Canadian Pacific Railway
Toronto symbol CP, transports freight over a rail network between Montreal and Vancouver. In the United States, subsidiaries connect CP Rail's Canadian lines to major hubs in the Midwest and Northeast. Alliances with other railways extend its reach to Mexico.
We’ve chosen Canadian Pacific Railway as our “Stock of the Year” for 2012.
Railways are highly cyclical. CP’s stock got as low as $30 in mid-2004, then shot up to briefly peak at $90 in mid-2007. It then fell to a low of $33 by March 2009, as the recession cut deeply into freight volumes. The stock more than doubled to …read more »
IBM $183.92 (New York symbol IBM; Shares outstanding: 1.2 billion; Market cap: $220.7 billion; TSINetwork Rating: Above Average; Dividend yield: 1.6%) earned $3.28 a share in the three months ended September 30, 2011. That’s up 15.1% from $2.85 a share a year earlier. Revenue rose 7.8%, to $26.2 billion from $24.3 billion.
The company continues to see strong growth in fast-growing …read more »
CANADIAN PACIFIC RAILWAY LTD. $52.02 (Toronto symbol CP; Shares outstanding: 170.7 million; Market cap: $8.2 billion; TSINetwork Rating: Average; Dividend yield: 2.3%; www.cpr.ca) reports that its operating ratio worsened in the three months ended June 30, 2011, to 81.8% from 77.8% a year earlier. (Operating ratio is calculated by dividing regular operating costs by revenue. The lower the ratio, the …read more »
CANADIAN PACIFIC RAILWAY LTD. $55 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 169.4 million; Market cap: $9.3 billion; Price-to-sales ratio: 1.9; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.cpr.ca) transports freight between Montreal and Vancouver. It also connects with hubs in the U.S. Midwest and Northeast. CP gets 25% of its revenue from the U.S.
In …read more »
CP’s earnings have suffered lately, mainly due to bad weather. Avalanches during the winter disrupted its operations in western Canada, and spring floods washed out some of its lines in the Canadian Prairies and the U.S. Midwest.
However, these are short-term setbacks. As well, the company is now working on a number of improvements that should make it more efficient, and …read more »
CANADIAN PACIFIC RAILWAY LTD. $60.05 (Toronto symbol CP; Shares outstanding: 169.2 million; Market cap: $10.0 billion; TSINetwork Rating: Average; Dividend yield: 2.0%; www.cpr.ca) saw its earnings fall 23.2% in the three months ended June 30, 2011, to $128.0 million, or $0.75 a share. However, that beat the consensus estimate of $0.73 a share. A year earlier, the company earned $166.6 …read more »
CANADIAN PACIFIC RAILWAY LTD. $61 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 169.4 million; Market cap: $10.3 billion; Price-to-sales ratio: 2.1; Dividend yield: 2.0%; TSINetwork Rating: Above Average; www.cpr.ca) transports freight between Montreal and Vancouver. It also connects with major hubs in the U.S. Midwest and Northeast.
In the three months ended March 31, 2011, CP’s …read more »
Canada’s two main railways face many unpredictable challenges, like bad weather and rising fuel costs. However, both have streamlined their operations. That helps them quickly respond to sudden setbacks. Both should continue to benefit as the improving economy pushes up freight volumes. We like both, but prefer CP for new buying.
CANADIAN NATIONAL RAILWAY CO. $73 (Toronto symbol CNR; Conservative Growth …read more »
CANADIAN PACIFIC RAILWAY LTD. $62.57 (Toronto symbol CP; Shares outstanding: 169.4 million; Market cap: $10.6 billion; TSINetwork Rating: Average; Dividend yield: 1.7%; www.cpr.ca) reported that its earnings per share fell 66.7% in the three months ended March 31, 2011, to $0.20 from $0.60 a year earlier.
Bad winter weather and a 10-week strike at major customer Teck Resources’ Elkview coal mine …read more »
CANADIAN PACIFIC RAILWAY LTD. $66.32 (Toronto symbol CP; Shares outstanding: 169.1 million; Market cap: $11.2 billion; SI Rating: Average; Dividend yield: 1.6%; www.cpr.ca) reported 27.4% higher earnings per share in the three months ended September 30, 2010, to $1.21 from $0.95.
CP’s revenue rose 15.0%, to $1.3 billion from $1.1 billion a year earlier.
The company’s operating ratio improved to …read more »
