CNICanadian National Railway Company

$127.54

Is the business good?

How good a business is CNI?

Canadian National Railway Company earns 11% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.

11%

Return on invested capital · cost of capital 9.0% · 2.0 points above what the capital costs: growth creates value

Operating margin
33%

Operating margin · Railroads median 33% · 12 months to Q4 2009

Cash conversion
0.47×

Cash conversion · 0.32× a year ago · some of the reported profit has not turned into cash yet

Operating margin by fiscal year
YearOperating margin
FY201937%
FY202035%
FY202240%
FY202339%
FY202437%
FY202538%
Details
Operating margin12 months to Q4 2009
33%
Net margin12 months to Q4 2009
25%
Free cash flow margin
12%
Revenue, trailing twelve months
$7.37B
Free cash flow, trailing twelve months
$877M
Net income, trailing twelve months
$1.85B
Return on invested capitaloperating profit after tax ÷ debt + equity − cash
11%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.