External reports (aggregated public sources), Value Investors Club

Value Investors Club (VIC)

External reports (aggregated public sources)

Value Investors Club

Equity Bottom-Up

Canadian Pacific Kansas City L / Equity Bottom-Up

<ul><li>Investment thesis for Canadian Pacific Kansas City (CP) targets CAD154 with potential for 35% NTM return and CAD200 in 3 years</li><li>CP-KC is a single-line transnational railway operator with tracks in Canada, US, and Mexico</li><li>Strong management team, revenue synergies, margin benefits, and strong free cash flow generation support the thesis for CP to outperform in the coming years</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

Investment thesis for Canadian Pacific Kansas City (CP) targets CAD154 with potential for 35% NTM return and CAD200 in 3 yearsCP-KC is a single-line transnational railway operator with tracks in Canada, US, and MexicoStrong management team, revenue synergies, margin benefits, and strong free cash flow generation support the thesis for CP to outperform in the coming yearsThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Canadian Pacific Kansas City (CP) - Monday, Jul 29, 2024

Managing Partner, VRS (Valuation & Research Specialists)

VRS (Valuation & Research Specialists)

Managing Partner

Valuation & Research Specialists (VRS) is a boutique financial advisor with more than 17 years of experience in Corporate Valuation and Finance, and a diversified client base including some of the largest Companies in Greece.

Since 2002, VRS has completed more than 200 engagements in the areas of business valuation and financial analysis for more than 100 clients in a wide range of industries.

VRS has been honored to work with small and large private and publicly traded companies in Europe and overseas.

Boutique Financial Advisor

<div>
<div>
<div>
<div>
<h3>Corporate &amp; Investment Highlights</h3>
<div>
<div>
<div>
<div>
<ul>
<li>Canadian Pacific Railway’s revenues for 2021 increased to $8bn recording a 3.7% increase compared to reve- nues of 2020. Similar upward trend showed all profitability indicators in 2021 (EBITDA, EBT, EATAM). EBT in- creased by 13.05% in 2021 and EATAM by 16.69% respectively. Revenues for the nine months of 2022 amount- ed to $6.4bn recording a 6.6% increase compared to the levels of 2021. It is estimated that revenues will amount to $8.8bn at the end of 2022 and to $14bn in 2023 showing a substantial increase.</li>
<li>Canadian Pacific Railway derives revenues from transporting freight. The company transports freight, consisting of bulk commodities, merchandise, and intermodal traffic. Bulk commodities, which typically move in large vol- umes across long distances, include grain, coal, potash, and fertilizers and sulphur. Merchandise freight consists of industrial and consumer products, such as energy, chemicals and plastics, metals, minerals and consumer products, automotive, and forest products. Intermodal traffic consists largely of retail goods in overseas contain- ers that can be transported by train, ship and truck, and in domestic containers that can be moved by train and truck. As mentioned above revenues amounted to $8bn in 2021 comprising mainly of $7.8bn in freight revenues with the remaining $0.2bn to be non-freight and leasing revenues.</li>
<li>Net profit of 2021 amounted to $2.9bn compared to $2.4bn net profit of 2020. We expect for 2022 EATAM to increase further around $3.3bn taking also into account that for the nine months of 2022 EATAM stood at $2.2bn. For 2023, we expect EATAM to continue increasing with high pace, ranging around $4.3bn.</li>
<li>Capital Expenditures (Capex) amounted to $1.5bn in 2021, compared to $1.7bn in 2020. Our estimates are that Capex will remain at the same levels of the previous year in 2022, meaning it will range around $1.5bn. Since Canadian Pacific Railway will continue to expand and enhance its rail network, rolling stock and other infrastruc- ture it is estimated that Capital Expenditures will amount to $2.2bn in 2023. These expenditures are aimed at im- proving efficiency and safety of operations. Such investments are also an integral part of the Company's multi- year capital program and are in line with the objective to support strategic growth initiatives.</li>
</ul>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>





Corporate &amp; Investment Highlights





Canadian Pacific Railway’s revenues for 2021 increased to $8bn recording a 3.7% increase compared to reve- nues of 2020. Similar upward trend showed all profitability indicators in 2021 (EBITDA, EBT, EATAM). EBT in- creased by 13.05% in 2021 and EATAM by 16.69% respectively. Revenues for the nine months of 2022 amount- ed to $6.4bn recording a 6.6% increase compared to the levels of 2021. It is estimated that revenues will amount to $8.8bn at the end of 2022 and to $14bn in 2023 showing a substantial increase.
Canadian Pacific Railway derives revenues from transporting freight. The company transports freight, consisting of bulk commodities, merchandise, and intermodal traffic. Bulk commodities, which typically move in large vol- umes across long distances, include grain, coal, potash, and fertilizers and sulphur. Merchandise freight consists of industrial and consumer products, such as energy, chemicals and plastics, metals, minerals and consumer products, automotive, and forest products. Intermodal traffic consists largely of retail goods in overseas contain- ers that can be transported by train, ship and truck, and in domestic containers that can be moved by train and truck. As mentioned above revenues amounted to $8bn in 2021 comprising mainly of $7.8bn in freight revenues with the remaining $0.2bn to be non-freight and leasing revenues.
Net profit of 2021 amounted to $2.9bn compared to $2.4bn net profit of 2020. We expect for 2022 EATAM to increase further around $3.3bn taking also into account that for the nine months of 2022 EATAM stood at $2.2bn. For 2023, we expect EATAM to continue increasing with high pace, ranging around $4.3bn.
Capital Expenditures (Capex) amounted to $1.5bn in 2021, compared to $1.7bn in 2020. Our estimates are that Capex will remain at the same levels of the previous year in 2022, meaning it will range around $1.5bn. Since Canadian Pacific Railway will continue to expand and enhance its rail network, rolling stock and other infrastruc- ture it is estimated that Capital Expenditures will amount to $2.2bn in 2023. These expenditures are aimed at im- proving efficiency and safety of operations. Such investments are also an integral part of the Company's multi- year capital program and are in line with the objective to support strategic growth initiatives.










Company Update - Canadian Pacific Railway Ltd

Canada

Canadian Pacific Kansas City Limited operates a transnational rail network. The Company transports automotive, energy, chemicals, plastics, forestry, industrial, and temperature protected products. Canadian Pacific Kansas City serves customers in North America.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Canadian Pacific Kansas City L (CP CN)

Canadian Pacific Kansas City (CP) - Monday, Jul 29, 2024

Investment thesis for Canadian Pacific Kansas City (CP) targets CAD154 with potential for 35% NTM return and CAD200 in 3 years

Value Investors Club (VIC)

Company Update - Canadian Pacific Railway Ltd

Corporate & Investment Highlights Canadian Pacific Railway’s revenues for 2021 increased to $8bn recording a 3.7% increase compared to...

VRS (Valuation & Research Specialists)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)