Evaluating TFI International’s (TSX:TFII) Valuation Following Recent Share Price Moves

TFI International (TSX:TFII) has seen some movement in its share price this week, drawing attention from investors looking to make sense of recent trends. Let’s explore what is shaping the outlook for this transportation and logistics company.

See our latest analysis for TFI International.

After a volatile start to the year, TFI International’s 1-day share price gain of 0.6% this week turned some heads, though it still sits well below where it began the year. While the short term has brought swings in sentiment, the bigger picture is a long-term success story, with a five-year total shareholder return just under 100%, even as momentum has faded lately.

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With shares trading at a notable discount to analyst price targets and recent earnings showing solid growth, investors may be wondering whether TFI International is undervalued or if expectations for future gains are already built in.

Most Popular Narrative: 15% Undervalued

With TFI International’s fair value estimate at CA$144.16, which is well above its recent close price, market sentiment is lagging the financial outlook presented by analysts.

*Strategic integration and future potential for disciplined, accretive M&A (once management proves control over U.S. LTL) will allow TFI to capitalize on market fragmentation and scale advantages, setting up long-term EPS and operating income growth as secular e-commerce and domestic supply chain trends continue.*

Read the complete narrative.

Curious what sets this valuation apart? The answer lies in aggressive long-term profit forecasts and ambitious margin upgrades, with financial targets that may surprise even seasoned investors. The narrative is built around bold financial shifts, but the real engine of value is hidden in their margin transformation plans. See what lies behind these bullish projections.

Result: Fair Value of $144.16 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weak freight demand or heightened competition in U.S. LTL could delay TFI’s margin and earnings expansion. This could challenge optimistic long-term projections.

Find out about the key risks to this TFI International narrative.

Build Your Own TFI International Narrative

If you see the story differently or want to dig into the numbers on your own terms, you can uncover your perspective in just minutes. Do it your way

A great starting point for your TFI International research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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