Canadian National Railway AI Stock Analysis
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Canadian National Railway (CNR) AI Stock Analysis
Canadian National Railway
(TSX:CNR)
The score is driven primarily by high-quality financials (strong margins and stable cash generation) and a constructive earnings call (positive execution, reaffirmed guidance near the upper end, and improving leverage outlook). Technicals are supportive but neutral-to-moderate rather than strongly bullish, while valuation is reasonable but not cheap given the P/E and only moderate dividend yield.
Canadian National Railway (CNR) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 76.50B
- Dividend Yield
- 2.00%
- Average Volume (3M)
- 1.28M
- Price to Earnings (P/E)
- 22.8
- Beta (1Y)
- 0.72
- Revenue Growth
- 6.80%
- EPS Growth
- 8.05%
- Country
- Canada
- Employees
- 23,822
- Sector
- General
- Sector Strength
- 55
- Industry
- Railroads
Canadian National Railway Business Overview & Revenue Model
Company Description
Canadian National Railway (CN), along with its affiliated companies, specializes in railroad operations and integrated transportation services. The company handles a wide variety of commodities, including energy products like petroleum and chemicals,...
How the Company Makes Money
CN primarily makes money by charging customers for freight transportation services moved over its rail network. Its core revenue model is volume- and price-driven: shippers pay rates (and, where applicable, fuel and other surcharges) based on factors...
Canadian National Railway Earnings Call Summary
The call was strongly positive. CN reported solid volume, revenue, adjusted EPS, operating-ratio, productivity, free-cash-flow, and safety improvements, while highlighting realized Fast Track benefits, available capacity, commercial wins, and multiple long-term growth opportunities. The company also reaffirmed full-year guidance and said it is tracking toward the upper end of the range. The main challenges were segment-specific volume declines, disruptions at Prince Rupert and from wildfires, higher fuel and operating costs, technology project execution issues, trade uncertainty, and upcoming labor negotiations, but management characterized several of these as short-term or manageable.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
CN reaffirmed guidance for mid-to-high single-digit growth in adjusted diluted EPS based on the low single-digit RTM growth, with results currently tracking more towards the upper end of that range, and continues to expect approximately CAD 2.8 billion of capital investment in 2026, net of customer reimbursements. If fuel prices remain at current spot rates, Q4 EPS is expected to receive a tailwind of approximately $0.10, with a 100 to 150 basis point headwind to the operating ratio. The adjusted debt-to-adjusted EBITDA ratio is expected to come back to around 2.5 times by the end of the year instead of in 2027. For Q4, grain and fertilizers growth is expected to moderate, domestic intermodal performance is expected to strengthen, overseas volumes are expected to be weaker than prior year levels, and the trend towards higher offshore imports in automotive is expected to continue; for 2027, energy is expected to deliver a steady pace of growth, with ACE Terminal coming online in mid-2028 and Dow Path2Zero in late 2029.
Canadian National Railway Financial Statement Overview
Summary
Strong, durable profitability (TTM net margin ~27%, EBIT margin ~41%) and stable operating cash flow (~$6.7–$7.0B). Free cash flow is consistently positive but cash conversion is weaker (FCF ~0.47–0.51 of net income) due to capital intensity, and leverage has risen (debt/equity ~1.03 TTM), reducing flexibility.
Income Statement
88Very PositiveBalance Sheet
74PositiveCash Flow
82Very Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.37B | 17.30B | 17.05B | 16.83B | 17.11B | 14.48B |
| Gross Profit | 8.13B | 7.76B | 7.36B | 7.51B | 7.73B | 6.41B |
| EBITDA | 9.35B | 9.12B | 8.63B | 9.03B | 9.04B | 8.55B |
| Net Income | 4.85B | 4.72B | 4.45B | 5.63B | 5.12B | 4.90B |
Balance Sheet | ||||||
| Total Assets | 61.05B | 58.55B | 57.07B | 52.67B | 50.66B | 48.54B |
| Cash, Cash Equivalents and Short-Term Investments | 757.00M | 363.00M | 389.00M | 475.00M | 328.00M | 838.00M |
| Total Debt | 23.24B | 21.84B | 21.37B | 18.89B | 15.89B | 12.91B |
| Total Liabilities | 39.10B | 36.99B | 36.02B | 32.55B | 29.28B | 25.79B |
| Stockholders Equity | 21.95B | 21.57B | 21.05B | 20.12B | 21.38B | 22.74B |
Cash Flow | ||||||
| Free Cash Flow | 3.84B | 3.39B | 3.15B | 3.78B | 3.92B | 4.08B |
| Operating Cash Flow | 7.01B | 7.05B | 6.70B | 6.96B | 6.67B | 6.97B |
| Investing Cash Flow | -3.09B | -3.71B | -3.61B | -3.47B | -2.51B | -2.87B |
| Financing Cash Flow | -3.38B | -3.37B | -3.62B | -3.41B | -4.67B | -3.86B |
Canadian National Railway Technical Analysis
Price Trends
Market Momentum
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 181.69 is above the 20-day moving average (MA) of 175.07, above the 50-day MA of 171.20, and above the 200-day MA of 160.74, indicating a bullish trend. The MACD of 2.46 indicates Negative momentum. The RSI at 63.47 is Neutral, neither overbought nor oversold. The STOCH value of 84.15 is Negative, 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
Overall Rating
- TSE:CNR79Outperform
TSE:CP71Outperform
TSE:FTT62Neutral
TSE:WJX61Neutral
TSE:TFII47Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:CNR | 79Outperform | CAD 107.83B | 22.82 | 22.34% | 2.00% | 6.80% | 8.05% |
| TSE:CP | 71Outperform | CAD 115.63B | 30.71 | 8.37% | 0.74% | 6.51% | -5.73% |
| TSE:FTT | 62Neutral | CAD 11.55B | 21.53 | 18.81% | 1.38% | 1.93% | 6.53% |
| TSE:WJX | 61Neutral | CAD 737.09M | 12.59 | 11.04% | 3.97% | -4.44% | 31.27% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TSE:TFII | 47Neutral | CAD 11.01B | 20.66 | 12.95% | 1.91% | 3.39% | 12.07% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:CNR | Canadian National Railway Company | 181.69 | 49.37 | 37.31% | |
| TSE:CP | Canadian Pacific Kansas City Limited | 133.60 | 34.66 | 35.03% | |
| TSE:TFII | Tfi International Inc | 138.08 | 20.28 | 17.22% | |
| TSE:FTT | Finning International | 90.87 | 17.97 | 24.65% | |
| TSE:WJX | Wajax Corporation | 35.24 | 9.95 | 39.32% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 01, 2026