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CNR

Canadian National Railway TSX:CNR Stock Report

Last Price

CA$154.80

Market Cap

CA$105.8b

7D

1.6%

1Y

4.3%

Updated

05 Oct, 2022

Data

Company Financials +
CNR fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance4/6
Financial Health3/6
Dividends4/6

CNR Stock Overview

Canadian National Railway Company, together with its subsidiaries, engages in the rail and related transportation business.

Canadian National Railway Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Canadian National Railway
Historical stock prices
Current Share PriceCA$154.80
52 Week HighCA$171.48
52 Week LowCA$137.26
Beta0.68
1 Month Change0.68%
3 Month Change5.33%
1 Year Change4.29%
3 Year Change37.30%
5 Year Change53.33%
Change since IPO3,506.99%

Recent News & Updates

Aug 22
Does Canadian National Railway (TSE:CNR) Deserve A Spot On Your Watchlist?

Does Canadian National Railway (TSE:CNR) Deserve A Spot On Your Watchlist?

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...

Shareholder Returns

CNRCA TransportationCA Market
7D1.6%4.6%5.7%
1Y4.3%9.6%-2.5%

Return vs Industry: CNR underperformed the Canadian Transportation industry which returned 9.6% over the past year.

Return vs Market: CNR exceeded the Canadian Market which returned -2.5% over the past year.

Price Volatility

Is CNR's price volatile compared to industry and market?
CNR volatility
CNR Average Weekly Movement2.7%
Transportation Industry Average Movement5.4%
Market Average Movement10.1%
10% most volatile stocks in CA Market18.3%
10% least volatile stocks in CA Market3.8%

Stable Share Price: CNR is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CNR's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191922,783Tracy Robinsonhttps://www.cn.ca

Canadian National Railway Company, together with its subsidiaries, engages in the rail and related transportation business. The company’s portfolio of goods includes petroleum and chemicals, grain and fertilizers, coal, metals and minerals, forest products, intermodal, and automotive products serving exporters, importers, retailers, farmers, and manufacturers. It operates a network of 19,500 route miles of track spanning Canada and the United States.

Canadian National Railway Fundamentals Summary

How do Canadian National Railway's earnings and revenue compare to its market cap?
CNR fundamental statistics
Market CapCA$105.79b
Earnings (TTM)CA$5.12b
Revenue (TTM)CA$15.40b

20.7x

P/E Ratio

6.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CNR income statement (TTM)
RevenueCA$15.40b
Cost of RevenueCA$6.76b
Gross ProfitCA$8.64b
Other ExpensesCA$3.51b
EarningsCA$5.12b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 25, 2022

Earnings per share (EPS)7.50
Gross Margin56.09%
Net Profit Margin33.27%
Debt/Equity Ratio66.1%

How did CNR perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

37%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is CNR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CNR?

Other financial metrics that can be useful for relative valuation.

CNR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue7.8x
Enterprise Value/EBITDA13.9x
PEG Ratio3.8x

Price to Earnings Ratio vs Peers

How does CNR's PE Ratio compare to its peers?

CNR PE Ratio vs Peers
The above table shows the PE ratio for CNR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average22.2x
CP Canadian Pacific Railway
38.1x19.5%CA$89.8b
CSX CSX
15.1x2.4%US$59.6b
NSC Norfolk Southern
17.1x5.2%US$51.9b
UNP Union Pacific
18.3x5.7%US$125.3b
CNR Canadian National Railway
20.7x5.5%CA$105.8b

Price-To-Earnings vs Peers: CNR is good value based on its Price-To-Earnings Ratio (20.7x) compared to the peer average (22.2x).


Price to Earnings Ratio vs Industry

How does CNR's PE Ratio compare vs other companies in the North American Transportation Industry?

Price-To-Earnings vs Industry: CNR is expensive based on its Price-To-Earnings Ratio (20.7x) compared to the North American Transportation industry average (9.6x)


Price to Earnings Ratio vs Fair Ratio

What is CNR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CNR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.7x
Fair PE Ratio28.2x

Price-To-Earnings vs Fair Ratio: CNR is good value based on its Price-To-Earnings Ratio (20.7x) compared to the estimated Fair Price-To-Earnings Ratio (28.2x).


Share Price vs Fair Value

What is the Fair Price of CNR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CNR (CA$154.8) is trading below our estimate of fair value (CA$177.07)

Significantly Below Fair Value: CNR is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Canadian National Railway forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


5.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNR's forecast earnings growth (5.5% per year) is above the savings rate (1.6%).

Earnings vs Market: CNR's earnings (5.5% per year) are forecast to grow slower than the Canadian market (7% per year).

High Growth Earnings: CNR's earnings are forecast to grow, but not significantly.

Revenue vs Market: CNR's revenue (4.8% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: CNR's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CNR's Return on Equity is forecast to be high in 3 years time (25.4%)


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Past Performance

How has Canadian National Railway performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-2.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CNR has high quality earnings.

Growing Profit Margin: CNR's current net profit margins (33.3%) are higher than last year (28.3%).


Past Earnings Growth Analysis

Earnings Trend: CNR's earnings have declined by 2% per year over the past 5 years.

Accelerating Growth: CNR's earnings growth over the past year (27.5%) exceeds its 5-year average (-2% per year).

Earnings vs Industry: CNR earnings growth over the past year (27.5%) underperformed the Transportation industry 27.5%.


Return on Equity

High ROE: CNR's Return on Equity (23.6%) is considered high.


Discover strong past performing companies

Financial Health

How is Canadian National Railway's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CNR's short term assets (CA$3.4B) do not cover its short term liabilities (CA$4.8B).

Long Term Liabilities: CNR's short term assets (CA$3.4B) do not cover its long term liabilities (CA$22.8B).


Debt to Equity History and Analysis

Debt Level: CNR's net debt to equity ratio (63.8%) is considered high.

Reducing Debt: CNR's debt to equity ratio has reduced from 70.1% to 66.1% over the past 5 years.

Debt Coverage: CNR's debt is well covered by operating cash flow (47.5%).

Interest Coverage: CNR's interest payments on its debt are well covered by EBIT (12.1x coverage).


Balance Sheet


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Dividend

What is Canadian National Railway current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.89%

Current Dividend Yield

Dividend Yield vs Market

Canadian National Railway Dividend Yield vs Market
How does Canadian National Railway dividend yield compare to the market?
SegmentDividend Yield
Company (Canadian National Railway)1.9%
Market Bottom 25% (CA)1.9%
Market Top 25% (CA)5.9%
Industry Average (Transportation)1.4%
Analyst forecast in 3 Years (Canadian National Railway)2.0%

Notable Dividend: CNR's dividend (1.89%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: CNR's dividend (1.89%) is low compared to the top 25% of dividend payers in the Canadian market (5.89%).


Stability and Growth of Payments

Stable Dividend: CNR's dividends per share have been stable in the past 10 years.

Growing Dividend: CNR's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (36.9%), CNR's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (50.2%), CNR's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Tracy Robinson (58 yo)

0.67yr

Tenure

Ms. Tracy A. Robinson has been an Executive Advisor at TC Energy Corporation since January 2022. She had been Executive Vice President and President of Canadian Natural Gas Pipelines at TransCanada PipeLin...


Leadership Team

Experienced Management: CNR's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: CNR's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CNR insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

TSX:CNR Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
02 Sep 22SellCA$97,204,205Melinda GatesIndividual622,724CA$161.33
26 Aug 22SellCA$53,008,788Melinda GatesIndividual325,193CA$163.44
24 Aug 22SellCA$111,048,769Melinda GatesIndividual683,009CA$164.93
23 Aug 22BuyCA$242,120Margaret McKenzieIndividual1,500CA$161.41
04 Aug 22SellCA$203,749Sean FinnIndividual1,255CA$162.35
07 Jun 22BuyCA$400,219Susan JonesIndividual2,748CA$145.64
31 May 22BuyCA$144,307David FreemanIndividual1,000CA$144.31
25 May 22SellCA$681,620,956Cascade Investment, L.L.C.Company3,793,366CA$191.74
25 May 22SellCA$129,907,306Bill & Melinda Gates Foundation Asset TrustCompany722,962CA$191.74
17 May 22SellCA$404,537,658Cascade Investment, L.L.C.Company2,791,825CA$147.85
17 May 22SellCA$77,099,247Bill & Melinda Gates Foundation Asset TrustCompany532,083CA$147.85
12 May 22SellCA$538,757,735Cascade Investment, L.L.C.Company2,855,981CA$193.97
12 May 22SellCA$102,512,565Bill & Melinda Gates Foundation Asset TrustCompany543,423CA$193.97
12 May 22SellCA$414,689,763Cascade Investment, L.L.C.Company2,855,981CA$146.66
12 May 22SellCA$78,905,268Bill & Melinda Gates Foundation Asset TrustCompany543,423CA$146.66
06 May 22SellCA$222,650,029Cascade Investment, L.L.C.Company1,473,842CA$153.83
06 May 22SellCA$42,330,248Bill & Melinda Gates Foundation Asset TrustCompany280,207CA$153.83
04 May 22SellCA$319,412,007Cascade Investment, L.L.C.Company2,085,280CA$155.15
04 May 22SellCA$60,726,545Bill & Melinda Gates Foundation Asset TrustCompany396,453CA$155.15
29 Apr 22BuyCA$506,880Tracy RobinsonIndividual3,300CA$153.60
29 Apr 22SellCA$55,877,707Cascade Investment, L.L.C.Company365,768CA$154.57
29 Apr 22SellCA$10,623,497Bill & Melinda Gates Foundation Asset TrustCompany69,540CA$154.57
28 Apr 22SellCA$198,741,075Cascade Investment, L.L.C.Company1,277,461CA$155.86
28 Apr 22SellCA$37,784,671Bill & Melinda Gates Foundation Asset TrustCompany242,871CA$155.86
25 Mar 22BuyCA$264,356Robert PaceIndividual1,561CA$169.35
24 Mar 22BuyCA$96,951James O'ConnorIndividual579CA$167.45
11 Mar 22SellCA$265,917Sean FinnIndividual1,624CA$163.74
04 Mar 22SellCA$613,180Sean FinnIndividual4,000CA$153.29
25 Feb 22SellCA$318,131James CairnsIndividual2,013CA$158.04
08 Feb 22BuyCA$49,263Robert PhillipsIndividual315CA$156.39
27 Jan 22BuyCA$151,378Margaret McKenzieIndividual1,000CA$151.38
16 Dec 21SellCA$596,527,994Melinda GatesIndividual3,651,847CA$168.85
16 Nov 21SellCA$1,076,731Keith ReardonIndividual6,607CA$162.97

Ownership Breakdown

What is the ownership structure of CNR?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders14,011,0362.1%
Hedge Funds36,699,8255.4%
General Public180,457,36026.4%
Institutions452,231,77966.2%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 50.51% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
8.02%
Bill & Melinda Gates Foundation Asset Trust
54,826,786CA$8.5b433.41%24.96%
5.37%
TCI Fund Management Limited
36,699,825CA$5.7b0%11.9%
3.39%
Massachusetts Financial Services Company
23,177,753CA$3.6b-6.99%0.68%
3.2%
Wellington Management Group LLP
21,836,204CA$3.4b4.53%0.45%
3.07%
The Vanguard Group, Inc.
20,962,199CA$3.2b4.77%0.05%
2.18%
BMO Asset Management Corp.
14,878,670CA$2.3b-5.05%1.02%
2.14%
RBC Global Asset Management Inc.
14,628,611CA$2.3b-3.69%1.25%
1.97%
Melinda Gates
13,469,743CA$2.1b-32.52%no data
1.81%
TD Asset Management, Inc.
12,376,503CA$1.9b-0.05%1.36%
1.8%
Caisse de dépôt et placement du Québec
12,333,700CA$1.9b0%1.89%
1.73%
Egerton Capital (UK) LLP
11,822,882CA$1.8b25.93%9.04%
1.72%
Mackenzie Financial Corporation
11,784,660CA$1.8b7.99%1.68%
1.54%
RBC Dominion Securities Inc., Asset Management Arm
10,549,481CA$1.6b2.31%1.72%
1.53%
Jarislowsky, Fraser Limited
10,488,573CA$1.6b-1.58%7.01%
1.44%
Walter Scott & Partners Limited
9,846,699CA$1.5b-3.25%3.08%
1.4%
Cascade Investment, L.L.C.
9,534,142CA$1.5b-82.37%2.74%
1.26%
1832 Asset Management L.P.
8,579,270CA$1.3b0.75%1.54%
1.19%
Manulife Asset Management
8,139,676CA$1.3b16.72%0.87%
0.93%
Fidelity International Ltd
6,328,946CA$979.7m28.93%0.38%
0.91%
CIBC Asset Management Inc.
6,187,181CA$957.8m3.3%1.77%
0.83%
The Bank of Nova Scotia, Banking Investments
5,686,760CA$880.3m-3.17%1.65%
0.8%
Deutsche Asset & Wealth Management
5,433,170CA$841.1m-0.26%0.26%
0.78%
Fiera Capital Corporation
5,352,604CA$828.6m10.17%0.83%
0.76%
Norges Bank Investment Management
5,202,346CA$805.3m0%0.08%
0.74%
Causeway Capital Management LLC
5,070,035CA$784.8m97.1%3.47%

Company Information

Canadian National Railway Company's employee growth, exchange listings and data sources


Key Information

  • Name: Canadian National Railway Company
  • Ticker: CNR
  • Exchange: TSX
  • Founded: 1919
  • Industry: Railroads
  • Sector: Transportation
  • Implied Market Cap: CA$105.790b
  • Shares outstanding: 683.40m
  • Website: https://www.cn.ca

Number of Employees


Location

  • Canadian National Railway Company
  • 935 de La Gauchetiere Street West
  • Montreal
  • Quebec
  • H3B 2M9
  • Canada


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNINYSE (New York Stock Exchange)YesCommon SharesUSUSDNov 1996
CNRTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 1996
CY2DB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1996
CNI NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNNov 1996
CNIC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REP 1 COMBRBRLMay 2019

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/10/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.