($TSX:CP) (CPR), one of the largest transportation companies in North America, is a leading provider of rail, intermodal and rail-based freight transportation services. Recently, six analysts have given their opinion on the company’s stock and have given it a positive rating. The first analyst rated the stock as “Outperform”, citing the company’s strong operational performance and its diverse portfolio of businesses that are well positioned to benefit from the growth of the global economy. The second analyst gave a “Buy” rating, noting that the company’s strong financial position and free cash flow generation could support further growth in the future. The third analyst rated the stock as “Overweight”, citing its attractive valuation and low debt levels.
The next two analysts rated CPR as “Hold”, noting that the company’s earnings could be negatively impacted by falling oil prices and increased competition. The sixth analyst gave the stock a “Sell” rating, citing its lack of exposure to secular growth trends and its weak competitive position in the freight transportation industry. Overall, analysts have given Canadian Pacific Railway positive ratings. While there may be some risks associated with the stock, such as declining oil prices and increased competition, analysts believe that the company’s strong financial position and diverse portfolio of businesses are well positioned to benefit from the growth of the global economy. Investors looking for exposure to transportation stocks may want to consider CPR for their portfolio.
Price History
Analysts are giving Canadian Pacific Railway a positive outlook, despite the fact that news sentiment on the stock is mostly mixed right now. On Wednesday, the stock opened at CA$103.0 and closed at CA$103.8, representing a 1.1% increase from its prior closing price of CA$102.6. Analysts are generally bullish about the stock, citing a variety of factors that make Canadian Pacific Railway an attractive investment. The railway’s strong management team and efficient operations have enabled it to remain profitable in a tough industry.
Additionally, the company has made significant investments in new technologies and infrastructure to keep up with changing demands. These investments have enabled Canadian Pacific Railway to remain competitive in the market and reduce costs in the long run. Furthermore, analysts are optimistic about the company’s prospects for growth. Canadian Pacific Railway has been expanding its network and is entering into new markets to further increase its customer base. This expansion is expected to generate additional revenue and add value to the company’s bottom line. Overall, analysts are bullish on Canadian Pacific Railway’s stock and view it as a good long-term investment. The company’s strong management and efficient operations, combined with its strategic investments in new technologies, have made it an attractive option for investors. With the right approach, this company could continue to grow and provide investors with solid returns in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CP. More…
| Total Revenues | Net Income | Net Margin |
| 8.39k | 2.78k | 33.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CP. More…
| Operations | Investing | Financing |
| 3.03k | -11.89k | 8.72k |
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 |
| 73.44k | 35.62k | 38.08 |
Key Ratios Snapshot
Some of the financial key ratios for CP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.8% | 3.0% | 48.5% |
| FCF Margin | ROE | ROA |
| 18.9% | 7.0% | 3.5% |
VI Analysis – CP Intrinsic Value Calculator
Canadian Pacific Railway is an attractive investment opportunity due to its strong fundamentals. With the help of VI, an app that simplifies the analysis process, investors can quickly assess the company’s long-term potential. According to the app, the intrinsic value of one Canadian Pacific Railway share is approximately CA$90.3. Right now, Canadian Pacific Railway shares are trading at CA$103.8, making them 15% overvalued. Despite this, the company still offers a great opportunity for investors due to its strong financials and future prospects. The company’s revenue has been steadily increasing over the years, and its operating margin has been consistently high. Furthermore, Canadian Pacific Railway has a strong balance sheet and a decent return on equity. This is further supported by its low debt-to-equity ratio and net profit margin. In addition, the company’s strong operational performance and strategic initiatives have enabled it to continue to grow and provide investors with an attractive return on their investments. Its efficient operations and cost-saving measures have helped it remain competitive in the market. Overall, Canadian Pacific Railway is an attractive investment opportunity for investors due to its strong fundamentals and long-term prospects. Despite being slightly overvalued, the company offers a great opportunity for investors to benefit from its future growth. More…
VI Peers
The company was founded in 1881 and is headquartered in Calgary, Alberta. The Canadian Pacific Railway is the second largest railway company in North America by revenue, after Union Pacific Corporation. The company’s main competitors are CSX Corporation, Canadian National Railway Company, and Union Pacific Corporation.
– CSX Corp ($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 (CP) has been receiving positive ratings from analysts. The company is seen as a solid investment option due to its strong financials and its efficient operations. CP currently has a stable dividend yield, which has been increasing steadily in recent years. The company has a solid balance sheet and is expected to benefit from an increase in freight demand over the coming years.
Investors have also been attracted to CP’s strong cash flow, cost-cutting initiatives, and strategic acquisitions. Furthermore, CP has been investing in long-term projects to ensure that it is well-positioned for future growth. All these factors have made CP an attractive option for investors looking for a reliable long-term investment.
