CNICanadian National Railway Company

$127.54

Is it safe?

Can CNI take a bad year?

Canadian National Railway Company carries $6.11B of net debt at 1.91× EBITDA: a load its earnings can carry.

$6.11B

Net debt · as at Q4 2009 · under two and a half years of EBITDA, comfortable

Net debt / EBITDA
1.91×

Net debt / EBITDA · 2.07× a year ago · the load is coming down

Interest cover
5.84×

Interest cover · operating profit covers the interest bill several times over

Annualised volatility
22%

Annualised volatility · about as steady as the market itself

Details
Total debtQ4 2009
$6.46B
Cash and short-term investments
$352M
Net debt
$6.11B
EBITDA, trailing twelve months
$3.20B
Operating profit, trailing twelve months
$2.41B
Debt / equity
0.57×
Total debt / EBITDA
2.02×
Annualised volatilitytwo years of daily moves
22%
Worst drawdown on file
−29%
Below its 52-week high
−2.3%

Balance sheet from SEC filings; drawdown and volatility from end-of-day closes; Altman Z from the filed statements.