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

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$83.19 $0.78 (0.93%) CNI stock closing price May 18, 2018 (Closing)
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Canadian National Railway
Updated on : May 18, 2018
previous close
CNI 83.2 (0%)
S&P 500 2713 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Transportation-Rail
Sector :
Transportation
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
0.5%
Operating Profit
Operating Margin:
40.6%
Sector Average:
8.1%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$597.4M
Net Income:
$586.3M
Dividend Yield
CNI dividend yield:
1.59%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
Long Term Growth
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
CNI PS :
6.1
Industry PS :
1.5
Sector:   Transportation.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
12.7%
Return on Equity:
34.4%
Free Cash Flow Margin:
10.3%
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CNI Stock Analysis

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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 3.3/5

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's average operating margin of 40.6% was exceptional.
  • Net margins came in at average 41% for Canadian National Railway over the last twelve months.
  • Canadian National Railway generates a high return on invested capital of 12.7%.
  • Canadian National Railway has a good Return On Equity (ROE) of 34.4%.
  • The company has a healthy free cash flow margin of 10.3%.

Should you sell CNI stock?

  • Over the last 5 years, the company registered a poor revenue growth of 0.5%.
  • The company is trading at a price to sales multiple of 6.1, which is higher in comparison to the Transportation-Rail industry average of 1.5, making CNI stock expensive.

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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.