Canadian Pacific Kansas City Ltd. (CP) intrinsic value & 10-year financials

Canadian Pacific Kansas City Ltd. (CP) has a Graham intrinsic value of CAD 95.33 per share. Over the last 10 fiscal years revenue grew 10.3% a year to CAD 15.0B, with an average return on invested capital of 10.8%.

Graham intrinsic value
CAD 95.33
Revenue (FY2025)
CAD 15.0B
Revenue growth (10-yr CAGR)
10.3%
ROIC (10-yr avg)
10.8%
Free cash flow (FY2025)
CAD 2.2B

CP 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 CAD 15.0B CAD 4.1B CAD 4.51 CAD 2.2B 37.5% 6.1%
FY2024 CAD 14.4B CAD 3.7B CAD 3.98 CAD 2.4B 35.9% 6.0%
FY2023 CAD 12.4B CAD 3.9B CAD 4.21 CAD 1.7B 35.3% 3.6%
FY2022 CAD 8.7B CAD 3.5B CAD 3.77 CAD 2.6B 38.1% 5.0%
FY2021 CAD 7.9B CAD 2.9B CAD 4.18 CAD 2.2B 40.5% 7.1%
FY2020 CAD 7.6B CAD 2.4B CAD 3.59 CAD 1.1B 43.3% 15.5%
FY2019 CAD 7.7B CAD 2.4B CAD 3.50 CAD 1.3B 40.4% 15.7%
FY2018 CAD 7.3B CAD 2.0B CAD 2.72 CAD 1.2B 39.0% 14.5%
FY2017 CAD 6.5B CAD 2.4B CAD 3.29 CAD 842.0M 43.0% 19.6%
FY2016 CAD 6.2B CAD 1.6B CAD 2.13 CAD 907.0M 41.8% 14.6%

Source: annual 10-K filings on SEC EDGAR. Figures in CAD.

Executive summary

CANADIAN PACIFIC KANSAS CITY LTD/CN is a consistent compounder, expanding top-line revenue at 10.3% annually over the past decade.

CANADIAN PACIFIC KANSAS CITY LTD/CN returns on capital have been average, hovering around 10.8% ROIC over the decade.

Over the decade, CANADIAN PACIFIC KANSAS CITY LTD/CN shows that the company has leveraged its balance sheet to sustain operations.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, CANADIAN PACIFIC KANSAS CITY LTD/CN is modeled at 8.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $95.33 per share.

CP stock: frequently asked questions

What is the intrinsic value of Canadian Pacific Kansas City Ltd. (CP) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 8.0% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, CP's intrinsic value is about CAD 95.33 per share.

How fast has Canadian Pacific Kansas City Ltd. grown?

Revenue went from CAD 6.2B in fiscal 2016 to CAD 15.0B in fiscal 2025, a compound annual growth rate of 10.3%. Net income was CAD 4.1B in fiscal 2025.

Does Canadian Pacific Kansas City Ltd. generate free cash flow?

Canadian Pacific Kansas City Ltd. generated CAD 2.2B of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 10 of the last 10 reported years.

What is CP's return on invested capital?

Average ROIC over the last 10 fiscal years was 10.8%, and average return on equity was 22.8%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this CP data come from?

From Canadian Pacific Kansas City Ltd.'s annual 10-K filings on SEC EDGAR. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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