CANADIAN NATL RAILWAY CO (CNI) Stock Fundamental Analysis
NYSE:CNI - New York Stock Exchange, Inc. - CA1363751027 - Common Stock - Currency: USD
Taking everything into account, CNI scores 5 out of 10 in our fundamental rating. CNI was compared to 40 industry peers in the Ground Transportation industry. CNI scores excellent on profitability, but there are concerns on its financial health. CNI has a correct valuation and a medium growth rate. 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.
Each year in the past 5 years CNI has been profitable.
In the past 5 years CNI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CNI (7.85%) is better than 77.50% of its industry peers.
CNI has a Return On Equity of 20.84%. This is in the better half of the industry: CNI outperforms 77.50% of its industry peers.
With a decent Return On Invested Capital value of 9.67%, CNI is doing good in the industry, outperforming 77.50% of the companies in the same industry.
CNI had an Average Return On Invested Capital over the past 3 years of 10.70%. This is above the industry average of 8.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 20.84% | ||
| ROIC | 9.67% |
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 26.20%, CNI belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Profit Margin of CNI has declined.
CNI's Operating Margin of 37.15% is amongst the best of the industry. CNI outperforms 95.00% of its industry peers.
In the last couple of years the Operating Margin of CNI has remained more or less at the same level.
With an excellent Gross Margin value of 74.52%, CNI belongs to the best of the industry, outperforming 87.50% 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 | 37.15% | ||
| PM (TTM) | 26.2% | ||
| GM | 74.52% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CNI is still creating some value.
CNI has less shares outstanding than it did 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 2.57 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 2.57, CNI is in line with its industry, outperforming 60.00% of the companies in the same industry.
The Debt to FCF ratio of CNI is 6.39, which is on the high side as it means it would take CNI, 6.39 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.39, CNI is doing good in the industry, outperforming 72.50% of the companies in the same industry.
CNI has a Debt/Equity ratio of 0.91. This is a neutral value indicating CNI is somewhat dependend on debt financing.
CNI's Debt to Equity ratio of 0.91 is on the low side compared to the rest of the industry. CNI is outperformed by 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 6.39 | ||
| Altman-Z | 2.57 |
ROIC/WACC1.17
WACC8.29%
2.3 Liquidity
A Current Ratio of 0.62 indicates that CNI may have some problems paying its short term obligations.
CNI has a worse Current ratio (0.62) than 95.00% of its industry peers.
CNI has a Quick Ratio of 0.62. 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 0.43 is on the low side compared to the rest of the industry. CNI is outperformed by 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.56% over the past year.
CNI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.09% yearly.
Looking at the last year, CNI shows a small growth in Revenue. The Revenue has grown by 2.60% in the last year.
CNI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.70% yearly.
EPS 1Y (TTM)0.56%
EPS 3Y6.07%
EPS 5Y4.09%
EPS Q2Q%7.56%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y5.6%
Revenue growth 5Y2.7%
Sales Q2Q%3.62%
3.2 Future
The Earnings Per Share is expected to grow by 10.10% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.74% on average over the next years.
EPS Next Y12.34%
EPS Next 2Y12.06%
EPS Next 3Y11.89%
EPS Next 5Y10.1%
Revenue Next Year3.57%
Revenue Next 2Y4.51%
Revenue Next 3Y4.85%
Revenue Next 5Y4.74%
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
CNI is valuated rather expensively with a Price/Earnings ratio of 18.91.
Based on the Price/Earnings ratio, CNI is valued a bit cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of CNI to the average of the S&P500 Index (27.48), we can say CNI is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.33, CNI is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNI indicates a rather cheap valuation: CNI is cheaper than 82.50% of the companies listed in the same industry.
CNI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.91 | ||
| Fwd PE | 15.33 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CNI.
80.00% 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 | 26.39 | ||
| EV/EBITDA | 13 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CNI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.53
PEG (5Y)4.62
EPS Next 2Y12.06%
EPS Next 3Y11.89%
5. Dividend
5.1 Amount
CNI has a Yearly Dividend Yield of 2.45%.
CNI's Dividend Yield is rather good when compared to the industry average which is at 1.47. CNI pays more dividend than 100.00% of the companies in the same industry.
CNI's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
5.2 History
The dividend of CNI is nicely growing with an annual growth rate of 9.39%!
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)9.39%
Div Incr Years27
Div Non Decr Years27
5.3 Sustainability
47.83% of the earnings are spent on dividend by CNI. This is a bit on the high side, but may be sustainable.
The dividend of CNI is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP47.83%
EPS Next 2Y12.06%
EPS Next 3Y11.89%
NYSE:CNI (7/18/2025, 3:22:07 PM)
99.28
-2.55 (-2.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners74.62%
Inst Owner Change0%
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap62.40B
Analysts72.86
Price Target122.99 (23.88%)
Short Float %1.04%
Short Ratio4.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
Yearly Dividend2.46
Dividend Growth(5Y)9.39%
DP47.83%
Div Incr Years27
Div Non Decr Years27
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.76%
Min EPS beat(2)-8.25%
Max EPS beat(2)2.73%
EPS beat(4)1
Avg EPS beat(4)-3.08%
Min EPS beat(4)-8.25%
Max EPS beat(4)2.73%
EPS beat(8)2
Avg EPS beat(8)-2.51%
EPS beat(12)5
Avg EPS beat(12)-0.08%
EPS beat(16)7
Avg EPS beat(16)0.49%
Revenue beat(2)0
Avg Revenue beat(2)-1.37%
Min Revenue beat(2)-2.24%
Max Revenue beat(2)-0.5%
Revenue beat(4)0
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-2.63%
Max Revenue beat(4)-0.5%
Revenue beat(8)1
Avg Revenue beat(8)-1.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.35%
Revenue beat(16)7
Avg Revenue beat(16)-0.34%
PT rev (1m)0.34%
PT rev (3m)1.46%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-4.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.66%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-2.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.91 | ||
| Fwd PE | 15.33 | ||
| P/S | 4.99 | ||
| P/FCF | 26.39 | ||
| P/OCF | 12.73 | ||
| P/B | 3.97 | ||
| P/tB | 3.97 | ||
| EV/EBITDA | 13 |
EPS(TTM)5.25
EY5.29%
EPS(NY)6.48
Fwd EY6.53%
FCF(TTM)3.76
FCFY3.79%
OCF(TTM)7.8
OCFY7.86%
SpS19.88
BVpS25
TBVpS25
PEG (NY)1.53
PEG (5Y)4.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 20.84% | ||
| ROCE | 12.03% | ||
| ROIC | 9.67% | ||
| ROICexc | 9.72% | ||
| ROICexgc | 9.72% | ||
| OM | 37.15% | ||
| PM (TTM) | 26.2% | ||
| GM | 74.52% | ||
| FCFM | 18.92% |
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 | 0.91 | ||
| Debt/FCF | 6.39 | ||
| Debt/EBITDA | 2.36 | ||
| Cap/Depr | 181.59% | ||
| Cap/Sales | 20.3% | ||
| Interest Coverage | 6.69 | ||
| Cash Conversion | 81.16% | ||
| Profit Quality | 72.21% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 2.57 |
F-Score6
WACC8.29%
ROIC/WACC1.17
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)0.56%
EPS 3Y6.07%
EPS 5Y4.09%
EPS Q2Q%7.56%
EPS Next Y12.34%
EPS Next 2Y12.06%
EPS Next 3Y11.89%
EPS Next 5Y10.1%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y5.6%
Revenue growth 5Y2.7%
Sales Q2Q%3.62%
Revenue Next Year3.57%
Revenue Next 2Y4.51%
Revenue Next 3Y4.85%
Revenue Next 5Y4.74%
EBIT growth 1Y-1.42%
EBIT growth 3Y4.37%
EBIT growth 5Y2.49%
EBIT Next Year38.13%
EBIT Next 3Y16.47%
EBIT Next 5Y12.09%
FCF growth 1Y-24.68%
FCF growth 3Y-8.26%
FCF growth 5Y8.89%
OCF growth 1Y-5.68%
OCF growth 3Y-1.32%
OCF growth 5Y2.49%