CANADIAN NATL RAILWAY CO (CNI) Stock Fundamental Analysis
NYSE:CNI - CA1363751027 - Common Stock
96.78 USD
+0.68 (+0.71%)
96.78 USD
0 (0%)
Overall CNI gets a fundamental rating of 5 out of 10. We evaluated CNI against 41 industry peers in the Ground Transportation industry. While CNI has a great profitability rating, there are quite some concerns on its financial health. CNI is not valued too expensively and it also shows a decent growth rate. Finally CNI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CNI was profitable.
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
CNI's Return On Assets of 8.04% is amongst the best of the industry. CNI outperforms 80.49% of its industry peers.
CNI has a better Return On Equity (21.19%) than 85.37% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.76%, CNI belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CNI is above the industry average of 7.92%.
| 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 87.80% of its industry peers.
In the last couple of years the Profit Margin of CNI has declined.
CNI has a better Operating Margin (37.28%) than 95.12% of its industry peers.
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 87.80% 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
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.
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 2.55. 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.
CNI has a Altman-Z score of 2.55. This is in the better half of the industry: CNI outperforms 60.98% of its industry peers.
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.
The Debt to FCF ratio of CNI (6.32) is better than 73.17% of its industry peers.
A Debt/Equity ratio of 0.90 indicates that 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 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 6.32 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.13
WACC8.66%
2.3 Liquidity
A Current Ratio of 0.82 indicates that CNI may have some problems paying its short term obligations.
With a Current ratio value of 0.82, CNI is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
CNI has a Quick Ratio of 0.82. 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 has a worse Quick ratio (0.58) than 90.24% 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.
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 0.63% in the last year.
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 9.56% on average per year.
The Revenue is expected to grow by 4.61% on average over the next years.
EPS Next Y7.99%
EPS Next 2Y9.13%
EPS Next 3Y9.34%
EPS Next 5Y9.56%
Revenue Next Year1.53%
Revenue Next 2Y4%
Revenue Next 3Y3.62%
Revenue Next 5Y4.61%
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
Based on the Price/Earnings ratio of 18.33, the valuation of CNI can be described as rather expensive.
82.93% 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 27.13, CNI is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.74, the valuation of CNI can be described as correct.
80.49% of the companies in the same industry are more expensive than CNI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CNI to the average of the S&P500 Index (22.76), we can say CNI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.33 | ||
| Fwd PE | 15.74 |
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 cheaper than 82.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.69 | ||
| EV/EBITDA | 12.39 |
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.
CNI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.29
PEG (5Y)4.48
EPS Next 2Y9.13%
EPS Next 3Y9.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.69%, CNI has a reasonable but not impressive dividend return.
CNI's Dividend Yield is rather good when compared to the industry average which is at 1.57. CNI pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, CNI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
5.2 History
On average, the dividend of CNI grows each year by 9.39%, which is quite nice.
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
47.68% of the earnings are spent on dividend by CNI. This is a bit on the high side, but may be sustainable.
CNI's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP47.68%
EPS Next 2Y9.13%
EPS Next 3Y9.34%
96.78
+0.68 (+0.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners74.62%
Inst Owner Change-1%
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap60.41B
Analysts71.03
Price Target116.46 (20.33%)
Short Float %1.02%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Yearly Dividend2.45
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)-2.63%
PT rev (3m)-5.46%
EPS NQ rev (1m)-0.85%
EPS NQ rev (3m)-9%
EPS NY rev (1m)-3.87%
EPS NY rev (3m)-3.87%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)-4.87%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.33 | ||
| Fwd PE | 15.74 | ||
| P/S | 4.85 | ||
| P/FCF | 25.69 | ||
| P/OCF | 12.44 | ||
| P/B | 3.86 | ||
| P/tB | 3.86 | ||
| EV/EBITDA | 12.39 |
EPS(TTM)5.28
EY5.46%
EPS(NY)6.15
Fwd EY6.35%
FCF(TTM)3.77
FCFY3.89%
OCF(TTM)7.78
OCFY8.04%
SpS19.97
BVpS25.09
TBVpS25.09
PEG (NY)2.29
PEG (5Y)4.48
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 | 2.55 |
F-Score6
WACC8.66%
ROIC/WACC1.13
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 Y7.99%
EPS Next 2Y9.13%
EPS Next 3Y9.34%
EPS Next 5Y9.56%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y5.6%
Revenue growth 5Y2.7%
Sales Q2Q%-1.32%
Revenue Next Year1.53%
Revenue Next 2Y4%
Revenue Next 3Y3.62%
Revenue Next 5Y4.61%
EBIT growth 1Y-1.93%
EBIT growth 3Y4.37%
EBIT growth 5Y2.49%
EBIT Next Year38.13%
EBIT Next 3Y16.47%
EBIT Next 5Y11.48%
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%