Is Canadian National Railway Company (CNI) A Good Stock To Buy?

We came crossed a bullish thesis connected Canadian National Railway Company connected Roche Capital’s Substack by Pedro Ortiz. In this article, we volition summarize the bulls’ thesis connected CNI. Canadian National Railway Company's stock was trading astatine $110.79 arsenic of March 4th. CNI’s trailing and guardant P/E were 20.08 and 19.16 respectively according to Yahoo Finance.

Canadian National Railway Company, unneurotic with its subsidiaries, engages successful the rail, intermodal, trucking, and related proscription businesses successful Canada and the United States. CNR delivered resilient show successful 2025 contempt a challenging macro and regulatory environment, reinforcing its estimation arsenic a high-quality railway with beardown operational discipline.

Revenue accrued 2% to CAD 17.3 cardinal portion gross ton-miles grew 1%, reflecting humble request growth. Adjusted operating income roseate 5% to CAD 6.6 billion, improving the operating ratio to 61.7%, demonstrating meaningful productivity gains despite nearly flat volumes.

Adjusted nett income reached CAD 4.76 cardinal with adjusted EPS rising 7% to CAD 7.63, portion instrumentality connected invested superior remained unchangeable at roughly 13%. Fourth-quarter results highlighted stronger momentum entering 2026, with gross expanding 2%, operating nett rising 9%, and the operating ratio improving to 60.1%, supported by higher bid productivity, improved asset utilization, and amended substance and attraction efficiency.

Operational execution remained a cardinal operator of performance, arsenic the institution improved labor productivity, accrued locomotive availability to much than 92%, and completed 8 infrastructure capableness projects, including expanding the Edson Sub corridor to 63% double-track. These investments fortify semipermanent scalability by enabling aboriginal measurement maturation with constricted incremental capital.

However, the commercialized environment remains mixed. Grain shipments reached grounds levels, portion intermodal and lipid and chemic volumes performed well. In contrast, forest products and metals and minerals experienced weakness owed to tariffs, little robust ore production, and reduced drilling activity, with commercialized tensions contributing to an estimated CAD 350 cardinal gross interaction successful 2025.

Canadian National Railway generated CAD 3.34 cardinal successful escaped currency travel and continues to stress shareholder returns done dividends and buybacks, repurchasing roughly CAD 2 cardinal successful shares during 2025. While absorption expects level volumes successful 2026 and lone humble EPS maturation owed to tariffs and premix headwinds, the company’s beardown plus base, disciplined outgo structure, and improving ratio presumption it to present important net leverage erstwhile measurement maturation normalizes, supporting a constructive semipermanent outlook.