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Canadian National Railway Co CNI Stock Quote

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NYSE:CNI

Morningstar‘s Stock Analysis CNI

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Is it the right time to buy or sell?

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Economic Moat

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Capital Allocation

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Canadian National Posting OR Improvement, Though Macro Risk Elevated

Matthew Young, CFA Senior Equity Analyst

Business Strategy and Outlook

| Matthew Young, CFA |

While peers have caught up over the years, especially Canadian Pacific, Canadian National was long the highest-margin (lowest operating ratio) Class I railroad due in large part to being the precision railroading pioneer in the 2000s. Recall that PSR architect Hunter Harrison left CN in 2009 and subsequently ended up applying his playbook at CP. Historically speaking, CN bolstered its velocity by making greater use of distributed-power locomotives and extending sidings at port staging areas. Running a scheduled railroad requires commitment to on-time train departures from both employees and customers queuing cars for departure. We think PSR is still in CN's DNA, though over the past few years, we sense management was focused more on growth than margins (albeit growth has been tempered in recent years by external events like congestion, strikes, blockages, tough weather, and so forth).

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Key Statistics CNI

Company Profile CNI

Business Description

Canadian National's railway spans Canada from coast to coast and extends through Chicago to the Gulf of Mexico. In 2021, CN generated roughly CAD 14.5 billion in total revenue by hauling intermodal containers (25% of consolidated revenue), petroleum and chemicals (21%), grain and fertilizers (16%), forest products (12%), metals and mining (11%), automotive shipments (6%), and coal (4%). Other items constitute the remaining revenue.

Contact
935 de La Gauchetiere Street West
Montreal, QC, H3B 2M9, Canada
T +1 514 399-4821
Industry Railroads
Most Recent Earnings Jun 30, 2022
Fiscal Year End Dec 31, 2022
Employees 23,828

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