What changed
$CNI — BUY 📊 | 6 MONTHS THESIS
🎯 latest | Rev $2.6B | EPS $1.80 vs $1.81 🔴
💡 Consensus sees a slowing freight cycle and may extrapolate the minor miss into a longer downturn. Our variant view is that the miss was largely noise—transitory volume impacts—and that CNI’s structural advantages (network density, cargo diversification, pricing discipline) will drive a mean-reversion in valuation.
📉 Reward/risk: 1.97:1
🏢 Business Quality: 9/10 - Enviable network connecting three coasts, best-in-class operating ratio (~60%), durable pricing power, and consistent ROIC >15%.
📊 Valuation: cheap — P/E 15.3x vs 5-year median 18.1x; EV/EBITDA 12.0x vs 13.5x sector; FCF yield 5.2% vs 4.0% average; DCF suggests fair value at $135–145...
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/CNI0619