TFI International, Inc. (TFII) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

TFI International, Inc.

Mullen Group Ltd.

Waste Connections, Inc.

Titanium Transportation Group, Inc.

Why is TFI International, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 17.15%

Healthy long term growth as Net Sales has grown by an annual rate of 18.38% and Operating profit at 14.12%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 8.20

The company has declared Negative results for the last 8 consecutive quarters

NET PROFIT(9M) At CAD 334.16 MM has Grown at -25.92%
INTEREST(9M) At CAD 174.86 MM has Grown at 20.28%
ROCE(HY) Lowest at 14.01%

With ROE of 13.93%, it has a fair valuation with a 3.04 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -35.55%, its profits have fallen by -19.3%

High Institutional Holdings at 74.41%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 0.76% over the previous quarter.

Below par performance in long term as well as near term

Along with generating -35.55% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to TFI International, Inc. should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Transport Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is TFI International, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

TFI International, Inc.

-37.69%

6.98

42.77%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.38%

EBIT Growth (5y)

14.12%

EBIT to Interest (avg)

8.20

Debt to EBITDA (avg)

1.46

Net Debt to Equity (avg)

0.96

Sales to Capital Employed (avg)

1.66

Tax Ratio

24.51%

Dividend Payout Ratio

33.27%

Pledged Shares

Institutional Holding

75.53%

ROCE (avg)

17.15%

ROE (avg)

22.88%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.89

EV to EBIT

16.14

EV to EBITDA

8.10

EV to Capital Employed

1.96

EV to Sales

1.22

PEG Ratio

Dividend Yield

ROCE (Latest)

12.17%

ROE (Latest)

13.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 1,465.84 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 37.72%

DIVIDEND PER SHARE(HY)

Highest at CAD 8.23

INTEREST COVERAGE RATIO(Q)

Highest at 795.46

-7What is not working for the Company

NET PROFIT(9M)

At CAD 334.16 MM has Grown at -25.92%

INTEREST(9M)

At CAD 174.86 MM has Grown at 20.28%

ROCE(HY)

Lowest at 14.01%

RAW MATERIAL COST(Y)

Grown by 9.74% (YoY

Here's what is working for TFI International, Inc.

Operating Cash Flow

Highest at CAD 1,465.84 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Interest Coverage Ratio

Highest at 795.46

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at CAD 8.23 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Dividend Payout Ratio

Highest at 37.72% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for TFI International, Inc.

Net Profit

At CAD 334.16 MM has Grown at -25.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Interest

At CAD 174.86 MM has Grown at 20.28%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Raw Material Cost

Grown by 9.74% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales