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Summary
- Canadian Pacific Railway (TSX:CP) reported on Wednesday that its net income rose to C$ 602 million, up from C$ 409 million in Q1 2020, in the first quarter of 2021.
- Most recently, Canadian Pacific made headlines for its clash with rival Canadian National Railway (TSX:CNR) over the purchase of Kansas City Southern (NYSE:KSU).
- While Canadian Pacific had agreed to a C$ 25 billion deal for the acquisition back in March, Canadian National challenged the bid earlier this week with a “superior” offer.
Canadian Pacific Railway (TSX:CP) reported on Wednesday, April 21, that its net income rose to C$ 602 million, up from C$ 409 million in Q1 2020, in the first quarter of 2021.
The Calgary-based company's total revenues, on the other hand, were down to C$ 1,959 million in Q1 2021, as against that of C$ 2,043 million in the same quarter last year.
Announcing the results, CEO and President Keith Creel said that a strong demand environment enabled the company to post healthy results in the latest quarter.
©Kalkine Group 2021
Most recently, Canadian Pacific made headlines for its clash with rival Canadian National Railway (TSX:CNR) over the purchase of Kansas City Southern (NYSE:KSU). While Canadian Pacific had agreed to a C$ 25 billion deal for the acquisition back in March, Canadian National challenged the bid earlier this week with a “superior” offer.
A Look At Canadian Pacific’s Financials & Stock Performance
Canadian Pacific stocks have surged by about three per cent this year. At market open on Thursday, the shares were up by about four per cent and were priced at C$ 459.4 apiece (11.14AM EST).
Canadian Pacific’s market cap stands at C$ 61.2 billion, as per TMX, and it distributes a dividend of C$ 0.95 on a quarterly basis. In the last five years, CP’s dividend growth rate has been 20.04 per cent.
The railway company’s price-to-book ratio is 8.369 and it offers a 32.95 per cent return on equity (ROE). The stock outperformed the S&P 500 Index in the last year as it climbed up by about 65 per cent, whereas the index went up by just 7.9 per cent.
1-year chart of stock performance of Canadian Pacific (Source: EODHD/Others/Thomson Reuters)
CP’s diluted earnings per share increased to C$ 4.5 in Q1 2021, up from C$ 2.98 in the same quarter last year. Its cash and cash equivalents increased to C$ 360 million in the latest quarter, up from C$ 147 million in Q1 2020.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
