Aurizon is a narrow-moat business operating in efficiently scaled markets. Its rail operations hold significant cost advantages over other forms of bulk commodity transportation, though the industry is highly cyclical. Coal prices have recovered but downward pressure is likely to remain on haulage rates and volumes due to intense competition.
Restructuring initiatives should decrease operating costs.
Over 80% of EBIT is exposed to domestic coal production, a major risk if demand falls or if production is disrupted.
|
Metric
|
AZJ
|
AIA
|
POT
|
|---|---|---|---|
Price/Earnings (Normalized) | 14.88 | 73.32 | 32.52 |
Price/Book Value | 1.65 | 1.38 | 1.57 |
Price/Sales | 1.96 | 15.87 | 8.17 |
Price/Cash Flow | 6.63 | 29.43 | 23.48 |
|
Metric
|
AZJ
|
AIA
|
POT
|
|---|---|---|---|
Quick Ratio | 0.37 | 0.27 | 0.25 |
Current Ratio | 0.62 | 0.28 | 0.25 |
Interest Coverage | 2.12 | 2.75 | 6.12 |
|
Metric
|
AZJ
|
AIA
|
POT
|
|---|---|---|---|
Return on Assets (Normalized) | 3.71% | 1.09% | 3.81% |
Return on Equity (Normalized) | 10.13% | 1.42% | 5.08% |
Return on Invested Capital (Normalized) | 4.57% | 0.90% | 4.06% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
UNP
| Union Pacific Corp | Slkvmyjh | Dlc | $141.5 Bil | |
CP
| Canadian Pacific Kansas City Ltd | Hscnyhxl | Dcfgt | $81.5 Bil | |
CNI
| Canadian National Railway Co | Lkrhzrbb | Mkch | $78.4 Bil | |
CSX
| CSX Corp | Fcqmbdj | Jdbs | $65.8 Bil | |
NSC
| Norfolk Southern Corp | Jqwnksy | Gdlk | $53.4 Bil | |
WAB
| Westinghouse Air Brake Technologies Corp | — | Jjcvsb | $28.9 Bil | |
CJPRY
| Central Japan Railway Co ADR | — | Mfflpz | $23.3 Bil | |
CJPRF
| Central Japan Railway Co | — | Xlgnsw | $23.2 Bil | |
EJPRF
| East Japan Railway Co | — | Ndfmst | $21.3 Bil | |
EJPRY
| East Japan Railway Co ADR | — | Wtsqjx | $21.3 Bil |
