| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 30 | 26.9x | 17.8x | Bottom tier | |
Growth | 73 | — | 7.1% | Top tier | |
Quality | 25 | — | 4.5% | Bottom tier | |
Safety | 52 | 3.3x | 2.6x | Around median | |
Capital Return | 16 | 0.71% | 2.12% | Bottom tier | |
Momentum | 75 | 18.9% | 2.9% | Top tier | |
Sentiment | 85 | 16 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Canadian Pacific Kansas City operates a unified rail network connecting Canada, the United States, and Mexico, generating revenue from transporting grain, potash, coal, energy, chemicals and plastics, forest products, metals and consumer goods, and automotive products, in addition to intermodal freight. Its commercial advantage is based on moving shipments across all three countries on a single line, extending the haul distance for which the company retains revenue and enabling services such as Mexico Midwest Express, Southeast Mexico Express, and the CPKC land bridge between Canada and Mexico.
In Q2 FY2026, revenue reached $4.2 billion, up 13%, with volumes growing 4% and net income of $1.0 billion, equivalent to an approximate net income margin of 23.8%. Diluted earnings per share were $1.15, and management reported a stated operating ratio of 54.6% and an adjusted core operating ratio of 61.6%, with the latter 90 basis points higher than in the comparable period, meaning that revenue and earnings growth was accompanied by some pressure on the adjusted margin.
The growth mix was broad but uneven in Q2 FY2026: grain revenue increased 24% with volume growth of 19%, energy, chemicals and plastics increased 8% with volume growth of 6%, metals and consumer goods increased 16% with volume growth of 7%, automotive increased 19% with volume growth of 8%, and intermodal increased 11% despite flat volume. In contrast, coal revenue declined 18% as volume fell 29%, while potash revenue increased 10% despite a 2% decline in volume. On a trailing 12-month basis in the 2026 data, revenue reached $15.5 billion, net income was $3.9 billion, and earnings per share were approximately $4.36, compared with revenue of $15.1 billion and net income of $4.1 billion in FY2025.
The average analyst price target is $110.4, with a wide range of $99 to $140 and a consensus rating of “Buy”; the average is approximately 13.9% above the recorded 52-week range high of $96.9, while the highest target is approximately 44.5% above it. No price-to-earnings ratio is available in the provided data, so consensus optimism should be weighed against pressure on the adjusted operating ratio, coal weakness, and the decline in trailing 12-month net income in the 2026 data to $3.9 billion from $4.1 billion in FY2025 despite higher revenue.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
The primary driver is converting CPKC’s single-line network between Canada, the United States, and Mexico into synergy revenue and cross-border shipments. The company is targeting synergy revenue of between $1.4 and $1.5 billion by the end of FY2026, an increase of more than $300 million from the previous year. The land bridge business between Canada and Mexico is also on track for $600 million in FY2026, compared with approximately $100 million in 2023, and management sees a path to reaching $1 billion in the following years.
Revenue reached $4.2 billion, up 13%, and volumes grew 4%, while net income reached $1.0 billion. Diluted earnings per share were $1.15 and adjusted core earnings per share were $1.27, according to the results announcement dated July 29, 2026. The company reported a stated operating ratio of 54.6% and an adjusted core operating ratio of 61.6%, with the latter increasing 90 basis points from the comparable period.
Grain led growth in Q2 FY2026, with revenue increasing 24% and volumes growing 19%, while Canadian grain volumes increased 24% and U.S. grain volumes grew 14%. Automotive revenue increased 19% with volume growth of 8%, while metals and consumer goods revenue rose 16% with volume growth of 7%. Energy, chemicals and plastics revenue also increased 8%, and intermodal revenue grew 11% despite flat volumes.
Automated analysis for informational purposes only — not investment advice.
Coal was the weakest business in Q2 FY2026, with revenue declining 18% and volumes falling 29% due to production issues at customer mines. This decline reduced total revenue ton-mile growth by approximately three percentage points, and management expects coal to remain a drag during the second half of FY2026. In addition, refined fuel activity into Mexico had been nearly halted during the six to eight months preceding the July 29, 2026 call, and management did not specify when it would return.
Management said on the July 29, 2026 call that the company had already invested in locomotives, railcars, and track, and that the primary requirement as volumes rise would be an incremental increase in headcount. CPKC received all 70 Wabtec locomotives scheduled for FY2026, after receiving 100 locomotives from the same company in the previous year. Rail installation productivity also increased 18% and tie installation productivity rose 59%, while headcount was approximately 500 employees lower despite volume growth of 3% to 4% during FY2026.
Net cash provided by operating activities increased 8% in the first half of FY2026, and adjusted free cash flow reached $1.3 billion, up 25%. The company spent $1.4 billion on capital expenditures during the period and maintained its FY2026 target at $2.65 billion, down 15% from the previous year. It also returned $2.4 billion to shareholders through share repurchases and dividends during the first half of FY2026.
