NYSE:CNI

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Canadian National Railway

Executive Summary

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


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

CNIIndustryMarket
7 Day1.6%-0.8%-1.4%
30 Day2.5%3.8%1.6%
90 Day0.2%7.2%7.3%
1 Year27.4%25.1%39.6%37.6%40.2%37.1%
3 Year50.8%43.0%67.8%59.5%62.5%52.1%
5 Year108.9%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

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).


Next Steps

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%)


Next Steps

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.


Next Steps

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


Next Steps

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).


Next Steps

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

NamePositionTenureCompensationOwnership
Jean-Jacques Ruest
President2.58yrsCA$8.94m0.024%
CA$ 18.2m
Ghislain Houle
Executive VP & CFO4.58yrsCA$3.16m0.013%
CA$ 10.3m
Robert Reilly
Executive VP & COO1.58yrsCA$5.84mno data
Sean Finn
Executive VP of Corporate Services12.17yrsCA$2.42m0.0097%
CA$ 7.5m
Dorothea Klein
Senior VP & Chief Human Resources Officer1.17yrsCA$1.36m0.000010%
CA$ 7.7k
Salvatore Forgione
VP of Accounting & Corporate Comptrollerno datano datano data
Dominique Malenfant
Executive VP and Chief Information & Technology Officer0.42yrno data0.000010%
CA$ 7.7k
Paul Butcher
Vice-President of Investor Relations4.58yrsno datano data
Fiona Murray
Vice-President of Public & Government Affairs2.33yrsno datano data
Keith Reardon
Senior Vice-President of Consumer Product Supply Chain Growth2.5yrsno data0.0014%
CA$ 1.1m
James Cairns
Senior Vice-President of Rail Centric Supply Chain1.83yrsno data0.000070%
CA$ 54.2k
Doug MacDonald
Senior VP and Office of the President & CEO - Special Projects1.17yrsno data0.0016%
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

NamePositionTenureCompensationOwnership
Jean-Jacques Ruest
President2.58yrsCA$8.94m0.024%
CA$ 18.2m
Donald Carty
Independent Director10.08yrsCA$407.46k0.012%
CA$ 9.1m
James O'Connor
Independent Director9.83yrsCA$395.57k0.0053%
CA$ 4.1m
Edith Holiday
Independent Director19.67yrsCA$395.57k0.0089%
CA$ 6.9m
Robert Phillips
Independent Director6.83yrsCA$395.57k0.0014%
CA$ 1.1m
Maureen Kempston Darkes
Independent Director25.92yrsCA$382.30k0.020%
CA$ 15.5m
David G. McLean
Chairman Emeritusno dataCA$197.41kno data
Gordon Giffin
Independent Director19.75yrsCA$382.30k0.0062%
CA$ 4.8m
Robert Pace
Independent Chairman of the Board6.83yrsCA$726.86k0.029%
CA$ 22.8m
Denis Losier
Independent Director26.33yrsCA$395.57k0.024%
CA$ 18.2m
Shauneen Bruder
Independent Director3.83yrsCA$381.18k0.00017%
CA$ 131.6k
Kevin Lynch
Independent Director6.83yrsCA$407.46kno 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

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

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/24 23:16
End of Day Share Price2021/02/24 00:00
Earnings2020/12/31
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.