CANADIAN NATL RAILWAY CO (CNR.CA) Stock Fundamental Analysis
Canada - TSX:CNR - CA1363751027 - Common Stock
134.81 CAD
-0.67 (-0.49%)
Taking everything into account, CNR scores 5 out of 10 in our fundamental rating. CNR was compared to 6 industry peers in the Ground Transportation industry. CNR scores excellent on profitability, 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.
In the past year CNR had a positive cash flow from operations.
CNR had positive earnings in each of the past 5 years.
Each year in the past 5 years CNR had a positive operating cash flow.
1.2 Ratios
CNR has a Return On Assets of 8.01%. This is amongst the best in the industry. CNR outperforms 100.00% of its industry peers.
CNR has a Return On Equity of 21.71%. This is amongst the best in the industry. CNR outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 9.72%, 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 6.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.01% | ||
| ROE | 21.71% | ||
| ROIC | 9.72% |
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 CNR (26.85%) is better than 83.33% of its industry peers.
CNR's Profit Margin has declined in the last couple of years.
CNR's Operating Margin of 37.69% is amongst the best of the industry. CNR outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of CNR has remained more or less at the same level.
The Gross Margin of CNR (75.91%) is better than 83.33% of its industry peers.
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 | 37.69% | ||
| PM (TTM) | 26.85% | ||
| GM | 75.91% |
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.
Compared to 1 year ago, CNR has less shares outstanding
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
An Altman-Z score of 2.49 indicates that CNR 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 2.49, CNR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of CNR is 6.13, which is on the high side as it means it would take CNR, 6.13 years of fcf income to pay off all of its debts.
CNR's Debt to FCF ratio of 6.13 is on the low side compared to the rest of the industry. CNR is outperformed by 66.67% of its industry peers.
A Debt/Equity ratio of 0.96 indicates that CNR is somewhat dependend on debt financing.
CNR's Debt to Equity ratio of 0.96 is amongst the best of the industry. CNR outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 6.13 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.16
WACC8.35%
2.3 Liquidity
A Current Ratio of 0.60 indicates that CNR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.60, CNR is doing worse than 66.67% of the companies in the same industry.
CNR has a Quick Ratio of 0.60. This is a bad value and indicates that CNR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.42, CNR is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
CNR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.96%.
CNR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.09% yearly.
The Revenue has been growing slightly by 0.23% in the past year.
The Revenue has been growing slightly by 2.70% on average over the past years.
EPS 1Y (TTM)0.96%
EPS 3Y6.07%
EPS 5Y4.09%
EPS Q2Q%6.4%
Revenue 1Y (TTM)0.23%
Revenue growth 3Y5.6%
Revenue growth 5Y2.7%
Sales Q2Q%1.34%
3.2 Future
The Earnings Per Share is expected to grow by 9.25% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.35% on average over the next years.
EPS Next Y6.49%
EPS Next 2Y7.75%
EPS Next 3Y8.73%
EPS Next 5Y9.25%
Revenue Next Year1.06%
Revenue Next 2Y2.5%
Revenue Next 3Y3.31%
Revenue Next 5Y4.35%
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
CNR is valuated rather expensively with a Price/Earnings ratio of 18.29.
83.33% 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 25.89, CNR is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.35, CNR is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNR indicates a somewhat cheap valuation: CNR is cheaper than 66.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CNR to the average of the S&P500 Index (34.59), we can say CNR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.29 | ||
| Fwd PE | 16.35 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CNR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.43 | ||
| EV/EBITDA | 12.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CNR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.82
PEG (5Y)4.47
EPS Next 2Y7.75%
EPS Next 3Y8.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.66%, CNR has a reasonable but not impressive dividend return.
CNR's Dividend Yield is a higher than the industry average which is at 3.55.
CNR's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
On average, the dividend of CNR grows each year by 9.39%, which is quite nice.
CNR has paid a dividend for at least 10 years, which is a reliable track record.
CNR 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 Years28
Div Non Decr Years28
5.3 Sustainability
47.51% 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 slower than its dividend. This means the dividend growth is not sustainable.
DP47.51%
EPS Next 2Y7.75%
EPS Next 3Y8.73%
TSX:CNR (11/14/2025, 7:00:00 PM)
134.81
-0.67 (-0.49%)
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 Cap84.15B
Revenue(TTM)17.20B
Net Income(TTM)4.62B
Analysts71.03
Price Target157.42 (16.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend3.37
Dividend Growth(5Y)9.39%
DP47.51%
Div Incr Years28
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.65%
Min EPS beat(2)-0.91%
Max EPS beat(2)2.21%
EPS beat(4)2
Avg EPS beat(4)-1.05%
Min EPS beat(4)-8.25%
Max EPS beat(4)2.73%
EPS beat(8)3
Avg EPS beat(8)-1.47%
EPS beat(12)4
Avg EPS beat(12)-1.16%
EPS beat(16)7
Avg EPS beat(16)0.36%
Revenue beat(2)0
Avg Revenue beat(2)-1.85%
Min Revenue beat(2)-2.53%
Max Revenue beat(2)-1.16%
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)-1.37%
Revenue beat(12)3
Avg Revenue beat(12)-1.43%
Revenue beat(16)6
Avg Revenue beat(16)-0.44%
PT rev (1m)-1.91%
PT rev (3m)-2.58%
EPS NQ rev (1m)-2.91%
EPS NQ rev (3m)-3.32%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-5.21%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-1.54%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.29 | ||
| Fwd PE | 16.35 | ||
| P/S | 4.89 | ||
| P/FCF | 24.43 | ||
| P/OCF | 12.34 | ||
| P/B | 3.96 | ||
| P/tB | 3.96 | ||
| EV/EBITDA | 12.39 |
EPS(TTM)7.37
EY5.47%
EPS(NY)8.24
Fwd EY6.11%
FCF(TTM)5.52
FCFY4.09%
OCF(TTM)10.92
OCFY8.1%
SpS27.55
BVpS34.08
TBVpS34.08
PEG (NY)2.82
PEG (5Y)4.47
Graham Number75.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.01% | ||
| ROE | 21.71% | ||
| ROCE | 12.12% | ||
| ROIC | 9.72% | ||
| ROICexc | 9.76% | ||
| ROICexgc | 9.76% | ||
| OM | 37.69% | ||
| PM (TTM) | 26.85% | ||
| GM | 75.91% | ||
| FCFM | 20.03% |
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%
ROICexgc growth 3Y-1.67%
ROICexgc 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 | 0.96 | ||
| Debt/FCF | 6.13 | ||
| Debt/EBITDA | 2.41 | ||
| Cap/Depr | 171.13% | ||
| Cap/Sales | 19.61% | ||
| Interest Coverage | 6.66 | ||
| Cash Conversion | 80.65% | ||
| Profit Quality | 74.58% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 2.49 |
F-Score6
WACC8.35%
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)0.96%
EPS 3Y6.07%
EPS 5Y4.09%
EPS Q2Q%6.4%
EPS Next Y6.49%
EPS Next 2Y7.75%
EPS Next 3Y8.73%
EPS Next 5Y9.25%
Revenue 1Y (TTM)0.23%
Revenue growth 3Y5.6%
Revenue growth 5Y2.7%
Sales Q2Q%1.34%
Revenue Next Year1.06%
Revenue Next 2Y2.5%
Revenue Next 3Y3.31%
Revenue Next 5Y4.35%
EBIT growth 1Y-0.51%
EBIT growth 3Y4.37%
EBIT growth 5Y2.49%
EBIT Next Year35.03%
EBIT Next 3Y14.88%
EBIT Next 5Y11.01%
FCF growth 1Y-5.67%
FCF growth 3Y-8.26%
FCF growth 5Y8.89%
OCF growth 1Y-0.1%
OCF growth 3Y-1.32%
OCF growth 5Y2.49%
CANADIAN NATL RAILWAY CO / CNR.CA FAQ
What is the fundamental rating for CNR stock?
ChartMill assigns a fundamental rating of 5 / 10 to CNR.CA.
Can you provide the valuation status for CANADIAN NATL RAILWAY CO?
ChartMill assigns a valuation rating of 5 / 10 to CANADIAN NATL RAILWAY CO (CNR.CA). This can be considered as Fairly Valued.
How profitable is CANADIAN NATL RAILWAY CO (CNR.CA) stock?
CANADIAN NATL RAILWAY CO (CNR.CA) has a profitability rating of 8 / 10.
What is the financial health of CANADIAN NATL RAILWAY CO (CNR.CA) stock?
The financial health rating of CANADIAN NATL RAILWAY CO (CNR.CA) is 3 / 10.
What is the expected EPS growth for CANADIAN NATL RAILWAY CO (CNR.CA) stock?
The Earnings per Share (EPS) of CANADIAN NATL RAILWAY CO (CNR.CA) is expected to grow by 6.49% in the next year.