Canadian Pacific Railway Stock Buy Hold or Sell Recommendation
| CP Stock | USD 81.93 5.79 6.60% |
Allowing for the 90-day total investment horizon and your above-average risk tolerance, our recommendation regarding Canadian Pacific Railway is 'Strong Buy'. Macroaxis provides Canadian Pacific buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CP positions. The advice algorithm takes into account all of Canadian Pacific's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Canadian Pacific's buy or sell advice are summarized below:
Real Value 90.98 | Target Price 89.44 | Hype Value 87.82 | Market Value 81.93 | Naive Value 88.94 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Canadian Pacific Railway given historical horizon and risk tolerance towards Canadian Pacific. When Macroaxis issues a 'buy' or 'sell' recommendation for Canadian Pacific Railway, the advice is generated through an automated system that utilizes algorithms and statistical models.
Canadian |
Execute Canadian Pacific Buy or Sell Advice
The Canadian recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Canadian Pacific Railway. Macroaxis does not own or have any residual interests in Canadian Pacific Railway or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Canadian Pacific's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Canadian Pacific Trading Alerts and Improvement Suggestions
| The company reports 22.84 B of total liabilities with total debt to equity ratio (D/E) of 0.54, which is normal for its line of buisiness. Canadian Pacific Railway has a current ratio of 0.57, implying that it has not enough working capital to pay out debt commitments in time. Debt can assist Canadian Pacific until it has trouble settling it off, either with new capital or with free cash flow. So, Canadian Pacific's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Canadian Pacific Railway sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Canadian to invest in growth at high rates of return. When we think about Canadian Pacific's use of debt, we should always consider it together with cash and equity. | |
| Over 76.0% of Canadian Pacific shares are held by institutions such as insurance companies | |
| Latest headline from investing.com: Ancora pushes for board overhaul at Norfolk Southern ahead of annual meeting |
Canadian Pacific Returns Distribution Density
The distribution of Canadian Pacific's historical returns is an attempt to chart the uncertainty of Canadian Pacific's future price movements. The chart of the probability distribution of Canadian Pacific daily returns describes the distribution of returns around its average expected value. We use Canadian Pacific Railway price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Canadian Pacific returns is essential to provide solid investment advice for Canadian Pacific.
| Mean Return | 0.18 | Value At Risk | -1.69 | Potential Upside | 2.05 | Standard Deviation | 1.14 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Canadian Pacific historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Canadian Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Canadian Pacific is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Canadian Pacific Railway backward and forwards among themselves. Canadian Pacific's institutional investor refers to the entity that pools money to purchase Canadian Pacific's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Mackenzie Investments | 2023-12-31 | 14.2 M | Veritas Asset Management Llp | 2023-12-31 | 13.4 M | 1832 Asset Management L.p | 2023-12-31 | 13.4 M | T. Rowe Price Associates, Inc. | 2023-12-31 | 13 M | Norges Bank | 2023-12-31 | 12.4 M | Manufacturers Life Insurance Co | 2023-12-31 | 12 M | Egerton Capital Llp | 2023-12-31 | 11.4 M | Sustainable Growth Advisers, Lp | 2023-12-31 | 10.1 M | Goldman Sachs Group Inc | 2023-12-31 | 9.7 M | Tci Fund Management Limited | 2023-12-31 | 55.5 M | Royal Bank Of Canada | 2023-12-31 | 52 M |
Canadian Pacific Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 72M | 14M | (65M) | 369M | 13M | 8.9M | |
| Free Cash Flow | 1.3B | 1.1B | 2.2B | 2.6B | 1.6B | 1.7B | |
| Depreciation | 662M | 779M | 811M | 853M | 1.5B | 1.6B | |
| Other Non Cash Items | (445M) | (736M) | (366M) | (303M) | 60M | 63M | |
| Dividends Paid | 412M | 467M | 507M | 707M | 813.1M | 853.7M | |
| Capital Expenditures | 1.6B | 1.7B | 1.5B | 1.6B | 2.5B | 2.6B | |
| Net Income | 2.4B | 2.4B | 2.9B | 3.5B | 3.9B | 4.1B | |
| End Period Cash Flow | 133M | 147M | 82M | 451M | 464M | 299.6M | |
| Investments | (1.8B) | (2.0B) | (10.5B) | (1.5B) | (2.3B) | (2.2B) | |
| Net Borrowings | 421M | 1.1B | 10.5B | (1.6B) | (1.9B) | (1.8B) |
Canadian Pacific Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Canadian Pacific or Ground Transportation sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Canadian Pacific's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Canadian stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | 0.06 | |
β | Beta against NYSE Composite | 1.25 | |
σ | Overall volatility | 1.44 | |
Ir | Information ratio | 0.07 |
Canadian Pacific Volatility Alert
Canadian Pacific Railway has low volatility with Treynor Ratio of 0.13, Maximum Drawdown of 5.58 and kurtosis of 0.13. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Canadian Pacific's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Canadian Pacific's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Canadian Pacific Fundamentals Vs Peers
Comparing Canadian Pacific's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Canadian Pacific's direct or indirect competition across all of the common fundamentals between Canadian Pacific and the related equities. This way, we can detect undervalued stocks with similar characteristics as Canadian Pacific or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Canadian Pacific's fundamental indicators could also be used in its relative valuation, which is a method of valuing Canadian Pacific by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Canadian Pacific to competition |
| Fundamentals | Canadian Pacific | Peer Average |
| Return On Equity | 0.0965 | -0.31 |
| Return On Asset | 0.04 | -0.14 |
| Profit Margin | 0.31 % | (1.27) % |
| Operating Margin | 0.41 % | (5.51) % |
| Current Valuation | 105.09 B | 16.62 B |
| Shares Outstanding | 932.55 M | 571.82 M |
| Shares Owned By Insiders | 0.02 % | 10.09 % |
| Shares Owned By Institutions | 76.45 % | 39.21 % |
| Number Of Shares Shorted | 17.86 M | 4.71 M |
| Price To Earning | 5.08 X | 28.72 X |
| Price To Book | 2.65 X | 9.51 X |
| Price To Sales | 6.43 X | 11.42 X |
| Revenue | 12.55 B | 9.43 B |
| Gross Profit | 4.8 B | 27.38 B |
| EBITDA | 6.47 B | 3.9 B |
| Net Income | 3.92 B | 570.98 M |
| Cash And Equivalents | 138 M | 2.7 B |
| Cash Per Share | 0.15 X | 5.01 X |
| Total Debt | 22.84 B | 5.32 B |
| Debt To Equity | 0.54 % | 48.70 % |
| Current Ratio | 0.58 X | 2.16 X |
| Book Value Per Share | 44.52 X | 1.93 K |
| Cash Flow From Operations | 4.14 B | 971.22 M |
| Short Ratio | 9.74 X | 4.00 X |
| Earnings Per Share | 3.06 X | 3.12 X |
| Price To Earnings To Growth | 2.37 X | 4.89 X |
| Target Price | 89.64 | |
| Number Of Employees | 19.93 K | 18.84 K |
| Beta | 0.76 | -0.15 |
| Market Capitalization | 81.8 B | 19.03 B |
| Total Asset | 79.9 B | 29.47 B |
| Retained Earnings | 16.42 B | 9.33 B |
| Working Capital | (2.71 B) | 1.48 B |
Canadian Pacific Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Canadian . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 365618.0 | |||
| Daily Balance Of Power | (1.09) | |||
| Rate Of Daily Change | 0.93 | |||
| Day Median Price | 84.37 | |||
| Day Typical Price | 83.56 | |||
| Price Action Indicator | (5.33) | |||
| Period Momentum Indicator | (5.79) | |||
| Relative Strength Index | 21.47 |
About Canadian Pacific Buy or Sell Advice
When is the right time to buy or sell Canadian Pacific Railway? Buying financial instruments such as Canadian Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 20.1B | 19.7B | 22.8B | 24.0B | Total Assets | 68.2B | 73.5B | 79.9B | 83.9B |
Use Investing Ideas to Build Portfolios
In addition to having Canadian Pacific in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Business Services
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Business Services theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Business Services Theme or any other thematic opportunities.
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Check out Canadian Pacific Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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When running Canadian Pacific's price analysis, check to measure Canadian Pacific's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Canadian Pacific is operating at the current time. Most of Canadian Pacific's value examination focuses on studying past and present price action to predict the probability of Canadian Pacific's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Canadian Pacific's price. Additionally, you may evaluate how the addition of Canadian Pacific to your portfolios can decrease your overall portfolio volatility.
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Is Canadian Pacific's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Canadian Pacific. If investors know Canadian will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Canadian Pacific listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.19) | Dividend Share 0.76 | Earnings Share 3.06 | Revenue Per Share 13.481 | Quarterly Revenue Growth 0.534 |
The market value of Canadian Pacific Railway is measured differently than its book value, which is the value of Canadian that is recorded on the company's balance sheet. Investors also form their own opinion of Canadian Pacific's value that differs from its market value or its book value, called intrinsic value, which is Canadian Pacific's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Canadian Pacific's market value can be influenced by many factors that don't directly affect Canadian Pacific's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Canadian Pacific's value and its price as these two are different measures arrived at by different means. Investors typically determine if Canadian Pacific is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Canadian Pacific's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.