Canadian National Railway (CNR) AI Stock Analysis

• Market Cap: $84.23B
• Dividend Yield: 2.61%
• Average Volume (3M): 1.53M
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.65
• Revenue Growth: 0.23%
• EPS Growth: -13.22%
• Country: CA
• Employees: 24,911
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 1.83
• Shares Outstanding: 624,200,000
• 10 Day Avg. Volume: 1,303,191
• 30 Day Avg. Volume: 1,529,163
• PEG Ratio: -1.16
• Price to Book (P/B): 4.39
• Price to Sales (P/S): 5.42
• P/FCF Ratio: 29.36
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 6.00
• Enterprise Value/Gross Profit: 11.58
• Enterprise Value/Ebitda: 11.65
• 1Y Price Target: $154.63
• Price Target Upside: 14.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 7.51
• Revenue Forecast (FY): $17.27B

• Rating: 71 Outperform
• Price Target: C$149.00 ▲(9.96% Upside)

Canadian National Railway's overall stock score reflects its strong financial performance and strategic operational improvements, as highlighted in the earnings call. While the company faces macroeconomic challenges and declining free cash flow, its efficient operations and fair valuation support a positive outlook.

Positive Factors

Operational Efficiency

Improved EPS and operating ratio indicate enhanced operational efficiency, which can lead to sustained profitability and competitive advantage.

Cash Flow Management

Strong free cash flow growth supports future investments and debt repayment, enhancing financial stability and strategic flexibility.

Capital Expenditure Strategy

Reducing capital expenditure aligns with current volume trends, optimizing resource allocation and potentially improving return on investment.

Negative Factors

Revenue Growth Concerns

Declining revenue growth could impact long-term profitability and market position if not addressed, potentially weakening competitive standing.

Safety Issues

Increased safety incidents can lead to regulatory scrutiny, higher costs, and reputational damage, affecting long-term operational stability.

Macroeconomic Challenges

Persistent macroeconomic uncertainty can hinder growth prospects and demand, challenging revenue stability and strategic planning.

Canadian National Railway Business Overview & Revenue Model

Company Description

Canadian National Railway (CNR) is one of the largest freight railway networks in North America, operating a comprehensive rail system across Canada and into the United States. The company primarily serves various sectors including automotive, coal, grain, intermodal, and forest products, providing essential transportation services for goods and commodities. CNR's extensive rail network connects major cities, ports, and industrial hubs, facilitating efficient and reliable transportation solutions for its customers.

How the Company Makes Money

CNR generates revenue primarily through the transportation of freight across its rail network. The company operates in multiple segments, including carload freight, intermodal, and bulk commodities, each contributing significantly to its revenue streams. Key revenue sources include: 1) Carload freight, which involves transporting various goods such as automotive products, coal, and agricultural products. 2) Intermodal services, where CNR moves shipping containers and trailers over long distances, often in partnership with ocean carriers and trucking companies. 3) Bulk commodities, including grain, petroleum, and forestry products, which are essential to CNR's operations. Additionally, CNR benefits from long-term contracts and partnerships with major industries, ensuring a steady flow of shipments. The company also invests in infrastructure and technology to enhance operational efficiency and expand service offerings, contributing positively to its earnings.

Canadian National Railway Financial Statement Overview

Summary

Canadian National Railway demonstrates strong profitability with high EBIT and EBITDA margins, effective cost management, and a balanced capital structure. However, recent declines in revenue growth and free cash flow are concerns that could affect long-term sustainability.

Income Statement

Canadian National Railway shows strong profitability with a consistent EBIT and EBITDA margin above 40% and 50% respectively, indicating efficient operations. However, the revenue growth rate has been negative recently, which could be a concern if it continues. The net profit margin remains healthy, reflecting good cost management.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio under 1, suggesting balanced leverage. Return on Equity (ROE) is strong, indicating effective use of equity to generate profits. However, the equity ratio is moderate, suggesting a balanced but not overly conservative capital structure.

Cash Flow

Operating cash flow remains robust, covering net income well, but free cash flow has seen a decline, which could impact future investments or debt repayments. The free cash flow to net income ratio is healthy, indicating good cash conversion, but recent negative growth in free cash flow is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.14B	17.05B	16.83B	17.11B	14.48B	13.82B
Gross Profit	8.88B	9.31B	9.45B	9.62B	8.11B	7.65B
EBITDA	8.83B	8.67B	8.89B	9.07B	7.61B	7.65B
Net Income	4.56B	4.45B	5.63B	5.12B	4.90B	3.54B
Balance Sheet
Total Assets	56.78B	57.07B	52.67B	50.66B	48.54B	44.80B
Cash, Cash Equivalents and Short-Term Investments	216.00M	389.00M	475.00M	328.00M	838.00M	569.00M
Total Debt	20.75B	21.37B	18.89B	15.89B	12.91B	13.32B
Total Liabilities	35.24B	36.02B	32.55B	29.28B	25.79B	25.15B
Stockholders Equity	21.54B	21.05B	20.12B	21.38B	22.74B	19.65B
Cash Flow
Free Cash Flow	3.23B	3.15B	3.78B	3.92B	4.08B	3.30B
Operating Cash Flow	6.68B	6.70B	6.96B	6.67B	6.97B	6.17B
Investing Cash Flow	-3.51B	-3.61B	-3.47B	-2.51B	-2.87B	-2.95B
Financing Cash Flow	-3.31B	-3.62B	-3.41B	-4.67B	-3.86B	-2.71B

Canadian National Railway Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 135.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CNR, the sentiment is Positive. The current price of 135.5 is above the 20-day moving average (MA) of 133.60, above the 50-day MA of 131.95, and below the 200-day MA of 137.16, indicating a neutral trend. The MACD of 0.41 indicates Negative momentum. The RSI at 57.10 is Neutral, neither overbought nor oversold. The STOCH value of 51.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CNR.

Canadian National Railway Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNR	71 Outperform	$84.23B	18.32	22.24%	2.61%	0.23%	-13.22%
CP	71 Outperform	$89.63B	21.62	9.32%	0.84%	4.02%	21.39%
CJT	65 Neutral	$1.25B	8.72	16.75%	2.02%	7.71%	3170.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TFII	63 Neutral	$10.48B	23.44	11.98%	2.01%	-0.25%	-28.71%
AC	61 Neutral	$5.56B	4.53	101.32%	―	0.33%	-15.99%
GFL	55 Neutral	$22.34B	―	-0.03%	0.14%	-5.22%	-129.20%

Canadian National Railway Corporate Events

Canadian National Railway Reports Strong Q3 2025 Results and Strategic Capital Reduction

On October 31, 2025, Canadian National Railway Company reported strong financial results for the third quarter ending September 30, 2025, with a 6% earnings growth and an operating ratio improvement to 61.4%. The company repurchased nearly 8 million shares for approximately C$1 billion and announced a reduction in 2026 capital expenditures to C$2.8 billion, aiming to boost future free cash flow. CN’s strategic focus on productivity and service enhancements positions it to capitalize on higher future volumes, benefiting customers and shareholders.

The most recent analyst rating on (TSE:CNR) stock is a Hold with a C$143.00 price target. To see the full list of analyst forecasts on Canadian National Railway stock, see the TSE:CNR Stock Forecast page.