Canadian Pacific Railway Limited (CP) AI Stock Analysis

Canadian Pacific Railway Limited and its subsidiaries own and operate a transcontinental freight railway network spanning Canada and the United States. The railway handles bulk goods including grain, coal, potash, fertilizers, and sulphur, alongside merchandise freight such as energy products, chemicals, plastics, metals, minerals, consumer goods, automotive supplies, and forest products. In addition, the company facilitates intermodal traffic, transporting retail goods in overseas containers across its network. With approximately 13,000 miles of track, the railway connects business hubs in Quebec and British Columbia to the Northeast and Midwest regions of the United States. Headquartered in Calgary, Canada, it employs 19,687 people.

CP increased annual revenue from $8.00B in FY2021 to $15.08B in FY2025, delivering a 5-year revenue CAGR of 14.4%. Revenue climbed 42.4% in FY2023 to $12.55B and 15.9% in FY2024 to $14.55B, before rising 3.7% in FY2025. Annual net income reached $4.14B in FY2025 with a net margin of 27.5% and EPS of $4.61. For the trailing twelve months ending June 30, 2026, revenue stood at $15.45B with a 25.0% profit margin and EPS of $3.11. In the latest quarter, revenue grew 12.6% year-over-year, while quarterly earnings declined 13.5%.

As of June 30, 2026, CP held $366.0M in cash and short-term investments against total debt of $25.15B, resulting in net debt of $24.78B. Shareholders' equity was $46.63B out of $89.28B in total assets. The current ratio stood at 0.59, and the debt-to-equity ratio was 0.54. In FY2025, operating cash flow reached $5.31B and free cash flow was $2.17B. The company allocated $3.14B to capital expenditures, spent $3.94B on share buybacks, and paid $796.0M in dividends.

CP trades at a trailing P/E of 28.1x and a forward P/E of 20.7x, both above the US-listed Industrials peer medians of 24.8x and 17.2x. Its enterprise value of $95.42B equates to an EV/EBITDA of 16.5x and price-to-sales of 5.0x, compared to peer medians of 13.9x and 1.5x. Over the past year, CP returned 16.8%, matching the 16.8% return of the S&P 500. Over five years, the stock returned 24.7%, trailing the S&P 500 return of 83.0%.

CP pays an annual forward dividend of $0.76 per share, yielding 0.86% with a payout ratio of 16.1%. The dividend is paid quarterly and has been paid for 43 consecutive years. Over the last five years, the dividend grew at an annualized rate of 3.5%, with the last ex-dividend date on September 25, 2026.

Wall Street coverage consists of 14 Strong Buy, 9 Buy, 6 Hold, 1 Sell, and 0 Strong Sell ratings. The mean price target is $98.43, which is 12.7% above the last close of $87.36. For the fiscal year ending December 31, 2026, analysts estimate EPS of $5.15 on revenue of $16.47B. For the next fiscal year, 28 analysts project EPS of $5.97 and revenue of $17.46B. CP has beaten EPS estimates in 1 of the last 4 quarters, with the next earnings date scheduled for October 28, 2026.

This page is an AI-written research summary of Canadian Pacific Railway Limited (CP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: CP income statement, CP balance sheet, CP key metrics, CP analyst forecast, CP chart. See the CP stock overview for the latest quote and news.