The stock of Canadian National Railway Co. (NYSE: CNI) has increased by 1.11 when compared to last closing price of 125.85. Despite this, the company has experienced a 4.34% gain in its stock price over the last five trading sessions. InvestorPlace reported 2024-05-07 that Dividend stocks are some of the most stable in the market because they usually have very profitable companies backing them up. You do not have unprofitable companies paying dividends, so it makes sense why so many investors retreat into them when the market wobbles.
Is It Worth Investing in Canadian National Railway Co. (NYSE: CNI) Right Now?
Canadian National Railway Co. (NYSE: CNI) has a higher price-to-earnings ratio of 18.98x compared to its average ratio, The 36-month beta value for CNI is at 0.90. Analysts have varying views on the stock, with 8 analysts rating it as a “buy,” 1 rating it as “overweight,” 16 as “hold,” and 1 as “sell.”
The public float for CNI is 616.27M, and currently, shorts hold a 1.14% of that float. The average trading volume for CNI on May 10, 2024 was 983.51K shares.
CNI’s Market Performance
CNI’s stock has seen a 4.34% increase for the week, with a -3.06% drop in the past month and a -0.73% fall in the past quarter. The volatility ratio for the week is 1.71%, and the volatility levels for the past 30 days are at 1.93% for Canadian National Railway Co. The simple moving average for the last 20 days is 1.12% for CNI stock, with a simple moving average of 6.24% for the last 200 days.
Analysts’ Opinion of CNI
Many brokerage firms have already submitted their reports for CNI stocks, with BofA Securities repeating the rating for CNI by listing it as a “Buy.” The predicted price for CNI in the upcoming period, according to BofA Securities is $145 based on the research report published on April 10, 2024 of the current year 2024.
Jefferies, on the other hand, stated in their research note that they expect to see CNI reach a price target of $130. The rating they have provided for CNI stocks is “Hold” according to the report published on April 08th, 2024.
CNI Trading at -0.88% from the 50-Day Moving Average
After a stumble in the market that brought CNI to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -5.05% of loss for the given period.
Volatility was left at 1.93%, however, over the last 30 days, the volatility rate increased by 1.71%, as shares sank -1.68% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -1.93% lower at present.
During the last 5 trading sessions, CNI rose by +4.34%, which changed the moving average for the period of 200-days by +7.23% in comparison to the 20-day moving average, which settled at $125.73. In addition, Canadian National Railway Co. saw 1.29% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for CNI
Current profitability levels for the company are sitting at:
- 0.38 for the present operating margin
- 0.43 for the gross margin
The net margin for Canadian National Railway Co. stands at 0.32. The total capital return value is set at 0.11. Equity return is now at value 24.74, with 9.57 for asset returns.
Based on Canadian National Railway Co. (CNI), the company’s capital structure generated 0.5 points at debt to capital in total, while cash flow to debt ratio is standing at 0.28. The debt to equity ratio resting at 1.0. The interest coverage ratio of the stock is 9.15.
Currently, EBITDA for the company is 8.88 billion with net debt to EBITDA at 2.82. When we switch over and look at the enterprise to sales, we see a ratio of 7.49. The receivables turnover for the company is 10.27for trailing twelve months and the total asset turnover is 0.25. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.60.
Conclusion
In conclusion, Canadian National Railway Co. (CNI) has had a mixed performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
