CANADIAN NATL RAILWAY CO (CNI)
CA1363751027 - Common Stock
CNI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 37 industry peers in the Ground Transportation industry. While CNI belongs to the best of the industry regarding profitability, there are concerns on its financial health. CNI has a decent growth rate and is not valued too expensively. CNI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CNI had positive earnings in the past year.
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 86.49% of the companies in the same industry.
CNI has a better Return On Equity (27.92%) than 86.49% of its industry peers.
With a decent Return On Invested Capital value of 10.45%, CNI is doing good in the industry, outperforming 78.38% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CNI is in line with the industry average of 11.94%.
| 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
CNI has a Profit Margin of 31.66%. This is amongst the best in the industry. CNI outperforms 97.30% of its industry peers.
CNI's Profit Margin has improved in the last couple of years.
CNI has a better Operating Margin (37.97%) than 94.59% 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 86.49% of its industry peers.
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
CNI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CNI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CNI has been reduced compared to 5 years ago.
Compared to 1 year ago, CNI has a worse debt to assets ratio.
2.2 Solvency
CNI has an Altman-Z score of 2.73. 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.
The Altman-Z score of CNI (2.73) is comparable to the rest of the industry.
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 67.57% 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.
With a Debt to Equity ratio value of 1.00, CNI is not doing good in the industry: 64.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 5.78 | ||
| Altman-Z | 2.73 |
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.
The Current ratio of CNI (0.64) is worse than 91.89% of its industry peers.
A Quick Ratio of 0.49 indicates that CNI may have some problems paying its short term obligations.
CNI has a worse Quick ratio (0.49) than 91.89% 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.
Looking at the last year, CNI shows a small growth in Revenue. The Revenue has grown by 1.54% in the last year.
The Revenue has been growing slightly by 3.28% on average over the past years.
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
Based on estimates for the next years, CNI will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.19% on average per year.
CNI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.32% yearly.
EPS Next Y1.96%
EPS Next 2Y6.88%
EPS Next 3Y8.56%
EPS Next 5Y9.19%
Revenue Next Year3.05%
Revenue Next 2Y4.2%
Revenue Next 3Y4.74%
Revenue Next 5Y5.32%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
CNI is valuated rather expensively with a Price/Earnings ratio of 20.29.
Based on the Price/Earnings ratio, CNI is valued a bit cheaper than 75.68% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.55. CNI is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 17.78, CNI is valued on the expensive side.
70.27% of the companies in the same industry are more expensive than CNI, based on the Price/Forward Earnings ratio.
CNI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.29 | ||
| Fwd PE | 17.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNI is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, CNI is valued a bit cheaper than 78.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.05 | ||
| EV/EBITDA | 13.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CNI may justify a higher PE ratio.
PEG (NY)10.34
PEG (5Y)3.5
EPS Next 2Y6.88%
EPS Next 3Y8.56%
5. Dividend
5.1 Amount
CNI has a Yearly Dividend Yield of 2.33%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.31, CNI pays a better dividend. On top of this CNI pays more dividend than 94.59% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, CNI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
5.2 History
On average, the dividend of CNI grows each year by 11.66%, which is quite nice.
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.
CNI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.95%
EPS Next 2Y6.88%
EPS Next 3Y8.56%
CANADIAN NATL RAILWAY CO
NYSE:CNI (12/26/2024, 8:05:01 PM)
After market: 102.66 0 (0%)102.66
-0.24 (-0.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners77.07%
Inst Owner Change3.34%
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap64.65B
Analysts68.28
Price Target126.98 (23.69%)
Short Float %0.31%
Short Ratio1.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
Dividend Growth(5Y)11.66%
DP38.95%
Div Incr Years27
Div Non Decr Years27
Ex-Date
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)-1.39%
PT rev (3m)-5.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.89%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-4.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.23%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-1.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.29 | ||
| Fwd PE | 17.78 | ||
| P/S | 5.43 | ||
| P/FCF | 26.05 | ||
| P/OCF | 13.1 | ||
| P/B | 4.79 | ||
| P/tB | 4.79 | ||
| EV/EBITDA | 13.48 |
EPS(TTM)5.06
EY4.93%
EPS(NY)5.78
Fwd EY5.63%
FCF(TTM)3.94
FCFY3.84%
OCF(TTM)7.84
OCFY7.64%
SpS18.9
BVpS21.43
TBVpS21.43
PEG (NY)10.34
PEG (5Y)3.5
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 | 2.73 |
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 5Y9.19%
Revenue 1Y (TTM)1.54%
Revenue growth 3Y6.79%
Revenue growth 5Y3.28%
Sales Q2Q%3.09%
Revenue Next Year3.05%
Revenue Next 2Y4.2%
Revenue Next 3Y4.74%
Revenue Next 5Y5.32%
EBIT growth 1Y-2.63%
EBIT growth 3Y7.82%
EBIT growth 5Y3.73%
EBIT Next Year30.29%
EBIT Next 3Y15.14%
EBIT Next 5Y11.67%
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%