CANADIAN NATL RAILWAY CO (CNR.CA) Stock Fundamental Analysis
TSX:CNR - Toronto Stock Exchange - CA1363751027 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to CNR. CNR was compared to 5 industry peers in the Ground Transportation industry. CNR has an excellent profitability rating, 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
CNR had positive earnings in the past year.
In the past year CNR had a positive cash flow from operations.
Each year in the past 5 years CNR has been profitable.
In the past 5 years CNR always reported a positive cash flow from operatings.
1.2 Ratios
CNR has a better Return On Assets (7.85%) than 100.00% of its industry peers.
The Return On Equity of CNR (20.84%) is better than 100.00% of its industry peers.
The Return On Invested Capital of CNR (9.67%) is better than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CNR is above the industry average of 7.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 20.84% | ||
| ROIC | 9.67% |
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
Looking at the Profit Margin, with a value of 26.20%, CNR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of CNR has declined.
CNR has a Operating Margin of 37.15%. This is amongst the best in the industry. CNR outperforms 100.00% of its industry peers.
CNR's Operating Margin has been stable in the last couple of years.
CNR has a better Gross Margin (74.52%) than 80.00% of its industry peers.
CNR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.15% | ||
| PM (TTM) | 26.2% | ||
| GM | 74.52% |
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.
CNR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CNR has less shares outstanding
CNR has a worse debt/assets ratio than last year.
2.2 Solvency
CNR has an Altman-Z score of 2.64. 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 (2.64) is better than 80.00% of its industry peers.
CNR has a debt to FCF ratio of 6.39. This is a slightly negative value and a sign of low solvency as CNR would need 6.39 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.39, CNR is in line with its industry, outperforming 60.00% of the companies in the same industry.
A Debt/Equity ratio of 0.91 indicates that CNR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.91, CNR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 6.39 | ||
| Altman-Z | 2.64 |
ROIC/WACC1.18
WACC8.19%
2.3 Liquidity
A Current Ratio of 0.62 indicates that CNR may have some problems paying its short term obligations.
The Current ratio of CNR (0.62) is comparable to the rest of the industry.
A Quick Ratio of 0.43 indicates that CNR may have some problems paying its short term obligations.
CNR has a Quick ratio of 0.43. This is in the lower half of the industry: CNR underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The earnings per share for CNR have decreased by -0.36% in the last year.
The Earnings Per Share has been growing slightly by 4.09% on average over the past years.
Looking at the last year, CNR shows a small growth in Revenue. The Revenue has grown by 2.60% 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)-0.36%
EPS 3Y6.07%
EPS 5Y4.09%
EPS Q2Q%3.71%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y5.6%
Revenue growth 5Y2.7%
Sales Q2Q%-0.19%
3.2 Future
Based on estimates for the next years, CNR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.80% on average per year.
The Revenue is expected to grow by 4.57% on average over the next years.
EPS Next Y12.34%
EPS Next 2Y12.06%
EPS Next 3Y11.89%
EPS Next 5Y9.8%
Revenue Next Year3.57%
Revenue Next 2Y4.51%
Revenue Next 3Y4.85%
Revenue Next 5Y4.57%
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.
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
CNR is valuated rather expensively with a Price/Earnings ratio of 20.55.
Compared to the rest of the industry, the Price/Earnings ratio of CNR is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.03. CNR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.50, the valuation of CNR can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNR is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, CNR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.55 | ||
| Fwd PE | 16.5 |
4.2 Price Multiples
CNR's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as CNR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.41 | ||
| EV/EBITDA | 13.52 |
4.3 Compensation for Growth
CNR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CNR may justify a higher PE ratio.
PEG (NY)1.67
PEG (5Y)5.02
EPS Next 2Y12.06%
EPS Next 3Y11.89%
5. Dividend
5.1 Amount
CNR has a Yearly Dividend Yield of 2.35%.
Compared to an average industry Dividend Yield of 2.74, CNR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, CNR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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
CNR pays out 47.83% 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.
DP47.83%
EPS Next 2Y12.06%
EPS Next 3Y11.89%
TSX:CNR (5/21/2025, 7:00:00 PM)
147.13
-2.36 (-1.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners74.36%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap92.43B
Analysts72.67
Price Target170.14 (15.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
Yearly Dividend3.37
Dividend Growth(5Y)9.39%
DP47.83%
Div Incr Years28
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.6%
Min EPS beat(2)-8.25%
Max EPS beat(2)-0.95%
EPS beat(4)0
Avg EPS beat(4)-4%
Min EPS beat(4)-8.25%
Max EPS beat(4)-0.95%
EPS beat(8)1
Avg EPS beat(8)-2.96%
EPS beat(12)4
Avg EPS beat(12)-0.39%
EPS beat(16)6
Avg EPS beat(16)0.26%
Revenue beat(2)0
Avg Revenue beat(2)-3.2%
Min Revenue beat(2)-4.16%
Max Revenue beat(2)-2.24%
Revenue beat(4)0
Avg Revenue beat(4)-2.55%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)-1.18%
Revenue beat(8)1
Avg Revenue beat(8)-2.28%
Revenue beat(12)5
Avg Revenue beat(12)-0.65%
Revenue beat(16)7
Avg Revenue beat(16)-0.57%
PT rev (1m)-2.32%
PT rev (3m)-3.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)-1.05%
Revenue NY rev (3m)-1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.55 | ||
| Fwd PE | 16.5 | ||
| P/S | 5.37 | ||
| P/FCF | 28.41 | ||
| P/OCF | 13.7 | ||
| P/B | 4.27 | ||
| P/tB | 4.27 | ||
| EV/EBITDA | 13.52 |
EPS(TTM)7.16
EY4.87%
EPS(NY)8.92
Fwd EY6.06%
FCF(TTM)5.18
FCFY3.52%
OCF(TTM)10.74
OCFY7.3%
SpS27.38
BVpS34.42
TBVpS34.42
PEG (NY)1.67
PEG (5Y)5.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 20.84% | ||
| ROCE | 12.03% | ||
| ROIC | 9.67% | ||
| ROICexc | 9.72% | ||
| ROICexgc | 9.72% | ||
| OM | 37.15% | ||
| PM (TTM) | 26.2% | ||
| GM | 74.52% | ||
| FCFM | 18.92% |
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 | 0.91 | ||
| Debt/FCF | 6.39 | ||
| Debt/EBITDA | 2.36 | ||
| Cap/Depr | 181.59% | ||
| Cap/Sales | 20.3% | ||
| Interest Coverage | 6.69 | ||
| Cash Conversion | 81.16% | ||
| Profit Quality | 72.21% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 2.64 |
F-Score6
WACC8.19%
ROIC/WACC1.18
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)-0.36%
EPS 3Y6.07%
EPS 5Y4.09%
EPS Q2Q%3.71%
EPS Next Y12.34%
EPS Next 2Y12.06%
EPS Next 3Y11.89%
EPS Next 5Y9.8%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y5.6%
Revenue growth 5Y2.7%
Sales Q2Q%-0.19%
Revenue Next Year3.57%
Revenue Next 2Y4.51%
Revenue Next 3Y4.85%
Revenue Next 5Y4.57%
EBIT growth 1Y-1.42%
EBIT growth 3Y4.37%
EBIT growth 5Y2.49%
EBIT Next Year40.22%
EBIT Next 3Y17%
EBIT Next 5Y11.43%
FCF growth 1Y-24.68%
FCF growth 3Y-8.26%
FCF growth 5Y8.89%
OCF growth 1Y-5.68%
OCF growth 3Y-1.32%
OCF growth 5Y2.49%