CANADIAN NATL RAILWAY CO (CNR.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CNR - CA1363751027 - Common Stock
137.78 CAD
+2.03 (+1.5%)
CNR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 5 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
CNR had positive earnings in the past year.
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
The Return On Assets of CNR (8.01%) is better than 100.00% of its industry peers.
With an excellent Return On Equity value of 21.71%, CNR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
Measured over the past 3 years, the Average Return On Invested Capital for CNR is above the industry average of 6.96%.
| 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
CNR has a better Profit Margin (26.85%) than 80.00% of its industry peers.
CNR's Profit Margin has declined in the last couple of years.
CNR has a better Operating Margin (37.69%) than 100.00% of its industry peers.
CNR's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 75.91%, CNR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
CNR's Gross Margin has been stable in the last couple of years.
| 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
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.
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.
With a decent Altman-Z score value of 2.49, CNR is doing good in the industry, outperforming 80.00% 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.
Looking at the Debt to FCF ratio, with a value of 6.13, CNR is doing worse than 60.00% of the companies in the same industry.
A Debt/Equity ratio of 0.96 indicates that CNR is somewhat dependend on debt financing.
CNR has a Debt to Equity ratio (0.96) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 6.13 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.04
WACC9.31%
2.3 Liquidity
A Current Ratio of 0.60 indicates that CNR may have some problems paying its short term obligations.
CNR has a worse Current ratio (0.60) than 60.00% of its industry peers.
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.
CNR's Quick ratio of 0.42 is on the low side compared to the rest of the industry. CNR is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.96% over the past year.
The Earnings Per Share has been growing slightly by 4.09% on average over the past years.
The Revenue has been growing slightly by 0.23% in the past 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)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 9.32% on average over the next years. This is quite good.
Based on estimates for the next years, CNR will show a small growth in Revenue. The Revenue will grow by 4.29% on average per year.
EPS Next Y6.9%
EPS Next 2Y7.1%
EPS Next 3Y8.86%
EPS Next 5Y9.32%
Revenue Next Year1.02%
Revenue Next 2Y2.43%
Revenue Next 3Y3.34%
Revenue Next 5Y4.29%
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 18.69, CNR is valued on the expensive side.
80.00% of the companies in the same industry are more expensive than CNR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.60. CNR is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.92 indicates a correct valuation of CNR.
Based on the Price/Forward Earnings ratio, CNR is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, CNR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.69 | ||
| Fwd PE | 16.92 |
4.2 Price Multiples
CNR's Enterprise Value to EBITDA ratio is in line with the industry average.
CNR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.66 | ||
| EV/EBITDA | 12.43 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.71
PEG (5Y)4.57
EPS Next 2Y7.1%
EPS Next 3Y8.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.62%, CNR has a reasonable but not impressive dividend return.
CNR's Dividend Yield is a higher than the industry average which is at 2.13.
Compared to an average S&P500 Dividend Yield of 1.94, CNR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
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.
The dividend of CNR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP47.51%
EPS Next 2Y7.1%
EPS Next 3Y8.86%
TSX:CNR (1/2/2026, 7:00:00 PM)
137.78
+2.03 (+1.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners73.16%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap84.94B
Revenue(TTM)17.20B
Net Income(TTM)4.62B
Analysts72.14
Price Target160.43 (16.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
Yearly Dividend3.37
Dividend Growth(5Y)9.39%
DP47.51%
Div Incr Years28
Div Non Decr Years28
Ex-DateN/A
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)0.73%
PT rev (3m)-0.03%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)-2.67%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)-0.91%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.69 | ||
| Fwd PE | 16.92 | ||
| P/S | 4.94 | ||
| P/FCF | 24.66 | ||
| P/OCF | 12.46 | ||
| P/B | 3.99 | ||
| P/tB | 3.99 | ||
| EV/EBITDA | 12.43 |
EPS(TTM)7.37
EY5.35%
EPS(NY)8.14
Fwd EY5.91%
FCF(TTM)5.59
FCFY4.05%
OCF(TTM)11.06
OCFY8.03%
SpS27.9
BVpS34.51
TBVpS34.51
PEG (NY)2.71
PEG (5Y)4.57
Graham Number75.64
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
WACC9.31%
ROIC/WACC1.04
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 Y6.9%
EPS Next 2Y7.1%
EPS Next 3Y8.86%
EPS Next 5Y9.32%
Revenue 1Y (TTM)0.23%
Revenue growth 3Y5.6%
Revenue growth 5Y2.7%
Sales Q2Q%1.34%
Revenue Next Year1.02%
Revenue Next 2Y2.43%
Revenue Next 3Y3.34%
Revenue Next 5Y4.29%
EBIT growth 1Y-0.51%
EBIT growth 3Y4.37%
EBIT growth 5Y2.49%
EBIT Next Year34.12%
EBIT Next 3Y14.22%
EBIT Next 5Y10.75%
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.
What is the valuation status of CANADIAN NATL RAILWAY CO (CNR.CA) stock?
ChartMill assigns a valuation rating of 4 / 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 7 / 10.
Can you provide the expected EPS growth for CNR stock?
The Earnings per Share (EPS) of CANADIAN NATL RAILWAY CO (CNR.CA) is expected to grow by 6.9% in the next year.
Is the dividend of CANADIAN NATL RAILWAY CO sustainable?
The dividend rating of CANADIAN NATL RAILWAY CO (CNR.CA) is 6 / 10 and the dividend payout ratio is 47.51%.