I recommend waiting for a better discount before investing in Canadian Pacific Railway Limited (CP).

The price of Canadian Pacific Railway Limited (NYSE: CP) closed at $79.16 in the last session, up 0.83% from day before closing price of $78.51. In other words, the price has increased by $+0.65 from its previous closing price. On the day, 1767623 shares were traded. CP stock price reached its highest trading level at $79.19 during the session, while it also had its lowest trading level at $77.24.

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Ratios:

We take a closer look at CP’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 703.84 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 104.44. For the most recent quarter (mrq), Quick Ratio is recorded 0.50 and its Current Ratio is at 0.60. In the meantime, Its Debt-to-Equity ratio is 0.54 whereas as Long-Term Debt/Eq ratio is at 0.51.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, BofA Securities on September 12, 2022, Upgraded its rating to Buy and sets its target price to $87 from $85 previously.

On June 28, 2022, Credit Suisse started tracking the stock assigning a Neutral rating and target price of $74.Credit Suisse initiated its Neutral rating on June 28, 2022, with a $74 target price.

Valuation Measures:

As of this moment, Canadian’s Price-to-Earnings (P/E) ratio for their current fiscal year is 25.15, and their Forward P/E ratio for the next fiscal year is 17.51. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 2.20. For the stock, the TTM Price-to-Sale (P/S) ratio is 11.57 while its Price-to-Book (P/B) ratio in mrq is 1.95.

Stock Price History:

Over the past 52 weeks, CP has reached a high of $84.22, while it has fallen to a 52-week low of $65.17. The 50-Day Moving Average of the stock is 72.65, while the 200-Day Moving Average is calculated to be 74.14.

Shares Statistics:

According to the various share statistics, CP traded on average about 2.03M shares per day over the past 3-months and 2.18M shares per day over the past 10 days. A total of 930.00M shares are outstanding, with a floating share count of 929.93M. Insiders hold about 0.02% of the company’s shares, while institutions hold 69.50% stake in the company. Shares short for CP as of Oct 13, 2022 were 16.69M with a Short Ratio of 16.50M, compared to 16.06M on Sep 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 1.79% and a Short% of Float of 1.79%.

Dividends & Splits

The forward annual dividend rate for CP is 0.76, which was 3.68 in the trailing 12 months. Against a Trailing Annual Dividend Yield of 4.69%, it implies a Forward Annual Dividend Yield of 0.76%. The stock’s 5-year Average Dividend Yield is 0.89. The current Payout Ratio is 24.10% for CP, which recently paid a dividend on Jan 29, 2023 with an ex-dividend date of Dec 28, 2022. Stock splits for the company last occurred on May 13, 2021 when the company split stock in a 5:1 ratio.

Earnings Estimates

The company has 20 analysts who recommend its stock at the moment. On average, analysts expect EPS of $0.8 for the current quarter, with a high estimate of $0.87 and a low estimate of $0.72, while EPS last year was $0.65. The consensus estimate for the next quarter is $0.88, with high estimates of $0.94 and low estimates of $0.81.

Analysts are recommending an EPS of between $3.3 and $2.57 for the fiscal current year, implying an average EPS of $3.17. EPS for the following year is $3.46, with 23 analysts recommending between $3.71 and $2.76.

Revenue Estimates

A total of 21 analysts have provided revenue estimates for CP’s current fiscal year. The highest revenue estimate was $6.73B, while the lowest revenue estimate was $6.37B, resulting in an average revenue estimate of $6.56B. In the same quarter a year ago, actual revenue was $6.12B, up 7.20% from the average estimate. Based on 21 analysts’ estimates, the company’s revenue will be $7.03B in the next fiscal year. The high estimate is $7.47B and the low estimate is $6.72B. The average revenue growth estimate for next year is up 7.20% from the average revenue estimate for this year.