Canadian National Railway Logo

Canadian National Railway Company – Share Value Analysis, Should this Company be Bought for Value or Dividends?

Canadian National Railway Company

Company Profile
The Canadian National Railway Company or (CN) runs Canada’s biggest railway that connects customers in the United States, Canada and Mexico. The company operates across around 20,400 miles of track with 2019 marking the 100th year of the railway.

The Stock Symbol for Canadian National Railway Company is (NYSE:CNI).

The railway provides connectivity to a number of ports and span three coastlines. Within their network they utilise 23 terminals.

Canadian National Railways Operational Map

Canadian National Railway Map

Dividend Yields Performance For Canadian National Railways

10 Year Dividend Yield Performance Graph Canadian National Railways

On trends you have to say this is a very consistent performance from Canadian National Railways. The yield hovers consistently at around 2%. You will see when set against a consistently rising stock price this is a very strong dividend yield performance. The company has maintained the yield threshold through consistent dividend growth.

10 Year Stock Price Movement For Canadian National Railways

10 Year Dividend Growth Chart For Canadian National Railways

10 year dividend growth chart for Canadian National Railways

Only once has the dividend growth for Canadian National Railways produced a negative result. The business maintains double digit dividend growth in almost every year.

Comparative Financial Performance Analysis For Canadian National Railways

The data becomes very interesting when you begin to compare Canadian National against its peer group. You can see that Canadian National’s stock price relative to the sector is actually one of the lowest. When you consider this fact against the dividend yield you start to understand as a sectoral performer this company looks pretty good value. With a similarly low debt to capital ratio the business looks quite interesting.

On a fair value basis the business looks about right on current stock prices, certainly not undervalued but seemingly not overvalued.

There are certainly higher dividend yields out there but in the round the company can be considered a very consistent performer in terms of dividend yield and stock price growth. On a sectoral comparison this business holds up well from a dividend and a stock price value measure.

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