Canadian National Operating Margin vs. Price To Earning

CNI Stock  USD 109.66  0.50  0.46%   
Taking into consideration Canadian National's profitability measurements, Canadian National's profitability may be sliding down. It has an above-average risk of reporting lower numbers next quarter. Profitability indicators assess Canadian National's ability to earn profits and add value for shareholders.

Canadian National Operating Profit Margin

0.28

As of now, Canadian National's Days Of Sales Outstanding is decreasing as compared to previous years. The Canadian National's current Price Sales Ratio is estimated to increase to 6.83, while Sales General And Administrative To Revenue is forecasted to increase to (0.03). As of now, Canadian National's Change To Netincome is increasing as compared to previous years. The Canadian National's current Net Income Per Share is estimated to increase to 8.98, while Accumulated Other Comprehensive Income is projected to decrease to (2.4 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.650.4249
Way Up
Pretty Stable
Operating Profit Margin0.280.392
Way Down
Pretty Stable
For Canadian National profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Canadian National to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Canadian National Railway utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Canadian National's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Canadian National Railway over time as well as its relative position and ranking within its peers.
  
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Is Ground Transportation space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Canadian National. If investors know Canadian will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Canadian National listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.018
Dividend Share
3.325
Earnings Share
6.03
Revenue Per Share
26.896
Quarterly Revenue Growth
0.031
The market value of Canadian National Railway is measured differently than its book value, which is the value of Canadian that is recorded on the company's balance sheet. Investors also form their own opinion of Canadian National's value that differs from its market value or its book value, called intrinsic value, which is Canadian National's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Canadian National's market value can be influenced by many factors that don't directly affect Canadian National's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Canadian National's value and its price as these two are different measures arrived at by different means. Investors typically determine if Canadian National is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Canadian National's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Canadian National Railway Price To Earning vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Canadian National's current stock value. Our valuation model uses many indicators to compare Canadian National value to that of its competitors to determine the firm's financial worth.
Canadian National Railway is rated second in operating margin category among its peers. It is rated fifth in price to earning category among its peers reporting about  79.11  of Price To Earning per Operating Margin. As of now, Canadian National's Operating Profit Margin is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Canadian National's earnings, one of the primary drivers of an investment's value.

Canadian Price To Earning vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Canadian National

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.40 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Canadian National

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
31.36 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Canadian Price To Earning Comparison

Canadian National is currently under evaluation in price to earning category among its peers.

Canadian National Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Canadian National, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Canadian National will eventually generate negative long term returns. The profitability progress is the general direction of Canadian National's change in net profit over the period of time. It can combine multiple indicators of Canadian National, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-2.3 B-2.4 B
Operating Income6.6 B3.7 B
Income Before Tax6.5 B3.4 B
Total Other Income Expense Net-109 M-114.5 M
Net Income5.6 B5.9 B
Income Tax Expense863 M790.6 M
Net Income From Continuing Ops4.9 B5.2 B
Net Income Applicable To Common Shares5.9 B6.2 B
Interest Income630.2 M559.9 M
Net Interest Income-676 M-709.8 M
Change To Netincome265.6 M278.9 M
Net Income Per Share 8.55  8.98 
Income Quality 1.24  1.80 
Net Income Per E B T 0.87  0.62 

Canadian Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Canadian National. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Canadian National position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Canadian National's important profitability drivers and their relationship over time.

Use Canadian National in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Canadian National position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Canadian National will appreciate offsetting losses from the drop in the long position's value.

Canadian National Pair Trading

Canadian National Railway Pair Trading Analysis

The ability to find closely correlated positions to Canadian National could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Canadian National when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Canadian National - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Canadian National Railway to buy it.
The correlation of Canadian National is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Canadian National moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canadian National Railway moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Canadian National can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Canadian National position

In addition to having Canadian National in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Gambling
Gambling Theme
Companies that are related to providing gambling services across multiple geographical areas by investing, exploring, or producing software, hardware, and related infrastructure for running gambling operations or trading speculative assets. The Gambling theme has 38 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Gambling Theme or any other thematic opportunities.
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When determining whether Canadian National Railway offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Canadian National's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Canadian National Railway Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Canadian National Railway Stock:
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You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
To fully project Canadian National's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Canadian National Railway at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Canadian National's income statement, its balance sheet, and the statement of cash flows.
Potential Canadian National investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Canadian National investors may work on each financial statement separately, they are all related. The changes in Canadian National's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Canadian National's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.