Q: I see tfii is down close to 20% from its recent high. Do you still like it for a 5 year hold/
5i Research Answer:
With a long-term horizon we think TFII should do well, and w continue to like TFII – one of the best well-managed industrial names in the Canadian market. It has solid 5-year topline growth of 15%, balances well between growth (organic and acquisitions) and capital returns (raising dividends and buybacks). Although revenue growth in recent quarters was negative, largely due to a tough comparison from two better-than-average pandemic years. We think growth will resume nicely when the economy recovers as rates ease.
TFII is trading at 15x Forward P/E, compared to US peers such as ODFL or SAIA, we think TFII is quite cheap.