CANADIAN NATL RAILWAY CO (CNR.CA) Stock Fundamental Analysis
Canada - TSX:CNR - CA1363751027 - Common Stock
132.24 CAD
-1.72 (-1.28%)
CNR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 6 industry peers in the Ground Transportation industry. While CNR has a great profitability rating, there are quite some concerns on its financial health. CNR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CNR had positive earnings in the past year.
In the past year CNR had a positive cash flow from operations.
In the past 5 years CNR has always been profitable.
Each year in the past 5 years CNR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CNR (8.04%) is better than 100.00% of its industry peers.
With an excellent Return On Equity value of 21.19%, CNR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 9.76%, CNR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
CNR had an Average Return On Invested Capital over the past 3 years of 10.70%. This is above the industry average of 6.89%.
| 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
CNR's Profit Margin of 26.62% is amongst the best of the industry. CNR outperforms 83.33% of its industry peers.
CNR's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 37.28%, 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 better Gross Margin (75.22%) than 83.33% of its industry peers.
CNR'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 CNR is still 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.
The debt/assets ratio for CNR is higher compared to a year ago.
2.2 Solvency
CNR has an Altman-Z score of 2.54. 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.
The Altman-Z score of CNR (2.54) is better than 66.67% of its industry peers.
CNR has a debt to FCF ratio of 6.32. This is a slightly negative value and a sign of low solvency as CNR would need 6.32 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.32, CNR is doing worse than 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.90 indicates that CNR is somewhat dependend on debt financing.
The Debt to Equity ratio of CNR (0.90) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 6.32 | ||
| Altman-Z | 2.54 |
ROIC/WACC1.15
WACC8.46%
2.3 Liquidity
CNR has a Current Ratio of 0.82. This is a bad value and indicates that CNR is not financially healthy enough and could expect problems in meeting its short term obligations.
CNR's Current ratio of 0.82 is on the low side compared to the rest of the industry. CNR is outperformed by 66.67% of its industry peers.
A Quick Ratio of 0.58 indicates that CNR may have some problems paying its short term obligations.
The Quick ratio of CNR (0.58) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
CNR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.14%.
CNR 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, CNR shows a small growth in Revenue. The Revenue has grown by 0.63% in the last 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)-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
The Earnings Per Share is expected to grow by 9.27% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.37% on average over the next years.
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
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 18.21, CNR is valued on the expensive side.
66.67% of the companies in the same industry are more expensive than CNR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.02, CNR is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.85 indicates a correct valuation of CNR.
66.67% of the companies in the same industry are more expensive than CNR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CNR to the average of the S&P500 Index (22.57), we can say CNR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 15.85 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as CNR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.52 | ||
| EV/EBITDA | 12.32 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CNR does not grow enough to justify the current Price/Earnings ratio.
CNR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.75
PEG (5Y)4.45
EPS Next 2Y8.39%
EPS Next 3Y9.21%
5. Dividend
5.1 Amount
CNR has a Yearly Dividend Yield of 2.65%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.46, CNR pays a bit more dividend than its industry peers.
CNR's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
5.2 History
The dividend of CNR is nicely growing with an annual growth rate of 9.39%!
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
47.68% of the earnings are spent on dividend by CNR. This is a bit on the high side, but may be sustainable.
The dividend of CNR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP47.68%
EPS Next 2Y8.39%
EPS Next 3Y9.21%
TSX:CNR (10/10/2025, 7:00:00 PM)
132.24
-1.72 (-1.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners74.12%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap82.54B
Analysts71.43
Price Target160.48 (21.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
Yearly Dividend3.37
Dividend Growth(5Y)9.39%
DP47.68%
Div Incr Years28
Div Non Decr Years28
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)-0.34%
PT rev (3m)-4.76%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-6.64%
EPS NY rev (1m)-1.26%
EPS NY rev (3m)-5.08%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-3.81%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 15.85 | ||
| P/S | 4.82 | ||
| P/FCF | 25.52 | ||
| P/OCF | 12.36 | ||
| P/B | 3.83 | ||
| P/tB | 3.83 | ||
| EV/EBITDA | 12.32 |
EPS(TTM)7.26
EY5.49%
EPS(NY)8.34
Fwd EY6.31%
FCF(TTM)5.18
FCFY3.92%
OCF(TTM)10.7
OCFY8.09%
SpS27.46
BVpS34.5
TBVpS34.5
PEG (NY)2.75
PEG (5Y)4.45
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 | 2.54 |
F-Score6
WACC8.46%
ROIC/WACC1.15
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%