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 3.89% and Operating profit at 3.75% over the last 5 years
3
Positive results in Jun 25
- DIVIDEND PER SHARE(HY) Highest at CAD 14.56
- INTEREST COVERAGE RATIO(Q) Highest at 971.23
- RAW MATERIAL COST(Y) Fallen by -3.71% (YoY)
4
With ROE of 21.34%, it has a very expensive valuation with a 3.83 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 -17.48%, its profits have fallen by -15.1%
5
High Institutional Holdings at 71.65%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 0.63% over the previous quarter.
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -17.48% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Canadian National Railway Co. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Canadian National Railway Co.
-10.83%
1.93
21.10%
S&P/TSX 60
19.1%
1.54
14.62%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.89%
EBIT Growth (5y)
3.75%
EBIT to Interest (avg)
9.34
Debt to EBITDA (avg)
1.99
Net Debt to Equity (avg)
0.95
Sales to Capital Employed (avg)
0.43
Tax Ratio
23.99%
Dividend Payout Ratio
48.22%
Pledged Shares
0
Institutional Holding
71.59%
ROCE (avg)
16.92%
ROE (avg)
22.28%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
3.97
EV to EBIT
16.49
EV to EBITDA
12.64
EV to Capital Employed
2.55
EV to Sales
6.15
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
15.47%
ROE (Latest)
21.34%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at CAD 14.56
INTEREST COVERAGE RATIO(Q)
Highest at 971.23
RAW MATERIAL COST(Y)
Fallen by -3.71% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 14.56%
OPERATING PROFIT(Q)
Highest at CAD 2,127 MM
OPERATING PROFIT MARGIN(Q)
Highest at 49.79 %
PRE-TAX PROFIT(Q)
Highest at CAD 1,627 MM
NET PROFIT(Q)
Highest at CAD 1,221.55 MM
EPS(Q)
Highest at CAD 1.87
-5What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CAD 6,678 MM
CASH AND EQV(HY)
Lowest at CAD 884 MM
INVENTORY TURNOVER RATIO(HY)
Lowest at 12.03%
Here's what is working for Canadian National Railway Co.
Interest Coverage Ratio
Highest at 971.23
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at CAD 14.56 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (CAD)
Operating Profit
Highest at CAD 2,127 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CAD MM)
Operating Profit Margin
Highest at 49.79 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at CAD 1,627 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CAD MM)
Net Profit
Highest at CAD 1,221.55 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CAD MM)
EPS
Highest at CAD 1.87
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CAD)
Debtors Turnover Ratio
Highest at 14.56%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -3.71% (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.
Operating Cash Flow
Lowest at CAD 6,678 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CAD MM)
Cash and Eqv
Lowest at CAD 884 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Inventory Turnover Ratio
Lowest at 12.03%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Non Operating Income
Highest at CAD 0.13 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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