Canadian National Railway Company
- Open
- 128.99
- Day high
- 129.12
- Day low
- 126.63
- Prev close
- 129.03
- Volume
- 1.3M
- Mkt cap
- $76.9B
- P/E (TTM)
- 23.4
- EPS (TTM)
- $5.43
- P/B
- 5.0
- P/S
- 6.2
- Yield
- 2.06%
- Per share
- $2.61
Canadian National Railway Company (CNI) is a Industrials company listed on NYSE. The stock is up 28% over the past year.
Canadian National Railway Company (CNI) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 8 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
CNI earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 29, 2026 | $1.31 | $1.31 | +0.0% | $3.1B | +0.0% |
| Jan 30, 2026 | $1.43 | $1.49 | +4.2% | $3.2B | -24.4% |
| Oct 31, 2025 | $1.28 | $1.33 | +3.9% | $2.1B | -51.6% |
| Jul 22, 2025 | $1.37 | $1.35 | -1.5% | $3.1B | -24.8% |
| May 1, 2025 | $1.26 | $1.29 | +2.4% | $3.1B | -29.1% |
| Jan 30, 2025 | $1.37 | $1.30 | -5.1% | $3.0B | -30.6% |
| Oct 22, 2024 | $1.28 | $1.26 | -1.6% | $3.0B | +1.6% |
| Jul 23, 2024 | $1.41 | $1.35 | -4.3% | $3.2B | -1.4% |
| Jan 23, 2024 | $1.46 | $1.48 | +1.4% | $3.4B | +3.7% |
| Jul 25, 2023 | $1.37 | $1.31 | -4.4% | $3.1B | -3.3% |
| Jan 24, 2023 | $1.56 | $1.55 | -0.6% | $3.4B | +2.3% |
| Oct 25, 2022 | $1.51 | $1.63 | +7.9% | $3.3B | +5.4% |
Canadian National Railway Company company profile
Overview
Canadian National Railway Company (TSX:CNI) is one of North America's largest freight railway companies, operating a transcontinental network spanning Canada and the central United States. Founded in 1919 as a Crown corporation consolidating several bankrupt Canadian railways, CN was privatized in 1995 and went public in 1996. Headquartered in Montreal, the company has evolved from a government-owned entity into a leading North American transportation provider, connecting three coasts through its extensive 19,500-mile rail network that reaches from the Atlantic and Pacific oceans to the Gulf of Mexico.
Business
Canadian National Railway operates in the freight rail transportation industry, moving goods across North America through its extensive railway network. The rail freight industry serves as a critical backbone for continental trade, providing cost-effective transportation for bulk commodities and manufactured goods over long distances. Railways are particularly efficient for moving heavy, high-volume cargo that doesn't require time-sensitive delivery. CN's business is organized around seven primary commodity segments that reflect the diverse nature of North American trade: Petroleum and Chemicals represents approximately 25% of revenues and includes crude oil, refined petroleum products, liquefied petroleum gases, chemicals, and plastics. This segment benefits from North America's energy production boom and serves both domestic consumption and export markets. Grain and Fertilizers accounts for roughly 20% of revenues, transporting Canadian and U.S. agricultural products to domestic markets and export terminals. This includes wheat, canola, corn, soybeans, and agricultural fertilizers, making CN crucial to North America's agricultural export capacity. Intermodal comprises about 20% of revenues and involves transporting shipping containers and truck trailers on rail cars, connecting ocean ports to inland destinations. This segment includes both international containers arriving at ports and domestic trailer-on-flatcar services competing with long-haul trucking. Metals and Minerals generates approximately 15% of revenues, moving iron ore, steel products, aluminum, copper, and other industrial materials. This segment serves both the construction industry and manufacturing sectors across North America. Forest Products accounts for roughly 10% of revenues, transporting lumber, pulp, paper, and wood panels primarily from Canadian forests to North American markets. Coal represents about 5% of revenues, primarily moving thermal coal from mines to power plants and metallurgical coal for steel production. Automotive comprises the remaining 5% of revenues, transporting finished vehicles and automotive parts between manufacturing plants and distribution centers. The company also provides complementary services including vessel operations, transloading facilities, automotive logistics, and freight forwarding services that enhance its core rail transportation offering.
Revenue model
CN generates revenue primarily through freight transportation services, charging customers based on the weight, distance, and type of commodities transported. The company operates under a variable cost structure where rates are typically negotiated annually with customers and often include fuel surcharge mechanisms to offset diesel price fluctuations. Revenue per revenue ton-mile (RTM) varies significantly by commodity, with higher-value manufactured goods and chemicals commanding premium rates compared to bulk commodities like grain or coal. The railroad's customers include major exporters, importers, manufacturers, retailers, and resource extraction companies. Key customer relationships often involve multi-year contracts that provide revenue stability, particularly for bulk commodities where CN may invest in specialized infrastructure like grain elevators or chemical loading facilities. Several factors influence CN's profitability margins. Volume growth is crucial since railroads have high fixed costs - once infrastructure and locomotive capacity exists, additional traffic flows at high incremental margins. Fuel costs represent a significant expense, though fuel surcharges help mitigate price volatility. Labor productivity improvements can meaningfully impact margins, as crew costs represent a major operational expense. Network efficiency through scheduled operations and improved asset utilization reduces costs per unit transported. External factors affecting margins include economic cycles that influence shipping demand, commodity price cycles that affect resource extraction activities, trade policies and tariffs that can redirect cargo flows, and competition from trucking for shorter-haul freight. Weather disruptions can temporarily impact operations, while longer-term infrastructure investments in competing transportation modes (such as pipeline capacity) can permanently alter freight patterns. The company's transcontinental network provides some insulation from regional economic downturns, as weakness in one geography can be offset by strength in others.
Competitive moat
CN possesses a significant economic moat based on several structural advantages inherent to the railroad industry. The company's primary moat stems from its irreplaceable network assets - the extensive rail infrastructure connecting major North American population and industrial centers cannot be economically duplicated. Building new railway lines requires enormous capital investment, decades of regulatory approvals, and acquisition of right-of-way through densely populated areas that is often impossible or prohibitively expensive. The company's transcontinental network provides unique competitive positioning, being the only railroad connecting Canada's three coasts while also reaching deep into the U.S. Midwest and Gulf Coast. This geography creates natural monopoly characteristics for certain origin-destination pairs, particularly for Canadian exports reaching tidewater ports. CN's access to Prince Rupert port provides the shortest rail route from North America's agricultural heartland to Asian markets, creating a structural advantage for trans-Pacific trade. Switching costs reinforce CN's moat, as customers often build production facilities, warehouses, and loading infrastructure adjacent to CN's tracks. Relocating these facilities to access competing railroads involves substantial capital expenditure and operational disruption. Long-term contracts and customer-specific infrastructure investments create additional switching barriers. However, CN faces competitive pressures that limit its moat strength. Trucking competition remains viable for shorter distances and time-sensitive freight, particularly as truck fuel efficiency improves and autonomous driving technology develops. Pipeline competition affects petroleum transportation, while Great Lakes shipping provides alternative routing for some bulk commodities. Other Class I railroads like Canadian Pacific Kansas City and BNSF compete for parallel routes and can sometimes provide alternative service to CN's customers. The regulatory environment also constrains CN's moat, as government oversight limits pricing power and requires common carrier obligations. Additionally, the capital-intensive nature of railroad operations means that economic downturns can significantly impact profitability despite the strong moat characteristics.
Risks & safety
CN demonstrates a moderate margin of safety with mixed financial health indicators: **Overall Assessment:** The company maintains adequate liquidity and generates strong cash flows, but carries elevated debt levels and trades at premium valuations. **Cash and Solvency:** • Current ratio of 0.62 indicates tight short-term liquidity, though this is typical for capital-intensive utilities • Cash and short-term investments of $271 million provide limited cushion • Debt-to-equity ratio of 1.02 represents moderate leverage for the industry • Strong operating cash flow of $4.67 billion (2024) and free cash flow of $2.20 billion provide debt service coverage • No immediate solvency concerns given predictable cash generation **Valuation Metrics:** • Price-to-earnings ratio of 20.8x appears reasonable for a quality infrastructure asset • EV/EBITDA of 13.1x suggests modest premium to historical averages • Price-to-book ratio of 4.4x reflects the premium for network assets • Graham number of $72.45 compared to current price of $101.71 suggests overvaluation by traditional value metrics **Other Considerations:** • Regulated utility-like cash flows provide stability during economic downturns • High barriers to entry and irreplaceable assets support valuation premium • Exposure to cyclical commodities creates earnings volatility risk • Capital expenditure requirements of $3.4 billion annually limit financial flexibility
Recent development
Over the past several years, CN has undergone significant strategic evolution focused on operational excellence and network optimization. The company implemented a scheduled operating plan approximately 30 months ago, transitioning from traditional railroad operations to a more predictable, airline-style scheduled service model. This transformation has improved network velocity and service reliability, with car velocity reaching 215 miles per day. CN has pursued strategic network expansion through targeted acquisitions, including the completed Iowa Northern Railway transaction that extends the company's reach in the U.S. Midwest agricultural markets. The company also acquired the Cape Breton Northern Subdivision to enhance its Eastern Canadian network coverage. The company has made substantial investments in gateway development, particularly emphasizing Prince Rupert port as a competitive advantage for trans-Pacific trade. This Western Canadian gateway offers the shortest rail route from North America's agricultural heartland to Asian markets, positioning CN to capture growing Asia-Pacific trade flows. Technology and modernization initiatives have included locomotive fleet upgrades, converting from DC to AC traction motors for improved fuel efficiency and performance. The company has also invested in engineering productivity improvements and implemented individual car trip planning systems to optimize network flow. CN has demonstrated resource flexibility in response to demand fluctuations, quickly adjusting workforce levels and locomotive deployment based on volume patterns. During recent softer demand periods, the company furloughed 470 train and engine service employees while parking 140 locomotives, demonstrating operational agility. The company has expanded its customer-specific growth initiatives, including frac sand terminal capacity expansion, renewable energy project support, Greater Toronto Area fuel terminal development, and the Falcon premium service to Mexico. Management expects these CN-specific initiatives to drive approximately 50% of future volume growth, reducing dependence on broader economic cycles.
CNI company profile · for informational purposes only — not investment advice.
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