| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 2/6 |
| Past Performance | 4/6 |
| Financial Health | 4/6 |
| Dividends | 5/6 |
CNI 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
| Historical stock prices | |
|---|---|
| Current Share Price | CA$123.23 |
| 52 Week High | CA$136.22 |
| 52 Week Low | CA$100.66 |
| Beta | 0.63 |
| 1 Month Change | 3.23% |
| 3 Month Change | -7.16% |
| 1 Year Change | 11.90% |
| 3 Year Change | 51.37% |
| 5 Year Change | 76.07% |
| Change since IPO | 3,937.68% |
Recent News & Updates
Canadian National Railway: Closer But Not Quite Yet
Shares of Canadian National have dropped since I wrote my bearish note on them, but not by enough in my view. Traffic has cratered, and this isn't reflected in price yet. Just because it's not worth buying at current prices, I think it's possible to earn a great (risk-adjusted) return by selling some puts. I review the relative price performance of CNI and CP during the merger mania involving KSU. It may very well be that the market is rewarding failure here.
Canadian National: Shareholder Activism And Good Earnings Boost Its Stock Price
Canadian National did a tremendous job in its third-quarter despite a challenging environment. The company beat both revenue and EPS estimates and reported strong free cash flow. Activist investors and a fair valuation are a great basis for long-term capital gains and dividend growth.
Shareholder Returns
| CNI | US Transportation | US Market | |
|---|---|---|---|
| 7D | 0.03% | -4.8% | -4.6% |
| 1Y | 11.9% | 3.6% | 7.7% |
Return vs Industry: CNI exceeded the US Transportation industry which returned 4.7% over the past year.
Return vs Market: CNI exceeded the US Market which returned 10.2% over the past year.
Price Volatility
| CNI volatility | |
|---|---|
| CNI Average Weekly Movement | 3.0% |
| Transportation Industry Average Movement | 7.1% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.4% |
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.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1919 | 23,765 | JJ Ruest | https://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.
Canadian National Railway Fundamentals Summary
| CNI fundamental statistics | |
|---|---|
| Market Cap | CA$108.81b |
| Earnings (TTM) | CA$4.71b |
| Revenue (TTM) | CA$14.38b |
23.1x
P/E Ratio7.6x
P/S RatioIs CNI overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CNI income statement (TTM) | |
|---|---|
| Revenue | CA$14.38b |
| Cost of Revenue | CA$6.45b |
| Gross Profit | CA$7.93b |
| Expenses | CA$3.22b |
| Earnings | CA$4.71b |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Jan 25, 2022
| Earnings per share (EPS) | 6.67 |
| Gross Margin | 55.17% |
| Net Profit Margin | 32.78% |
| Debt/Equity Ratio | 62.5% |
How did CNI perform over the long term?
See historical performance and comparisonDividends
1.6%
Current Dividend Yield36%
Payout RatioValuation
Is Canadian National Railway undervalued compared to its fair value and its price relative to the market?
2.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CNI ($123.23) is trading below our estimate of fair value ($126.28)
Significantly Below Fair Value: CNI is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: CNI is poor value based on its PE Ratio (23.1x) compared to the US Transportation industry average (18.1x).
PE vs Market: CNI is poor value based on its PE Ratio (23.1x) compared to the US market (17x).
Price to Earnings Growth Ratio
PEG Ratio: CNI is poor value based on its PEG Ratio (6.7x)
Price to Book Ratio
PB vs Industry: CNI is overvalued based on its PB Ratio (5x) compared to the US Transportation industry average (2.2x).
Future Growth
How is Canadian National Railway forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
3.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CNI's forecast earnings growth (3.4% per year) is above the savings rate (2%).
Earnings vs Market: CNI's earnings (3.4% per year) are forecast to grow slower than the US market (13% per year).
High Growth Earnings: CNI's earnings are forecast to grow, but not significantly.
Revenue vs Market: CNI's revenue (6.4% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: CNI's revenue (6.4% 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 (27.5%)
Past Performance
How has Canadian National Railway performed over the past 5 years?
-1.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CNI has high quality earnings.
Growing Profit Margin: CNI's current net profit margins (32.8%) are higher than last year (24.8%).
Past Earnings Growth Analysis
Earnings Trend: CNI's earnings have declined by 1.4% per year over the past 5 years.
Accelerating Growth: CNI's earnings growth over the past year (38.1%) exceeds its 5-year average (-1.4% per year).
Earnings vs Industry: CNI earnings growth over the past year (38.1%) underperformed the Transportation industry 68.6%.
Return on Equity
High ROE: CNI's Return on Equity (21.8%) is considered high.
Financial Health
How is Canadian National Railway's financial position?
Financial Position Analysis
Short Term Liabilities: CNI's short term assets (CA$4.9B) exceed its short term liabilities (CA$3.6B).
Long Term Liabilities: CNI's short term assets (CA$4.9B) do not cover its long term liabilities (CA$22.6B).
Debt to Equity History and Analysis
Debt Level: CNI's net debt to equity ratio (52.4%) is considered high.
Reducing Debt: CNI's debt to equity ratio has reduced from 70.8% to 62.5% over the past 5 years.
Debt Coverage: CNI's debt is well covered by operating cash flow (50.9%).
Interest Coverage: CNI's interest payments on its debt are well covered by EBIT (9.4x coverage).
Balance Sheet
Dividend
What is Canadian National Railway current dividend yield, its reliability and sustainability?
1.60%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CNI's dividend (1.6%) is higher than the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: CNI's dividend (1.6%) is low compared to the top 25% of dividend payers in the US market (3.48%).
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 (36.4%), 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 (37% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.1yrs
Average management tenure
CEO
JJ Ruest (66 yo)
3.5yrs
Tenure
CA$10,813,235
Compensation
Mr. Jean-Jacques Ruest, also known as JJ, has been President, Chief Executive Officer and Director of Canadian National Railway Company since July 24, 2018. He was Interim President and Chief Executive Off...
CEO Compensation Analysis
Compensation vs Market: JJ's total compensation ($USD8.64M) is about average for companies of similar size in the US market ($USD11.29M).
Compensation vs Earnings: JJ's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: CNI's management team is considered experienced (3.1 years average tenure).
Board Members
Experienced Board: CNI's board of directors are considered experienced (4.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CNI insiders have only sold shares 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: CNI
- Exchange: NYSE
- Founded: 1919
- Industry: Railroads
- Sector: Transportation
- Implied Market Cap: CA$108.806b
- Listing Market Cap: CA$86.984b
- Shares outstanding: 706.30m
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/19 23:35 |
| End of Day Share Price | 2022/01/19 00:00 |
| Earnings | 2021/09/30 |
| 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.