CANADIAN NATL RAILWAY CO (CNI) Stock Fundamental Analysis
USA - NYSE:CNI - CA1363751027 - Common Stock
95.68 USD
+1.02 (+1.08%)
95.5 USD
-0.18 (-0.19%)
We assign a fundamental rating of 5 out of 10 to CNI. CNI was compared to 42 industry peers in the Ground Transportation industry. CNI has an excellent profitability rating, but there are concerns on its financial health. CNI is not valued too expensively and it also shows a decent growth rate.
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.
CNI had positive earnings in each of the past 5 years.
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 8.04%, CNI belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
With an excellent Return On Equity value of 21.19%, CNI belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.76%, CNI belongs to the top of the industry, outperforming 88.10% 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 7.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.04% | ||
| ROE | 21.19% | ||
| ROIC | 9.76% |
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
The Profit Margin of CNI (26.62%) is better than 88.10% of its industry peers.
In the last couple of years the Profit Margin of CNI has declined.
With an excellent Operating Margin value of 37.28%, CNI belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
CNI's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 75.22%, CNI belongs to the best of the industry, outperforming 88.10% 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 | 37.28% | ||
| PM (TTM) | 26.62% | ||
| GM | 75.22% |
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), CNI is creating some value.
The number of shares outstanding for CNI has been reduced compared to 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 2.56. 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.
With a Altman-Z score value of 2.56, CNI perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
The Debt to FCF ratio of CNI is 6.32, which is on the high side as it means it would take CNI, 6.32 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.32, CNI is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
CNI has a Debt/Equity ratio of 0.90. This is a neutral value indicating CNI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.90, CNI is doing worse than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 6.32 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.16
WACC8.45%
2.3 Liquidity
A Current Ratio of 0.82 indicates that CNI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.82, CNI is doing worse than 73.81% of the companies in the same industry.
A Quick Ratio of 0.58 indicates that CNI may have some problems paying its short term obligations.
CNI's Quick ratio of 0.58 is on the low side compared to the rest of the industry. CNI is outperformed by 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for CNI have decreased by -0.14% in the last year.
The Earnings Per Share has been growing slightly by 4.09% on average over the past years.
CNI shows a small growth in Revenue. In the last year, the Revenue has grown by 0.63%.
The Revenue has been growing slightly by 2.70% on average over the past years.
EPS 1Y (TTM)-0.14%
EPS 3Y6.07%
EPS 5Y4.09%
EPS Q2Q%1.63%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y5.6%
Revenue growth 5Y2.7%
Sales Q2Q%-1.32%
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 9.27% on average per year.
CNI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.37% yearly.
EPS Next Y6.63%
EPS Next 2Y8.39%
EPS Next 3Y9.21%
EPS Next 5Y9.27%
Revenue Next Year1.36%
Revenue Next 2Y2.93%
Revenue Next 3Y3.5%
Revenue Next 5Y4.37%
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
CNI is valuated rather expensively with a Price/Earnings ratio of 18.51.
85.71% of the companies in the same industry are more expensive than CNI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.40, CNI is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.10, the valuation of CNI can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNI indicates a rather cheap valuation: CNI is cheaper than 80.95% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. CNI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.51 | ||
| Fwd PE | 16.1 |
4.2 Price Multiples
CNI's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, CNI is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.92 | ||
| EV/EBITDA | 12.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CNI does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of CNI may justify a higher PE ratio.
PEG (NY)2.79
PEG (5Y)4.52
EPS Next 2Y8.39%
EPS Next 3Y9.21%
5. Dividend
5.1 Amount
CNI has a Yearly Dividend Yield of 2.67%. Purely for dividend investing, there may be better candidates out there.
CNI's Dividend Yield is rather good when compared to the industry average which is at 1.62. CNI pays more dividend than 100.00% of the companies 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 | 2.67% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.39%
Div Incr Years27
Div Non Decr Years27
5.3 Sustainability
CNI pays out 47.68% of its income as dividend. This is a bit on the high side, but may be sustainable.
CNI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP47.68%
EPS Next 2Y8.39%
EPS Next 3Y9.21%
95.68
+1.02 (+1.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners74.12%
Inst Owner Change-0.59%
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap59.72B
Analysts71.43
Price Target115.21 (20.41%)
Short Float %1.67%
Short Ratio5.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
Yearly Dividend2.4
Dividend Growth(5Y)9.39%
DP47.68%
Div Incr Years27
Div Non Decr Years27
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.91%
Min EPS beat(2)-0.91%
Max EPS beat(2)2.73%
EPS beat(4)1
Avg EPS beat(4)-1.89%
Min EPS beat(4)-8.25%
Max EPS beat(4)2.73%
EPS beat(8)2
Avg EPS beat(8)-2.08%
EPS beat(12)4
Avg EPS beat(12)-0.94%
EPS beat(16)7
Avg EPS beat(16)0.52%
Revenue beat(2)0
Avg Revenue beat(2)-1.51%
Min Revenue beat(2)-2.53%
Max Revenue beat(2)-0.5%
Revenue beat(4)0
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-2.53%
Max Revenue beat(4)-0.5%
Revenue beat(8)1
Avg Revenue beat(8)-1.59%
Revenue beat(12)4
Avg Revenue beat(12)-1.04%
Revenue beat(16)7
Avg Revenue beat(16)-0.33%
PT rev (1m)-0.71%
PT rev (3m)-3.68%
EPS NQ rev (1m)-2.39%
EPS NQ rev (3m)-8.78%
EPS NY rev (1m)-1.26%
EPS NY rev (3m)-5.08%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-3.74%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.51 | ||
| Fwd PE | 16.1 | ||
| P/S | 4.89 | ||
| P/FCF | 25.92 | ||
| P/OCF | 12.55 | ||
| P/B | 3.89 | ||
| P/tB | 3.89 | ||
| EV/EBITDA | 12.48 |
EPS(TTM)5.17
EY5.4%
EPS(NY)5.94
Fwd EY6.21%
FCF(TTM)3.69
FCFY3.86%
OCF(TTM)7.62
OCFY7.97%
SpS19.57
BVpS24.58
TBVpS24.58
PEG (NY)2.79
PEG (5Y)4.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.04% | ||
| ROE | 21.19% | ||
| ROCE | 12% | ||
| ROIC | 9.76% | ||
| ROICexc | 9.8% | ||
| ROICexgc | 9.8% | ||
| OM | 37.28% | ||
| PM (TTM) | 26.62% | ||
| GM | 75.22% | ||
| FCFM | 18.86% |
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 | 0.9 | ||
| Debt/FCF | 6.32 | ||
| Debt/EBITDA | 2.32 | ||
| Cap/Depr | 176.98% | ||
| Cap/Sales | 20.09% | ||
| Interest Coverage | 6.66 | ||
| Cash Conversion | 80.1% | ||
| Profit Quality | 70.86% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 2.56 |
F-Score6
WACC8.45%
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)-0.14%
EPS 3Y6.07%
EPS 5Y4.09%
EPS Q2Q%1.63%
EPS Next Y6.63%
EPS Next 2Y8.39%
EPS Next 3Y9.21%
EPS Next 5Y9.27%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y5.6%
Revenue growth 5Y2.7%
Sales Q2Q%-1.32%
Revenue Next Year1.36%
Revenue Next 2Y2.93%
Revenue Next 3Y3.5%
Revenue Next 5Y4.37%
EBIT growth 1Y-1.93%
EBIT growth 3Y4.37%
EBIT growth 5Y2.49%
EBIT Next Year35.03%
EBIT Next 3Y14.88%
EBIT Next 5Y11%
FCF growth 1Y-26.9%
FCF growth 3Y-8.26%
FCF growth 5Y8.89%
OCF growth 1Y-10.05%
OCF growth 3Y-1.32%
OCF growth 5Y2.49%