CP

Canadian Pacific Railway Ltd

Industrial/Transportation


Presented:07/08/2020
Price:$51.85
Cap:$35.16B
Current Price:$81.39
Cap:$75.95B

Presented

Date07/08/2020
Price$51.85
Market Cap$35.16B
Ent Value$37.09B
P/E Ratio19.71x
Book Value$7.21
Div Yield0.95%
Shares O/S678.16M
Ave Daily Vol2,502,125
Short Int0.39%

Current

Price$81.39
Market Cap$75.95B
Canadian Pacific Railway Ltd. engages in the provision of rail service. It offers rail and intermodal transportation services. It also transports bulk commodities, merchandise freight, and intermodal traffic. The company was founded in 1881 and is headquartered in Calgary, Canada.

Please note, this stock split on 5/13/2021 at a ratio of 5/1. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $259.23.

Publicly traded companies mentioned herein: Canadian Pacific Railway Ltd (CP, CP CN) 

Highlights

The presenter is long shares of Canadian Pacific Railway (CP), which he views as an extremely high quality railroad led by one of the best CEOs in the industry, Keith Creel. The opportunity for bulls lies in the outlook for pricing power and volume growth, as well as the price of crude and potential to move a large volume of crude via rail (as a result of capacity being shifted from pipelines to rail - more on this below). In the presenter’s opinion, crude-by-rail could provide an underappreciated tailwind to CP’s earnings that will boost forward EPS by at least $1 - $2 per year, and potentially by as much as $4 - $5 in the long run. With the incremental earnings being added to a “high $20s” base, then looking at annual EPS assumptions looking out 2 - 3 years, he thinks there is 30% - 40% upside for shareholders over 12 - 24 months. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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