Canadian National Railway Stock Analysis, Valuation (NYSE:CNI)

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$86.66 $0.58 (0.67%) CNI stock closing price Jul 20, 2018 (Closing)

View the Canadian National Railway stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for CNI stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Canadian National Railway (USA) Stock Rating 3.5/5

Amigobulls CNI stock analysis relies on business fundamentals such as Canadian National Railway revenue growth, profits and return on equity measures from the latest quarter 2018 Q1 earnings. Canadian National Railway valuation forms a crucial part of our stock analysis. Our Canadian National Railway stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy CNI stock?

  • Canadian National Railway had a healthy average operating margin of 40.59 over the last 4 quarters.
  • Net margins came in at average 41% for Canadian National Railway over the last twelve months.
  • Canadian National Railway has an attractive ROIC (Return on Invested Capital) of 12.7
  • Canadian National Railway has a good Return On Equity (ROE) of 34.4.

Should you sell CNI stock?

  • Long term revenue growth of 0.5 over the past 5 years has been disappointing.
  • CNI stock is trading at a PS multiple of 6.3, which is a negative when compared to the Transportation sector average multiple of 1.5.

Comments on this video and Canadian National Railway stock

Amigobulls Canadian National Railway stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of CNI stock. Fundamentals of a company give detailed information which helps in making invesment decisions.

Canadian National Railway revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. One can also combine technical analysis and fundamental analysis to get a holistic picture about CNI stock.