Canadian Pacific Railway (TSX:CP) & Calian Group (TSX:CGY): 2 Industrial Stocks On The Move

Summary

• Shares of CP Railway have soared by 30.61 per cent in the last six months.
• CP Railway set a record for shipping Canadian grain and grain goods in October, with 3.04 million metric tonnes (MMT), the first time ever that the railway company has surpassed 3 MMT in a month.
• Calian’s stock has rallied over 77 per cent year-to-date.
• Calian Group has expanded its footprints in Europe with its recent acquisition of UK based Cadence Consultancy Limited.

TSX Industrial Index has maintained its gaining streak during these uncertain times. The index has surged over 20 per cent in the last six months. Industrial stocks such as Canadian Pacific Railway Ltd (TSX: CP) and Calian Group (TSX: CGY) have been performing well, positing higher returns than the benchmark index since the pandemic-caused market meltdown. CP Railway Ltd operates in transportation as its name suggests and Calian provides business services. Let us have a closer look at their stock performance and financial health.

Canadian Pacific Railway Limited (TSX: CP)

Canadian Pacific Railway stock has surged 25.52 per cent year-to-date. The company posted a record for shipping Canadian grain and grain goods in October, with 3.04 million metric tonnes (MMT). This is the first time ever that the railway company has surpassed 3 MMT in a month, outperforming the highest-ever record for a month set in April 2020 by 6.9 percent. It also beats the previous October record of 2.66 MMT, set in 2019, by 14.2 percent.

In the last six months, this industrial stock has increased by 30.61 per cent. Its current market capitalization stands at C$56.064 billion.

As per TMX data, Canadian Pacific’s profit-to-book (P/B) ratio is 7.398, and the price-to-cash flow (P/CF) ratio is 19.70. The company provides a positive return on equity (ROE) of 31.10 per cent, and positive return on assets (ROA) of 9.93 per cent. The company’s total debt-to-earnings ratio is 1.29. Its price-to-earnings ratio is 24.20.

The railway company holds a current dividend yield of 0.912 per cent. It pays a quarterly dividend of C$0.95 per share. The dividend growth for five-year is 19.04 per cent.

CP Railway made it to TMX’s top industrial stocklist that has stocks across the TSX and TSXV with the largest price gains in the last 30 days. The company has also been ranked on TMX’s top price performer stocks that have outperformed their peers and the markets (TSXV and TSX) in the last 30 days.

The company reported a strong operational performance in average train weights and average train lengths during the third quarter of 2020.

The company registered revenues of C$ 1.86 billion a drop of 6 per cent from C$ 1.98 billion year-over. CP’s operating ratio was 58.2 percent in the third quarter of 2020, a 2.1 per cent rise from last year's Q3 operating ratio of 56.1 per cent.

CP expects low-single-digit drop in revenue in 2020, and at least 5 per cent growth in adjusted diluted EPS. It is also anticipating capital expenditures of $1.6 billion in 2020.

Canadian Pacific Railway limited offers rail transportation services across Canada and some parts of the United States. The railway provides intermodal shipping, rail siding construction, and logistics services. The company operates in automotive, coal, energy, ethanol, fertilizer, food, forest, and chemical industries. 

CP Railway Ltd & Calian Group Have Outperformed TSX Industrials Index In YTD & Six-Month Performance Scales.

Calian Group Ltd

Ottawa-based Calian Group’s stock has soared over 77 per cent year-to-date. In the last six months, the stock has surged by 42.60 per cent. Its current market capitalization stands at C$657.63 million.

Calian’s profit-to-book (P/B) ratio is 3.384, and the price-to-cash flow (P/CF) ratio is 24.90. The company offers a positive return on equity (ROE) of 14.53 per cent, and positive return on assets (ROA) of 8.62 per cent, as per the TMX website.

The business services provider’s current dividend yield is 0.912 per cent. The company pays a quarterly cash dividend of C$0.28 per share.

Calian Group has been placed among TMX’s top industrial stocklist that has stocks across the TSX and TSXV with the largest price gains in the last 30 days.

Its total debt-to-earnings ratio is 0.10 and price-to-earnings ratio is 24.70.

The company registered revenues of C$ 105.52 million in the third quarter ended June 30, 2020, from C$ 88.79 million in the same period last year. Calian announced a net profit of C$3.86 million versus C$4.29 million in Q3 ended June 30, 2019.

Calian Group Ltd manages its business through four verticals such as Advanced Technologies, Health, Learning, and Information Technology (IT). The Advanced Technologies vertical offers products, technologies, and manufacturing services and solutions for the space, communications, defence, nuclear, public, and agriculture sectors.

The Health division operates health care professionals delivering primary care and occupational health services to public and private sector clients. Learning offers emergency management, consulting and specialized training services and solutions for the Canadian Armed Forces and clients in the health, energy, etc. IT segment delivers intricate IT and cybersecurity services.

Calian Group has expanded its footprints in Europe with its recent acquisition of UK based Cadence Consultancy Limited (Cadence). Cadence is a training company with operations across the North Atlantic Treaty Organization (NATO).