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Canadian Pacific Railway Limited (NYSE: CP) – Is this large market cap stock undervalued?

Canadian Pacific Railway Limited (NYSE: CP), is firmly in the large market cap category with market cap of 21883.79. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Canadian Pacific Railway Limited is 147.81 (with a change from open of -0.44%), this in conjunction with a target price of 158.65. Volume today has so far reached 161909, with an average volume of about 852.87. The GAP for this stock, is 1.03%.

The P/E ratio is 19.8, bringing the forward P/E to a value of 15.83. The current EPS for Canadian Pacific Railway Limited, is 7.42, with a EPS growth for this year coming to a value of -0.70%. Performance has been interesting with performance year to date coming to 15.76%.

Looking further into the growth statistics for Canadian Pacific Railway Limited, EPS is looking like it will grow 15.03% in the next year. Looking even further it is projected to be 8.91%. Quarter over quarter is -9.10% for EPS growth and for sales growth quarter over quarter it is -12.20%. Looking at past EPS growth statistics we see that for the past five years it has been 16.90%. Sales growth for the past five years has in fact been 6.10%.

Looking at the ownership, we see that the insider ownership is at 8.06% and institutional ownership is 67.90%. Shares outstanding is 148.92, while shares float is at a value of 147.44. Float short for Canadian Pacific Railway Limited is 0.89% and the short ratio is 1.53.

In terms of debt, long term debt/equity is 1.79, while the total debt/equity comes to 1.83. The ability to meet these debts, means that the current ratio is 0.6, and the quick ratio is 0.5. The most recent gross margin is 88.10% and their operating margin is 40.90%. The profit margin is 23.50%.

Canadian Pacific Railway Limited has seen returns on assets of 7.90%, and on investment, 15.10%. Return on equity is 32.20%. Price/Earnings to growth ratio is 2.22. Price/Sales ratio is at a value of 4.47, with Price/book ratio coming to 6.25 and Price/cash is 313.07, and finally Price/Free cash Flow is 90.24.

The simple moving averages are -0.10% and 11.10% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -6.06% and the 52 week low is 53.02%.

Canadian Pacific Railway Limited has a dividend yield of 1.04%, with a current price of 147.81. The ability to pay this means the payout ratio is 15.80%. This is in an industry, Railroads, with equally high dividends from other companies in this sector, which it is Services. Canadian Pacific Railway Limited is based in Canada.

Performance in the Railroads industry means that Canadian Pacific Railway Limited has seen performance for the past week of -0.49%, with performance for the month coming to -2.07%. Looking at the data for the quarter it is at a value of 15.54%, and for the half year the performance is -0.71%. Volatility for this week is 2.14% and for the month this is 1.77%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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