Is Canadian Pacific’s (TSX:CP) stock a buy after Q4 revenue increase?

January 28, 2022 11:52 PM AEDT | By Kajal Jain

Is Canadian Pacific’s (TSX:CP) stock a buy after Q4 revenue increase? — Image source: ©2022 Kalkine Media®

Canadian Pacific Railway’s (TSX:CP) financial results in Q4 FY2021

Canadian Pacific reported a top line of C$ 2.04 billion in the fourth quarter of fiscal 2021, up by one per cent year-over-year (YoY) from C$ 2.01 billion.

The railroad giant, which currently has a market capitalization of over C$ 87 billion, saw its operating ratio at 59.2 per cent in the latest quarter, including the costs of C$ 36 million related to the acquisition of Kansas City Southern.

When excluding the acquisition costs, its adjusted operating ratio reached 57.5 per cent.

Also read: Magna International (MG) & Birchcliff (BIR): 2 TSX value stocks to buy

The Canadian railway company generated a net income of C$ 532 million in the last quarter of FY2021 compared to C$ 802 million in Q2 FY2020. The railroad operator earned diluted earnings of C$ 0.74 per share in Q4 FY2021 compared to C$ 1.19 per share in the prior-year quarter.

Canadian Pacific is also set to dole out a quarterly dividend of C$ 0.19 per share on April 25 against an ex-dividend date of March 24.

Canadian Pacific Railway Limited <a class='font-weight-bold' style='border-bottom: 2px dashed;' aria-label='https://kalkinemedia.com/ca/companies/tsx-cp' href='https://kalkinemedia.com/ca/companies/tsx-cp'>(TSX:CP)</a> Q4 FY2021 financial results

Data source: Canadian Pacific Railway Limited

Canadian Pacific’s stock performance

The railroad stock returned almost 11 per cent in the last one year. Stocks of Canadian Pacific closed at C$ 93.82 apiece on Thursday after touching a day high of C$ 95.50. The transportation scrip climbed over three per cent in 2022.

Bottom line

Canadian Pacific might see its transportation business grow with the acquisition of Kansas City Southern. However, apart from financial and operational results, investors need to keep an eye on the market conditions and factors that can impact the company’s business.

Also read: Canadian National (TSX:CNR) sees Q4 diluted EPS soar 18%. A buy alert?

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.