Now trading at a price of $119.04, Canadian National Railway has moved -1.3% so far today.
Canadian National Railway returned gains of 5.1% last year, with its stock price reaching a high of $134.02 and a low of $103.96. Over the same period, the stock underperformed the S&P 500 index by -22.9%. The company's 50-day average price was $116.29. Canadian National Railway Company, together with its subsidiaries, engages in the rail, intermodal, trucking, and marine transportation and logistics business in Canada and the United States. Based in Montreal, Canada, the Large-Cap Industrials company has 25,656 full time employees. Canadian National Railway has offered a 2.7% dividend yield over the last 12 months.
EPS Trend Sustained Primarily by Reducing the Number of Shares Outstanding:
| 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $12,611 | $12,037 | $13,041 | $14,321 | $14,917 | $13,819 |
| Operating Margins | 42% | 44% | 43% | 38% | 37% | 35% |
| Net Margins | 28% | 30% | 42% | 30% | 28% | 26% |
| Net Income (M) | $3,538 | $3,640 | $5,484 | $4,328 | $4,216 | $3,562 |
| Net Interest Expense (M) | $439 | $480 | $481 | $489 | $538 | $554 |
| Depreciation & Amort. (M) | $1,158 | $1,225 | $1,281 | $1,327 | $1,559 | $1,583 |
| Diluted Shares (M) | 805 | 779 | 757 | 738 | 723 | 713 |
| Earnings Per Share | $4.39 | $4.67 | $7.24 | $5.87 | $5.83 | $5.0 |
| EPS Growth | n/a | 6.38% | 55.03% | -18.92% | -0.68% | -14.24% |
| Free Cash Flow (M) | $2,434 | $2,507 | $2,843 | $2,387 | $2,058 | $3,302 |
| CAPEX (M) | $2,706 | $2,695 | $2,673 | $3,531 | $3,865 | $2,863 |
| Total Debt (M) | $8,985 | $9,448 | $10,670 | $12,540 | $13,662 | $12,832 |
| Net Debt / EBITDA | 1.37 | 1.42 | 1.55 | 1.8 | 1.9 | 1.93 |
| Current Ratio | 0.72 | 0.7 | 0.55 | 0.78 | 0.66 | 0.95 |
a Very Low P/E Ratio but Trades Above Its Graham Number:
Canadian National Railway has a trailing twelve month P/E ratio of 18.8, compared to an average of 25.19 for the Industrials sector. Based on its EPS guidance of $6.3, the company has a forward P/E ratio of 18.5. The 5.3% compound average growth rate of Canadian National Railway's historical and projected earnings per share yields a PEG ratio of 3.54. This suggests that these shares are overvalued. Furthermore, Canadian National Railway is likely overvalued compared to the book value of its equity, since its P/B ratio of 3.87 is higher than the sector average of 3.17. The company's shares are currently trading 113.8% below their Graham number.
Canadian National Railway Has an Analyst Consensus of Some Upside Potential:
The 23 analysts following Canadian National Railway have set target prices ranging from $97.08 to $179.78 per share, for an average of $130.63 with a hold rating. The company is trading -8.9% away from its average target price, indicating that there is an analyst consensus of some upside potential.
The largest shareholder is Bill & Melinda Gates Foundation Trust, whose 9% stake in the company is worth $6,526,580,655.
