The stock of Canadian Pacific Kansas City Limited (NYSE:CP) increased by $0.45 on Friday to finish at $78.58, up 0.58 percent. The last five days have seen an average of 1,083,780 shares of common stock traded. 15 times new highs were reached in the current year, with a gain of $3.99. The average number of shares traded over the last 20 days was 1,900,485, while the average volume over the last 50 days totaled 2,194,776.
CP stock dropped -5.42% since last month. On 08/18/23, the company’s shares reached a one-month low of $77.69. The stock touched a high of $85.40 on 07/28/23, after rallying from a low of $65.17 in 52 weeks. The price of CP stock has risen by 5.35% or $3.99 this year, reaching a new high 15 times. Still, the stock price is down -7.99% from the 52-week high.
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Valuation Metrics
Canadian Pacific Kansas City Limited (CP) has a trailing price-to-earnings (P/E) ratio of 17.11. Beta for the stock is 1.01. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 9.67, the price-to-book (PB) ratio of 1.83, and the price-to-cash flow ratio of 38.10.
Company paid $0.1437 per share in dividends, an increase of 1.91% from $0.1410 last year.
Financial Health
For the three months ended June 29, Canadian Pacific Kansas City Limited’s quick ratio was 0.60, while its current ratio was 0.70, indicating its inability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.53, and the total debt to equity ratio is 0.58. As far as profitability goes, gross margin for the trailing twelve months is 82.50% percent. Canadian Pacific Kansas City Limited’s EBITDA margin for the year ended June 29 was 48.11%, whereas its operating margin stood at -34.20% for the same period. Based on annual data, it had gross profit of $4.53 billion and revenue of $6.78 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. CP’s return on assets (ROA) during the last 12 months has been 5.70%. There was a 4.60% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 11.00%.
Earnings Surprise
According to Canadian Pacific Kansas City Limited’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $2.43 billion, while revenues rose by 30.62% to $1.74 billion. It was predicted that Canadian Pacific Kansas City Limited’s quarterly earnings would be $0.61, but it ended up being $0.7, beating the consensus by -12.90%. EBITDA was $1.01 billion for the quarter. At the end of Canadian Pacific Kansas City Limited’s most recent quarter ended June 29, its liabilities totaled 28.39 billion, while its total debt was $23.65 billion.
Technical Picture
Here’s a quick look at Canadian Pacific Kansas City Limited’s (CP) price momentum from a technical perspective. As of 25 August, the RSI 9-day stood at 40.95%, suggesting the stock is Neutral, with a 14.26% historical volatility rate.
The stochastic %K and %D were 19.48% and 18.06% respectively, while the average true range (ATR) was 1.23. Based on the 14-day stochastic reading of 18.31%, the RSI (14) reading is 42.66%. On the 9-day MACD Oscillator, the stock is at 0.09, and the 14-day reading is at -0.75.
Analyst Ratings
In its most recent analyst report, Argus raised its rating on Canadian Pacific Kansas City Limited (NYSE: CP) to a Buy. Prior to this, analysts firm rated the stock as a Hold. Analysts have assigned Canadian Pacific Kansas City Limited (CP) an Overweight rating. CP is a stock that is recommended for selling by 0 brokerage firms, while 9 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 1 rate it overweight and 21 others recommend it as a buy.
What is CP’s price target for the next 12 months?
The current consensus forecast for the stock is between $104.55 and $164.11, with a median target price of $120.00. In analyzing these forecasts, the average price target given by analysts for Canadian Pacific Kansas City Limited (CP) is $122.81.
