CPKC set to launch

Article Excerpt

CANADIAN PACIFIC KANSAS CITY LTD. $107.44 (Toronto symbol CP; shares o/s: 931.1 million; Market cap: $99.1 billion; Rating: Above Average; Dividend yield: 0.7%) took its current form on April 14, 2023, when Canadian Pacific Railway Ltd. completed its acquisition of U.S. railway Kansas City Southern (KCS). Meantime, the company’s revenue in the three months ended March 31, 2023, rose 23.3%, to $2.27 billion from $1.84 billion a year earlier. (Note—these figures exclude KCS). If you exclude costs related to the KCS purchase and other unusual items, earnings in the quarter jumped 34.3%, to $0.90 a share (or a total of $840 million) from $0.67 a share (or $628 million). The company’s operating ratio improved to 62.9% from 69.8% a year earlier. (Operating ratio is calculated by dividing regular operating costs by revenue. The lower that ratio is, the better.) CPKC remains a buy. buy. …