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CP (Canadian Pacific Kansas City) ROE % : 7.65% (As of Sep. 2024)


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What is Canadian Pacific Kansas City ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Canadian Pacific Kansas City's annualized net income for the quarter that ended in Sep. 2024 was $2,472 Mil. Canadian Pacific Kansas City's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $32,300 Mil. Therefore, Canadian Pacific Kansas City's annualized ROE % for the quarter that ended in Sep. 2024 was 7.65%.

The historical rank and industry rank for Canadian Pacific Kansas City's ROE % or its related term are showing as below:

CP' s ROE % Range Over the Past 10 Years
Min: 8.29   Med: 27.92   Max: 43.48
Current: 8.29

During the past 13 years, Canadian Pacific Kansas City's highest ROE % was 43.48%. The lowest was 8.29%. And the median was 27.92%.

CP's ROE % is ranked worse than
51.74% of 949 companies
in the Transportation industry
Industry Median: 8.78 vs CP: 8.29

Canadian Pacific Kansas City ROE % Historical Data

The historical data trend for Canadian Pacific Kansas City's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Canadian Pacific Kansas City ROE % Chart

Canadian Pacific Kansas City Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 35.95 34.44 13.86 9.41 9.83

Canadian Pacific Kansas City Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.60 9.93 7.32 8.30 7.65

Competitive Comparison of Canadian Pacific Kansas City's ROE %

For the Railroads subindustry, Canadian Pacific Kansas City's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Canadian Pacific Kansas City's ROE % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Canadian Pacific Kansas City's ROE % distribution charts can be found below:

* The bar in red indicates where Canadian Pacific Kansas City's ROE % falls into.



Canadian Pacific Kansas City ROE % Calculation

Canadian Pacific Kansas City's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=2927.102/( (28624.218+30927.251)/ 2 )
=2927.102/29775.7345
=9.83 %

Canadian Pacific Kansas City's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=2471.58/( (32011.675+32587.48)/ 2 )
=2471.58/32299.5775
=7.65 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2024) net income data. ROE % is displayed in the 30-year financial page.


Canadian Pacific Kansas City  (NYSE:CP) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=2471.58/32299.5775
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(2471.58 / 10479.848)*(10479.848 / 60555.3225)*(60555.3225 / 32299.5775)
=Net Margin %*Asset Turnover*Equity Multiplier
=23.58 %*0.1731*1.8748
=ROA %*Equity Multiplier
=4.08 %*1.8748
=7.65 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=2471.58/32299.5775
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (2471.58 / 3245.24) * (3245.24 / 3552.34) * (3552.34 / 10479.848) * (10479.848 / 60555.3225) * (60555.3225 / 32299.5775)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7616 * 0.9135 * 33.9 % * 0.1731 * 1.8748
=7.65 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Canadian Pacific Kansas City ROE % Related Terms

Thank you for viewing the detailed overview of Canadian Pacific Kansas City's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Canadian Pacific Kansas City Business Description

Address
7550 Ogden Dale Road SouthEast, Calgary, AB, CAN, T2C 4X9
Canadian Pacific Kansas City is a Class-1 railroad operating on track that spans across most of Canada and into parts of the Midwestern and Northeastern United States. Following the April 2023 Kansas City Southern merger, CP operates new single-line-haul services from Canada and the Upper Midwest down through Texas, the Gulf of Mexico, and into Mexico. It also hauls cross border and intra Mexico freight via operating concessions on roughly 3,300 miles of rail in Mexico. CP hauls shipments of grain, intermodal containers, energy products (like crude and frac sand), chemicals, plastics, coal, fertilizer and potash, automotive products, and a diverse mix of other merchandise.
Executives
John Kenneth Brooks officer: SVP & Chief Marketing Officer 7550 OGDEN DALE ROAD S.E., CALGARY A0 T2C 4X9
Mike Foran officer: VP Network Transportation 7550 OGDEN DALE ROAD S.E., CALGARY A0 T2C 4X9
Clements James Dominic Luther officer: VP Planning & Transportation 7550 OGDEN DALE ROAD S.E., CALGARY A0 T2C 4X9
Mark Kenneth Wallace officer: VP Corp Affrs & Chief of Staff 7550 OGDEN DALE ROAD S.E., CALGARY A0 T2C 4X9
E Hunter Harrison director, officer: Chief Executive Officer 2708 SHELTINGHAM, WELLINGTON FL 33414
Trafton Gordon T. Ii director 2632 SUTTON CIRCLE, NAPERVILLE IL 60564
Ubavka Rebecca Macdonald director 130 KING STREET WEST, TORONTO A6 M5X 1E1
Jane L Peverett director 1489 MARINE DRIVE, SUITE 802, WEST VANCOUVER A1 V7T 1B8
Peter John Edwards officer: VP HR & Labour Relations 7550 OGDEN DALE ROAD S.E., CALGARY A0 T2C 4X9
Robert Allen Johnson officer: Executive VP Operations 7550 OGDEN DALE ROAD S.E., CALGARY A0 T2C 4X9
John E Derry officer: Vice-President Human Resources 7550 OGDEN DALE ROAD S.E., CALGARY A0 T2C 4X9
William R. Fatt director 129 ROCHESTER AVENUE, TORONTO A6 M4N 1N9
Gillian H Denham director C/O CANADIAN PACIFIC RAILWAY LIMITED, 7550 OGDEN DALE ROAD S.E., CALGARY A0 T2C 4X9
Nadeem Velani officer: Interim VP and CFO 7550 OGDEN DALE ROAD S. E., CALGARY A0 T2C 4X9
Pershing Square Capital Management, L.p. director 787 11TH AVENUE, 9TH FLOOR, NEW YORK NY 10019