NFI Group Inc (NFI) AI Stock Analysis

• Market Cap: C$1.64B
• Dividend Yield: N/A
• Average Volume (3M): 383.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: 9.12%
• EPS Growth: -182.49%
• Country: CA
• Employees: 8,876
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 0.13
• Shares Outstanding: 119,092,130
• 10 Day Avg. Volume: 251,504
• 30 Day Avg. Volume: 383,334
• PEG Ratio: 3.31
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.34
• P/FCF Ratio: -32.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$21.25
• Price Target Upside: 52.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 44 Neutral
• Price Target: C$13.50 ▼(-3.23% Downside)

NFI Group Inc.'s overall stock score reflects significant financial and operational challenges. The most impactful factor is the company's weak financial performance, characterized by high leverage and negative profitability metrics. Technical analysis indicates bearish momentum, further weighing down the score. Valuation concerns, including a negative P/E ratio, highlight financial risks. While the earnings call provided some positive insights, such as strong demand and improved metrics, these are overshadowed by ongoing losses and market challenges.

Positive Factors

Strong Demand and Backlog

A robust backlog indicates sustained demand, providing revenue visibility and stability. It reflects NFI's strong market position in public transit and motor coach sectors.

Improved Financial Metrics

Improved EBITDA and financial metrics suggest better operational efficiency and profitability potential, enhancing NFI's ability to invest in growth and innovation.

Successful Refinancing

Successful refinancing enhances financial flexibility, allowing NFI to manage debt more effectively and invest in strategic initiatives, supporting long-term growth.

Negative Factors

High Leverage

High leverage poses financial risk, potentially limiting NFI's ability to invest in growth and increasing vulnerability to economic downturns, impacting long-term stability.

Significant Net Loss

A significant net loss highlights ongoing profitability challenges, which could strain resources and hinder NFI's ability to fund future growth and innovation.

Challenges in the U.K. Market

Underperformance in the U.K. market affects revenue diversification and growth potential, as competition from non-U.K. OEMs pressures NFI's market share.

NFI Group Inc Business Overview & Revenue Model

Company Description

NFI Group Inc., together with its subsidiaries, manufactures and sells buses in North America, the United Kingdom, Europe, the Asia Pacific, and internationally. It operates through two segments, Manufacturing Operations and Aftermarket Operations. The company offers heavy-duty transit buses under the New Flyer name; single and double-deck buses under the Alexander Dennis Limited brand name; motor coaches under Plaxton and MCI brand names; low-floor cutaway and medium-duty buses under the ARBOC brand; and aftermarket parts under the NFI Parts brand name, as well as articulated buses. It also provides zero-emission vehicles, including battery-electric buses, motor coaches, hydrogen fuel-cell buses, and electric trolleys. In addition, company offers post-sale services, including part distribution, field services, support documentation, training, and special projects. The company was formerly known as New Flyer Industries Inc. and changed its name to NFI Group Inc. in May 2018. NFI Group Inc. was founded in 1930 and is headquartered in Winnipeg, Canada.

How the Company Makes Money

NFI generates revenue primarily through the sale of buses and motor coaches, which includes both standard and specialized models tailored to customer requirements. Key revenue streams include new vehicle sales, aftermarket parts sales, and service contracts. The company also benefits from long-term contracts with public transit authorities, which provide a steady stream of income. Additionally, NFI has formed strategic partnerships with various technology providers to enhance its product offerings, particularly in the electric vehicle segment, which is increasingly in demand as transit agencies seek sustainable transportation solutions.

NFI Group Inc Financial Statement Overview

Summary

NFI Group Inc. shows strong revenue growth but faces challenges with profitability and financial stability. High leverage and negative profitability metrics raise concerns about sustainability. Improvement in free cash flow is noted, but negative operating cash flow highlights ongoing inefficiencies.

Income Statement

NFI Group Inc. shows a mixed performance in its income statement. The company has achieved a significant revenue growth rate of 52.3% in the TTM period, indicating strong sales momentum. However, profitability metrics are concerning, with a negative net profit margin of -5.02% and an EBIT margin close to zero, reflecting operational challenges. The gross profit margin has improved to 11.95% in the TTM, but the company still struggles with consistent profitability.

Balance Sheet

The balance sheet of NFI Group Inc. reveals a high debt-to-equity ratio of 2.39 in the TTM, indicating significant leverage and potential financial risk. The return on equity is negative, suggesting that the company is not generating sufficient returns on shareholders' investments. The equity ratio is relatively low, highlighting a reliance on debt financing. These factors suggest financial instability and potential risks in the company's capital structure.

Cash Flow

NFI Group Inc.'s cash flow statement shows a substantial improvement in free cash flow growth, with a remarkable increase of 4568.39% in the TTM. However, the operating cash flow is negative, and the operating cash flow to net income ratio is also negative, indicating challenges in converting earnings into cash. The free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to net losses, but overall cash flow stability remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.26B	3.12B	2.69B	2.05B	2.34B	2.42B
Gross Profit	389.25M	349.44M	220.76M	49.13M	235.59M	199.25M
EBITDA	73.36M	220.29M	47.69M	-144.23M	165.34M	20.88M
Net Income	-163.69M	-3.30M	-136.16M	-276.38M	-14.48M	-157.74M
Balance Sheet
Total Assets	2.96B	2.91B	2.70B	2.59B	2.60B	2.76B
Cash, Cash Equivalents and Short-Term Investments	78.91M	49.56M	49.62M	49.99M	77.32M	55.77M
Total Debt	1.33B	1.18B	1.14B	1.24B	955.85M	1.28B
Total Liabilities	2.40B	2.21B	2.00B	2.01B	1.73B	2.14B
Stockholders Equity	557.79M	707.75M	702.91M	577.15M	871.77M	620.14M
Cash Flow
Free Cash Flow	-101.02M	-32.57M	-100.80M	-273.43M	78.97M	40.33M
Operating Cash Flow	-56.56M	15.34M	-63.81M	-241.85M	115.23M	66.06M
Investing Cash Flow	-36.33M	-34.63M	-53.34M	-24.53M	-30.79M	-38.48M
Financing Cash Flow	93.72M	20.75M	117.84M	238.28M	-59.99M	-37.00K

NFI Group Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NFI, the sentiment is Negative. The current price of 13.95 is below the 20-day moving average (MA) of 14.77, below the 50-day MA of 16.82, and below the 200-day MA of 14.83, indicating a bearish trend. The MACD of -0.86 indicates Positive momentum. The RSI at 30.80 is Neutral, neither overbought nor oversold. The STOCH value of 21.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NFI.

NFI Group Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NFI	―	C$1.64B	-7.22	-26.25%	―	9.12%	-182.49%
GPV	―	C$12.07M	―	-1033.43%	―	-23.11%	23.98%
FHYD	―	$33.99M	-7.26	―	―	―	54.31%

NFI Group Inc Corporate Events

NFI Group and GILLIG Form Joint Venture to Acquire American Seating Assets

NFI Group Inc. and GILLIG LLC have formed a 50/50 joint venture to acquire the assets of American Seating Inc., a key player in the transit, motorcoach, and rail seating industry. This strategic acquisition aims to stabilize and enhance the supply chain for the North American transit industry, ensuring consistent supply and operational performance recovery for American Seating. The joint venture, named GR Seating, LLC, will maintain operations in Grand Rapids, Michigan, and invest in equipment and facilities to support the management team’s recovery plan. This move is expected to reinforce the stability of the transit industry, benefiting customers and millions of riders.

The most recent analyst rating on (TSE:NFI) stock is a Buy with a C$20.00 price target. To see the full list of analyst forecasts on NFI Group Inc stock, see the TSE:NFI Stock Forecast page.

NFI Group to Announce Q3 2025 Financial Results

NFI Group Inc. announced the release of its third quarter 2025 financial results scheduled for November 6, 2025, followed by a conference call and webcast on November 7, 2025. This announcement allows stakeholders to gain insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:NFI) stock is a Buy with a C$20.00 price target. To see the full list of analyst forecasts on NFI Group Inc stock, see the TSE:NFI Stock Forecast page.

NFI Group Adjusts 2025 Delivery Schedule Amid Battery Recall

NFI Group Inc. announced a shift in its third-quarter vehicle deliveries to the fourth quarter of 2025 due to a battery recall and supply chain challenges. Despite these delays, the company expects strong financial performance in the fourth quarter, supported by a robust backlog and improved market demand, particularly in the UK. The recall, affecting certain zero-emission buses, will result in a warranty provision, but NFI remains confident in its financial stability and ability to meet its annual guidance.

The most recent analyst rating on (TSE:NFI) stock is a Hold with a C$16.50 price target. To see the full list of analyst forecasts on NFI Group Inc stock, see the TSE:NFI Stock Forecast page.

NFI Group’s Alexander Dennis to Sustain Scottish Bus Manufacturing Operations

NFI Group’s subsidiary, Alexander Dennis, has announced plans to maintain its bus manufacturing operations in Scotland, following support from the Scottish Government and Scottish Enterprise. This decision, which includes a furlough scheme to sustain future manufacturing capacity, is expected to save hundreds of jobs and support 1,000 suppliers across the UK. The announcement comes amid increased demand for Alexander Dennis’s buses and is seen as a positive step for preserving Scottish manufacturing expertise in a competitive market. However, some roles not directly linked to Scottish manufacturing remain at risk of redundancy. The decision does not alter NFI’s financial guidance for 2025 but will reduce a previously recorded restructuring provision.

The most recent analyst rating on (TSE:NFI) stock is a Hold with a C$19.50 price target. To see the full list of analyst forecasts on NFI Group Inc stock, see the TSE:NFI Stock Forecast page.

NFI Group Unveils 2024 Sustainability Achievements

NFI Group Inc. has released its 2024 Sustainability Report, highlighting significant strides in environmental practices, social initiatives, and system resilience. The report underscores NFI’s commitment to sustainability through its ‘A Better Product, A Better Workplace, A Better World’ pledge, showcasing record deliveries of zero-emission buses and substantial investments in workforce development. The company’s strategic focus on sustainability aims to drive long-term growth and create meaningful value for its stakeholders, reinforcing its position as a leader in sustainable mass mobility solutions.

The most recent analyst rating on (TSE:NFI) stock is a Hold with a C$19.00 price target. To see the full list of analyst forecasts on NFI Group Inc stock, see the TSE:NFI Stock Forecast page.

NFI’s Alexander Dennis Launches Las Vegas Facility for Double-Deck Bus Production

NFI Group Inc.’s subsidiary, Alexander Dennis, has opened a new manufacturing facility in Las Vegas, marking a significant milestone in the production of double-deck buses in the United States. This facility, which is the only one of its kind in the country, aims to boost Southern Nevada’s transportation and manufacturing industry by producing Enviro500 buses for the Regional Transportation Commission of Southern Nevada. The investment of $15.3 million highlights Alexander Dennis’s commitment to innovation and local economic development, with plans to increase production capacity and employment opportunities as demand grows.

The most recent analyst rating on (TSE:NFI) stock is a Hold with a C$19.00 price target. To see the full list of analyst forecasts on NFI Group Inc stock, see the TSE:NFI Stock Forecast page.

NFI Group’s Earnings Call: Demand Soars Amid U.K. Challenges

The recent earnings call for NFI Group presented a mixed sentiment, highlighting both strong demand and backlog growth alongside significant challenges in the U.K. market and supply chain disruptions. While successful refinancing and improved liquidity were positive aspects, the restructuring and impairment costs in the U.K. market were notable lowlights impacting net earnings.

NFI Group Reports Q2 2025 Financial Results with Revenue and Liquidity Gains

NFI Group Inc. reported its second quarter 2025 financial results, showing improvements in revenue, gross margin, adjusted EBITDA, and liquidity. The company achieved a revenue of $868.2 million, a 2% increase year-over-year, and a backlog of $13.5 billion, with 35.3% of the backlog comprising zero-emission buses. Despite a net loss of $160.8 million due to non-recurring items, NFI’s adjusted net earnings were $10.7 million. The company completed a refinancing process, enhancing its financial flexibility and positioning it to deliver on its backlog and improve cash flow. CEO Paul Soubry highlighted the strengthened balance sheet and operational improvements, particularly in the North American supply chain and UK market, as key to achieving their 2025 guidance.

The most recent analyst rating on (TSE:NFI) stock is a Buy with a C$22.00 price target. To see the full list of analyst forecasts on NFI Group Inc stock, see the TSE:NFI Stock Forecast page.

NFI Group’s New Flyer Secures Major Bus Order from Las Vegas RTC

NFI Group Inc.’s subsidiary, New Flyer, has secured an order for 46 Xcelsior CNG 40-foot transit buses from the Regional Transportation Commission of Southern Nevada (RTC). This order, supported by Federal Transit Administration funds, is part of a larger contract and highlights NFI’s ongoing partnership with RTC, whose fleet exclusively comprises NFI vehicles. The new buses, which emit significantly less nitrogen oxide than diesel engines, will contribute to cleaner air in Southern Nevada. This development underscores NFI’s commitment to sustainable transportation solutions and strengthens its position in the North American transit market.

The most recent analyst rating on (TSE:NFI) stock is a Buy with a C$23.00 price target. To see the full list of analyst forecasts on NFI Group Inc stock, see the TSE:NFI Stock Forecast page.

NFI’s MCI Secures Major Expansion Order from Metrolinx

NFI Group Inc.’s subsidiary, Motor Coach Industries (MCI), has secured an additional order from Metrolinx for 97 diesel commuter coaches, enhancing its leadership in North America’s commuter coach market. This order, which follows an initial purchase of 80 coaches, underscores MCI’s reputation for quality and reliability, supporting Metrolinx’s transit expansion in the Greater Toronto and Hamilton Area by replacing aging vehicles and improving regional transit access.

The most recent analyst rating on (TSE:NFI) stock is a Buy with a C$22.00 price target. To see the full list of analyst forecasts on NFI Group Inc stock, see the TSE:NFI Stock Forecast page.