Canadian Pacific Railway Limited (CP): A Technical View

At the last check on Friday, Canadian Pacific Railway Limited’s (NYSE:CP) stock was up $1.52, moving up 2.23 percent to $69.62. The average number of shares traded per day over the past five days has been 2,091,151 shares. 1 time new highs have been achieved over the past 5 days, with a -$2.72 fall in that time frame. In the last twenty days, the average volume was 2,682,468, while in the previous 50 days, it was 3,153,889.

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Since last month, CP stock retreated -9.02%. Shares of the company fell to $67.03 on 05/12/22, the lowest level in the past month. A 52-week high of $84.22 was reached on 03/31/22 after having rallying from a 52-week low of $64.37. Since the beginning of this year, CP’s stock price has dropped by -5.34% or -$2.29, and marked a new high 17 times. However, the stock has declined by -17.33% since its 52-week high.

Valuation Metrics

Right now, Canadian Pacific Railway Limited (CP) has a P/E ratio of about 17.30. The stock’s beta is 0.81. Besides these, the trailing price-to-sales (P/S) ratio of 10.47, the price-to-book (PB) ratio of 1.86, and the price-to-cash flow ratio of 47.73 may also be considered.

The latest dividend of $0.1520 per share was paid out, which is 1.33% more than last year’s $0.15. On Tuesday April 26 2022, a $0.0020 dividend increase was announced.

Financial Health

In the three months ended June 29, Canadian Pacific Railway Limited’s quick ratio stood at 0.40, while its current ratio was 0.40, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 0.53, and the total debt-to-equity ratio was 0.58. On the profitability front, the trailing twelve-month gross margin is 85.50% percent. In the year ended June 29, operating margins totaled 45.20%. Based on annual data, CP earned $4.55 billion in gross profit and brought in $6.38 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 5.60%. Return on equity (ROE) for the past 12 months was 13.20%.

In Canadian Pacific Railway Limited’s quarter-end financial report for June 29, it reported total debt of $13.72 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. CP’s revenue fell -6.58% to $2.04 billion during the quarter, while net income inched up to $1.41 billion. While analysts expected Canadian Pacific Railway Limited to report $0.8 quarterly earnings, the actual figure was $0.81 per share, beating the consensus estimate by 1.30%. During the quarter, the company generated $588.25 million in EBITDA. The liabilities of Canadian Pacific Railway Limited were 26.54 billion at the end of its most recent quarter ended June 29, and its total debt was $19.66 billion.

Technical Picture

This quick technical analysis looks at Canadian Pacific Railway Limited’s (CP) price momentum. With a historical volatility rate of 37.86%, the RSI 9-day stood at 39.43% on 12 May.

With respect to its five-day moving average, the current Canadian Pacific Railway Limited price is down by -3.76% percent or -$2.72. At present, CP shares trade -8.80% below its 20-day simple moving average and -2.07% percent below its 100-day simple moving average. However, the stock is currently trading approximately -6.06% below its SMA50 and -5.17% below its SMA200.

Stochastic coefficient K was 18.11% and Stochastic coefficient D was 11.96%, while ATR was 2.44. Given the Stochastic reading of 28.56% for the 14-day period, the RSI (14) reading has been calculated as 39.42%. As of today, the MACD Oscillator reading stands at -1.90, while the 14-day reading stands at -2.79.


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