Canadian National Railway Company (CNI): A Bull Case Theory

We came crossed a bullish thesis connected Canadian National Railway Company connected Compounding Dividends’s Substack by TJ Terwilliger. In this article, we volition summarize the bulls’ thesis connected CNI. Canadian National Railway Company's stock was trading astatine $97.36 arsenic of January 13th. CNI’s trailing and guardant P/E were 18.36 and 16.56 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. CN Rail is the lone railroad successful North America connecting the Atlantic, Pacific, and Gulf coasts, giving it a unsocial and unparalleled web position.

This strategical footprint acts arsenic a virtual toll booth connected the North American economy, with minimal contention for long-haul freight, creating a formidable moat that is efficaciously intolerable to replicate. The company’s operational ratio is different cardinal differentiator, arsenic CN consistently ranks among the astir businesslike railroads globally, generating important escaped currency flow.

This robust currency procreation underpins a steadily increasing dividend, reinforcing its entreaty to income-focused investors. After a play of elevated valuation, CN’s banal has go progressively attractive relative to some its peers and its ain humanities averages, suggesting imaginable upside arsenic the marketplace recognizes the company’s uncommon operation of scale, efficiency, and pricing power. The concern lawsuit is further strengthened by the structural advantages of the business: the impossibility of gathering competing obstruction infrastructure and CN’s ascendant relation successful North American freight transport.

These factors supply a durable semipermanent maturation trajectory portion minimizing competitory risk. Even successful a base-case scenario, CN’s beardown escaped currency travel and dividend maturation connection compelling returns, portion its unsocial web and pricing powerfulness make the imaginable for outsized upside if macroeconomic tailwinds and freight volumes remain favorable. Overall, CN represents a uncommon accidental to put successful a high-quality, capital-efficient, and strategically indispensable infrastructure institution with aggregate levers for shareholder worth creation.

Previously we covered a bullish thesis connected Canadian National Railway Company (CNI) by Max Dividends successful May 2025, which highlighted the company’s wide-moat business, indispensable relation successful North American freight, and 29 consecutive years of dividend increases. The banal terms has been level since our coverage. TJ Terwilliger shares a akin presumption but emphasizes CNI’s unmatched network, efficiency, and near-impossible-to-replicate moat.