Canadian National Railway Co. (NYSE: CNI) has seen a rise in its stock price by 0.90 in relation to its previous close of 115.73. However, the company has experienced a -1.85% decline in its stock price over the last five trading sessions. seekingalpha.com reported 2024-09-26 that CN Rail reported decent Q2’24 results, highlighting strong revenue growth and improved profit margins, driven by effective cost management and strategic investments. Recent labor challenges appear to be mostly behind the company for now, with no stoppages as a result of labor dispute now that both parties are in mandatory arbitration. While guidance was revised lower, I think this has been already priced into the stock with the company trading below the peer group and below its historical valuation multiple.
Is It Worth Investing in Canadian National Railway Co. (NYSE: CNI) Right Now?
Canadian National Railway Co. (NYSE: CNI) has a price-to-earnings ratio that is above its average at 18.75x. The stock has a 36-month beta value of 0.89. Opinions on the stock are mixed, with 8 analysts rating it as a “buy,” 1 as “overweight,” 16 as “hold,” and 1 as “sell.”
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The public float for CNI is 609.40M, and at present, short sellers hold a 0.51% of that float. On September 27, 2024, the average trading volume of CNI was 1.18M shares.
CNI’s Market Performance
CNI’s stock has seen a -1.85% decrease for the week, with a -1.23% drop in the past month and a -1.03% fall in the past quarter. The volatility ratio for the week is 1.58%, and the volatility levels for the past 30 days are at 1.85% for Canadian National Railway Co. The simple moving average for the past 20 days is -0.72% for CNI’s stock, with a -5.17% simple moving average for the past 200 days.
Analysts’ Opinion of CNI
Wells Fargo gave a rating of “Equal Weight” to CNI, setting the target price at $130 in the report published on June 07th of the current year.
CNI Trading at 0.68% 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 -12.87% of loss for the given period.
Volatility was left at 1.85%, however, over the last 30 days, the volatility rate increased by 1.58%, as shares sank -0.43% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -5.10% lower at present.
During the last 5 trading sessions, CNI fell by -1.85%, which changed the moving average for the period of 200-days by -0.86% in comparison to the 20-day moving average, which settled at $117.59. In addition, Canadian National Railway Co. saw -7.05% in overturn over a single year, with a tendency to cut further losses.
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 0.14. Equity return is now at value 27.18, with 10.33 for asset returns.
Based on Canadian National Railway Co. (CNI), the company’s capital structure generated 0.51 points at debt to capital in total, while cash flow to debt ratio is standing at 0.35. The debt to equity ratio resting at 1.06. The interest coverage ratio of the stock is 8.67.
Currently, EBITDA for the company is 8.88 billion with net debt to EBITDA at 2.21. When we switch over and look at the enterprise to sales, we see a ratio of 6.43. The receivables turnover for the company is 15.14for trailing twelve months and the total asset turnover is 0.34. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.63.
Conclusion
To sum up, Canadian National Railway Co. (CNI) has seen a bad performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
