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TFI International (TSE:TFII)
TSX:TFII
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TFI International
(TSX:TFII)
63Neutral
Positive Factors
Customer Strategy
TFII is moving to reclaim lost share in small and medium sized business customers, which had eroded following a push into larger/less profitable enterprise accounts.
Leadership Changes
The company is 'Starting to see some greenshoots' from leadership changes in the U.S. organization.
Negative Factors
Financial Performance
TFI International posted adjusted EPS significantly below estimates, indicating financial underperformance.
Market Share
Cargo claims remained elevated at 0.9% and there was a loss in market share with shipments declining 5.5%.
Operational Challenges
Truckload and Logistics segments missed revenue targets significantly, indicating broader operational challenges.
TFI International (TFII) vs. S&P 500 (SPY)
Market Cap
$9.59B
Dividend Yield2.07%
Average Volume (3M)377.49K
Price to Earnings (P/E)18.0
Beta (1Y)0.99
Revenue Growth16.00%
EPS Growth-17.63%
CountryCA
Employees26,312
SectorIndustrials
Sector Strength79
IndustryTrucking
Share Statistics
EPS (TTM)6.31
Shares Outstanding84,408,440
10 Day Avg. Volume336,164
30 Day Avg. Volume377,486
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.42
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit10.91
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$147.60Price Target Upside29.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
TFI International Business Overview & Revenue Model
Company DescriptionTFI International Inc. provides transportation and logistics services in the United States, Canada, and Mexico. The company operates through Package and Courier, Less-Than-Truckload (LTL), Truckload (TL), and Logistics segments. The Package and Courier segment engages in the pickup, transport, and delivery of items. The LTL segment is involved in the pickup, consolidation, transportation, and delivery of smaller loads. The TL segment offers expedited transportation, flatbed, tank container, and dedicated services, as well as TL brokerage services. This segment carries full loads directly from the customer to the destination using a closed van or specialized equipment. The Logistics segment provides asset-light logistics services, including brokerage, freight forwarding, and transportation management, as well as small package parcel delivery. As of December 31, 2021, the company had 13,384 tractors, 50,091 trailers, and 9,428 independent contractors. The company was formerly known as TransForce Inc. and changed its name to TFI International Inc. in December 2016. TFI International Inc. is headquartered in Saint-Laurent, Canada.
How the Company Makes MoneyTFI International makes money by offering a variety of transportation and logistics services across North America. Its revenue model is primarily based on freight charges for moving goods through its network of trucks and intermodal services. The Package and Courier segment earns through parcel delivery services, often catering to e-commerce businesses. The Less-Than-Truckload and Truckload segments generate revenue by transporting goods that do not require a full truck's capacity or require full truckload services, respectively. The Logistics segment contributes by providing supply chain solutions, including freight brokerage and warehousing services. The company also benefits from strategic acquisitions and partnerships that expand its service offerings and geographic reach, enhancing its revenue potential.
TFI International Financial Statement Overview
Summary
TFI International demonstrates solid financial health with strong cash flow generation and steady revenue growth. Income statement shows good operational efficiency but faces net income pressures. The balance sheet indicates manageable leverage, though debt levels and equity trends require monitoring.Income Statement
TFI International exhibits solid revenue growth with a TTM revenue of $8.49 billion, translating to a 1.12% increase from the previous annual period. The gross profit margin is a modest 5.91% in the TTM, while EBIT and EBITDA margins are reasonably healthy at 8.03% and 16.78%, respectively. However, the net profit margin has decreased slightly to 4.54%, indicating some pressure on net earnings.75
Positive
Balance Sheet
The company's debt-to-equity ratio stands at 1.12, suggesting a moderate reliance on debt. The return on equity is 14.65%, which is strong but shows a decline from previous years. The equity ratio is 36.97%, indicating a balanced approach to leveraging assets, though the decrease in stockholders' equity raises some concerns about future financial flexibility.68
Positive
Cash Flow
TFI International's cash flow position is robust, with a TTM free cash flow of $693.72 million, up by 4.55% from the previous year. The operating cash flow to net income ratio of 2.74 indicates a healthy conversion of earnings to cash. The free cash flow to net income ratio of 1.80 suggests strong cash generation relative to net income, providing financial flexibility.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 8.40B | 7.52B | 8.81B | 7.22B | 3.78B | Gross Profit |
| 1.25B | 1.27B | 1.43B | 1.04B | 541.88M | EBIT |
| 718.96M | 757.63M | 1.15B | 662.65M | 416.57M | EBITDA |
| 1.29B | 1.19B | 2.05B | 1.72B | 963.52M | Net Income Common Stockholders |
| 422.48M | 504.88M | 823.23M | 754.40M | 275.68M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 0.00 | 335.56M | 147.12M | 19.29M | 4.30M | Total Assets |
| 7.15B | 6.28B | 5.51B | 5.75B | 3.85B | Total Debt |
| 2.98B | 2.34B | 1.73B | 2.04B | 1.23B | Net Debt |
| 2.98B | 2.01B | 1.58B | 2.02B | 1.22B | Total Liabilities |
| 4.47B | 3.69B | 3.04B | 3.53B | 2.06B | Stockholders Equity |
| 2.67B | 2.59B | 2.46B | 2.22B | 1.79B |
| Cash Flow | Free Cash Flow | |||
| 663.56M | 649.52M | 614.70M | 579.55M | 466.49M | Operating Cash Flow |
| 1.06B | 1.01B | 971.64M | 855.35M | 610.86M | Investing Cash Flow |
| -1.24B | -797.33M | 223.42M | -1.16B | -378.48M | Financing Cash Flow |
| -164.44M | -28.07M | -1.07B | 322.30M | -228.08M |
TFI International Technical Analysis
Neutral
113.60
Price Trends
116.08
Negative
154.93
Negative
175.91
Negative
Market Momentum
-2.15
Negative
49.68
Neutral
64.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TFII, the sentiment is Neutral. The current price of 113.6 is above the 20-day moving average (MA) of 110.56, below the 50-day MA of 116.08, and below the 200-day MA of 175.91, indicating a neutral trend. The MACD of -2.15 indicates Negative momentum. The RSI at 49.68 is Neutral, neither overbought nor oversold. The STOCH value of 64.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TFII.
TFI International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$3.15B | 5.97 | 52.24% | 2.93% | 28.30% | 227.26% | |
73 Outperform | C$1.08B | 9.70 | 10.81% | 6.04% | 3.28% | -14.21% | |
73 Outperform | C$393.60M | 9.22 | 8.49% | 7.71% | -2.65% | -47.65% | |
64 Neutral | $4.28B | 11.80 | 5.33% | 250.46% | 4.10% | -9.26% | |
63 Neutral | $9.59B | 18.00 | 14.78% | 2.07% | 16.00% | -17.63% |
* Industrials Sector Average
Performance Comparison
TSE:TFII
TFI International
113.60
-67.25
-37.19%
TSE:MTL
Mullen Group
13.25
1.13
9.32%
TSE:SES
Secure Energy Services
13.64
2.56
23.10%
TSE:WJX
Wajax Corporation
18.16
-7.76
-29.94%
RUSMF
Russel Metals
29.47
1.95
7.09%
CGJTF
Cargojet
61.18
-25.63
-29.52%
TFI International Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: 4.26%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
TFI International showed resilience with strong free cash flow and revenue growth despite macroeconomic challenges and industry headwinds. However, significant declines in operating income, margins, and challenges within the LTL and Logistics segments highlight operational difficulties. The company is making efforts to address these issues, including leadership changes and strategic focus on improving service and cost management.Q1-2025 Updates
Positive Updates
Strong Free Cash Flow Generation
TFI International generated strong free cash flow of over $190 million in Q1 2025, up significantly from $137 million the previous year, attributed to favorable working capital and strong capital expenditure management.
Revenue Growth Despite Industry Challenges
Total revenue before fuel surcharge increased to $1.7 billion from $1.6 billion year-over-year, supported by the Daseke acquisition.
Truckload Segment Improvement
Truckload revenue before fuel surcharge was $666 million, up from $398 million a year earlier due to the Daseke acquisition. Operating income for Truckload increased to $49 million from $41 million in the prior year period.
Share Repurchases and Strong Balance Sheet
TFI repurchased $56 million worth of shares and returned a total of $94 million to shareholders during the quarter, ending March with a funded debt-to-EBITDA ratio of 2.21.
Negative Updates
Decline in Operating Income and Margin
Operating income decreased to $115 million from $152 million, with an operating margin of 6.7% compared to 9.4% in the prior year period.
LTL Segment Revenue and Income Decline
LTL revenue before fuel surcharge was down 13% year-over-year to $679 million. Operating income decreased to $47 million from $85 million, with the operating ratio worsening to 93.1% from 89.2%.
Logistics Segment Revenue and Income Decline
Logistics revenue fell to $385 million from $442 million year-over-year. Operating income decreased to $31 million from $40 million.
Drop in Adjusted Net Income and EPS
Quarterly adjusted net income dropped to $56 million from $93 million, and adjusted EPS fell to $0.76 from $1.24 a year earlier.
Challenges in US LTL Operations
US LTL faced operational issues with a 99 OR, missed pickup rates of 1.7%, and a claims ratio of 0.9%, highlighting service and cost management challenges.
Company Guidance
During the first quarter of fiscal year 2025, TFI International faced challenges due to a slowdown in freight volumes amidst economic uncertainties, but managed to report a solid free cash flow of $192 million, significantly up from $137 million in the previous year. The company generated total revenue before fuel surcharge of $1.7 billion, a slight increase from $1.6 billion a year earlier, attributed to the Daseke acquisition. Despite this, operating income fell to $115 million from $152 million, with an operating margin of 6.7% compared to the previous year's 9.4%. Quarterly adjusted net income decreased to $56 million from $93 million, and adjusted EPS dropped to $0.76 from $1.24. Cash generated by operating activities was $194 million, down from $201 million in Q1 2024. In terms of business segments, LTL revenue dropped 13% year-over-year, while Truckload revenue increased due to the Daseke acquisition. Logistics revenue also saw a decline. The company ended March with a funded debt-to-EBITDA ratio of 2.21 and repurchased $56 million worth of shares during the quarter. Looking ahead, TFI International guided for a second-quarter EPS in the range of $1.25 to $1.40, while maintaining a full-year CapEx expectation of approximately $200 million.TFI International Corporate Events
Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
TFI International Reports Q1 2025 Results Amid Market Challenges
Neutral
Apr 23, 2025
TFI International reported a decrease in operating income and net income for the first quarter of 2025 compared to the same period in the previous year, primarily due to weaker market demand. Despite these challenges, the company achieved a significant 40% increase in free cash flow, driven by strategic investments and operational excellence, while maintaining its commitment to shareholder returns through dividends and share repurchases.
Spark’s Take on TSE:TFII Stock
According to Spark, TipRanks’ AI Analyst, TSE:TFII is a Neutral.
TFI International’s overall stock score of 69 reflects its strong financial performance and reasonable valuation, offset by bearish technical indicators and a cautious outlook from the latest earnings call. The company’s solid cash flow generation and dividend increase are positives, but ongoing industry challenges and market uncertainties remain concerns.
To see Spark’s full report on TSE:TFII stock, click here.
Executive/Board ChangesShareholder Meetings
TFI International Announces Successful Election of Directors
Positive
Apr 23, 2025
TFI International Inc. announced the successful election of all proposed directors at its Annual Meeting of shareholders. The election results, with a majority of votes cast in favor, reflect strong shareholder support for the company’s leadership. This outcome reinforces TFI International’s stable governance and strategic direction in the transportation and logistics industry.
Spark’s Take on TSE:TFII Stock
According to Spark, TipRanks’ AI Analyst, TSE:TFII is a Neutral.
TFI International’s overall stock score of 69 reflects its strong financial performance and reasonable valuation, offset by bearish technical indicators and a cautious outlook from the latest earnings call. The company’s solid cash flow generation and dividend increase are positives, but ongoing industry challenges and market uncertainties remain concerns.
To see Spark’s full report on TSE:TFII stock, click here.
Financial Disclosures
TFI International to Announce Q1 2025 Financial Results
Neutral
Apr 3, 2025
TFI International announced it will release its first-quarter financial results for 2025 on April 23, 2025, after market close. The results will be discussed in a webcast on April 24, 2025, led by Chairman and CEO Alain Bédard. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting its market positioning and investor confidence.
Dividends
TFI International Declares Quarterly Dividend
Positive
Mar 17, 2025
TFI International announced a quarterly dividend of US $0.45 per common share, payable on April 15, 2025, to shareholders recorded by March 31, 2025. This decision reflects the company’s ongoing commitment to delivering shareholder value and underscores its strong financial position in the transportation and logistics sector.
Business Operations and Strategy
TFI International Retains Canadian Corporation Status
Neutral
Feb 24, 2025
TFI International Inc. announced it will retain its Canadian corporation status, reversing its previous plan to re-domicile to the United States. This decision was influenced by shareholder feedback, highlighting the company’s responsiveness to stakeholder concerns and its commitment to maintaining its current operational and market positioning.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.