ScoreWhy is Canadian National Railway Co. ?
1
High Management Efficiency with a high ROCE of 16.92%
2
Poor long term growth as Net Sales has grown by an annual rate of 4.59% and Operating profit at 4.50% over the last 5 years
3
Flat results in Mar 26
- INTEREST COVERAGE RATIO(Q) Lowest at 868.8
- INVENTORY TURNOVER RATIO(HY) Lowest at 11.63 times
- OPERATING PROFIT(Q) Lowest at CAD 2,033 MM
4
With ROE of 21.46%, it has a expensive valuation with a 4.72 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 14.30%, its profits have risen by 3% ; the PEG ratio of the company is 3.9
5
High Institutional Holdings at 73.64%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 1.6% over the previous quarter.
6
Underperformed the market in the last 1 year
- The stock has generated a return of 14.30% in the last 1 year, much lower than market (S&P/TSX 60) returns of 29.60%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Canadian National Railway Co. should be less than 10%
- Overall Portfolio exposure to Construction should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Canadian National Railway Co. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Canadian National Railway Co.
14.3%
3.47
21.49%
S&P/TSX 60
29.6%
2.31
12.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.59%
EBIT Growth (5y)
4.50%
EBIT to Interest (avg)
9.34
Debt to EBITDA (avg)
1.99
Net Debt to Equity (avg)
0.95
Sales to Capital Employed (avg)
0.41
Tax Ratio
23.99%
Dividend Payout Ratio
46.91%
Pledged Shares
0
Institutional Holding
73.64%
ROCE (avg)
16.92%
ROE (avg)
22.28%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
22
Industry P/E
Price to Book Value
4.72
EV to EBIT
18.81
EV to EBITDA
14.52
EV to Capital Employed
2.85
EV to Sales
7.11
PEG Ratio
3.90
Dividend Yield
NA
ROCE (Latest)
15.15%
ROE (Latest)
21.46%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CAD 7,150 MM
DIVIDEND PER SHARE(HY)
Highest at CAD 13.77
RAW MATERIAL COST(Y)
Fallen by 0.52% (YoY
-5What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 868.8
INVENTORY TURNOVER RATIO(HY)
Lowest at 11.63 times
OPERATING PROFIT(Q)
Lowest at CAD 2,033 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 46.43 %
Here's what is working for Canadian National Railway Co.
Dividend per share
Highest at CAD 13.77 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (CAD)
Operating Cash Flow
Highest at CAD 7,150 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CAD MM)
Raw Material Cost
Fallen by 0.52% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Canadian National Railway Co.
Interest Coverage Ratio
Lowest at 868.8
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at CAD 2,033 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CAD MM)
Operating Profit Margin
Lowest at 46.43 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Inventory Turnover Ratio
Lowest at 11.63 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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