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 22th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Canadian National Railway Co ended up being:
In the past 4 years, Canadian National Railway Co has a compound free cash flow growth rate of 0.03%; that's higher than only 24.03% of free cash flow generating stocks in the Industrials sector.
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 33.75% of tickers in our DCF set.
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 FORR, LECO, BDC, GGG, and IEA.
The Association of American Railroads ((AAR)) reports total weekly US rail traffic down 2.1% Y/Y to 518,290 carloads and intermodal units for the week ending Sept. 26, 2020.Intermodal volumes continued the upside with the Y/Y increase of 5.5% to 294,144; However, carloads down 10.5% Y/Y to 224,146.3 of the 10 carload commodity...
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Find out which stock might be a more intriguing investment than one of my favourite Canadian dividend-paying companies. The post Canadian National Railway (TSX:CNR) Is a Great Company, But Could This Be Better? appeared first on The Motley Fool Canada .
Canadian National Railway (NYSE: CNI ) has ordered 50 electric trucks from Canadian supplier Lion Electric Co. for intermodal operations in its largest urban markets, the companies announced Monday. The Canadian railway plans to deploy the trucks in Toronto, Vancouver and Montreal, CN JJ Ruest said during a news conference in Montreal. They will perform urban deliveries, container shuttle service and port operations. The trucks will help "reduce greenhouse gas emissions, but also noise pollution," Ruest said. "Trucks, let's … Full story available on Benzinga.com