Friday, February 11, 2011

Valuation of Canadian Pacific Railway Limited

Canadian Pacific Railway Limited (NYSE: CP) ( www.cpr.ca ) through its subsidiaries, provides rail and intermodal freight transportation services. It transports bulk commodities, including grain, coal, sulphur, and fertilizers; and merchandise freight that consists of finished vehicles and automotive parts. The company also transports forest products, such as wood pulp, paper, paperboard, newsprint, lumber, panel, and oriented strand board; and industrial and consumer products, which include chemicals, plastics, aggregates, steel, mine, ethanol, and other energy related products. In addition, it transports intermodal traffic comprising time-sensitive retail goods. As of December 31, 2009, Canadian Pacific Railway Limited provided rail and intermodal freight transportation services over a 15,400-mile network. It serves the principal business centers of Canada, which include Montreal, Quebec, Vancouver, and British Columbia; and the Midwest and Northeast regions of the United States. The company was founded in 1881 and is headquartered in Calgary, Canada. Canadian Pacific Railway Limited operates independently of Canadian Pacific Limited, as of October 01, 2001.(Source: Yahoo Finance)

As of February 11, 2011, it had a 52 week stock price range of $49.19 - 69.92. It had net tangible assets of $4,710,298,000 as of December 31, 2008. It had long term debt of $3,731,284,000 and net income of $523,467,000 as of December 31, 2008.

Canadian Pacific Railway Limited has a Social Responsibility report. Access here. Canadian Pacific Railway Limited has a number of environmental programs underway. These include air initiatives such as locomotive fleet renewal, anti idling technology and policies, fuel conservation teams, rail lubrication, and new locomotive design testing. Read more here. According to the Federal Railroad Administration, railroads are 1.9 to 5.5 times more fuel-efficient than trucks, depending on the commodity and length of the haul. Visit Canadian Pacific Limited’s website to find other green rail facts.

Canadian Pacific Railway Limited is a Green Business that hauls freight for both sustainable and unsustainable businesses. It’s basic business model is sound and the company is taking steps to improve its sustainability. However, the company will not obtain the level of a Basic Green Business until it stops hauling freight for unsustainable operations. Overall, this business is properly valued because it has a good deal of infrastructure and a sound market position.


Read The New Transportation Plan by Gothic Green.