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 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
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.
CNR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.79%, CNR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 21.13%, CNR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
CNR has a better Return On Invested Capital (9.56%) than 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 7.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.79% | ||
| ROE | 21.13% | ||
| ROIC | 9.56% |
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 has a Profit Margin of 26.09%. This is amongst the best in the industry. CNR outperforms 100.00% of its industry peers.
CNR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 37.11%, 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 Operating Margin of CNR has remained more or less at the same level.
Looking at the Gross Margin, with a value of 74.35%, CNR belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
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 | 37.11% | ||
| PM (TTM) | 26.09% | ||
| GM | 74.35% |
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.
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.
CNR has a worse debt/assets ratio than last year.
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 has a Altman-Z score of 2.48. This is in the better half of the industry: CNR outperforms 66.67% of its industry peers.
The Debt to FCF ratio of CNR is 6.63, which is on the high side as it means it would take CNR, 6.63 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.63, CNR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
CNR has a Debt/Equity ratio of 0.97. This is a neutral value indicating CNR is somewhat dependend on debt financing.
CNR's Debt to Equity ratio of 0.97 is in line compared to the rest of the industry. CNR outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 6.63 | ||
| Altman-Z | 2.48 |
ROIC/WACC1.24
WACC7.69%
2.3 Liquidity
CNR has a Current Ratio of 0.66. 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 Current ratio, with a value of 0.66, CNR is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 0.48 indicates that CNR may have some problems paying its short term obligations.
CNR has a Quick ratio of 0.48. This is in the lower half of the industry: CNR underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
CNR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.61%.
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 1.30% in the last year.
CNR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.70% yearly.
EPS 1Y (TTM)-2.61%
EPS 3Y6.07%
EPS 5Y4.09%
EPS Q2Q%-9.9%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y5.6%
Revenue growth 5Y2.7%
Sales Q2Q%-2.53%
3.2 Future
CNR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.80% yearly.
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 Year4.72%
Revenue Next 2Y5.1%
Revenue Next 3Y5.25%
Revenue Next 5Y4.57%
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
With a Price/Earnings ratio of 18.80, CNR is valued on the expensive side.
Based on the Price/Earnings ratio, CNR is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
CNR is valuated rather cheaply when we compare the Price/Earnings ratio to 28.88, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.74, which indicates a correct valuation of CNR.
Based on the Price/Forward Earnings ratio, CNR is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.20. CNR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 16.74 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than CNR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CNR is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.63 | ||
| EV/EBITDA | 12.62 |
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)1.52
PEG (5Y)4.6
EPS Next 2Y12.06%
EPS Next 3Y11.89%
5. Dividend
5.1 Amount
CNR has a Yearly Dividend Yield of 2.62%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.66, CNR pays a bit more dividend than its industry peers.
CNR's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
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 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
48.07% 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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP48.07%
EPS Next 2Y12.06%
EPS Next 3Y11.89%
TSX:CNR (4/30/2025, 7:00:00 PM)
133.51
+0.06 (+0.04%)
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 Cap83.87B
Analysts73.79
Price Target171.56 (28.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
Yearly Dividend3.37
Dividend Growth(5Y)9.39%
DP48.07%
Div Incr Years28
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.69%
Min EPS beat(2)-8.25%
Max EPS beat(2)-1.13%
EPS beat(4)0
Avg EPS beat(4)-4.11%
Min EPS beat(4)-8.25%
Max EPS beat(4)-1.13%
EPS beat(8)2
Avg EPS beat(8)-2.25%
EPS beat(12)4
Avg EPS beat(12)-0.75%
EPS beat(16)6
Avg EPS beat(16)0.19%
Revenue beat(2)0
Avg Revenue beat(2)-1.71%
Min Revenue beat(2)-2.24%
Max Revenue beat(2)-1.18%
Revenue beat(4)0
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-2.63%
Max Revenue beat(4)-1.18%
Revenue beat(8)2
Avg Revenue beat(8)-1.68%
Revenue beat(12)5
Avg Revenue beat(12)-0.32%
Revenue beat(16)7
Avg Revenue beat(16)-0.45%
PT rev (1m)-2.01%
PT rev (3m)-3.85%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-3.62%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)-4.22%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)-0.65%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 16.74 | ||
| P/S | 4.92 | ||
| P/FCF | 26.63 | ||
| P/OCF | 12.52 | ||
| P/B | 3.98 | ||
| P/tB | 3.98 | ||
| EV/EBITDA | 12.62 |
EPS(TTM)7.1
EY5.32%
EPS(NY)7.98
Fwd EY5.97%
FCF(TTM)5.01
FCFY3.76%
OCF(TTM)10.66
OCFY7.99%
SpS27.13
BVpS33.51
TBVpS33.51
PEG (NY)1.52
PEG (5Y)4.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.79% | ||
| ROE | 21.13% | ||
| ROCE | 11.91% | ||
| ROIC | 9.56% | ||
| ROICexc | 9.63% | ||
| ROICexgc | 9.63% | ||
| OM | 37.11% | ||
| PM (TTM) | 26.09% | ||
| GM | 74.35% | ||
| FCFM | 18.48% |
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 | 0.97 | ||
| Debt/FCF | 6.63 | ||
| Debt/EBITDA | 2.49 | ||
| Cap/Depr | 187.58% | ||
| Cap/Sales | 20.82% | ||
| Interest Coverage | 6.83 | ||
| Cash Conversion | 81.53% | ||
| Profit Quality | 70.82% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 2.48 |
F-Score6
WACC7.69%
ROIC/WACC1.24
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)-2.61%
EPS 3Y6.07%
EPS 5Y4.09%
EPS Q2Q%-9.9%
EPS Next Y12.34%
EPS Next 2Y12.06%
EPS Next 3Y11.89%
EPS Next 5Y9.8%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y5.6%
Revenue growth 5Y2.7%
Sales Q2Q%-2.53%
Revenue Next Year4.72%
Revenue Next 2Y5.1%
Revenue Next 3Y5.25%
Revenue Next 5Y4.57%
EBIT growth 1Y-4.12%
EBIT growth 3Y4.37%
EBIT growth 5Y2.49%
EBIT Next Year40.22%
EBIT Next 3Y17%
EBIT Next 5Y11.43%
FCF growth 1Y-16.62%
FCF growth 3Y-8.26%
FCF growth 5Y8.89%
OCF growth 1Y-3.82%
OCF growth 3Y-1.32%
OCF growth 5Y2.49%