CP
IndustrialsCanadian Pacific Kansas City Ltd. · Railroads · $77B
What is Canadian Pacific Kansas City Ltd.?
Canadian Pacific Kansas City is a major North American freight railroad connecting Canada, the United States, and Mexico through a single-line rail network. It stands as the only railroad operating across all three USMCA countries.
CPKC generates revenue by moving freight — including bulk commodities, intermodal containers, automotive products, and industrial goods — across a transcontinental rail network spanning three countries. Its business model is built on long-haul contracts with shippers who need reliable cross-border transportation. The merger of Canadian Pacific and Kansas City Southern created a uniquely positioned corridor linking Canadian ports to Mexican manufacturing hubs, giving the railroad access to trade lanes no single competitor can fully replicate.
The company traces its roots to 1983 and is headquartered in Calgary, Canada.
- Cross-border freight rail across Canada, the US, and Mexico
- Intermodal container transportation services
- Bulk commodity haulage including grain and potash
- Automotive and industrial goods transport
- Supply chain solutions tied to USMCA trade corridors
Is CP a Good Stock to Buy?
UQS Score rates CP as Below Average overall, reflecting a mixed fundamental picture across its five pillars.
The Quality, Moat, and Risk pillars each land at Neutral, suggesting the business maintains a degree of operational stability and some structural advantages from its unique three-country network — without standing out strongly in any single dimension.
The Growth pillar registers as Weak, pointing to limited near-term earnings expansion, while Valuation sits at Neutral — meaning the stock is not obviously cheap relative to its current fundamentals.
Pro members can view the exact pillar breakdown and the full financial metrics behind each score at uqs-score.com. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does CP pay dividends?
Yes — Canadian Pacific Kansas City Ltd. pays a dividend.
CP pays a regular dividend, which is consistent with the capital-intensive, cash-generative nature of large railroad businesses. Freight rail companies typically return cash to shareholders through dividends while also investing heavily in infrastructure. The dividend reflects the relatively predictable revenue streams that long-term freight contracts provide, though payout levels should be verified against current company disclosures.
When does CP report earnings?
Canadian Pacific Kansas City reports earnings on a quarterly cadence, typical for US- and Canada-listed large-cap equities.
The company's recent results have reflected the integration challenges and opportunities that follow a major railroad merger. Revenue trends are tied closely to North American trade volumes, commodity cycles, and cross-border freight demand — all of which can shift meaningfully quarter to quarter.
For the most recent quarter's results and guidance, visit Canadian Pacific Kansas City's investor relations page directly.
CP Price History
+5.6% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Canadian Pacific Kansas City Ltd.?
Based on Canadian Pacific Kansas City Ltd.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
CP Long-term Outlook
The UQS Growth pillar for CP is rated Weak, indicating that near-term fundamental momentum is limited relative to sector peers. The Neutral Risk rating suggests the business is not facing acute financial stress, but the combination of modest growth and a Neutral Valuation label means the risk-reward profile requires careful consideration. Long-term, the three-country network positions CPKC to benefit from any structural increase in USMCA trade flows, though realizing that potential depends on execution and macro conditions.
Growth drivers
- Expansion of cross-border USMCA trade corridors post-merger
- Intermodal volume growth tied to nearshoring trends in Mexico
- Network synergies from the Canadian Pacific and Kansas City Southern integration
Key risks
- Weak near-term growth trajectory limiting earnings upside
- Integration execution risk following a large-scale railroad merger
- Sensitivity to commodity cycles and North American trade volumes
CP vs Peers
CP competes with major North American freight railroads, each covering distinct geographic corridors.
Norfolk Southern focuses on eastern US freight corridors, with a network concentrated in manufacturing and intermodal markets east of the Mississippi.
Canadian National operates a coast-to-coast Canadian network with significant US reach, making it CP's closest direct rival for Canadian origin freight.
CSX serves the eastern United States with a dense network linking Atlantic ports to inland markets, competing with CP primarily on intermodal and industrial freight.
Frequently Asked Questions
What does Canadian Pacific Kansas City do?
Canadian Pacific Kansas City operates a freight railroad network connecting Canada, the United States, and Mexico. It transports bulk commodities, intermodal containers, automotive goods, and industrial products across a transcontinental corridor — the only single-line railroad spanning all three USMCA nations.
Does CP pay dividends?
Yes, CP pays a regular dividend. This is consistent with the capital-intensive but cash-generative nature of large freight railroads. Investors seeking current yield figures should check the company's investor relations page for the most up-to-date payout information.
When does CP report earnings?
Canadian Pacific Kansas City reports on a quarterly cadence, as is standard for large-cap North American equities. For exact upcoming report dates, refer to the company's investor relations page or your brokerage's earnings calendar.
Is CP a good stock to buy?
UQS Score rates CP as Below Average overall. The Growth pillar is Weak, and while Quality, Moat, Risk, and Valuation each sit at Neutral, the combination does not present a standout fundamental case at this time. Pro members can access the full pillar breakdown to dig deeper.
Is CP overvalued?
CP's Valuation pillar is rated Neutral by UQS Score, suggesting the stock is neither clearly cheap nor obviously expensive relative to its current fundamentals. Given the Weak Growth rating, investors should weigh whether the current price adequately reflects the limited near-term earnings trajectory.
How does CP compare to its competitors?
CP's three-country network is a structural differentiator versus peers like Norfolk Southern, Canadian National, and CSX, which do not operate single-line service across all three USMCA nations. However, those competitors may score differently across UQS pillars — Pro members can compare full breakdowns side by side.
What is CP's market cap bracket?
Canadian Pacific Kansas City is classified as a large-cap company, reflecting its scale as one of North America's major freight railroad operators following the merger of Canadian Pacific and Kansas City Southern.
Who founded Canadian Pacific Kansas City?
The modern entity, Canadian Pacific Kansas City, was formed through the combination of Canadian Pacific Railway and Kansas City Southern. Canadian Pacific itself has deep historical roots in Canadian rail history. Founding details for both predecessor companies are widely available through public historical records.
Is CP a long-term quality investment?
As a long-term quality indicator, UQS Score currently rates CP as Below Average, with a Weak Growth pillar tempering the otherwise Neutral readings across Quality, Moat, Risk, and Valuation. Long-term investors should monitor whether the post-merger network synergies translate into improved fundamentals over time.
What is the main competitive advantage of Canadian Pacific Kansas City?
CPKC's primary structural advantage is its unique position as the only railroad with a single-line network spanning Canada, the United States, and Mexico. This gives it direct access to USMCA trade corridors that no single competitor can replicate without interchange agreements.
What sector does CP belong to?
Canadian Pacific Kansas City belongs to the Industrials sector, specifically within freight transportation and railroad services. Railroads are generally considered capital-intensive businesses with relatively stable long-term demand tied to broader economic activity and trade volumes.
Is CP a growth stock or value stock?
Based on UQS pillar labels, CP does not fit neatly into either category. The Growth pillar is rated Weak, making it difficult to classify as a growth stock, while the Neutral Valuation rating means it does not present a clear value case either. It sits in an in-between position fundamentally.
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Pro Analysis
CP — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 23, 2026 | 46.6 | 53.9 | 53.0 | 31.0 | 40.5 | 50.4 | +0.1 |
| May 22, 2026 | 46.5 | 53.9 | 53.0 | 31.0 | 40.5 | 50.2 | -0.1 |
| May 21, 2026 | 46.6 | 53.9 | 53.0 | 31.0 | 40.5 | 50.4 | 0.0 |
| May 19, 2026 | 46.6 | 53.9 | 53.0 | 31.0 | 40.5 | 50.5 | -0.1 |
| May 17, 2026 | 46.7 | 53.9 | 53.0 | 31.0 | 40.5 | 51.1 | 0.0 |
| May 16, 2026 | 46.7 | 53.9 | 53.0 | 31.1 | 40.5 | 51.1 | +0.2 |
| May 15, 2026 | 46.5 | 53.9 | 53.0 | 31.1 | 40.5 | 50.2 | -0.1 |
| May 13, 2026 | 46.6 | 53.9 | 53.0 | 31.1 | 40.5 | 50.7 | -0.1 |
| May 12, 2026 | 46.7 | 53.9 | 53.0 | 31.1 | 40.5 | 51.3 | +0.1 |
| May 11, 2026 | 46.6 | 53.9 | 53.0 | 31.1 | 40.5 | 50.6 | -1.4 |
CP — Pillar Breakdown
Quality
— 53.9/100 (25%)Canadian Pacific Kansas City Ltd. has average quality metrics, with room for improvement in margins or capital efficiency.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 31.0/100 (20%)Canadian Pacific Kansas City Ltd. faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 40.5/100 (15%)Canadian Pacific Kansas City Ltd. has some risk factors including moderate leverage or solvency concerns.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 50.7/100 (15%)Canadian Pacific Kansas City Ltd. has a mixed valuation — some metrics suggest fair value while others appear stretched.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
Enterprise value multiple relative to sector median.
Moat
— 53/100 (25%)Canadian Pacific Kansas City Ltd. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for CP.
Score Composition
Financial Data
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How is the CP UQS Score Calculated?
The UQS (Unified Quality Score) for Canadian Pacific Kansas City Ltd. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Canadian Pacific Kansas City Ltd.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Canadian Pacific Kansas City Ltd. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.