Today’s Stock: Canadian Pacific Kansas City Limited (CP)Today’s Stock: Canadian Pacific Kansas City Limited (CP)
Canadian Pacific Kansas City Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada, the United States, and Mexico. The transports bulk commodities, including grain, coal, potash, fertilizers, and sulphur; merchandise freight, such as forest products, energy, chemicals and plastics, metals, minerals, consumer products, and automotive; and intermodal traffic comprising retail goods in overseas containers. It also provides rail and intermodal transportation services over a network of approximately 20,000 miles serving business centers.
My Thoughts 💭My Thoughts 💭
Ansel thinks rail is going to make a major comeback with the re-industrialization that is currently happening within the USA. Ansel hasn’t pulled the trigger yet in buying shares but lets see how well the company is operating from a fundamental standpoint.
At 128.6k sats per share ($69,486), and a 960 sat per share yearly dividend. It will take 133 years to break even on the initial sat investment.
The company trades at a PE 29 which means investors are paying $29 access $1 of profit. The company is profitable but investors are paying a little premium to access the earnings of this company. Not a strong value play with its weak dividend and elevated stock price.
Let’s review some key fundamentals to determine if this stock is worth spending sats on.
PE:PE:
Expected Growth:Expected Growth:
Revenues and expenses:Revenues and expenses:
Balance Sheet:Balance Sheet:
Dividend:Dividend:
Bitcoin per share:Bitcoin per share:
NoneNone
Ownership breakdown :Ownership breakdown :
Leadership:Leadership:
The fundamentals of this company are basic. The balance sheet is acceptable due to the equity, but investors are paying a premium for a meager dividend from a company projected to grow below 10%.
From a Bitcoin perspective, paying 128,000 sats for one share of CP wouldn’t make sense. That’s simply too many sats for a railroad company that appears to have solid fundamentals but is still too expensive. In the long run, 128,000 sats will be worth more than one share of CP.
Here is the performance according to Simply Wall Street
Ansel is optimistic about the rail industry due to its potential for re-industrialization. Considering the company’s current position, it appears well-positioned to capitalize on the upcoming 20-year boom. If you have some extra fiat currency, investing a few shares in this company could be a sensible decision. However, using satoshis (sats) might not be advisable given the company’s balance sheet and current valuation. It might be worth considering investing once the share price drops below 25,000 sats, but this is not the case at the current valuation.