NFI Group Inc (NFI) AI Stock Analysis

• Market Cap: C$1.67B
• Dividend Yield: N/A
• Average Volume (3M): 383.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: 14.40%
• EPS Growth: -1117.18%
• Country: CA
• Employees: 8,876
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 0.14
• 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$20.75
• Price Target Upside: 59.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: C$13.50 ▲(3.53% Upside)

NFI Group Inc. faces significant challenges with financial stability and technical indicators pointing to a bearish trend. The negative P/E ratio and lack of dividend yield further weigh on the stock's attractiveness. However, the earnings call provided some positive outlook with improvements in financial metrics and a strong backlog, partially offsetting the negative factors.

Positive Factors

Revenue Growth

Strong sales momentum indicates robust demand for NFI's products, supporting long-term revenue expansion and market presence.

Backlog Strength

A strong backlog provides revenue visibility and stability, ensuring sustained operations and future growth opportunities.

Supply Chain Improvements

Improved supply chain stability reduces operational risks and supports efficient production, enhancing long-term competitiveness.

Negative Factors

High Leverage

Excessive leverage poses financial risks, limiting flexibility and increasing vulnerability to economic downturns.

Negative Profitability

Persistent profitability issues hinder sustainable growth and may require operational restructuring to improve margins.

Battery Recall Impact

The recall presents significant financial and operational challenges, impacting short-term cash flow and long-term reputation.

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 significant challenges in profitability and financial stability. High leverage and negative profitability metrics raise concerns about the company's ability to sustain operations without restructuring or additional financing. Improvement in free cash flow is noted, but negative operating cash flow highlights ongoing operational 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: 13.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 13.04 is below the 20-day moving average (MA) of 13.76, below the 50-day MA of 15.36, and below the 200-day MA of 14.87, indicating a bearish trend. The MACD of -0.57 indicates Negative momentum. The RSI at 31.90 is Neutral, neither overbought nor oversold. The STOCH value of 35.72 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 *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NFI	44 Neutral	C$1.67B	-7.37	-52.38%	―	14.40%	-1117.18%
GPV	37 Underperform	C$6.34M	―	―	―	-25.73%	31.80%
FHYD	28 Underperform	$33.31M	-7.11	―	―	―	54.31%

NFI Group Inc Corporate Events

NFI Group Reports Strong Q3 Results Amid Battery Recall Challenges

NFI Group Inc. reported significant improvements in its third-quarter financial results for 2025, with a notable increase in deliveries, revenue, and liquidity. Despite a net loss impacted by a battery recall, the company achieved a 52.1% year-over-year growth in Adjusted EBITDA and reported a strong backlog of $13.2 billion. The company is actively addressing the battery recall issue and is optimistic about future performance, expecting record Adjusted EBITDA in the fourth quarter. Strategic initiatives, including a joint venture investment to stabilize supply chain operations, are expected to enhance operational consistency and support growth.

The most recent analyst rating on (TSE:NFI) stock is a Hold with a C$13.50 price target. To see the full list of analyst forecasts on NFI Group Inc stock, see the TSE:NFI Stock Forecast page.

New Flyer Honored as Employer of the Year for Disability Inclusion

NFI Group Inc.’s subsidiary, New Flyer of America Inc., has been recognized as the Employer of the Year – Large Business by the Alabama Governor’s Committee on Employment of People with Disabilities. This accolade highlights New Flyer’s commitment to accessibility and support for employees with disabilities in Alabama, showcasing its inclusive practices and community partnerships that promote equitable employment opportunities.

The most recent analyst rating on (TSE:NFI) stock is a Hold with a C$13.50 price target. To see the full list of analyst forecasts on NFI Group Inc stock, see the TSE:NFI Stock Forecast page.

NFI Group 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.