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CNI

Canadian National RailwayNYSE:CNI Stock Report

Last Price

CA$123.23

Market Cap

CA$87.0b

7D

0.03%

1Y

11.9%

Updated

19 Jan, 2022

Data

Company Financials +
CNI fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance4/6
Financial Health4/6
Dividends5/6

CNI Stock Overview

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

Canadian National Railway Competitors

Union Pacific

NYSE:UNP

US$154.0b

CSX

NasdaqGS:CSX

US$78.2b

Norfolk Southern

NYSE:NSC

US$67.7b

Canadian Pacific Railway

TSX:CP

CA$88.2b

Price History & Performance

Summary of all time highs, changes and price drops for Canadian National Railway
Historical stock prices
Current Share PriceCA$123.23
52 Week HighCA$136.22
52 Week LowCA$100.66
Beta0.63
1 Month Change3.23%
3 Month Change-7.16%
1 Year Change11.90%
3 Year Change51.37%
5 Year Change76.07%
Change since IPO3,937.68%

Recent News & Updates

Jan 17

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.

Oct 25

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

CNIUS TransportationUS Market
7D0.03%-4.8%-4.6%
1Y11.9%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

Is CNI's price volatile compared to industry and market?
CNI volatility
CNI Average Weekly Movement3.0%
Transportation Industry Average Movement7.1%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
191923,765JJ 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.

Canadian National Railway Fundamentals Summary

How do Canadian National Railway's earnings and revenue compare to its market cap?
CNI fundamental statistics
Market CapCA$108.81b
Earnings (TTM)CA$4.71b
Revenue (TTM)CA$14.38b

23.1x

P/E Ratio

7.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CNI income statement (TTM)
RevenueCA$14.38b
Cost of RevenueCA$6.45b
Gross ProfitCA$7.93b
ExpensesCA$3.22b
EarningsCA$4.71b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 25, 2022

Earnings per share (EPS)6.67
Gross Margin55.17%
Net Profit Margin32.78%
Debt/Equity Ratio62.5%

How did CNI perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

36%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:35
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
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.