CPCanadian Pacific Kansas City Limited
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.3×).
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 9% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is CP?
Canadian Pacific Kansas City Limited earns 6.3% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.7 points below what the capital costs: growth destroys value
- Operating margin
- 37%
Operating margin · Railroads median 33% · 12 months to Q2 2026
- Cash conversion
- 1.30×
Cash conversion · 1.29× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −4.1%
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 Q2 2026
- 37%
- Net margin12 months to Q2 2026
- 25%
- Free cash flow margin
- 16%
- Revenue, trailing twelve months
- $15.4B
- Free cash flow, trailing twelve months
- $2.43B
- Net income, trailing twelve months
- $3.87B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Industrials
Ranks #240 of 400 by RyuScore