CANADIAN NATL RAILWAY CO (CNI) Stock Fundamental Analysis
NYSE:CNI - New York Stock Exchange, Inc. - CA1363751027 - Common Stock - Currency: USD
Overall CNI gets a fundamental rating of 5 out of 10. We evaluated CNI against 38 industry peers in the Ground Transportation industry. CNI has an excellent profitability rating, but there are concerns on its financial health. CNI is not valued too expensively and it also shows a decent growth rate. CNI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CNI was profitable.
In the past year CNI had a positive cash flow from operations.
In the past 5 years CNI has always been profitable.
Each year in the past 5 years CNI had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 9.97%, CNI belongs to the best of the industry, outperforming 86.84% of the companies in the same industry.
With an excellent Return On Equity value of 27.92%, CNI belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.45%, CNI belongs to the best of the industry, outperforming 81.58% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CNI is above the industry average of 7.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.97% | ||
| ROE | 27.92% | ||
| ROIC | 10.45% |
ROA(3y)10.29%
ROA(5y)9.69%
ROE(3y)24.47%
ROE(5y)22.98%
ROIC(3y)10.8%
ROIC(5y)10.76%
1.3 Margins
Looking at the Profit Margin, with a value of 31.66%, CNI belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
In the last couple of years the Profit Margin of CNI has grown nicely.
Looking at the Operating Margin, with a value of 37.97%, CNI belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
In the last couple of years the Operating Margin of CNI has remained more or less at the same level.
Looking at the Gross Margin, with a value of 74.25%, CNI belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
CNI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.97% | ||
| PM (TTM) | 31.66% | ||
| GM | 74.25% |
OM growth 3Y0.97%
OM growth 5Y0.44%
PM growth 3Y9.05%
PM growth 5Y2.04%
GM growth 3Y-0.86%
GM growth 5Y0%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CNI is creating some value.
The number of shares outstanding for CNI has been reduced compared to 1 year ago.
The number of shares outstanding for CNI has been reduced compared to 5 years ago.
The debt/assets ratio for CNI is higher compared to a year ago.
2.2 Solvency
CNI has an Altman-Z score of 2.78. This is not the best score and indicates that CNI is in the grey zone with still only limited risk for bankruptcy at the moment.
CNI has a Altman-Z score of 2.78. This is in the better half of the industry: CNI outperforms 60.53% of its industry peers.
CNI has a debt to FCF ratio of 5.78. This is a neutral value as CNI would need 5.78 years to pay back of all of its debts.
CNI has a better Debt to FCF ratio (5.78) than 68.42% of its industry peers.
CNI has a Debt/Equity ratio of 1.00. This is a high value indicating a heavy dependency on external financing.
CNI has a worse Debt to Equity ratio (1.00) than 65.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 5.78 | ||
| Altman-Z | 2.78 |
ROIC/WACC1.44
WACC7.27%
2.3 Liquidity
A Current Ratio of 0.64 indicates that CNI may have some problems paying its short term obligations.
CNI has a worse Current ratio (0.64) than 89.47% of its industry peers.
CNI has a Quick Ratio of 0.64. This is a bad value and indicates that CNI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.49, CNI is doing worse than 89.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
CNI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.95%.
Measured over the past 5 years, CNI shows a small growth in Earnings Per Share. The EPS has been growing by 5.80% on average per year.
CNI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.54%.
CNI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.28% yearly.
EPS 1Y (TTM)-0.95%
EPS 3Y11.14%
EPS 5Y5.8%
EPS Q2Q%1.78%
Revenue 1Y (TTM)1.54%
Revenue growth 3Y6.79%
Revenue growth 5Y3.28%
Sales Q2Q%3.09%
3.2 Future
The Earnings Per Share is expected to grow by 9.14% on average over the next years. This is quite good.
CNI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.07% yearly.
EPS Next Y1.96%
EPS Next 2Y6.88%
EPS Next 3Y8.56%
EPS Next 5Y9.14%
Revenue Next Year2.27%
Revenue Next 2Y3.87%
Revenue Next 3Y4.48%
Revenue Next 5Y5.07%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.86, the valuation of CNI can be described as rather expensive.
68.42% of the companies in the same industry are more expensive than CNI, based on the Price/Earnings ratio.
CNI is valuated rather cheaply when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.30 indicates a rather expensive valuation of CNI.
73.68% of the companies in the same industry are more expensive than CNI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 91.29. CNI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.86 | ||
| Fwd PE | 18.3 |
4.2 Price Multiples
CNI's Enterprise Value to EBITDA ratio is in line with the industry average.
76.32% of the companies in the same industry are more expensive than CNI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.82 | ||
| EV/EBITDA | 13.78 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CNI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)10.63
PEG (5Y)3.6
EPS Next 2Y6.88%
EPS Next 3Y8.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.21%, CNI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.25, CNI pays a better dividend. On top of this CNI pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, CNI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
5.2 History
The dividend of CNI is nicely growing with an annual growth rate of 11.66%!
CNI has been paying a dividend for at least 10 years, so it has a reliable track record.
CNI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.66%
Div Incr Years27
Div Non Decr Years27
5.3 Sustainability
38.95% of the earnings are spent on dividend by CNI. This is a low number and sustainable payout ratio.
The dividend of CNI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38.95%
EPS Next 2Y6.88%
EPS Next 3Y8.56%
CANADIAN NATL RAILWAY CO
NYSE:CNI (1/29/2025, 8:15:00 PM)
After market: 105.53 0 (0%)105.53
+0.41 (+0.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners77.07%
Inst Owner Change0.57%
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap66.46B
Analysts68.97
Price Target124.21 (17.7%)
Short Float %0.35%
Short Ratio1.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
Yearly Dividend3.15
Dividend Growth(5Y)11.66%
DP38.95%
Div Incr Years27
Div Non Decr Years27
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.4%
Min EPS beat(2)-5.66%
Max EPS beat(2)-1.13%
EPS beat(4)1
Avg EPS beat(4)-1.88%
Min EPS beat(4)-5.66%
Max EPS beat(4)0.66%
EPS beat(8)2
Avg EPS beat(8)-1.22%
EPS beat(12)5
Avg EPS beat(12)0.83%
EPS beat(16)7
Avg EPS beat(16)0.72%
Revenue beat(2)0
Avg Revenue beat(2)-1.9%
Min Revenue beat(2)-2.63%
Max Revenue beat(2)-1.18%
Revenue beat(4)1
Avg Revenue beat(4)-1.13%
Min Revenue beat(4)-2.63%
Max Revenue beat(4)1.13%
Revenue beat(8)3
Avg Revenue beat(8)-1.34%
Revenue beat(12)6
Avg Revenue beat(12)-0.05%
Revenue beat(16)7
Avg Revenue beat(16)-0.31%
PT rev (1m)-2.18%
PT rev (3m)-3.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.8%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)-0.76%
Revenue NY rev (3m)-2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.86 | ||
| Fwd PE | 18.3 | ||
| P/S | 5.59 | ||
| P/FCF | 26.82 | ||
| P/OCF | 13.48 | ||
| P/B | 4.93 | ||
| P/tB | 4.93 | ||
| EV/EBITDA | 13.78 |
EPS(TTM)5.06
EY4.79%
EPS(NY)5.77
Fwd EY5.46%
FCF(TTM)3.93
FCFY3.73%
OCF(TTM)7.83
OCFY7.42%
SpS18.87
BVpS21.4
TBVpS21.4
PEG (NY)10.63
PEG (5Y)3.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.97% | ||
| ROE | 27.92% | ||
| ROCE | 13.09% | ||
| ROIC | 10.45% | ||
| ROICexc | 10.5% | ||
| ROICexgc | 10.5% | ||
| OM | 37.97% | ||
| PM (TTM) | 31.66% | ||
| GM | 74.25% | ||
| FCFM | 20.85% |
ROA(3y)10.29%
ROA(5y)9.69%
ROE(3y)24.47%
ROE(5y)22.98%
ROIC(3y)10.8%
ROIC(5y)10.76%
ROICexc(3y)10.93%
ROICexc(5y)10.87%
ROICexgc(3y)10.97%
ROICexgc(5y)10.92%
ROCE(3y)13.57%
ROCE(5y)13.51%
ROICexcg growth 3Y1.61%
ROICexcg growth 5Y-1.03%
ROICexc growth 3Y1.65%
ROICexc growth 5Y-1.07%
OM growth 3Y0.97%
OM growth 5Y0.44%
PM growth 3Y9.05%
PM growth 5Y2.04%
GM growth 3Y-0.86%
GM growth 5Y0%
F-Score6
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 5.78 | ||
| Debt/EBITDA | 2.33 | ||
| Cap/Depr | 189.66% | ||
| Cap/Sales | 20.62% | ||
| Interest Coverage | 7.49 | ||
| Cash Conversion | 84.92% | ||
| Profit Quality | 65.87% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 2.78 |
F-Score6
WACC7.27%
ROIC/WACC1.44
Cap/Depr(3y)171.79%
Cap/Depr(5y)188.6%
Cap/Sales(3y)18.33%
Cap/Sales(5y)20.32%
Profit Quality(3y)75.7%
Profit Quality(5y)73.72%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.95%
EPS 3Y11.14%
EPS 5Y5.8%
EPS Q2Q%1.78%
EPS Next Y1.96%
EPS Next 2Y6.88%
EPS Next 3Y8.56%
EPS Next 5Y9.14%
Revenue 1Y (TTM)1.54%
Revenue growth 3Y6.79%
Revenue growth 5Y3.28%
Sales Q2Q%3.09%
Revenue Next Year2.27%
Revenue Next 2Y3.87%
Revenue Next 3Y4.48%
Revenue Next 5Y5.07%
EBIT growth 1Y-2.63%
EBIT growth 3Y7.82%
EBIT growth 5Y3.73%
EBIT Next Year30.29%
EBIT Next 3Y15.14%
EBIT Next 5Y12.13%
FCF growth 1Y-4.25%
FCF growth 3Y4.59%
FCF growth 5Y9.62%
OCF growth 1Y9.81%
OCF growth 3Y4.15%
OCF growth 5Y3.31%