CANADIAN NATL RAILWAY CO (CNI)
CA1363751027 - Common Stock
CNI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 38 industry peers in the Ground Transportation industry. While CNI has a great profitability rating, there are quite some concerns on its financial health. CNI has a correct valuation and a medium growth rate. Finally CNI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CNI was profitable.
CNI had a positive operating cash flow in the past year.
In the past 5 years CNI has always been profitable.
CNI had a positive operating cash flow in each of the past 5 years.
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.
CNI's Return On Equity of 27.92% is amongst the best of the industry. CNI outperforms 86.84% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.45%, CNI is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
CNI had an Average Return On Invested Capital over the past 3 years of 10.80%. This is in line with the industry average of 11.60%.
| 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.
CNI's Profit Margin has improved in the last couple of years.
CNI has a better Operating Margin (37.97%) than 94.74% of its industry peers.
In the last couple of years the Operating Margin of CNI has remained more or less at the same level.
CNI has a better Gross Margin (74.25%) than 84.21% of its industry peers.
In the last couple of years the Gross Margin of CNI has remained more or less at the same level.
| 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.
CNI has less shares outstanding than it did 5 years ago.
CNI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.74 indicates that CNI is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.74, CNI is in line with its industry, outperforming 52.63% of the companies in the same industry.
The Debt to FCF ratio of CNI is 5.78, which is a neutral value as it means it would take CNI, 5.78 years of fcf income to pay off all of its debts.
CNI has a Debt to FCF ratio of 5.78. This is in the better half of the industry: CNI outperforms 71.05% 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.
Looking at the Debt to Equity ratio, with a value of 1.00, CNI is doing worse than 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 5.78 | ||
| Altman-Z | 2.74 |
ROIC/WACC1.45
WACC7.2%
2.3 Liquidity
CNI has a Current 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.
CNI has a Current ratio of 0.64. This is amonst the worse of the industry: CNI underperforms 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.
CNI's Quick ratio of 0.49 is on the low side compared to the rest of the industry. CNI is outperformed by 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The earnings per share for CNI have decreased by -0.95% in the last year.
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.
The Revenue has been growing slightly by 1.54% in the past year.
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 10.95% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.79% on average over the next years.
EPS Next Y2.22%
EPS Next 2Y7.02%
EPS Next 3Y8.64%
EPS Next 5Y10.95%
Revenue Next Year3.08%
Revenue Next 2Y4.26%
Revenue Next 3Y4.76%
Revenue Next 5Y5.79%
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
A Price/Earnings ratio of 20.47 indicates a rather expensive valuation of CNI.
Based on the Price/Earnings ratio, CNI is valued a bit cheaper than 73.68% of the companies in the same industry.
CNI is valuated rather cheaply when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
CNI is valuated rather expensively with a Price/Forward Earnings ratio of 17.89.
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 23.56. CNI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.47 | ||
| Fwd PE | 17.89 |
4.2 Price Multiples
CNI's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CNI indicates a rather cheap valuation: CNI is cheaper than 81.58% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.25 | ||
| EV/EBITDA | 13.54 |
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)9.21
PEG (5Y)3.53
EPS Next 2Y7.02%
EPS Next 3Y8.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.18%, CNI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.64, CNI pays a better dividend. On top of this CNI pays more dividend than 94.74% of the companies listed in the same industry.
CNI's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
5.2 History
The dividend of CNI is nicely growing with an annual growth rate of 11.66%!
CNI has paid a dividend for at least 10 years, which is 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 Years26
Div Non Decr Years26
5.3 Sustainability
CNI pays out 38.95% of its income as dividend. This is a sustainable payout ratio.
CNI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.95%
EPS Next 2Y7.02%
EPS Next 3Y8.64%
CANADIAN NATL RAILWAY CO
NYSE:CNI (11/20/2024, 8:14:26 PM)
Premarket: 107.09 +0.25 (+0.23%)106.84
+0.13 (+0.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap67.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.47 | ||
| Fwd PE | 17.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)9.21
PEG (5Y)3.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.97% | ||
| ROE | 27.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 37.97% | ||
| PM (TTM) | 31.66% | ||
| GM | 74.25% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-0.95%
EPS 3Y11.14%
EPS 5Y
EPS Q2Q%
EPS Next Y2.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.54%
Revenue growth 3Y6.79%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y