Fundamental analysis CP (Canadian Pacific Kansas City Ltd)

Updated on 06/09/2026

We analyzed Canadian Pacific Kansas City stock against the 10 quality criteria of Lubin Investment. The company gets a quality score of 5/10, meaning medium quality, and a P/FCF valuation multiple of 53.7×.

Sector: Railroads. Listing: US. Current price: 90.05 USD.

Lubin scoring methodology

Canadian Pacific Kansas City Ltd (CP)'s score is calculated automatically from 10 objective financial criteria, with no human intervention or opinion. Each criterion is validated (YES / PARTIAL / NO) based on thresholds drawn from the financial literature (Warren Buffett, Bettin-Mauboussin, Aswath Damodaran). The final score is the sum of validations.

The 10 quantitative criteria analyzed

1. Profitable: positive net margin
2. Growing revenue: revenue growing > 10%/year over 5 years
3. Growing earnings per share: FCF per share adjusted for stock-based compensation, > 10%/year over 5 years
4. Share count under control: stable or declining (net buybacks = value creation for shareholders)
5. Cash profitability: free cash flow margin > 10% of revenue
6. Expanding margins: operating margin widens over 5 years (operating leverage)
7. Return on invested capital: Bettin-Mauboussin Cash ROCE > 15% per year
8. Debt under control: net debt repayable in less than 3 years of free cash flow
9. Earnings converted to cash: free cash flow exceeds accounting net income
10. Net collection period: short or negative cash conversion cycle

Frequently asked questions

Is Canadian Pacific Kansas City a quality stock?

Canadian Pacific Kansas City gets a quality score of 5/10 (medium quality), calculated over the 10 Lubin Investment criteria: profitability, revenue and free cash flow growth, share buybacks, margins, debt and return on capital.

How is Canadian Pacific Kansas City's score calculated?

The score is the total of validated criteria (YES / PARTIAL / NO) using thresholds drawn from the financial literature (Warren Buffett, Mauboussin, Aswath Damodaran), automatically and with no human opinion.

What is Canadian Pacific Kansas City's P/FCF?

The price-to-free-cash-flow (P/FCF) multiple of Canadian Pacific Kansas City stock is 53.7×. At Lubin Investment, valuation is judged separately from quality.

Where to see Canadian Pacific Kansas City's full analysis?

The full interactive analysis (10-criteria detail, history, P/FCF valuation, sector comparisons) is available at https://lubin-investment.com/analyse/CP?lng=en.

Other stocks in the Railroads sector

• Westinghouse Air Brake Technologies (WAB) — score 9/10, P/FCF 31.1×
• Trinity Industries (TRN) — score 8/10, P/FCF 8.2×
• FirstGroup (FGP.L) — score 8/10, P/FCF 301.9×
• Rumo (RAIL3.SA) — score 7/10, P/FCF 24.7×
• L B Foster (FSTR) — score 7/10, P/FCF 12.6×

Go further

👉 See the full interactive analysis of CP

Other resources : Detailed methodology · All stocks in the Railroads sector · Stocks rated 10 out of 10 · Top quality companies · Lubin Investment pricing.