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NFI GROUP INC (NFI.CA) Stock Fundamental Analysis

TSX:NFI - Toronto Stock Exchange - CA62910L1022 - Common Stock - Currency: CAD

10.61  -0.08 (-0.75%)

Fundamental Rating

3

Taking everything into account, NFI scores 3 out of 10 in our fundamental rating. NFI was compared to 22 industry peers in the Machinery industry. NFI may be in some trouble as it scores bad on both profitability and health. NFI is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

2

1. Profitability

1.1 Basic Checks

NFI had negative earnings in the past year.
In the past year NFI had a positive cash flow from operations.
NFI had negative earnings in 4 of the past 5 years.
In multiple years NFI reported negative operating cash flow during the last 5 years.
NFI.CA Yearly Net Income VS EBIT VS OCF VS FCFNFI.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M -200M

1.2 Ratios

NFI has a Return On Assets of -0.83%. This is comparable to the rest of the industry: NFI outperforms 50.00% of its industry peers.
NFI has a Return On Equity (-3.46%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 3.52%, NFI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Industry RankSector Rank
ROA -0.83%
ROE -3.46%
ROIC 3.52%
ROA(3y)-5.43%
ROA(5y)-4.01%
ROE(3y)-22.96%
ROE(5y)-17.45%
ROIC(3y)N/A
ROIC(5y)N/A
NFI.CA Yearly ROA, ROE, ROICNFI.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40

1.3 Margins

NFI has a Operating Margin (3.22%) which is in line with its industry peers.
NFI has a Gross Margin of 11.18%. This is in the lower half of the industry: NFI underperforms 72.73% of its industry peers.
In the last couple of years the Gross Margin of NFI has declined.
Industry RankSector Rank
OM 3.22%
PM (TTM) N/A
GM 11.18%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.23%
GM growth 5Y-14.54%
NFI.CA Yearly Profit, Operating, Gross MarginsNFI.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10

2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NFI is destroying value.
NFI has more shares outstanding than it did 1 year ago.
NFI has more shares outstanding than it did 5 years ago.
NFI has a better debt/assets ratio than last year.
NFI.CA Yearly Shares OutstandingNFI.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
NFI.CA Yearly Total Debt VS Total AssetsNFI.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

2.2 Solvency

NFI has an Altman-Z score of 1.40. This is a bad value and indicates that NFI is not financially healthy and even has some risk of bankruptcy.
NFI has a Altman-Z score of 1.40. This is comparable to the rest of the industry: NFI outperforms 40.91% of its industry peers.
The Debt to FCF ratio of NFI is 151.88, which is on the high side as it means it would take NFI, 151.88 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 151.88, NFI perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
A Debt/Equity ratio of 1.69 is on the high side and indicates that NFI has dependencies on debt financing.
NFI has a Debt to Equity ratio (1.69) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 1.69
Debt/FCF 151.88
Altman-Z 1.4
ROIC/WACC0.36
WACC9.76%
NFI.CA Yearly LT Debt VS Equity VS FCFNFI.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B

2.3 Liquidity

NFI has a Current Ratio of 1.71. This is a normal value and indicates that NFI is financially healthy and should not expect problems in meeting its short term obligations.
NFI has a Current ratio (1.71) which is in line with its industry peers.
NFI has a Quick Ratio of 1.71. This is a bad value and indicates that NFI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of NFI (0.61) is worse than 77.27% of its industry peers.
Industry RankSector Rank
Current Ratio 1.71
Quick Ratio 0.61
NFI.CA Yearly Current Assets VS Current LiabilitesNFI.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

4

3. Growth

3.1 Past

NFI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 88.62%, which is quite impressive.
NFI shows a decrease in Revenue. In the last year, the revenue decreased by -0.76%.
Measured over the past years, NFI shows a small growth in Revenue. The Revenue has been growing by 1.29% on average per year.
EPS 1Y (TTM)88.62%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%90.24%
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y3.54%
Revenue growth 5Y1.29%
Sales Q2Q%0.19%

3.2 Future

Based on estimates for the next years, NFI will show a very strong growth in Earnings Per Share. The EPS will grow by 42.88% on average per year.
NFI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.47% yearly.
EPS Next Y91.58%
EPS Next 2Y58.5%
EPS Next 3Y42.88%
EPS Next 5YN/A
Revenue Next Year13.65%
Revenue Next 2Y18.36%
Revenue Next 3Y15.47%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
NFI.CA Yearly Revenue VS EstimatesNFI.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B
NFI.CA Yearly EPS VS EstimatesNFI.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1 -1 2 -2

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for NFI. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 10.24, the valuation of NFI can be described as reasonable.
NFI's Price/Forward Earnings ratio is rather cheap when compared to the industry. NFI is cheaper than 86.36% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 94.77. NFI is valued rather cheaply when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 10.24
NFI.CA Price Earnings VS Forward Price EarningsNFI.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NFI is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
NFI's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 111.35
EV/EBITDA 11.31
NFI.CA Per share dataNFI.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

NFI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as NFI's earnings are expected to grow with 42.88% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y58.5%
EPS Next 3Y42.88%

0

5. Dividend

5.1 Amount

No dividends for NFI!.
Industry RankSector Rank
Dividend Yield N/A

NFI GROUP INC

TSX:NFI (2/7/2025, 7:00:00 PM)

10.61

-0.08 (-0.75%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)02-26 2025-02-26/amc
Inst Owners42.6%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap1.26B
Analysts77.78
Price Target21.22 (100%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.29
Dividend Growth(5Y)-11.4%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)437.48%
Min EPS beat(2)-213.15%
Max EPS beat(2)1088.12%
EPS beat(4)3
Avg EPS beat(4)240.61%
Min EPS beat(4)-213.15%
Max EPS beat(4)1088.12%
EPS beat(8)6
Avg EPS beat(8)125.89%
EPS beat(12)7
Avg EPS beat(12)81.42%
EPS beat(16)10
Avg EPS beat(16)105.59%
Revenue beat(2)1
Avg Revenue beat(2)-3.27%
Min Revenue beat(2)-13.56%
Max Revenue beat(2)7.03%
Revenue beat(4)2
Avg Revenue beat(4)-2.55%
Min Revenue beat(4)-13.56%
Max Revenue beat(4)7.03%
Revenue beat(8)6
Avg Revenue beat(8)-0.55%
Revenue beat(12)8
Avg Revenue beat(12)-0.37%
Revenue beat(16)10
Avg Revenue beat(16)-0.27%
PT rev (1m)0%
PT rev (3m)-5.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-79.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-251.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-18.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.52%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 10.24
P/S 0.29
P/FCF 111.35
P/OCF 16.62
P/B 1.26
P/tB N/A
EV/EBITDA 11.31
EPS(TTM)-0.27
EYN/A
EPS(NY)1.04
Fwd EY9.77%
FCF(TTM)0.1
FCFY0.9%
OCF(TTM)0.64
OCFY6.02%
SpS37.09
BVpS8.43
TBVpS-3.29
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.83%
ROE -3.46%
ROCE 4.9%
ROIC 3.52%
ROICexc 3.63%
ROICexgc 7.19%
OM 3.22%
PM (TTM) N/A
GM 11.18%
FCFM 0.26%
ROA(3y)-5.43%
ROA(5y)-4.01%
ROE(3y)-22.96%
ROE(5y)-17.45%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.23%
GM growth 5Y-14.54%
F-Score5
Asset Turnover1.06
Health
Industry RankSector Rank
Debt/Equity 1.69
Debt/FCF 151.88
Debt/EBITDA 6.6
Cap/Depr 56.17%
Cap/Sales 1.46%
Interest Coverage 0.9
Cash Conversion 29.54%
Profit Quality N/A
Current Ratio 1.71
Quick Ratio 0.61
Altman-Z 1.4
F-Score5
WACC9.76%
ROIC/WACC0.36
Cap/Depr(3y)39.6%
Cap/Depr(5y)35.59%
Cap/Sales(3y)1.49%
Cap/Sales(5y)1.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)88.62%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%90.24%
EPS Next Y91.58%
EPS Next 2Y58.5%
EPS Next 3Y42.88%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y3.54%
Revenue growth 5Y1.29%
Sales Q2Q%0.19%
Revenue Next Year13.65%
Revenue Next 2Y18.36%
Revenue Next 3Y15.47%
Revenue Next 5YN/A
EBIT growth 1Y193.72%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year676.75%
EBIT Next 3Y134.59%
EBIT Next 5YN/A
FCF growth 1Y106.03%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y156.89%
OCF growth 3YN/A
OCF growth 5YN/A