Canadian National Railway
Market Cap
US$77.4b
Last Updated
2021/02/24 23:16 UTC
Data Sources
Company Financials +
Executive Summary
Canadian National Railway Company, together with its subsidiaries, engages in the rail and related transportation business. More Details
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with mediocre balance sheet.
Similar Companies
Share Price & News
How has Canadian National Railway's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CNI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: CNI's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
1.6%
CNI
-0.8%
US Transportation
-1.4%
US Market
1 Year Return
25.1%
CNI
37.6%
US Transportation
37.1%
US Market
Return vs Industry: CNI underperformed the US Transportation industry which returned 33% over the past year.
Return vs Market: CNI underperformed the US Market which returned 34.1% over the past year.
Shareholder returns
| CNI | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.6% | -0.8% | -1.4% |
| 30 Day | 2.5% | 3.8% | 1.6% |
| 90 Day | 0.2% | 7.2% | 7.3% |
| 1 Year | 27.4%25.1% | 39.6%37.6% | 40.2%37.1% |
| 3 Year | 50.8%43.0% | 67.8%59.5% | 62.5%52.1% |
| 5 Year | 108.9%91.4% | 200.0%174.9% | 133.9%108.0% |
Long-Term Price Volatility Vs. Market
How volatile is Canadian National Railway's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 years ago | Simply Wall St
Did Canadian National Railway Company (CNI) Create Value For Shareholders?Valuation
Is Canadian National Railway undervalued compared to its fair value and its price relative to the market?
27.33x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CNI ($110.66) is trading above our estimate of fair value ($99.08)
Significantly Below Fair Value: CNI is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CNI is poor value based on its PE Ratio (27.3x) compared to the US Transportation industry average (25.8x).
PE vs Market: CNI is poor value based on its PE Ratio (27.3x) compared to the US market (21.5x).
Price to Earnings Growth Ratio
PEG Ratio: CNI is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: CNI is overvalued based on its PB Ratio (4.9x) compared to the US Transportation industry average (2.5x).
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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 24 analysts?
9.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CNI's forecast earnings growth (9.4% per year) is above the savings rate (2%).
Earnings vs Market: CNI's earnings (9.4% per year) are forecast to grow slower than the US market (20.4% per year).
High Growth Earnings: CNI's earnings are forecast to grow, but not significantly.
Revenue vs Market: CNI's revenue (5.8% per year) is forecast to grow slower than the US market (10.5% per year).
High Growth Revenue: CNI's revenue (5.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CNI's Return on Equity is forecast to be high in 3 years time (23.1%)
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Past Performance
How has Canadian National Railway performed over the past 5 years?
1.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CNI has high quality earnings.
Growing Profit Margin: CNI's current net profit margins (25.8%) are lower than last year (28.3%).
Past Earnings Growth Analysis
Earnings Trend: CNI's earnings have grown by 1.7% per year over the past 5 years.
Accelerating Growth: CNI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CNI had negative earnings growth (-15.6%) over the past year, making it difficult to compare to the Transportation industry average (1.4%).
Return on Equity
High ROE: CNI's Return on Equity (18.1%) is considered low.
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Financial Health
How is Canadian National Railway's financial position?
Financial Position Analysis
Short Term Liabilities: CNI's short term assets (CA$3.1B) do not cover its short term liabilities (CA$3.3B).
Long Term Liabilities: CNI's short term assets (CA$3.1B) do not cover its long term liabilities (CA$21.9B).
Debt to Equity History and Analysis
Debt Level: CNI's debt to equity ratio (65.3%) is considered high.
Reducing Debt: CNI's debt to equity ratio has reduced from 69.7% to 65.3% over the past 5 years.
Debt Coverage: CNI's debt is well covered by operating cash flow (48%).
Interest Coverage: CNI's interest payments on its debt are well covered by EBIT (10.1x coverage).
Balance Sheet
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Dividend
What is Canadian National Railway current dividend yield, its reliability and sustainability?
1.80%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: CNI's dividend (1.8%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: CNI's dividend (1.8%) is low compared to the top 25% of dividend payers in the US market (3.75%).
Stability and Growth of Payments
Stable Dividend: CNI's dividends per share have been stable in the past 10 years.
Growing Dividend: CNI's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (45.9%), CNI's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CNI's dividends in 3 years are forecast to be well covered by earnings (36.6% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
JJ Ruest (64 yo)
2.58yrs
Tenure
CA$8,940,547
Compensation
Mr. Jean-Jacques Ruest, also known as JJ, has been President, Chief Executive Officer and Director of Canadian National Railway Company since July 24, 2018. He was Interim President and Chief Executive Off...
CEO Compensation Analysis
Compensation vs Market: JJ's total compensation ($USD7.12M) is below average for companies of similar size in the US market ($USD10.54M).
Compensation vs Earnings: JJ's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.58yrs | CA$8.94m | 0.024% CA$ 18.2m | |
| Executive VP & CFO | 4.58yrs | CA$3.16m | 0.013% CA$ 10.3m | |
| Executive VP & COO | 1.58yrs | CA$5.84m | no data | |
| Executive VP of Corporate Services | 12.17yrs | CA$2.42m | 0.0097% CA$ 7.5m | |
| Senior VP & Chief Human Resources Officer | 1.17yrs | CA$1.36m | 0.000010% CA$ 7.7k | |
| VP of Accounting & Corporate Comptroller | no data | no data | no data | |
| Executive VP and Chief Information & Technology Officer | 0.42yr | no data | 0.000010% CA$ 7.7k | |
| Vice-President of Investor Relations | 4.58yrs | no data | no data | |
| Vice-President of Public & Government Affairs | 2.33yrs | no data | no data | |
| Senior Vice-President of Consumer Product Supply Chain Growth | 2.5yrs | no data | 0.0014% CA$ 1.1m | |
| Senior Vice-President of Rail Centric Supply Chain | 1.83yrs | no data | 0.000070% CA$ 54.2k | |
| Senior VP and Office of the President & CEO - Special Projects | 1.17yrs | no data | 0.0016% CA$ 1.2m |
2.3yrs
Average Tenure
58yo
Average Age
Experienced Management: CNI's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.58yrs | CA$8.94m | 0.024% CA$ 18.2m | |
| Independent Director | 10.08yrs | CA$407.46k | 0.012% CA$ 9.1m | |
| Independent Director | 9.83yrs | CA$395.57k | 0.0053% CA$ 4.1m | |
| Independent Director | 19.67yrs | CA$395.57k | 0.0089% CA$ 6.9m | |
| Independent Director | 6.83yrs | CA$395.57k | 0.0014% CA$ 1.1m | |
| Independent Director | 25.92yrs | CA$382.30k | 0.020% CA$ 15.5m | |
| Chairman Emeritus | no data | CA$197.41k | no data | |
| Independent Director | 19.75yrs | CA$382.30k | 0.0062% CA$ 4.8m | |
| Independent Chairman of the Board | 6.83yrs | CA$726.86k | 0.029% CA$ 22.8m | |
| Independent Director | 26.33yrs | CA$395.57k | 0.024% CA$ 18.2m | |
| Independent Director | 3.83yrs | CA$381.18k | 0.00017% CA$ 131.6k | |
| Independent Director | 6.83yrs | CA$407.46k | no data |
9.8yrs
Average Tenure
69yo
Average Age
Experienced Board: CNI's board of directors are considered experienced (9.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CNI 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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: Canadian National Railway Company
- Ticker: CNI
- Exchange: NYSE
- Founded: 1919
- Industry: Railroads
- Sector: Transportation
- Market Cap: CA$97.191b
- Listing Market Cap: CA$77.412b
- Shares outstanding: 710.20m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CNI | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Nov 1996 |
| CNR | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Nov 1996 |
| CY2 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Nov 1996 |
| CNI N | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Nov 1996 |
| CNIC34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REP 1 COM | BR | BRL | May 2019 |
Biography
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, c...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/24 23:16 |
| End of Day Share Price | 2021/02/24 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.