CANADIAN NATL RAILWAY CO (CNR.CA) Stock Fundamental Analysis
TSX:CNR - Toronto Stock Exchange - CA1363751027 - Common Stock - Currency: CAD
Taking everything into account, CNR scores 5 out of 10 in our fundamental rating. CNR was compared to 5 industry peers in the Ground Transportation industry. While CNR has a great profitability rating, there are quite some 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.
CNR had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 7.85%, 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 20.84%, 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 (9.67%) 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 7.38%.
| 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
With an excellent Profit Margin value of 26.20%, 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 Profit Margin of CNR has declined.
CNR has a better Operating Margin (37.15%) than 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 (74.52%) is better 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
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 2.60. 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 better Altman-Z score (2.60) than 80.00% of its industry peers.
The Debt to FCF ratio of CNR is 6.39, which is on the high side as it means it would take CNR, 6.39 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.39, CNR perfoms like the industry average, 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.
The Debt to Equity ratio of CNR (0.91) is better than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 6.39 | ||
| Altman-Z | 2.6 |
ROIC/WACC1.2
WACC8.04%
2.3 Liquidity
A Current Ratio of 0.62 indicates that CNR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.62, CNR is doing worse than 60.00% of the companies in the same industry.
A Quick Ratio of 0.43 indicates that CNR may have some problems paying its short term obligations.
The Quick ratio of CNR (0.43) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
CNR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.56%.
The Earnings Per Share has been growing slightly by 4.09% on average over the past years.
CNR shows a small growth in Revenue. In the last year, the Revenue has grown by 2.60%.
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)0.56%
EPS 3Y6.07%
EPS 5Y4.09%
EPS Q2Q%7.56%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y5.6%
Revenue growth 5Y2.7%
Sales Q2Q%3.62%
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 9.92% yearly.
The Revenue is expected to grow by 4.61% on average over the next years.
EPS Next Y12.34%
EPS Next 2Y12.06%
EPS Next 3Y11.89%
EPS Next 5Y9.92%
Revenue Next Year3.57%
Revenue Next 2Y4.51%
Revenue Next 3Y4.85%
Revenue Next 5Y4.61%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 19.51, CNR is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CNR is on the same level as its industry peers.
CNR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.82, which indicates a correct valuation of CNR.
CNR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, CNR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.51 | ||
| Fwd PE | 15.82 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CNR.
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 | 27.25 | ||
| EV/EBITDA | 13.23 |
4.3 Compensation for Growth
CNR's 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)1.58
PEG (5Y)4.77
EPS Next 2Y12.06%
EPS Next 3Y11.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.48%, CNR has a reasonable but not impressive dividend return.
CNR's Dividend Yield is a higher than the industry average which is at 2.82.
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 | 2.48% |
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
47.83% 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.
DP47.83%
EPS Next 2Y12.06%
EPS Next 3Y11.89%
TSX:CNR (6/13/2025, 7:00:00 PM)
141.09
-2.15 (-1.5%)
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 Cap88.67B
Analysts72.86
Price Target168.5 (19.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
Yearly Dividend3.37
Dividend Growth(5Y)9.39%
DP47.83%
Div Incr Years28
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.76%
Min EPS beat(2)-8.25%
Max EPS beat(2)2.73%
EPS beat(4)1
Avg EPS beat(4)-3.08%
Min EPS beat(4)-8.25%
Max EPS beat(4)2.73%
EPS beat(8)2
Avg EPS beat(8)-2.51%
EPS beat(12)5
Avg EPS beat(12)-0.08%
EPS beat(16)7
Avg EPS beat(16)0.49%
Revenue beat(2)0
Avg Revenue beat(2)-1.37%
Min Revenue beat(2)-2.24%
Max Revenue beat(2)-0.5%
Revenue beat(4)0
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-2.63%
Max Revenue beat(4)-0.5%
Revenue beat(8)1
Avg Revenue beat(8)-1.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.35%
Revenue beat(16)7
Avg Revenue beat(16)-0.34%
PT rev (1m)-1.78%
PT rev (3m)-3.75%
EPS NQ rev (1m)-4.09%
EPS NQ rev (3m)-4.4%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)-2.42%
Revenue NQ rev (3m)-2.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.51 | ||
| Fwd PE | 15.82 | ||
| P/S | 5.16 | ||
| P/FCF | 27.25 | ||
| P/OCF | 13.14 | ||
| P/B | 4.1 | ||
| P/tB | 4.1 | ||
| EV/EBITDA | 13.23 |
EPS(TTM)7.23
EY5.12%
EPS(NY)8.92
Fwd EY6.32%
FCF(TTM)5.18
FCFY3.67%
OCF(TTM)10.73
OCFY7.61%
SpS27.37
BVpS34.41
TBVpS34.41
PEG (NY)1.58
PEG (5Y)4.77
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 | 2.6 |
F-Score6
WACC8.04%
ROIC/WACC1.2
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)0.56%
EPS 3Y6.07%
EPS 5Y4.09%
EPS Q2Q%7.56%
EPS Next Y12.34%
EPS Next 2Y12.06%
EPS Next 3Y11.89%
EPS Next 5Y9.92%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y5.6%
Revenue growth 5Y2.7%
Sales Q2Q%3.62%
Revenue Next Year3.57%
Revenue Next 2Y4.51%
Revenue Next 3Y4.85%
Revenue Next 5Y4.61%
EBIT growth 1Y-1.42%
EBIT growth 3Y4.37%
EBIT growth 5Y2.49%
EBIT Next Year38.13%
EBIT Next 3Y16.47%
EBIT Next 5Y11.92%
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%