Canadian National Railway CoCNI +0.92%90 Return-on-Tangible-Equity is 21.73% as of Mar. 2026, which is 8% below its 10-year median of 23.63. GuruFocus rates CNI with a GF Score™ of 90/100 and a GF Value™ of $114.19 (Fairly Valued). The stock has 8 warning signs investors should review. Among 977 Transportation companies, Canadian National Railway Co ranks better than 80.96% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Canadian National Railway Co's annualized net income for the quarter that ended in Mar. 2026 was $3,341 Mil. Canadian National Railway Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $15,377 Mil. Therefore, Canadian National Railway Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 21.73%.
The historical rank and industry rank for Canadian National Railway Co's Return-on-Tangible-Equity or its related term are showing as below:
CNI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 19.03 Med: 23.63 Max: 34.97
Current: 22.35
During the past 13 years, Canadian National Railway Co's highest Return-on-Tangible-Equity was 34.97%. The lowest was 19.03%. And the median was 23.63%.
CNI's Return-on-Tangible-Equity is ranked better than 80.96% of 977
companies
in the Transportation industry
Industry Median: 8.99
vs CNI: 22.35
Canadian National Railway Co (NYSE:CNI) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Canadian National Railway Co Return-on-Tangible-Equity Related Terms
Canadian National Railway Co Return-on-Tangible-Equity Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Canadian National Railway Co Return-on-Tangible-Equity Chart
CNI vs UNP, CSX, NSC: Return-on-Tangible-Equity Comparison
For the Railroads subindustry, Canadian National Railway Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Canadian National Railway Co Return-on-Tangible-Equity vs Transportation Industry
For the Transportation industry and Industrials sector, Canadian National Railway Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Canadian National Railway Co's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 21.73% mean?
Canadian National Railway Co (CNI) has a Return-on-Tangible-Equity of 21.73% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Canadian National Railway Co and its competitors. This is near median its historical median of 23.63. Over the past decade, Canadian National Railway Co's Return-on-Tangible-Equity has ranged from 19.03 to 34.97. According to the industry distribution chart, Canadian National Railway Co ranks #186 out of 977 companies in the Transportation industry, placing it in the top 19%.
Is Canadian National Railway Co's Return-on-Tangible-Equity too high?
Canadian National Railway Co's current Return-on-Tangible-Equity of 21.73% is near median its 10-year median of 23.63. Over the past 10 years, this metric has ranged from a low of 19.03 to a high of 34.97. The Transportation industry median Return-on-Tangible-Equity is 8.99. Canadian National Railway Co's value of 21.73% is 141.7% above this industry median. Based on the distribution chart, Canadian National Railway Co ranks #186 out of 977 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Canadian National Railway Co has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Canadian National Railway Co's Return-on-Tangible-Equity compare to UNP and CSX?
According to the Transportation industry distribution chart, Canadian National Railway Co ranks #186 out of 977 companies for Return-on-Tangible-Equity. This places Canadian National Railway Co in the top 19% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.99. Canadian National Railway Co's value of 21.73% is 141.7% above this benchmark. Historically, Canadian National Railway Co's own Return-on-Tangible-Equity has ranged from 19.03 to 34.97 over the past decade. While the company's 10-year median is 23.63 vs. the industry median of 8.99, Canadian National Railway Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Transportation company?
The median Return-on-Tangible-Equity among Transportation companies is 8.99, based on 977 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Canadian National Railway Co's current Return-on-Tangible-Equity of 21.73% is 141.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Canadian National Railway Co and its competitors. For the Transportation industry, the median Return-on-Tangible-Equity is 8.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canadian National Railway Co's current Return-on-Tangible-Equity is 21.73%, which is near median its own 10-year median of 23.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Canadian National Railway Co stock overvalued right now?
Based on GuruFocus' analysis, Canadian National Railway Co (CNI) is currently considered Fairly Valued. The stock's GF Value™ is $114.19, compared to a current price of $122.78 — trading 7.5% above its estimated fair value. The current Return-on-Tangible-Equity is 21.73%, which is near median its 10-year median of 23.63 and 141.7% above the Transportation industry median of 8.99. Canadian National Railway Co's overall GF Score™ is 90/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Canadian National Railway Co (CNI), the current Return-on-Tangible-Equity is 21.73% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Canadian National Railway Co (CNI) Overvalued in 2026?
Based on GuruFocus' analysis, Canadian National Railway Co stock appears to be overvalued.
The current stock price of $122.78 is trading 7.5% above its estimated GF Value™ of $114.19.
GuruFocus considers Canadian National Railway Co to be Fairly Valued.
Key valuation signals for CNI:
Return-on-Tangible-Equity: 21.73% (near median its 10-year median of 23.63)
GF Value™: $114.19 vs. price of $122.78 (7.5% above fair value)
Industry Position: 141.7% above the Transportation median (#186 of 977)
No single metric tells the full story. See the CNI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Canadian National's railway spans Canada from coast to coast and extends through Chicago to the Gulf of Mexico. In 2025, CN generated CAD 17.7 billion in revenue by hauling intermodal containers (22% of consolidated revenue), petroleum and chemicals (21%), grain and fertilizers (23%), forest products (10%), metals and minerals (11%), automotive shipments (5%), and coal (5%). Other items constitute the remaining revenue.
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