| CP Stock | | | CAD 106.30 0.63 0.60% |
Based on the measurements of profitability obtained from Canadian Pacific's financial statements, Canadian Pacific's profitability may be sliding down. It has an above-average risk of reporting lower numbers next quarter. Profitability indicators assess Canadian Pacific's ability to earn profits and add value for shareholders. At this time, Canadian Pacific's
Price To Sales Ratio is very stable compared to the past year. As of the 28th of November 2024,
EV To Sales is likely to grow to 10.04, while
Days Sales Outstanding is likely to drop 46.26. At this time, Canadian Pacific's
Operating Income is very stable compared to the past year. As of the 28th of November 2024,
Net Income is likely to grow to about 4.1
B, while
Accumulated Other Comprehensive Income is likely to drop (648.9
M).
For Canadian Pacific profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Canadian Pacific to generate income relative to revenue, assets, operating costs, and current equity. These
fundamental indicators attest to how well Canadian Pacific Railway utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Canadian Pacific's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Canadian Pacific Railway over time as well as its relative position and ranking within its peers.
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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.
Canadian Pacific Railway Shares Outstanding vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Canadian Pacific's current stock value. Our valuation model uses many indicators to compare Canadian Pacific value to that of its competitors to determine the firm's financial worth.
Canadian Pacific Railway is number one stock in price to book category among its peers. It also is number one stock in shares outstanding category among its peers creating about
421,927,139 of Shares Outstanding per Price To Book. As of the 28th of November 2024,
Common Stock Shares Outstanding is likely to drop to about 874.9
M. Comparative valuation analysis is a catch-all model that can be used if you cannot value Canadian Pacific by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Canadian Pacific's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.
Canadian Shares Outstanding vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Canadian Pacific | P/B | = | MV Per ShareBV Per Share |
| = | 2.21 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Outstanding Shares are shares of common stock of a public company that were purchased by investors after they were authorized and issued by the company to the public. Outstanding Shares are typically reported on fully diluted basis, including exotic instruments such as options, or convertibles bonds.
Canadian Pacific | Shares Outstanding | = | Public Shares | - | Repurchased |
| = | 933.35 M |
Outstanding shares that are stated on company Balance Sheet are used when calculating many important valuation and performance indicators including Return on Equity, Market Cap, EPS and many others.
Canadian Shares Outstanding Comparison
Canadian Pacific is currently under evaluation in shares outstanding category among its peers.
Canadian Pacific Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Canadian Pacific, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Canadian Pacific will eventually generate negative long term returns. The profitability progress is the general direction of Canadian Pacific's change in net profit over the period of time. It can combine
multiple indicators of Canadian Pacific, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Canadian Profitability Driver Comparison
Profitability drivers are factors that can directly affect your
investment outlook on Canadian Pacific. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Canadian Pacific position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Canadian Pacific's important profitability drivers and their relationship over time.
Use Canadian Pacific in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Canadian Pacific position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Canadian Pacific will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Canadian Pacific could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Canadian Pacific when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Canadian Pacific - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Canadian Pacific Railway to buy it.
The correlation of Canadian Pacific is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Canadian Pacific moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canadian Pacific Railway moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Canadian Pacific can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Use Investing Themes to Complement your Canadian Pacific position
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.
Utilities ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Utilities ETFs theme has 13 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
Utilities ETFs Theme or any other
thematic opportunities.
When determining whether Canadian Pacific Railway is a good investment, qualitative aspects like company
management, corporate governance, and ethical practices play a significant role. A
comparison with peer companies also provides context and helps to understand if Canadian Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Canadian Pacific Railway Stock.
Highlighted below are key reports to facilitate an investment decision about Canadian Pacific Railway Stock: To fully project Canadian Pacific's
future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the
financial position of Canadian Pacific Railway at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Canadian Pacific's income statement, its balance sheet, and the statement of cash flows.
Potential Canadian Pacific investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Canadian Pacific investors may work on each financial statement separately, they are all related. The changes in Canadian Pacific's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Canadian Pacific's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
