Canadian National Railway Company Common Stock (CNI)

FairStock Score: 57/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look for durable economics bought at a sensible price. CNI operates a critical rail network in Canada and the U.S., a business that can be a wide-moat asset because rail routes are expensive to replicate and scarce. In fiscal Q2 2026, revenue was $4.8B and net income was $1.2B, a 26.28% net margin—evidence of pricing power and cost discipline. On FairStock calculations, return on equity is 22.02%, while trailing free cash flow is $3.5B, a 5.1% FCF yield. The balance sheet shows debt-to-equity of 1.04, and an Altman Z-Score of 1.70 is not a comfortable Graham-style cushion. Valuation is the rub. At the 2026-10-13 close of $118.91, FairStock shows a P/E of 21.35, P/B of 4.55, EV/EBITDA of 9.90, and PEG of 3.25. The Graham Number is $67.36, implying a -76.53% margin of safety, meaning the price is far above asset-based value. Growth appears solid but not spectacular: the supplied figures show revenue growth of 11.26% and profit growth of 6.57%, while ROCE is 7.72%, below my preferred hurdle. A 9/9 Piotroski F-Score signals accounting strength. Overall, this is a high-quality railroad, but the price already reflects much of that quality. The business quality is clear; the entry price is the issue.

In plain English: Canadian National Railway runs trains and related transportation services in Canada and the United States. The business looks strong: it earned $1.2B on $4.8B of revenue in its latest reported quarter, and it produces solid cash. At $118.91 a share, the price looks expensive compared with the company's accounting value and profit growth, so investors are paying up for a good railroad.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer