Operating Margin

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Price: 72.52 USD 0.18% Market Closed

Market Cap: 67.8B USD

37.5%

Improving

by 0.6%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

37.5%

Operating Income

CA$5.6B

Revenue

CA$15B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

37.5%

Operating Income

$5.6B

Revenue

CA$15B

Peer Comparison

Country		Company	Market Cap	Operating Margin
CA		Canadian Pacific Railway Ltd TSX:CP	91.2B CAD	Loading...
US		Union Pacific Corp NYSE:UNP	136.1B USD	Loading...
US		CSX Corp NASDAQ:CSX	67.5B USD	Loading...
US		Norfolk Southern Corp NYSE:NSC	65.2B USD	Loading...
CA		Canadian National Railway Co TSX:CNR	86.1B CAD	Loading...
CN		Beijing-Shanghai High Speed Railway Co Ltd SSE:601816	242.2B CNY	Loading...
JP		East Japan Railway Co TSE:9020	4.4T JPY	Loading...
US	K	Kansas City Southern LSE:0JQ4	4.2B USD	Loading...
JP		Central Japan Railway Co TSE:9022	4.1T JPY	Loading...
HK		MTR Corp Ltd HKEX:66	197.5B HKD	Loading...
CN		Daqin Railway Co Ltd SSE:601006	101.1B CNY	Loading...

Market Distribution

Min	-4 710 029.9%
30th Percentile	-65.8%
Median	-2.4%
70th Percentile	11%
Max	71 100%

Other Profitability Ratios

Canadian Pacific Railway Ltd
Glance View

Economic Moat

None

Market Cap

67.8B USD

Industry

Road & Rail

Canadian Pacific Railway Ltd., headquartered in Calgary, Alberta, weaves a narrative of connectivity and function, tracing its roots back to 1881 when it was first chartered to connect Canada from coast to coast. Over the years, this railway titan has cemented itself as a vital artery in North America's logistics and transportation network. Moving beyond its historic role in uniting provinces, Canadian Pacific now thrives by efficiently linking agricultural, industrial, and resource-rich regions across the continent. It is not just about trains and tracks; it’s a dynamic enterprise navigating the complex terrain of supply chain logistics. Specializing in the freight transportation of goods such as grain, coal, potash, and industrial and consumer products, CP operates an expansive and strategically placed rail network that stretches across Canada and into the United States, creating an indispensable backbone for commerce. The heart of Canadian Pacific Railway's business model beats in its freight revenue streams, driven by the sheer volume of goods transported via its rail lines. This revenue is augmented by intermodal services, which allow the seamless movement of goods using combinations of trucks, trains, and ships—a testament to its intricate capability in meeting diverse logistical demands. To maintain its competitive edge, CP invests heavily in technology and infrastructure, improving fuel efficiency and transit times while expanding service offerings. Innovations like precision scheduled railroading have optimized operations, reducing costs and enhancing delivery punctuality. With strategic agility, management adaptability, and a continued focus on sustainable operations, Canadian Pacific not only enhances shareholder value but also sustains its pivotal role in the continental economy's functioning.

View CP Analysis

CP Intrinsic Value

Undervaluation 17%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Canadian Pacific Railway Ltd
NYSE:CP

Peer Comparison

Market Distribution

Other Profitability Ratios

Canadian Pacific Railway Ltd
Glance View

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Canadian Pacific Railway Ltd NYSE:CP