Is the business good?
How good a business is CP?
Canadian Pacific Kansas City Limited earns 6.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
6.2%
Return on invested capital · cost of capital 9.0% · 2.8 points below what the capital costs: growth destroys value
- Operating margin
- 37%
Operating margin · Railroads median 33% · 12 months to Q1 2026
- Cash conversion
- 0.51×
Cash conversion · 0.62× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −4.0%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 43% |
| FY2021 | 40% |
| FY2022 | 38% |
| FY2023 | 35% |
| FY2024 | 36% |
| FY2025 | 37% |
Details›
- Operating margin12 months to Q1 2026
- 37%
- Net margin12 months to Q1 2026
- 27%
- Free cash flow margin
- 14%
- Revenue, trailing twelve months
- $15.0B
- Free cash flow, trailing twelve months
- $2.07B
- Net income, trailing twelve months
- $4.08B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.