Canadian National Railway Co. (CNR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

TFI International, Inc.

Canadian National Railway Co.

Canadian Pacific Kansas City Ltd.

Why is Canadian National Railway Co. ?

High Management Efficiency with a high ROCE of 16.92%

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

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)

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%

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.

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 Report

Verdict Report

How 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.

-2.4%

1.93

21.10%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.60%

EBIT Growth (5y)

4.59%

EBIT to Interest (avg)

9.34

Debt to EBITDA (avg)

1.99

Net Debt to Equity (avg)

0.95

Sales to Capital Employed (avg)

0.42

Tax Ratio

23.99%

Dividend Payout Ratio

46.91%

Pledged Shares

Institutional Holding

72.04%

ROCE (avg)

16.92%

ROE (avg)

22.28%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.97

EV to EBIT

16.16

EV to EBITDA

12.49

EV to Capital Employed

2.51

EV to Sales

6.15

PEG Ratio

2.44

Dividend Yield

ROCE (Latest)

15.53%

ROE (Latest)

21.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 7,049 MM

DIVIDEND PER SHARE(HY)

Highest at CAD 14.28

RAW MATERIAL COST(Y)

Fallen by -5.94% (YoY

NET SALES(Q)

Highest at CAD 4,464 MM

OPERATING PROFIT(Q)

Highest at CAD 2,189 MM

EPS(Q)

Highest at CAD 2.03

-1What is not working for the Company

CASH AND EQV(HY)

Lowest at CAD 589 MM

Here's what is working for Canadian National Railway Co.

Dividend per share

Highest at CAD 14.28 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Operating Cash Flow

Highest at CAD 7,049 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Sales

Highest at CAD 4,464 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 2,189 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

EPS

Highest at CAD 2.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Raw Material Cost

Fallen by -5.94% (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.

Cash and Eqv

Lowest at CAD 589 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents