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How to buy Canadian Pacific Railway (CP) shares

Learn how to easily invest in Canadian Pacific Railway shares.

Canadian Pacific Railway is a railroads business based in the US. Canadian Pacific Railway stocks (CP.US) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was $80.26 – a decrease of 1.58% over the previous week. Canadian Pacific Railway employs 12,262 staff and has a trailing 12-month revenue of around $8 billion.

How to buy shares in Canadian Pacific Railway

  1. Compare share trading platforms. Use our comparison table to help you find a platform that fits you.
  2. Open your brokerage account. Complete an application with your details.
  3. Confirm your payment details. Fund your account.
  4. Research the stock. Find the stock by name or ticker symbol – CP – and research it before deciding if it's a good investment for you.
  5. Purchase now or later. Buy your desired number of shares with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
  6. Check in on your investment. Optimize your portfolio by tracking your stock.

Canadian Pacific Railway stock price (NYSE:CP)

Use our graph to track the performance of CP stocks over time.

Canadian Pacific Railway shares at a glance

Information last updated 2022-01-18.
Latest market close$75.89
52-week range$64.09 - $82.54
50-day moving average $73.61
200-day moving average $73.96
Wall St. target price$83.13
PE ratio 20.929
Dividend yield $0.76 (0.78%)
Earnings per share (TTM) $3.70

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Note: The dollar amounts in the table below are in Canadian dollars.

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Is it a good time to buy Canadian Pacific Railway stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Canadian Pacific Railway price performance over time

Historical closes compared with the close of $75.89 from 2022-01-19

1 week (2022-01-13) -1.58%
1 month (2021-12-20) 6.69%
3 months (2021-10-20) 1.63%
6 months (2021-07-20) 5.59%
1 year (2021-01-20) -78.59%
2 years (2020-01-17) -71.11%
3 years (2019-01-18) 197.48
5 years (2017-01-20) 150.99

Is Canadian Pacific Railway under- or over-valued?

Valuing Canadian Pacific Railway stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Canadian Pacific Railway's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Canadian Pacific Railway's P/E ratio

Canadian Pacific Railway's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 21x. In other words, Canadian Pacific Railway shares trade at around 21x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Canadian Pacific Railway's PEG ratio

Canadian Pacific Railway's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.36. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Canadian Pacific Railway's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Canadian Pacific Railway's EBITDA

Canadian Pacific Railway's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $4.6 billion.

The EBITDA is a measure of a Canadian Pacific Railway's overall financial performance and is widely used to measure a its profitability.

Canadian Pacific Railway financials

Revenue TTM $8 billion
Operating margin TTM 47.95%
Gross profit TTM $4.6 billion
Return on assets TTM 9.51%
Return on equity TTM 36.63%
Profit margin 39.19%
Book value $14.20
Market capitalisation $72.3 billion

TTM: trailing 12 months

Canadian Pacific Railway's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Canadian Pacific Railway.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Canadian Pacific Railway's total ESG risk score

Total ESG risk: 20.55

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Canadian Pacific Railway's overall score of 20.55 (as at 12/31/2018) is excellent – landing it in it in the 17th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Canadian Pacific Railway is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Canadian Pacific Railway's environmental score

Environmental score: 11.41/100

Canadian Pacific Railway's environmental score of 11.41 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that Canadian Pacific Railway is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Canadian Pacific Railway's social score

Social score: 12.93/100

Canadian Pacific Railway's social score of 12.93 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that Canadian Pacific Railway is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Canadian Pacific Railway's governance score

Governance score: 7.72/100

Canadian Pacific Railway's governance score puts it squarely in the 6th percentile of companies rated in the same sector. That could suggest that Canadian Pacific Railway is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Canadian Pacific Railway's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Canadian Pacific Railway scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Canadian Pacific Railway has, for the most part, managed to keep its nose clean.

Canadian Pacific Railway share dividends

39%

Dividend payout ratio: 39.36% of net profits

Recently Canadian Pacific Railway has paid out, on average, around 39.36% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.78% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Canadian Pacific Railway shareholders could enjoy a 0.78% return on their shares, in the form of dividend payments. In Canadian Pacific Railway's case, that would currently equate to about $0.76 per share.

While Canadian Pacific Railway's payout ratio might seem fairly standard, it's worth remembering that Canadian Pacific Railway may be investing much of the rest of its net profits in future growth.

Canadian Pacific Railway's most recent dividend payout was on 30 January 2022. The latest dividend was paid out to all shareholders who bought their shares by 29 December 2021 (the "ex-dividend date").

Have Canadian Pacific Railway's shares ever split?

Canadian Pacific Railway's shares were split on a 5:1 basis on 13 May 2021. So if you had owned 1 share the day before before the split, the next day you'd have owned 5 shares. This wouldn't directly have changed the overall worth of your Canadian Pacific Railway shares – just the quantity. However, indirectly, the new 80% lower share price could have impacted the market appetite for Canadian Pacific Railway shares which in turn could have impacted Canadian Pacific Railway's share price.

Canadian Pacific Railway share price volatility

Over the last 12 months, Canadian Pacific Railway's shares have ranged in value from as little as $64.0886 up to $82.5392. A popular way to gauge a stock's volatility is its "beta".

CP.US volatility(beta: 0.73)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Canadian Pacific Railway's is 0.7289. This would suggest that Canadian Pacific Railway's shares are less volatile than average (for this exchange).

Canadian Pacific Railway overview

Canadian Pacific Railway Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada and the United States. The company transports bulk commodities, including grain, coal, potash, fertilizers, and sulphur; and merchandise freight, such as energy, chemicals and plastics, metals, minerals and consumer, automotive, and forest products. It also transports intermodal traffic comprising retail goods in overseas containers. The company offers rail and intermodal transportation services through a network of approximately 13,000 miles serving business centers in Quebec and British Columbia, Canada; and the United States Northeast and Midwest regions. Canadian Pacific Railway Limited was founded in 1881 and is headquartered in Calgary, Canada. .

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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