CANADIAN NATL RAILWAY CO (CNR.CA) Stock Fundamental Analysis
TSX:CNR - Toronto Stock Exchange - CA1363751027 - Common Stock - Currency: CAD
Overall CNR gets a fundamental rating of 5 out of 10. We evaluated CNR against 5 industry peers in the Ground Transportation industry. CNR has an excellent profitability rating, 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.
CNR had a positive operating cash flow in the past year.
In the past 5 years CNR has always been profitable.
CNR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CNR (7.79%) is better than 100.00% of its industry peers.
The Return On Equity of CNR (21.13%) is better than 100.00% of its industry peers.
CNR has a better Return On Invested Capital (9.56%) than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CNR is above the industry average of 7.67%.
| 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
Looking at the Profit Margin, with a value of 26.09%, CNR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
CNR's Profit Margin has declined in the last couple of years.
The Operating Margin of CNR (37.11%) is better than 100.00% of its industry peers.
CNR's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 74.35%, CNR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
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
CNR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CNR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CNR has been reduced compared to 5 years ago.
The debt/assets ratio for CNR is higher compared to a year ago.
2.2 Solvency
CNR has an Altman-Z score of 2.63. 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's Altman-Z score of 2.63 is fine compared to the rest of the industry. CNR outperforms 80.00% of its industry peers.
The Debt to FCF ratio of CNR is 6.63, which is on the high side as it means it would take CNR, 6.63 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.63, CNR is in line with its industry, outperforming 60.00% 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's Debt to Equity ratio of 0.97 is in line compared to the rest of the industry. CNR outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 6.63 | ||
| Altman-Z | 2.63 |
ROIC/WACC1.16
WACC8.21%
2.3 Liquidity
CNR has a Current 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.
The Current ratio of CNR (0.66) is comparable to the rest of the industry.
A Quick Ratio of 0.48 indicates that CNR may have some problems paying its short term obligations.
CNR's Quick ratio of 0.48 is in line compared to the rest of the industry. CNR outperforms 60.00% of its industry peers.
| 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.
Measured over the past 5 years, CNR shows a small growth in Earnings Per Share. The EPS has been growing by 4.09% on average per year.
CNR shows a small growth in Revenue. In the last year, the Revenue has grown by 1.30%.
CNR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.70% yearly.
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 11.03% yearly.
The Revenue is expected to grow by 5.18% on average over the next years.
EPS Next Y13.06%
EPS Next 2Y12.64%
EPS Next 3Y12.08%
EPS Next 5Y11.03%
Revenue Next Year4.63%
Revenue Next 2Y5.19%
Revenue Next 3Y5.42%
Revenue Next 5Y5.18%
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
The Price/Earnings ratio is 20.84, which indicates a rather expensive current valuation of CNR.
Compared to the rest of the industry, the Price/Earnings ratio of CNR is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.62, CNR is valued a bit cheaper.
CNR is valuated rather expensively with a Price/Forward Earnings ratio of 18.43.
The rest of the industry has a similar Price/Forward Earnings ratio as CNR.
CNR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.84 | ||
| Fwd PE | 18.43 |
4.2 Price Multiples
CNR's Enterprise Value to EBITDA is on the same level as the industry average.
CNR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.5 | ||
| EV/EBITDA | 13.72 |
4.3 Compensation for Growth
CNR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CNR may justify a higher PE ratio.
A more expensive valuation may be justified as CNR's earnings are expected to grow with 12.08% in the coming years.
PEG (NY)1.6
PEG (5Y)5.09
EPS Next 2Y12.64%
EPS Next 3Y12.08%
5. Dividend
5.1 Amount
CNR has a Yearly Dividend Yield of 2.41%.
Compared to an average industry Dividend Yield of 2.78, CNR pays a bit more dividend than its industry peers.
CNR's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
On average, the dividend of CNR grows each year by 9.39%, which is quite nice.
CNR has been paying a dividend for at least 10 years, so it has 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 2Y12.64%
EPS Next 3Y12.08%
TSX:CNR (2/21/2025, 7:00:00 PM)
147.94
+0.72 (+0.49%)
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 Cap92.94B
Analysts73.79
Price Target175.08 (18.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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)-1.88%
PT rev (3m)-1.5%
EPS NQ rev (1m)-3.38%
EPS NQ rev (3m)-7.13%
EPS NY rev (1m)-3.61%
EPS NY rev (3m)-3.85%
Revenue NQ rev (1m)-0.92%
Revenue NQ rev (3m)-3.6%
Revenue NY rev (1m)-0.89%
Revenue NY rev (3m)-1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.84 | ||
| Fwd PE | 18.43 | ||
| P/S | 5.45 | ||
| P/FCF | 29.5 | ||
| P/OCF | 13.87 | ||
| P/B | 4.41 | ||
| P/tB | 4.41 | ||
| EV/EBITDA | 13.72 |
EPS(TTM)7.1
EY4.8%
EPS(NY)8.03
Fwd EY5.43%
FCF(TTM)5.01
FCFY3.39%
OCF(TTM)10.66
OCFY7.21%
SpS27.13
BVpS33.51
TBVpS33.51
PEG (NY)1.6
PEG (5Y)5.09
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 | 2.63 |
F-Score6
WACC8.21%
ROIC/WACC1.16
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 Y13.06%
EPS Next 2Y12.64%
EPS Next 3Y12.08%
EPS Next 5Y11.03%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y5.6%
Revenue growth 5Y2.7%
Sales Q2Q%-2.53%
Revenue Next Year4.63%
Revenue Next 2Y5.19%
Revenue Next 3Y5.42%
Revenue Next 5Y5.18%
EBIT growth 1Y-4.12%
EBIT growth 3Y4.37%
EBIT growth 5Y2.49%
EBIT Next Year44.69%
EBIT Next 3Y18.67%
EBIT Next 5Y14.3%
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%