Business Analysis of Canadian Pacific Railway

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Canadian Pacific Railway

CANADIAN PACIFIC RAILWAY

Business Overview

Canadian Pacific Railway Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada and the United States. The company transports bulk commodities, including grain, coal, potash, fertilizers, and Sulphur; and merchandise freight, such as finished vehicles and machinery, automotive parts, chemicals and plastics, crude, and metals and minerals, as well as forest and industrial, and consumer products. It also transports intermodal traffic comprising retail goods in overseas containers that can be transported by train, ship, and truck, as well as in domestic containers and trailers that can be moved by train and truck. The company offers rail and intermodal transportation services over a network of approximately 12,400 miles, serving the business centers of Canada from Montreal, Quebec to Vancouver, British Columbia; and the United States Northeast and Midwest regions. In addition, the company offers transload, leasing, and logistics services. Canadian Pacific Railway Limited was founded in 1881 and is headquartered in Calgary, Canada.

Canadian Pacific Railway

Canadian Pacific Railway


R&P Rank: 434
Sector: Transportation & Logistics
Industry:Railroad Transportation & Logistics
H.Q Location:Not In U.S.A.
Website: www.cpr.ca
Company Address:
7550 OGDEN DALE ROAD S.E., CALGARY ALBERTA, ALBERTA, CANADA
Ph:403-319-3591

Business Analysis of Canadian Pacific Railway

The Transportation & Logistics Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Canadian Pacific Railway compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Canadian Pacific Railway to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Canadian Pacific Railway with an interactive chart.

  1. Revenue Growth: Canadian Pacific Railway reported a revenue growth of -7.2% year-on-year during 2016. Railroad Transportation & Logistics Industry grew at -7.2% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Canadian Pacific Railway spent 29.3% of its total revenues on COGS. Railroad Transportation & Logistics industry average (COGS share of revenue) in the same period was 28.4%
  3. R&D share of Revenues: Canadian Pacific Railway R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Canadian Pacific Railway spent 19.1% of its total revenues on Sales, Marketing, and General Administration (SG&A). Railroad Transportation & Logistics industry average SG&A spending in the same period was 30.8%
  5. Inventory share of Revenues: As a percentage of revenue, Canadian Pacific Railway spent 3.0% of its total revenues on Inventories. Railroad Transportation & Logistics industry average Inventory spending in the same period was 4.9%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Canadian Pacific Railway invested 21.2% of its total revenues on Accounts Payable (A/P) Railroad Transportation & Logistics industry average Accounts Payable investment in the same period was 13.7%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Canadian Pacific Railway invested 9.5% of its total revenues on Accounts Receivable (A/R). Railroad Transportation & Logistics industry average Accounts Receivable investment in the same period was 9.6%
  8. PP&E share of Revenues: As a percentage of revenue, Canadian Pacific Railway invested 267.8% of its total revenues on Property, Plants, and Equipments (PP&E). Railroad Transportation & Logistics industry average PPE investment in the same period was 248.9%
  9. Intangibles share of Revenues: As a percentage of revenue, Canadian Pacific Railway invested 3.2% of its total revenues on Intangibles. Railroad Transportation & Logistics industry average Intangibles investment in the same period was 10.5%
  10. Net Margins: Canadian Pacific Railway Net Margins in the year 2016 were 25.7%. Railroad Transportation & Logistics industry average Net Margins in the same period were 17.9%

Sector and Industry Association of Canadian Pacific Railway

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Canadian Pacific Railway is associated with Industrials Sector Group, Transportation & Logistics Sector, and Railroad Transportation & Logistics Industry.

Transportation & Logistics sector is comprised of the following industries: Air Delivery & Freight Services; Railroad Transportation & Logistics; Shipping Transportation & Logistics; Trucking Transportation & Logistics. The definitions for each of the industries is as follows:

  • Air Delivery & Freight Services industry includes companies providing Air transportation and logistics products and services to the Industrial sector. It also includes companies that manage airports. Courier and logistic services primarily involving air transportation are also part of this industry.
  • Railroad Transportation & Logistics industry includes companies providing transportation and logistics products and services to the Industrial sector using railroads. It also includes companies that manage train depots.
  • Shipping Transportation & Logistics industry includes companies providing shipping transportation and logistics products and services to the Industrial sector. It also includes companies that manage bridges & tunnels.
  • Trucking Transportation & Logistics industry includes companies providing trucking transportation and logistics products and services to the Industrial sector. It also includes companies that manage roads, bridges, tunnels.

Industry Ranking of Canadian Pacific Railway

With $6.2 billion revenues, Canadian Pacific Railway ranked number 4 of all the companies in the US Railroad Transportation & Logistics industry. There were a total of 12 public companies in the US Railroad Transportation & Logistics industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Railroad Transportation & Logistics industry by revenues during 2016 were:

  1. Union Pacific ($19.9 billion)
  2. CSX ($11.1 billion)
  3. Norfolk Southern ($9.9 billion)
  4. Canadian Pacific Railway ($6.2 billion)
  5. Westinghouse Air Brake Technologies ($2.9 billion)
  6. Greenbrier Companies ($2.7 billion)
  7. Kansas City Southern ($2.3 billion)
  8. Genesee & Wyoming ($2 billion)
  9. GATX ($1.4 billion)
  10. American Railcar Industries ($639.1 million)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Canadian Pacific Railwayand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of canadian-pacific-railway

Union Pacific (UNP) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Union Pacific Corp with $20 billion revenues in the year 2016 was the number 1 Railroad Transportation & Logistics company. Read this report to know the top competitors of Union Pacific and identify growth and cost optimization opportunities of Union Pacific

CSX (CSX) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

CSX Corp with $11 billion revenues in the year 2016 was the number 2 Railroad Transportation & Logistics company. Read this report to know the top competitors of CSX and identify growth and cost optimization opportunities of CSX

Norfolk Southern (NSC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Norfolk Southern Corp with $10 billion revenues in the year 2016 was the number 3 Railroad Transportation & Logistics company. Read this report to know the top competitors of Norfolk Southern and identify growth and cost optimization opportunities of Norfolk Southern

Westinghouse Air Brake Technologies (WAB) Business Analysis – Analyze Historical Performance,...

Westinghouse Air Brake Technologies Corp with $3 billion revenues in the year 2016 was the number 5 Railroad Transportation & Logistics company. Read this report to know the top competitors of Westinghouse Air Brake Technologies and identify growth and cost optimization opportunities of Westinghouse Air Brake Technologies

Greenbrier Companies (GBX) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Greenbrier Companies Inc with $3 billion revenues in the year 2016 was the number 6 Railroad Transportation & Logistics company. Read this report to know the top competitors of Greenbrier Companies and identify growth and cost optimization opportunities of Greenbrier Companies

Kansas City Southern (KSU) Business Analysis – Analyze Historical Performance, Strategic...

Kansas City Southern with $2 billion revenues in the year 2016 was the number 7 Railroad Transportation & Logistics company. Read this report to know the top competitors of Kansas City Southern and identify growth and cost optimization opportunities of Kansas City Southern

Revenues Analysis

Canadian Pacific Railway (CP) Revenues And Revenue Growth From 2012 To...

This report provides the last five years revenues and revenue growth of Canadian Pacific Railway Ltd (CP) from 2012 to 2016. Canadian Pacific Railway generated a total of $6.2 billion revenues during 2016. Canadian Pacific Railway reported a revenue growth of -7.2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Canadian Pacific Railway (CP) Revenues And Revenue Growth From 2002 To...

This report provides the last fifteen years revenues and revenue growth of Canadian Pacific Railway Ltd (CP) from 2002 to 2016. Canadian Pacific Railway generated a total of $6.2 billion revenues during 2016. Canadian Pacific Railway reported a revenue growth of -7.2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Canadian Pacific Railway (CP) Revenue Growth Comparison With Industry Growth From...

This report provides a comparison of Canadian Pacific Railway Ltd (CP) revenue growth with Railroad Transportation & Logistics industry growth during the last five years from 2012 to 2016. Canadian Pacific Railway reported a revenue growth of -7.2% year-over-year during 2016. The Railroad Transportation & Logistics industry growth was -7.2% year-over-year during 2016. Canadian Pacific Railway growth was faster than the industry during 2016.