Canadian National Railway Company (CNI) Company Bio
Canadian National Railway engages in rail and related transportation business in North America. The company offers transportation services that include rail, intermodal container, and trucking services, supply chain solutions, freight forwarding, customs brokerage service, industrial development, and marine services. The company was founded in 1922 and is based in Montreal, Canada.
CNI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CNI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Canadian National Railway Co ranked in the 27th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for CNI, they are:
CNI's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 36.06% of tickers in our DCF set.
Relative to other stocks in its sector (Industrials), Canadian National Railway Co has a reliance on debt greater than just 22.53% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CNI, try BDC, CCRN, HI, IEX, and KEX.
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Investors are looking for safe bets during the market turmoil. One of my top picks is Canadian National Railway (TSX:CNR)(NYSE:CNI). The post Keep Your Portfolio From Going off the Rails With This Stock appeared first on The Motley Fool Canada .
Canadian National Railway (CNI) sees signs the economy is slowly coming back, with volumes rising 4% in the last week of May as manufacturing and construction sectors reopened."I think we're seeing the light at the end of the tunnel," CFO Ghislain Houle said today at the UBS Global Industrials & Transportation...