CNR

Canadian National RailwayTSX:CNR Stock Report

Market Cap

CA$104.6b

7D

-2.7%

1Y

5.0%

Updated

16 Sep, 2021

Data

Company Financials +
CNR fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance3/6
Financial Health3/6
Dividends5/6

CNR 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$147.79
52 Week HighCA$125.00
52 Week LowCA$161.15
Beta0.61
1 Month Change10.52%
3 Month Change13.76%
1 Year Change4.96%
3 Year Change29.99%
5 Year Change74.26%
Change since IPO3,343.65%

Recent News & Updates

Aug 16
A Look At The Intrinsic Value Of Canadian National Railway Company (TSE:CNR)

A Look At The Intrinsic Value Of Canadian National Railway Company (TSE:CNR)

Does the August share price for Canadian National Railway Company ( TSE:CNR ) reflect what it's really worth? Today, we...

Jul 13
Canadian National Railway (TSE:CNR) Hasn't Managed To Accelerate Its Returns

Canadian National Railway (TSE:CNR) Hasn't Managed To Accelerate Its Returns

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven...

Shareholder Returns

CNRCA TransportationCA Market
7D-2.7%-1.9%0.3%
1Y5.0%10.5%30.0%

Return vs Industry: CNR exceeded the Canadian Transportation industry which returned 3.7% over the past year.

Return vs Market: CNR underperformed the Canadian Market which returned 27% over the past year.

Price Volatility

Is CNR's price volatile compared to industry and market?
CNR volatility
CNR Beta0.61
Industry Beta0.70
Market Beta1

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
191924,376JJ Ruesthttps://www.cn.ca

Canadian National Railway Company, together with its subsidiaries, engages in the rail and related transportation business. Its 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. The company operates a network of 19,500 route miles of track spanning Canada and the United States.

Valuation

Is Canadian National Railway undervalued compared to its fair value and its price relative to the market?

26.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CNR (CA$147.79) is trading above our estimate of fair value (CA$123.52)

Significantly Below Fair Value: CNR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CNR is poor value based on its PE Ratio (26.1x) compared to the Canadian Transportation industry average (18.5x).

PE vs Market: CNR is poor value based on its PE Ratio (26.1x) compared to the Canadian market (12.1x).


Price to Earnings Growth Ratio

PEG Ratio: CNR is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: CNR is overvalued based on its PB Ratio (5.1x) compared to the CA Transportation industry average (4.1x).


Future Growth

How is Canadian National Railway forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNR's forecast earnings growth (7.3% per year) is above the savings rate (1.5%).

Earnings vs Market: CNR's earnings (7.3% per year) are forecast to grow slower than the Canadian market (12.1% per year).

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

Revenue vs Market: CNR's revenue (5.7% per year) is forecast to grow slower than the Canadian market (5.8% per year).

High Growth Revenue: CNR's revenue (5.7% 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 (22.9%)


Past Performance

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

-1.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CNR has high quality earnings.

Growing Profit Margin: CNR's current net profit margins (28.3%) are higher than last year (25.6%).


Past Earnings Growth Analysis

Earnings Trend: CNR's earnings have declined by 1.2% per year over the past 5 years.

Accelerating Growth: CNR's earnings growth over the past year (10.8%) exceeds its 5-year average (-1.2% per year).

Earnings vs Industry: CNR earnings growth over the past year (10.8%) underperformed the Transportation industry 39.6%.


Return on Equity

High ROE: CNR's Return on Equity (19.7%) is considered low.


Financial Health

How is Canadian National Railway's financial position?


Financial Position Analysis

Short Term Liabilities: CNR's short term assets (CA$3.5B) do not cover its short term liabilities (CA$3.8B).

Long Term Liabilities: CNR's short term assets (CA$3.5B) do not cover its long term liabilities (CA$22.2B).


Debt to Equity History and Analysis

Debt Level: CNR's debt to equity ratio (67.1%) is considered high.

Reducing Debt: CNR's debt to equity ratio has reduced from 69.7% to 67.1% over the past 5 years.

Debt Coverage: CNR's debt is well covered by operating cash flow (41.4%).

Interest Coverage: CNR's interest payments on its debt are well covered by EBIT (10.2x coverage).


Balance Sheet


Dividend

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

1.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CNR's dividend (1.66%) is higher than the bottom 25% of dividend payers in the Canadian market (1.61%).

High Dividend: CNR's dividend (1.66%) is low compared to the top 25% of dividend payers in the Canadian market (4.48%).


Stability and Growth of Payments

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.1%), CNR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CNR's dividends in 3 years are forecast to be well covered by earnings (38.6% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

JJ Ruest (66 yo)

3.17yrs

Tenure

CA$10,813,235

Compensation

Mr. Jean-Jacques Ruest, also known as JJ, has been President, Chief Executive Officer and Director of Canadian National Railway Company since July 24, 2018. He was Interim President and Chief Executive Off...


CEO Compensation Analysis

Compensation vs Market: JJ's total compensation ($USD8.55M) is above average for companies of similar size in the Canadian market ($USD6.03M).

Compensation vs Earnings: JJ's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: CNR's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: CNR's board of directors are considered experienced (4.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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
  • Market Cap: CA$104.621b
  • Shares outstanding: 707.90m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 05:04
End of Day Share Price2021/09/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.