CANADIAN NATL RAILWAY CO (CNR.CA) Stock Fundamental Analysis
TSX:CNR - Toronto Stock Exchange - CA1363751027 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to CNR. CNR was compared to 6 industry peers in the Ground Transportation industry. CNR scores excellent on profitability, but there are concerns on its financial health. CNR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CNR was profitable.
In the past year CNR had a positive cash flow from operations.
In the past 5 years CNR has always been profitable.
In the past 5 years CNR always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 7.79%, CNR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
CNR's Return On Equity of 21.13% is amongst the best of the industry. CNR outperforms 100.00% of its industry peers.
CNR's Return On Invested Capital of 9.56% is amongst the best of the industry. CNR outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CNR is above the industry average of 7.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.79% | ||
| ROE | 21.13% | ||
| ROIC | 9.56% |
ROA(3y)9.53%
ROA(5y)9.32%
ROE(3y)24.34%
ROE(5y)22.53%
ROIC(3y)10.7%
ROIC(5y)10.47%
1.3 Margins
CNR has a better Profit Margin (26.09%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of CNR has declined.
With an excellent Operating Margin value of 37.11%, CNR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of CNR has remained more or less at the same level.
CNR has a Gross Margin of 74.35%. This is amongst the best in the industry. CNR outperforms 83.33% of its industry peers.
In the last couple of years the Gross Margin of CNR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.11% | ||
| PM (TTM) | 26.09% | ||
| GM | 74.35% |
OM growth 3Y-1.16%
OM growth 5Y-0.21%
PM growth 3Y-8.26%
PM growth 5Y-1.58%
GM growth 3Y-0.37%
GM growth 5Y0.14%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CNR is creating some value.
The number of shares outstanding for CNR has been reduced compared to 1 year ago.
CNR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CNR has a worse debt to assets ratio.
2.2 Solvency
CNR has an Altman-Z score of 2.50. This is not the best score and indicates that CNR is in the grey zone with still only limited risk for bankruptcy at the moment.
CNR has a Altman-Z score of 2.50. This is in the better half of the industry: CNR outperforms 66.67% of its industry peers.
CNR has a debt to FCF ratio of 6.63. This is a slightly negative value and a sign of low solvency as CNR would need 6.63 years to pay back of all of its debts.
With a Debt to FCF ratio value of 6.63, CNR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
CNR has a Debt/Equity ratio of 0.97. This is a neutral value indicating CNR is somewhat dependend on debt financing.
CNR has a Debt to Equity ratio (0.97) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 6.63 | ||
| Altman-Z | 2.5 |
ROIC/WACC1.22
WACC7.84%
2.3 Liquidity
A Current Ratio of 0.66 indicates that CNR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.66, CNR is in line with its industry, outperforming 50.00% of the companies in the same industry.
CNR has a Quick Ratio of 0.66. This is a bad value and indicates that CNR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.48, CNR is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The earnings per share for CNR have decreased by -2.61% in the last year.
CNR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.09% yearly.
The Revenue has been growing slightly by 1.30% in the past year.
Measured over the past years, CNR shows a small growth in Revenue. The Revenue has been growing by 2.70% on average per year.
EPS 1Y (TTM)-2.61%
EPS 3Y6.07%
EPS 5Y4.09%
EPS Q2Q%-9.9%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y5.6%
Revenue growth 5Y2.7%
Sales Q2Q%-2.53%
3.2 Future
CNR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.80% yearly.
The Revenue is expected to grow by 4.57% on average over the next years.
EPS Next Y12.34%
EPS Next 2Y12.06%
EPS Next 3Y11.89%
EPS Next 5Y9.8%
Revenue Next Year4.67%
Revenue Next 2Y5.22%
Revenue Next 3Y5.44%
Revenue Next 5Y4.57%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 18.96, CNR is valued on the expensive side.
CNR's Price/Earnings ratio is a bit cheaper when compared to the industry. CNR is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of CNR to the average of the S&P500 Index (28.79), we can say CNR is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.88, the valuation of CNR can be described as correct.
66.67% of the companies in the same industry are more expensive than CNR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, CNR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.96 | ||
| Fwd PE | 16.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNR is valued a bit cheaper than 66.67% of the companies in the same industry.
CNR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CNR is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.85 | ||
| EV/EBITDA | 12.75 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CNR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.54
PEG (5Y)4.63
EPS Next 2Y12.06%
EPS Next 3Y11.89%
5. Dividend
5.1 Amount
CNR has a Yearly Dividend Yield of 2.59%. Purely for dividend investing, there may be better candidates out there.
CNR's Dividend Yield is a higher than the industry average which is at 3.87.
Compared to an average S&P500 Dividend Yield of 2.51, CNR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
5.2 History
On average, the dividend of CNR grows each year by 9.39%, which is quite nice.
CNR has paid a dividend for at least 10 years, which is a reliable track record.
CNR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.39%
Div Incr Years28
Div Non Decr Years28
5.3 Sustainability
48.07% of the earnings are spent on dividend by CNR. This is a bit on the high side, but may be sustainable.
CNR's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP48.07%
EPS Next 2Y12.06%
EPS Next 3Y11.89%
TSX:CNR (4/25/2025, 7:00:00 PM)
134.62
-0.68 (-0.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners74.36%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap84.57B
Analysts73.79
Price Target174.19 (29.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
Yearly Dividend3.37
Dividend Growth(5Y)9.39%
DP48.07%
Div Incr Years28
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.69%
Min EPS beat(2)-8.25%
Max EPS beat(2)-1.13%
EPS beat(4)0
Avg EPS beat(4)-4.11%
Min EPS beat(4)-8.25%
Max EPS beat(4)-1.13%
EPS beat(8)2
Avg EPS beat(8)-2.25%
EPS beat(12)4
Avg EPS beat(12)-0.75%
EPS beat(16)6
Avg EPS beat(16)0.19%
Revenue beat(2)0
Avg Revenue beat(2)-1.71%
Min Revenue beat(2)-2.24%
Max Revenue beat(2)-1.18%
Revenue beat(4)0
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-2.63%
Max Revenue beat(4)-1.18%
Revenue beat(8)2
Avg Revenue beat(8)-1.68%
Revenue beat(12)5
Avg Revenue beat(12)-0.32%
Revenue beat(16)7
Avg Revenue beat(16)-0.45%
PT rev (1m)-0.51%
PT rev (3m)-2.38%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-3.62%
EPS NY rev (1m)-0.63%
EPS NY rev (3m)-4.22%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)-0.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.96 | ||
| Fwd PE | 16.88 | ||
| P/S | 4.96 | ||
| P/FCF | 26.85 | ||
| P/OCF | 12.62 | ||
| P/B | 4.02 | ||
| P/tB | 4.02 | ||
| EV/EBITDA | 12.75 |
EPS(TTM)7.1
EY5.27%
EPS(NY)7.98
Fwd EY5.92%
FCF(TTM)5.01
FCFY3.72%
OCF(TTM)10.66
OCFY7.92%
SpS27.13
BVpS33.51
TBVpS33.51
PEG (NY)1.54
PEG (5Y)4.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.79% | ||
| ROE | 21.13% | ||
| ROCE | 11.91% | ||
| ROIC | 9.56% | ||
| ROICexc | 9.63% | ||
| ROICexgc | 9.63% | ||
| OM | 37.11% | ||
| PM (TTM) | 26.09% | ||
| GM | 74.35% | ||
| FCFM | 18.48% |
ROA(3y)9.53%
ROA(5y)9.32%
ROE(3y)24.34%
ROE(5y)22.53%
ROIC(3y)10.7%
ROIC(5y)10.47%
ROICexc(3y)10.79%
ROICexc(5y)10.58%
ROICexgc(3y)10.83%
ROICexgc(5y)10.63%
ROCE(3y)13.46%
ROCE(5y)13.06%
ROICexcg growth 3Y-1.67%
ROICexcg growth 5Y-2.97%
ROICexc growth 3Y-1.63%
ROICexc growth 5Y-2.93%
OM growth 3Y-1.16%
OM growth 5Y-0.21%
PM growth 3Y-8.26%
PM growth 5Y-1.58%
GM growth 3Y-0.37%
GM growth 5Y0.14%
F-Score6
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 6.63 | ||
| Debt/EBITDA | 2.49 | ||
| Cap/Depr | 187.58% | ||
| Cap/Sales | 20.82% | ||
| Interest Coverage | 6.83 | ||
| Cash Conversion | 81.53% | ||
| Profit Quality | 70.82% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 2.5 |
F-Score6
WACC7.84%
ROIC/WACC1.22
Cap/Depr(3y)174.01%
Cap/Depr(5y)176.62%
Cap/Sales(3y)18.61%
Cap/Sales(5y)19.3%
Profit Quality(3y)71.51%
Profit Quality(5y)78.12%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.61%
EPS 3Y6.07%
EPS 5Y4.09%
EPS Q2Q%-9.9%
EPS Next Y12.34%
EPS Next 2Y12.06%
EPS Next 3Y11.89%
EPS Next 5Y9.8%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y5.6%
Revenue growth 5Y2.7%
Sales Q2Q%-2.53%
Revenue Next Year4.67%
Revenue Next 2Y5.22%
Revenue Next 3Y5.44%
Revenue Next 5Y4.57%
EBIT growth 1Y-4.12%
EBIT growth 3Y4.37%
EBIT growth 5Y2.49%
EBIT Next Year40.22%
EBIT Next 3Y17%
EBIT Next 5Y11.43%
FCF growth 1Y-16.62%
FCF growth 3Y-8.26%
FCF growth 5Y8.89%
OCF growth 1Y-3.82%
OCF growth 3Y-1.32%
OCF growth 5Y2.49%