TSX:NFI

Stock Analysis Report

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Executive Summary

NFI Group Inc., together with its subsidiaries, manufactures and sells buses in North America, the United Kingdom, Europe, the Asia Pacific, and internationally. More Details


Snowflake Analysis

Reasonable growth potential unattractive dividend payer.


Similar Companies

Share Price & News

How has NFI Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NFI is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: NFI's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

14.9%

NFI

0.9%

CA Machinery

0.8%

CA Market


1 Year Return

-10.7%

NFI

23.3%

CA Machinery

2.0%

CA Market

Return vs Industry: NFI underperformed the Canadian Machinery industry which returned 23.3% over the past year.

Return vs Market: NFI underperformed the Canadian Market which returned 2% over the past year.


Shareholder returns

NFIIndustryMarket
7 Day14.9%0.9%0.8%
30 Day40.3%30.6%10.5%
90 Day33.0%31.2%9.7%
1 Year-5.6%-10.7%25.9%23.3%5.7%2.0%
3 Year-51.2%-57.3%3.0%-4.4%13.9%2.9%
5 Year2.2%-14.1%73.7%58.2%58.5%34.3%

Long-Term Price Volatility Vs. Market

How volatile is NFI Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NFI Group undervalued compared to its fair value and its price relative to the market?

1.89x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NFI (CA$23.28) is trading above our estimate of fair value (CA$20.7)

Significantly Below Fair Value: NFI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NFI is unprofitable, so we can't compare its PE Ratio to the CA Machinery industry average.

PE vs Market: NFI is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NFI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NFI is good value based on its PB Ratio (1.9x) compared to the CA Machinery industry average (2.8x).


Next Steps

Future Growth

How is NFI Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

122.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NFI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: NFI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NFI's is expected to become profitable in the next 3 years.

Revenue vs Market: NFI's revenue (9.3% per year) is forecast to grow faster than the Canadian market (7.2% per year).

High Growth Revenue: NFI's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NFI's Return on Equity is forecast to be low in 3 years time (16.8%).


Next Steps

Past Performance

How has NFI Group performed over the past 5 years?

-19.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NFI is currently unprofitable.

Growing Profit Margin: NFI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NFI is unprofitable, and losses have increased over the past 5 years at a rate of 19.1% per year.

Accelerating Growth: Unable to compare NFI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NFI is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-15.4%).


Return on Equity

High ROE: NFI has a negative Return on Equity (-21.93%), as it is currently unprofitable.


Next Steps

Financial Health

How is NFI Group's financial position?


Financial Position Analysis

Short Term Liabilities: NFI's short term assets ($1.1B) exceed its short term liabilities ($631.6M).

Long Term Liabilities: NFI's short term assets ($1.1B) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: NFI's debt to equity ratio (194.2%) is considered high.

Reducing Debt: NFI's debt to equity ratio has increased from 54.5% to 194.2% over the past 5 years.

Debt Coverage: NFI's debt is not well covered by operating cash flow (12%).

Interest Coverage: Insufficient data to determine if NFI's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is NFI Group current dividend yield, its reliability and sustainability?

3.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NFI's dividend (3.49%) is higher than the bottom 25% of dividend payers in the Canadian market (1.6%).

High Dividend: NFI's dividend (3.49%) is low compared to the top 25% of dividend payers in the Canadian market (5.29%).


Stability and Growth of Payments

Stable Dividend: NFI has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: NFI has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: NFI is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: NFI's dividends in 3 years are forecast to be well covered by earnings (49.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.2yrs

Average management tenure


CEO

Paul Soubry (57 yo)

11.92yrs

Tenure

US$2,530,372

Compensation

Mr. Paul Soubry, Jr., ICD.D, has been the Chief Executive Officer and President of NFI Group Inc. (formerly known as New Flyer Industries Inc.) and New Flyer Holdings, Inc. since January 19, 2009. He has b...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD1.51M) is about average for companies of similar size in the Canadian market ($USD1.34M).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Soubry
President11.92yrsUS$2.53m0.57%
$ 8.3m
Chris Stoddart
President of New Flyer & MCI1.92yrsUS$899.23k0.16%
$ 2.3m
Ian Smart
Executive Vice President of Business Transformation9.17yrsUS$855.63k0.15%
$ 2.2m
Brian Dewsnup
President of Parts3.92yrsUS$990.70k0.058%
$ 842.9k
Colin Robertson
Vice Chair & President of NFI International0.25yrno data0.41%
$ 5.9m
Pipasu Soni
Chief Financial Officer0.75yrno datano data
Stephen King
Group Director of Corporate Development & Investor Relations2.42yrsno datano data
Colin Pewarchuk
Executive VP14.83yrsno data0.045%
$ 651.8k
Paul Smith
Executive Vice President of Sales20.92yrsUS$649.22kno data
Janice Harper
Executive Vice President of Human Resources11.17yrsno data0.030%
$ 439.9k
David White
Executive Vice President of Supply Management14.92yrsUS$1.38m0.19%
$ 2.8m
Margaret Lewis
Senior Vice President of Quality & Continuous Improvementno datano datano data

9.2yrs

Average Tenure

Experienced Management: NFI's management team is seasoned and experienced (9.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Soubry
President11.92yrsUS$2.53m0.57%
$ 8.3m
Colin Robertson
Vice Chair & President of NFI International0.25yrno data0.41%
$ 5.9m
Larry Edwards
Independent Director12.25yrsUS$161.03k0.12%
$ 1.7m
Phyllis Cochran
Independent Director5.58yrsUS$213.15k0.026%
$ 379.6k
Brian Tobin
Independent Chairperson of the Boardno dataUS$255.17k0.086%
$ 1.3m
John Marinucci
Independent Director15.5yrsUS$161.03k0.23%
$ 3.4m
Krystyna Hoeg
Independent Director5.58yrsUS$145.93k0.0032%
$ 46.6k
Adam Gray
Independent Director8.58yrsUS$191.68kno data
Paulo da Silva Nunes
Independent Director5.33yrsUS$224.35k0.015%
$ 212.4k
Katherine Winter
Independent Director1.58yrsUS$146.89k0.0064%
$ 93.2k

5.6yrs

Average Tenure

65yo

Average Age

Experienced Board: NFI's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

NFI Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NFI Group Inc.
  • Ticker: NFI
  • Exchange: TSX
  • Founded: 1930
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: CA$1.456b
  • Shares outstanding: 62.52m
  • Website: https://www.nfigroup.com

Number of Employees


Location

  • NFI Group Inc.
  • 711 Kernaghan Avenue
  • Winnipeg
  • Manitoba
  • R2C 3T4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NFITSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2011
NFYE.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2011
9NFDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2011

Biography

NFI Group Inc., together with its subsidiaries, manufactures and sells buses in North America, the United Kingdom, Europe, the Asia Pacific, and internationally. The company operates through two segments, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/06 00:06
End of Day Share Price2020/12/04 00:00
Earnings2020/09/27
Annual Earnings2019/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.