Canadian National Railway Company

“CN Rail owns an irreplaceable tricoastal freight network with ~52% EBITDA margins, disciplined buybacks reducing share count by ~9% over four years, and no credible permanent impairment scenario — but at ~20x earnings near a 52-week high with sub-1% revenue growth and management execution that has persistently lagged targets, the current price offers adequate (~8-9% annualized) but not exceptional returns, making TRACK the disciplined call until a 15-20% drawdown restores margin of safety.”