CANADIAN NATL RAILWAY CO (CNR.CA) Stock Fundamental Analysis
TSX:CNR - Toronto Stock Exchange - CA1363751027 - Common Stock - Currency: CAD
Overall CNR gets a fundamental rating of 6 out of 10. We evaluated CNR against 6 industry peers in the Ground Transportation industry. CNR scores excellent on profitability, but there are some minor concerns on its financial health. CNR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CNR was profitable.
CNR had a positive operating cash flow in the past year.
CNR had positive earnings in each of the past 5 years.
In the past 5 years CNR always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.04%, CNR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.19%, CNR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
CNR's Return On Invested Capital of 9.76% is amongst the best of the industry. CNR outperforms 100.00% of its industry peers.
CNR had an Average Return On Invested Capital over the past 3 years of 10.70%. This is above the industry average of 6.84%.
| 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
With an excellent Profit Margin value of 26.62%, CNR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 Gross Margin of 75.22%. This is amongst the best in the industry. CNR outperforms 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 | 37.28% | ||
| 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.
The number of shares outstanding for CNR has been reduced compared to 5 years ago.
Compared to 1 year ago, CNR has a worse debt to assets ratio.
2.2 Solvency
CNR has an Altman-Z score of 2.48. 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.
CNR's Altman-Z score of 2.48 is fine compared to the rest of the industry. CNR outperforms 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.
CNR has a Debt to FCF ratio of 6.32. This is comparable to the rest of the industry: CNR outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 0.90 indicates that CNR is somewhat dependend on debt financing.
CNR has a better Debt to Equity ratio (0.90) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 6.32 | ||
| Altman-Z | 2.48 |
ROIC/WACC1.23
WACC7.93%
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.
The Current ratio of CNR (0.82) is comparable to the rest of the industry.
A Quick Ratio of 0.58 indicates that CNR may have some problems paying its short term obligations.
CNR has a Quick ratio of 0.58. This is in the lower half of the industry: CNR underperforms 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.
CNR shows a small growth in Revenue. In the last year, the Revenue has grown by 0.63%.
CNR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.70% yearly.
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 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 Year1.61%
Revenue Next 2Y3.1%
Revenue Next 3Y3.62%
Revenue Next 5Y4.74%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 17.50, which indicates a rather expensive current valuation of CNR.
Based on the Price/Earnings ratio, CNR is valued cheaper than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.54, CNR is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.25 indicates a correct valuation of CNR.
CNR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CNR is cheaper than 66.67% of the companies in the same industry.
CNR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.5 | ||
| Fwd PE | 14.25 |
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.
CNR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CNR is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.53 | ||
| EV/EBITDA | 11.94 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CNR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.42
PEG (5Y)4.28
EPS Next 2Y12.06%
EPS Next 3Y11.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.74%, CNR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.69, CNR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, CNR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
5.2 History
The dividend of CNR is nicely growing with an annual growth rate of 9.39%!
CNR has been paying a dividend for at least 10 years, so it has 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
CNR pays out 47.68% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of CNR is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP47.68%
EPS Next 2Y12.06%
EPS Next 3Y11.89%
TSX:CNR (8/7/2025, 7:00:00 PM)
127.07
-2.32 (-1.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners74.62%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap79.32B
Analysts72.86
Price Target164.07 (29.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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)-2.63%
PT rev (3m)-4.37%
EPS NQ rev (1m)-5.4%
EPS NQ rev (3m)-8.22%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-3.06%
Revenue NQ rev (3m)-4.35%
Revenue NY rev (1m)-1.89%
Revenue NY rev (3m)-2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.5 | ||
| Fwd PE | 14.25 | ||
| P/S | 4.63 | ||
| P/FCF | 24.53 | ||
| P/OCF | 11.88 | ||
| P/B | 3.68 | ||
| P/tB | 3.68 | ||
| EV/EBITDA | 11.94 |
EPS(TTM)7.26
EY5.71%
EPS(NY)8.92
Fwd EY7.02%
FCF(TTM)5.18
FCFY4.08%
OCF(TTM)10.7
OCFY8.42%
SpS27.46
BVpS34.5
TBVpS34.5
PEG (NY)1.42
PEG (5Y)4.28
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 | 2.48 |
F-Score6
WACC7.93%
ROIC/WACC1.23
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 Y12.34%
EPS Next 2Y12.06%
EPS Next 3Y11.89%
EPS Next 5Y10.1%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y5.6%
Revenue growth 5Y2.7%
Sales Q2Q%-1.32%
Revenue Next Year1.61%
Revenue Next 2Y3.1%
Revenue Next 3Y3.62%
Revenue Next 5Y4.74%
EBIT growth 1Y-1.93%
EBIT growth 3Y4.37%
EBIT growth 5Y2.49%
EBIT Next Year38.13%
EBIT Next 3Y16.47%
EBIT Next 5Y12.09%
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%