(CP) Canadian Pacific Railway - Ratings and Ratios

Canadian Pacific Kansas City Limited (NYSE: CP) is a leading transcontinental freight railway operator with a vast network spanning Canada, the United States, and Mexico. The company, formed through the merger of Canadian Pacific Railway and Kansas City Southern in 2023, operates on approximately 20,000 miles of track, connecting major business hubs across North America. Its diverse freight portfolio includes bulk commodities like grain, coal, potash, and fertilizers, as well as merchandise freight such as forest products, energy materials, and consumer goods. Intermodal traffic, which involves transporting retail goods in overseas containers, is another key component of its operations.

With a market capitalization of over $72 billion, CP is a major player in the rail transportation industry. The company’s current P/E ratio of 28.17 reflects its strong earnings performance, while the forward P/E of 22.78 suggests expectations of continued growth. Its price-to-book ratio of 2.19 indicates a premium valuation relative to its book value, likely due to its strategic assets and network. The price-to-sales ratio of 4.99 highlights its revenue generation capabilities in a capital-intensive industry.

Headquartered in Calgary, Canada, CP has a long history dating back to its incorporation in 1881. The merger with Kansas City Southern has significantly expanded its reach, particularly into Mexico, making it a critical link for cross-border trade. Investors should focus on the company’s ability to integrate KCS operations smoothly, optimize its expanded network, and leverage its strategic position in North American rail logistics. Additionally, CP’s commitment to operational efficiency and sustainability will be key factors in its long-term success.

For more information, visit the company’s website at https://www.cpkcr.com.