TSX:TFII

Stock Analysis Report

Executive Summary

TFI International Inc., together with its subsidiaries, provides transportation and logistics services in the United States, Canada, and Mexico.

Snowflake

Fundamentals

Undervalued established dividend payer.


Similar Companies

Share Price & News

How has TFI International's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.2%

TFII

1.5%

CA Transportation

-0.5%

CA Market


1 Year Return

-6.6%

TFII

3.4%

CA Transportation

1.1%

CA Market

Return vs Industry: TFII underperformed the Canadian Transportation industry which returned 3.4% over the past year.

Return vs Market: TFII underperformed the Canadian Market which returned 1.1% over the past year.


Share holder returns

TFIIIndustryMarket
7 Day4.2%1.5%-0.5%
30 Day1.2%-6.4%-1.9%
90 Day4.1%-6.6%-1.6%
1 Year-4.2%-6.6%5.1%3.4%4.6%1.1%
3 Year59.3%48.3%40.4%34.0%15.8%5.5%
5 Year75.5%54.8%53.3%42.1%26.9%8.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is TFI International undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: TFII (CA$40.58) is trading below our estimate of fair value (CA$85.34)

Significantly Undervalued: TFII is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: TFII is good value based on its PE Ratio (10.6x) compared to the Transportation industry average (17.3x).

PE vs Market: TFII is good value based on its PE Ratio (10.6x) compared to the Canadian market (13.7x).


Price Based on Expected Growth

Low PEG Ratio: TFII is poor value based on its PEG Ratio (4.1x)


Price Based on Value of Assets

PB vs Industry: TFII is good value based on its PB Ratio (2.3x) compared to the CA Transportation industry average (2.3x).


Next Steps

Future Growth

How is TFI International expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: TFII's forecast earnings growth (2.6% per year) is above the savings rate (1.9%).

Earnings vs Market: TFII's earnings (2.6% per year) are forecast to grow slower than the Canadian market (13.3% per year).

High Growth Earnings: TFII's earnings are forecast to grow, but not significantly.

Revenue vs Market: TFII's revenue (2% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: TFII's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: TFII's Return on Equity is forecast to be low in 3 years time (17.9%).


Next Steps

Past Performance

How has TFI International performed over the past 5 years?

26.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TFII's earnings have grown significantly by 26.6% per year over the past 5 years.

Accelerating Growth: TFII's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TFII had negative earnings growth (-5.4%) over the past year, making it difficult to compare to the Transportation industry average (-30.7%).


Return on Equity

High ROE: Whilst TFII's Return on Equity (22.31%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: TFII has a higher Return on Assets than the Transportation industry average last year.


Return on Capital Employed

ROCE Improving: TFII has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is TFI International's financial position?


Financial Position Analysis

Short Term Liabilities: TFII's short term assets (CA$740.5M) exceeds its short term liabilities (CA$662.5M)

Long Term Liabilities: TFII's short term assets (CA$740.5M) do not cover its long term liabilities (CA$2.4B)


Debt to Equity History and Analysis

Debt Level: TFII's debt to equity ratio (120.6%) is considered high

Reducing Debt: TFII's debt to equity ratio has increased from 97.9% to 120.6% over the past 5 years.

Debt Coverage: TFII's debt is well covered by operating cash flow (35.3%).

Interest Coverage: TFII's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet

Inventory Level: TFII has a high level of physical assets or inventory.

Debt Coverage by Assets: TFII's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is TFI International's current dividend yield, its reliability and sustainability?

2.63%

Expected Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%2.0%markettop25%6.0%industryaverage1.1%forecastin3Years2.6%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: TFII's dividend (2.37%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: TFII's dividend (2.37%) is low compared to the top 25% of dividend payers in the Canadian market (5.98%).

Stable Dividend: TFII's dividends per share have been stable in the past 10 years.

Growing Dividend: TFII's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.4%), TFII's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TFII's dividends in 3 years are forecast to be well covered by earnings (25.9% payout ratio).


Next Steps

Management

What is the CEO of TFI International's salary, the management and board of directors tenure and is there insider trading?

8.4yrs

Average management tenure


CEO

Alain Bédard (66yo)

23.8yrs

Tenure

CA$8,168,471

Compensation

Mr. Alain Bédard, FCA, FCPA, CMA, serves as the President of 2400520 Ontario Inc. Mr. Bédard has been the President and Chief Executive Officer of TransForce Inc, since 2007 and 1996 respectively. He serve ...


CEO Compensation Analysis

Compensation vs. Market: Alain's total compensation ($USD6.20M) is about average for companies of similar size in the Canadian market ($USD2.88M).

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


Management Age and Tenure

8.4yrs

Average Tenure

Experienced Management: TFII's management team is seasoned and experienced (8.4 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

67yo

Average Age

Experienced Board: TFII's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellCA$3,621,60013 Mar 19
Alain Bédard
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares90,000
Max PriceCA$40.24

Ownership Breakdown


Management Team

  • Brian Kohut

    Executive Vice President

    • Tenure: 8.4yrs
    • Compensation: CA$1.15m
  • Alain Bédard (66yo)

    Chairman

    • Tenure: 23.8yrs
    • Compensation: CA$8.17m
  • Rob O'Reilly

    Executive Vice President

    • Tenure: 8.4yrs
    • Compensation: CA$1.05m
  • Josiane-Mélanie Langlois

    VP of Legal Affairs & Corporate Secretary

    • Tenure: 0yrs
  • Johanne Dean

    Vice President of Marketing & Communications

    • Tenure: 0yrs
  • Sylvain Desaulniers

    Vice President of Human Resources

    • Tenure: 0yrs
  • Chantal Martel

    Vice President of Insurance & Compliance

    • Tenure: 0yrs
  • Bob McGonigal

    Executive Vice President

    • Tenure: 0yrs
    • Compensation: CA$846.08k
  • Rick Hashie

    Executive Vice President

    • Tenure: 2.5yrs
    • Compensation: CA$851.96k
  • David Saperstein

    Chief Financial Officer

    • Tenure: 0.8yrs

Board Members

  • Debra Kelly-Ennis (62yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: CA$158.32k
  • André Bérard (78yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: CA$181.55k
  • Alain Bédard (66yo)

    Chairman

    • Tenure: 23.8yrs
    • Compensation: CA$8.17m
  • Arun Nayar (68yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: CA$121.62k
  • Neil Manning (73yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: CA$124.20k
  • Joey Saputo (54yo)

    Independent Director

    • Tenure: 23.8yrs
    • Compensation: CA$114.85k
  • Lucien Bouchard (80yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: CA$117.20k
  • Leslie Abi-Karam (60yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: CA$72.40k
  • Diane Giard (58yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: CA$28.00k
  • Richard Guay (68yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: CA$143.50k

Company Information

TFI International Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TFI International Inc.
  • Ticker: TFII
  • Exchange: TSX
  • Founded:
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: CA$3.349b
  • Shares outstanding: 82.52m
  • Website: https://www.tfiintl.com

Number of Employees


Location

  • TFI International Inc.
  • 8801 Trans-Canada Highway
  • Suite 500
  • Montreal
  • Quebec
  • H4S 1Z6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TFIITSX (The Toronto Stock Exchange)YesNew Common SharesCACADNov 1990
9TFDB (Deutsche Boerse AG)YesNew Common SharesDEEURNov 1990
TFIF.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDNov 1990
TFII NBMV (Bolsa Mexicana de Valores)YesNew Common SharesMXMXNNov 1990

Biography

TFI International Inc., together with its subsidiaries, provides transportation and logistics services in the United States, Canada, and Mexico. The company operates through Package and Courier, Less-Than- ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 01:07
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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