Canadian National Railway CNI
Canadian National Railway is one of Canada's leading railway companies, operating a transcontinental network of approximately 20,000 miles, transporting a wide range of goods such as grain, energy, chemicals, and automobiles. Canadian National Railway shows solid fundamentals with an operating margin of 40.27% and ROE of 22.02%, although its valuation (P/E 21.99) is not cheap; revenue growth of 11.30% and reaffirmed full-year guidance support a positive outlook.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Canadian National Railway is one of Canada's leading railway companies, operating a transcontinental network of approximately 20,000 miles, transporting a wide range of goods such as grain, energy, chemicals, and automobiles. Canadian National Railway shows solid fundamentals with an operating margin of 40.27% and ROE of 22.02%, although its valuation (P/E 21.99) is not cheap; revenue growth of 11.30% and reaffirmed full-year guidance support a positive outlook.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.0 |
| Quality / Moat | 7.0 |
| Valuation | 5.1 |
| Growth | 6.7 |
| Dividend | 7.0 |
| Momentum | 7.5 |
| Risk & Context | 6.3 |
OVERALL SCORE: 6.4/10
Context and risks
The rise in crude and diesel increases fuel costs, a relevant input for a railroad with 20,000 miles of network; however, the 40.27% operating margin provides a significant cushion. Exposure to Mexico via the Union Pacific deal adds moderate regulatory/geopolitical risk.
News considered in the analysis
- Canadian National Railway Backs Full-Year Outlook as Grain and Productivity Drive Growth — Reafirmar las previsiones anuales con crecimiento impulsado por grano y productividad es una señal positiva moderada, aunque ya parcialmente descontada.
- CNI Launches First Grain Unit Train From Expanded Illinois TGM Facility — La expansión de capacidad en un corredor clave de grano puede impulsar volúmenes y eficiencia, con efecto aún no reflejado en el precio.
- Canadian National Railway Eyes Mexico Growth With Union Pacific Deal — Un acuerdo con Union Pacific para crecer en México es material por el potencial de nuevos ingresos, pero aún no cerrado y parcialmente descontado.
- Diesel Price Shock Has Freight Stocks Like J.B. Hunt In Focus — El repunte del diésel afecta a los costes de combustible de los ferrocarriles, aunque CNI tiene márgenes amplios que mitigan el impacto.
- 3 Dividend-Paying Stocks From the Railroad Industry You May Count On — Listículo genérico sin información nueva.
Verdict: Hold or accumulate on dips, given the competitive moat and cash generation, but watch fuel costs and the progress of the Union Pacific deal.
Main risk: The main risk is exposure to fuel (diesel) costs and crude volatility, which could compress margins if prices stay high, although the 40.27% operating margin offers some protection.
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