# Canadian National Railway Company (CNR.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Industrials / Road & Rail. Price C$170.58, market value C$103.2 billion.

## Valuation
- **P/E (trailing): 21.9×** (5-yr avg 19.3×, 3-yr avg 18.7×). Canadian National Railway Company trades at 21.9× trailing earnings, close to its own five-year average of 19.3×. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 18.9×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 2.37**. A PEG of 2.37 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 5.8×**. Each dollar of revenue is priced at 5.8×.
- **Price / book: 4.7×**. The shares trade at 4.7× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 13.5×**. Enterprise value is 13.5× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 3.4%** (5-yr avg 3.8%). Free cash flow equals 3.4% of the market value, in line with its five-year average of 3.8%.
- **Earnings yield: 4.6%**. The inverse of the P/E: 4.6% of the price is earned each year.

## Profitability
- **Gross margin: 41.6%**. Canadian National Railway Company keeps 41.6% of revenue after the direct cost of what it sells.
- **Operating margin: 37.5%**. 37.5% of revenue is left after running the business, an exceptional level.
- **Net margin: 27.3%**. 27.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 21.9%**. 21.9% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 11.6%**. Return on all capital, debt included, is 11.6%.
- **Return on assets: 8.2%**. Each dollar of assets produces 8.2% of profit.

## Growth
- **Revenue growth (1 yr): 1.5%** (3-yr 0.4%/yr, 5-yr 4.6%/yr). Revenue grew 1.5% over the last year, against 4.6% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 8.0%** (3-yr 0.6%/yr, 5-yr 8.6%/yr). Earnings per share rose 8.0%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -4.7%/yr**. Free cash flow has compounded at -4.7% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 1.01**. Debt is 1.01 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 2.3×**. It would take 2.3 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 7.1×**. Operating profit covers interest 7.1× over, a safe margin.
- **Current ratio: 0.67** (quick 0.47). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 2.83**. A Z-score of 2.83 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.15%** (C$3.60 per share, trailing). Canadian National Railway Company yields 2.15%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 47%** (62% of free cash flow). 47% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 26**. 26 straight years of increases (the data covers 26 years, so this may be longer): a record very few companies hold.
- **Dividend growth (5 yr): 9.1%/yr** (1-yr 5.1%). The dividend has grown 9.1% a year over five years.
- **Shareholder yield: 5.1%**. Dividends plus net buybacks return 5.1% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (19 analysts). 19 analysts cover Canadian National Railway Company; the consensus is buy, with an average price target of C$190.11 (+11% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 30.7%** (YTD 27.1%, 3-mo 2.1%). The shares are up 30.7% over twelve months including dividends.
- **From 52-week high: -7.9%** (35.3% above the low). Trading 8% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 40**. An RSI of 40 is neutral.
- **Beta (1 yr): 0.57** (volatility 21%). Beta of 0.57 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CNR.TO · Page: https://foliofundamentals.com/stocks/cnr.to

Not investment advice.