Canadian National Railway Company (CNI) is listed on NYSE and operates in the Railroads industry (Industrials sector).
Canadian National Railway Company, together with its subsidiaries, engages in the rail and related transportation business. The company's portfolio of goods includes petroleum and chemicals, grain and fertilizers, coal, metals and minerals, forest products, intermodal, and automotive products serving exporters, importers, retailers, farmers, and manufacturers. It operates a network of 19,500 route miles of track spanning Canada and the United States. The company also provides vessels and docks, transloading and distribution, automotive logistics, and freight forwarding and transportation management services. Canadian National Railway Company was incorporated in 1919 and is headquartered in Montreal, Canada.
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 17 |
| Hold | 31 |
| Sell | 3 |
| Strong Sell | 0 |
Canadian National Railway Company operates in the rail and transportation sector, providing services across Canada and the United States. The company manages a network of 19,500 route miles of track, facilitating the movement of various goods. Its transportation services cover categories such as petroleum and chemicals, grain and fertilizers, coal, metals and minerals, forest products, intermodal, and automotive products. These services cater to a diverse clientele, including exporters, importers, retailers, farmers, and manufacturers. In addition to rail transport, the company offers ancillary services such as vessels and docks, transloading and distribution, automotive logistics, and freight forwarding and transportation management. Established in 1919, Canadian National Railway Company is headquartered in Montreal, Canada.
Over the past three fiscal years, the company has demonstrated a consistent increase in revenue, growing at a 1.4% CAGR from CAD 16.83 billion in 2023 to CAD 17.29 billion in 2025. Despite this growth, profitability metrics have shown mixed results. The gross margin improved by 2.4pp to 44.9%, indicating some efficiency in cost management. However, the operating margin slightly declined by 1.1pp to 38.1%, and the net margin decreased by 6.1pp to 27.3%, suggesting challenges in maintaining profitability at the net level. Cash flow generation has been inconsistent, with operating cash flow slightly increasing to CAD 7.04 billion, while free cash flow decreased from CAD 3.78 billion to CAD 3.39 billion, resulting in a lower FCF margin of 19.6%. The company's net debt position has increased consistently, rising from CAD 18.41 billion to CAD 21.46 billion, reflecting a growing leverage. Despite these challenges, the company has enhanced shareholder value through a 5.4% reduction in share count, amplifying per-share metrics. Liquidity remains a concern with a current ratio of 0.67, indicating potential short-term financial constraints. Overall, while revenue growth and share buybacks are positive, the decline in net margins and increasing debt levels highlight areas needing attention.
Recent developments for Canadian National Railway Company (CNI) highlight significant financial and strategic activities. On April 9, Bank of America upgraded Canadian National, citing volume gains and attractive valuation as key factors. This positive analyst action comes ahead of the company's upcoming earnings report, with speculation from Zacks Investment Research on April 20 suggesting potential for CNI to exceed estimates once again. In terms of institutional trading, Brown Lisle Cummings Inc. reported a $5.42 million position in CNI, while Lazard Asset Management LLC significantly increased its holdings by acquiring an additional 8,954,310 shares, bringing its total to 8,955,711 shares valued at $844.35 million. Additionally, Troy Asset Management Ltd and Quadrature Capital Ltd also expanded their stakes in the company. On the operational front, Canadian National achieved a record grain movement in March, transporting over 2.96 million metric tonnes from Western Canada, marking its highest first-quarter results for grain movement. This robust performance underscores the company's strong network capabilities and demand across North America. These developments collectively indicate a positive outlook for Canadian National Railway, driven by strategic analyst upgrades, substantial institutional investments, and operational achievements.