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Canadian National Railway Company (CNI) Financial Ratios

Latest Ratios: P/E Ratio 22.3x · EV/EBITDA 14.5x · ROE 22.1%. (1996–2025 historical series)

CNI Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

Metric	TTM	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021	FY 2020	FY 2019	FY 2018	FY 2017	FY 2016
Market Cap	$72.3B	$61.7B	$64.4B	$82.8B	$81.8B	$87.3B	$78.3B	$65.0B	$54.7B	$62.5B	$52.5B
Enterprise Value	$87.5B	$83.1B	$85.4B	$101.2B	$97.4B	$99.3B	$91.1B	$79.3B	$67.0B	$73.2B	$63.3B
P/E Ratio →	22.30	13.08	14.48	14.73	15.98	17.81	21.97	15.44	12.63	11.40	14.43
P/S Ratio	5.90	3.57	3.78	4.92	4.78	6.03	5.67	4.36	3.82	4.79	4.36
P/B Ratio	4.88	2.86	3.06	4.12	3.83	3.84	3.99	3.61	3.10	3.75	3.54
P/FCF	30.10	18.20	20.45	21.92	20.89	21.39	23.72	31.61	22.90	21.98	20.95
P/OCF	14.48	8.75	9.61	11.89	12.27	12.52	12.70	10.98	9.24	11.33	10.10

P/E links to full P/E history page with 30-year chart

CNI EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

Metric	TTM	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021	FY 2020	FY 2019	FY 2018	FY 2017	FY 2016
EV / Revenue	—	4.81	5.01	6.01	5.69	6.86	6.59	5.31	4.68	5.62	5.26
EV / EBITDA	14.49	9.76	10.49	12.03	11.37	13.77	14.31	11.08	9.82	11.23	10.11
EV / EBIT	18.76	11.59	12.66	14.04	13.32	14.29	17.95	13.29	10.85	13.15	11.70
EV / FCF	—	24.53	27.11	26.79	24.86	24.35	27.58	38.52	28.06	25.76	25.24

CNI Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

Metric	TTM	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021	FY 2020	FY 2019	FY 2018	FY 2017	FY 2016
Gross Margin	44.9%	44.9%	40.9%	42.5%	43.2%	41.9%	41.8%	40.8%	41.6%	43.5%	44.8%
Operating Margin	38.1%	38.1%	36.6%	39.2%	40.0%	38.8%	34.6%	37.5%	38.4%	40.2%	41.8%
Net Profit Margin	27.3%	27.3%	26.1%	33.4%	29.9%	33.8%	25.7%	28.3%	30.2%	42.1%	30.2%

Return on Capital

Metric	TTM	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021	FY 2020	FY 2019	FY 2018	FY 2017	FY 2016
ROE	22.1%	22.1%	21.6%	27.1%	23.2%	23.1%	18.8%	23.6%	25.2%	34.8%	24.4%
ROA	8.2%	8.2%	8.1%	10.9%	10.3%	10.5%	8.0%	9.9%	11.0%	14.7%	9.9%
ROIC	11.6%	11.6%	11.6%	13.1%	14.3%	12.5%	11.1%	13.5%	14.4%	14.8%	14.9%
ROCE	12.2%	12.2%	12.4%	14.0%	14.8%	12.9%	11.8%	14.5%	15.4%	15.5%	14.9%

CNI Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

Metric	TTM	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021	FY 2020	FY 2019	FY 2018	FY 2017	FY 2016
Debt / Equity	1.01	1.01	1.02	0.94	0.74	0.57	0.68	0.79	0.71	0.65	0.74
Debt / EBITDA	2.56	2.56	2.63	2.24	1.85	1.79	2.09	2.00	1.84	1.66	1.75
Net Debt / Equity	—	1.00	1.00	0.92	0.73	0.53	0.65	0.79	0.70	0.65	0.73
Net Debt / EBITDA	2.52	2.52	2.58	2.19	1.82	1.67	2.00	1.99	1.80	1.65	1.72
Debt / FCF	—	6.33	6.66	4.87	3.97	2.96	3.86	6.92	5.15	3.78	4.29
Interest Coverage	7.86	7.86	7.57	9.99	13.34	11.40	9.16	11.09	12.62	11.58	11.26

CNI Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

Metric	TTM	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021	FY 2020	FY 2019	FY 2018	FY 2017	FY 2016
Current Ratio	0.67	0.67	0.66	0.61	0.84	1.10	0.95	0.66	0.78	0.55	0.70
Quick Ratio	0.47	0.47	0.48	0.47	0.66	0.91	0.77	0.52	0.62	0.44	0.58
Cash Ratio	0.10	0.10	0.10	0.09	0.09	0.27	0.17	0.01	0.08	0.02	0.06
Asset Turnover	—	0.30	0.30	0.32	0.34	0.30	0.31	0.34	0.35	0.35	0.32
Inventory Turnover	13.00	13.00	14.00	13.84	14.03	14.28	13.80	14.45	15.01	17.37	18.30
Days Sales Outstanding	—	23.56	27.99	28.20	30.23	27.08	30.08	35.04	29.79	27.54	26.53

CNI Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

Metric	TTM	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021	FY 2020	FY 2019	FY 2018	FY 2017	FY 2016
Dividend Yield	2.1%	3.6%	3.3%	2.5%	2.4%	2.0%	2.1%	2.4%	2.4%	2.0%	2.2%
Payout Ratio	46.8%	46.8%	48.1%	36.8%	39.2%	35.5%	46.1%	36.6%	30.8%	22.6%	31.8%

Total Shareholder Return Metrics

Metric	TTM	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021	FY 2020	FY 2019	FY 2018	FY 2017	FY 2016
Earnings Yield	4.5%	7.6%	6.9%	6.8%	6.3%	5.6%	4.6%	6.5%	7.9%	8.8%	6.9%
FCF Yield	3.3%	5.5%	4.9%	4.6%	4.8%	4.7%	4.2%	3.2%	4.4%	4.6%	4.8%
Buyback Yield	2.1%	3.4%	4.1%	5.5%	5.9%	1.8%	0.5%	2.7%	3.8%	3.4%	3.9%
Total Shareholder Yield	4.2%	7.0%	7.4%	8.0%	8.3%	3.8%	2.6%	5.1%	6.2%	5.3%	6.1%
Shares Outstanding	—	$624M	$635M	$659M	$688M	$710M	$713M	$719M	$738M	$757M	$779M

Key Metrics

Growth RegimeStable

ProfitabilityStable

Balance SheetAdequate

Cash FlowStable

Top Statement Risk

Liquidity and cost pressures

Margin Resilience Amid Cost Pressures

CNI's operating margin held at 37.5% in 2026Q2, near its 10-quarter average, despite elevated operating expenses. According to recent financial statements, gross margin expanded to 43.7%, suggesting pricing power partially offsets cost inflation.

The 43.7% gross margin in 2026Q2 is up from 42.8% in the prior quarter and above the 40-41% range seen in early 2024, indicating that pricing and mix improvements are supporting profitability. However, the operating margin of 37.5% is slightly below the 38.8% peak in 2025Q4, and with SG&A expenses rising sequentially, cost control appears to be a growing challenge. Net margin of 26.3% remains stable, but investors should monitor whether margin compression emerges if revenue growth slows further.

Stable Returns Mask Capital Intensity

ROIC has remained flat at approximately 3.0% over the past ten quarters, reflecting the heavy asset base. As reported in financial statements, ROE hovers near 5.5%, well below peers like UNP (38.6%), underscoring the capital-intensive nature of rail.

CNI's ROIC of 3.0% in 2026Q2 is unchanged from 2024Q1, indicating that the company is not compounding returns on invested capital despite stable margins. The low ROIC relative to UNP (15.2%) and CSX (10.9%) is partly structural, given CNI's larger network and lower asset turnover (0.08x). ROE of 5.8% is also modest, but this is influenced by the company's conservative leverage (D/E ~1.0) compared to UNP's 1.72. The flat returns suggest that CNI is maintaining, but not improving, its capital efficiency, which may limit multiple expansion.

Negative CCC Reflects Supplier Leverage

CNI's cash conversion cycle improved to -41 days in 2026Q2, driven by DPO of 95 days. Based on reported figures, the negative CCC indicates CNI is effectively using supplier financing, though DSO has ticked up to 25 days.

The negative cash conversion cycle, averaging -35 days over the past year, is a hallmark of CNI's working capital efficiency, as it collects from customers and pays suppliers on favorable terms. DPO of 95 days in 2026Q2 is up from 61 days in 2025Q1, suggesting CNI is stretching payables further, which may indicate increased bargaining power or deliberate cash conservation. However, DSO has risen from 24 to 25 days sequentially, and with a current ratio of 0.87, the company remains reliant on this negative CCC to fund operations, a dynamic that could reverse if supplier terms tighten.

Debt Load Steady but Coverage Softens

Debt-to-EBITDA rose to 9.98x in 2026Q2 from 9.76x a year earlier, while interest coverage fell to 7.39x from 8.13x. According to recent SEC filings, leverage remains manageable but is trending in the wrong direction.

CNI's D/E ratio of 1.03 is stable, but the absolute debt level has increased to $22.6B, and D/EBITDA of 9.98x is elevated relative to the 9.76x seen in 2025Q2. Interest coverage of 7.39x in 2026Q2 is the lowest in the past ten quarters, down from a peak of 10.25x in 2025Q3, indicating that rising debt and potentially higher rates are consuming a larger share of operating income. While the leverage profile is not alarming, the trend warrants monitoring, especially if operating margins compress further or if the company pursues additional M&A.

Thin Liquidity Constrains Flexibility

The current ratio improved to 0.87 in 2026Q2 from 0.67 in Q1, but remains below 1.0, with quick ratio at 0.61. As reported in financial statements, cash balances are minimal, suggesting reliance on credit lines for short-term obligations.

CNI's current ratio has been persistently below 1.0 for the past ten quarters, dipping to 0.60 in 2025Q3, and the 2026Q2 reading of 0.87 is still insufficient to cover short-term liabilities without external financing. The quick ratio of 0.61 indicates that inventory is not a significant buffer, and with cash of only $294M, the company's liquidity position appears tight. This could constrain financial flexibility in a downturn, particularly if access to credit markets tightens, though the negative CCC partially mitigates the need for large cash buffers.

Misapplied Metric: Current Ratio

The current ratio is often misapplied to CNI because its negative cash conversion cycle and access to commercial paper make a sub-1.0 ratio less alarming. According to recent financial statements, the quick ratio of 0.61 may overstate liquidity risk for a company with stable cash flows.

For a capital-intensive railroad with predictable cash flows and a negative CCC, the current ratio is not a reliable indicator of liquidity stress. CNI's ability to generate operating cash flow of $16.7B over the past ten quarters, well above net income, suggests that short-term obligations can be met from operations rather than liquid assets. Instead of the current ratio, investors should focus on free cash flow generation and the maturity profile of long-term debt, as the company's true liquidity risk lies in refinancing needs and capital expenditure commitments, not in working capital coverage.

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CNI — Frequently Asked Questions

Quick answers to the most common questions about buying CNI stock.

What is Canadian National Railway Company's P/E ratio?

Canadian National Railway Company's current P/E ratio is 22.3x. The historical average is 12.0x. This places it at the 100th percentile of its historical range.

What is Canadian National Railway Company's EV/EBITDA?

Canadian National Railway Company's current EV/EBITDA is 14.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.6x.

What is Canadian National Railway Company's ROE?

Canadian National Railway Company's return on equity (ROE) is 22.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 21.0%.

Is CNI stock overvalued?

Based on historical data, Canadian National Railway Company is trading at a P/E of 22.3x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Canadian National Railway Company's dividend yield?

Canadian National Railway Company's current dividend yield is 2.10% with a payout ratio of 46.8%.

What are Canadian National Railway Company's profit margins?

Canadian National Railway Company has 44.9% gross margin and 38.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.

How much debt does Canadian National Railway Company have?

Canadian National Railway Company's Debt/EBITDA ratio is 2.6x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.