Canadian Pacific Railway Stock Buy Hold or Sell Recommendation
| CP Stock | USD 75.19 1.66 2.26% |
Allowing for the 90-day total investment horizon and your above-average risk tolerance, our recommendation regarding Canadian Pacific Railway is 'Hold'. 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.
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. Note, we conduct extensive research on individual companies such as Canadian and provide practical buy, sell, or hold advice based on investors' constraints. Canadian Pacific Railway. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey.
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
 |  |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Canadian Pacific Trading Alerts and Improvement Suggestions
| Canadian Pacific generated a negative expected return over the last 90 days | |
| Canadian Pacific Railway 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. Note however, debt could still be an excellent tool for Canadian to invest in growth at high rates of return. | |
| Over 76.0% of Canadian Pacific shares are held by institutions such as insurance companies | |
| On 28th of October 2024 Canadian Pacific paid $ 0.1371 per share dividend to its current shareholders | |
| Latest headline from thestar.com: US support for Ukraine and Israel is eating into weapons stockpiles, Indo-Pacific commander says |
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 | -0.11 | Value At Risk | -1.66 | Potential Upside | 1.56 | Standard Deviation | 1.07 |
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
The Canadian Pacific's institutional investors refer to entities that pool money to purchase Canadian Pacific's securities or originate loans. These institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds.
| Shares | 1832 Asset Management L.p | 2024-09-30 | 14.5 M | Norges Bank | 2024-06-30 | 13 M | Capital World Investors | 2024-09-30 | 13 M | Veritas Asset Management Llp | 2024-09-30 | 12.2 M | Manufacturers Life Insurance Co | 2024-09-30 | 11.4 M | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 10.6 M | Fidelity International Ltd | 2024-06-30 | 10.1 M | Egerton Capital Llp | 2024-06-30 | 9.2 M | Dz Bank Ag Deutsche Zentral-genossenschaftsbank Frankfurt Am Main | 2024-06-30 | 9 M | Tci Fund Management Limited | 2024-06-30 | 54.9 M | Royal Bank Of Canada | 2024-06-30 | 51.3 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) | 6.9B | 7.2B | |
| 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 Dow Jones | -0.16 | |
β | Beta against Dow Jones | 0.51 | |
σ | Overall volatility | 1.08 | |
Ir | Information ratio | -0.19 |
Canadian Pacific Volatility Alert
Canadian Pacific Railway exhibits very low volatility with skewness of 0.17 and kurtosis of -0.48. 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 | 0.0809 | -0.31 |
| Return On Asset | 0.044 | -0.14 |
| Profit Margin | 0.24 % | (1.27) % |
| Operating Margin | 0.37 % | (5.51) % |
| Current Valuation | 84.17 B | 16.62 B |
| Shares Outstanding | 933.35 M | 571.82 M |
| Shares Owned By Insiders | 0.02 % | 10.09 % |
| Shares Owned By Institutions | 75.80 % | 39.21 % |
| Number Of Shares Shorted | 8.63 M | 4.71 M |
| Price To Earning | 5.08 X | 28.72 X |
| Price To Book | 2.17 X | 9.51 X |
| Price To Sales | 4.75 X | 11.42 X |
| Revenue | 12.55 B | 9.43 B |
| Gross Profit | 4.8 B | 27.38 B |
| EBITDA | 2.5 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 | 47.30 X | 1.93 K |
| Cash Flow From Operations | 4.14 B | 971.22 M |
| Short Ratio | 4.04 X | 4.00 X |
| Earnings Per Share | 2.69 X | 3.12 X |
| Price To Earnings To Growth | 2.37 X | 4.89 X |
| Target Price | 124.43 | |
| Number Of Employees | 20.22 K | 18.84 K |
| Beta | 0.79 | -0.15 |
| Market Capitalization | 68.63 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 |
Note: Acquisition by Nadeem Velani of tradable shares of Canadian Pacific at 146.52 subject to Rule 16b-3 [view details]
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.
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.
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Additional Tools for Canadian Stock Analysis
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.