TFI INTERNATIONAL INC (TFII.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TFII - CA87241L1094 - Common Stock
147.79 CAD
-6.2 (-4.03%)
Overall TFII gets a fundamental rating of 5 out of 10. We evaluated TFII against 6 industry peers in the Ground Transportation industry. TFII has an average financial health and profitability rating. TFII is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- TFII had positive earnings in the past year.
- TFII had a positive operating cash flow in the past year.
- In the past 5 years TFII has always been profitable.
- TFII had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of TFII (4.54%) is comparable to the rest of the industry.
- TFII has a Return On Equity of 12.23%. This is in the better half of the industry: TFII outperforms 66.67% of its industry peers.
- With an excellent Return On Invested Capital value of 7.10%, TFII belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- TFII had an Average Return On Invested Capital over the past 3 years of 11.81%. This is above the industry average of 6.87%.
- The 3 year average ROIC (11.81%) for TFII is well above the current ROIC(7.10%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.54% | ||
| ROE | 12.23% | ||
| ROIC | 7.1% |
ROA(3y)9.63%
ROA(5y)9.78%
ROE(3y)22.9%
ROE(5y)23.35%
ROIC(3y)11.81%
ROIC(5y)10.93%
1.3 Margins
- TFII's Profit Margin of 4.01% is on the low side compared to the rest of the industry. TFII is outperformed by 66.67% of its industry peers.
- TFII's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 7.19%, TFII is doing worse than 66.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of TFII has remained more or less at the same level.
- TFII has a better Gross Margin (50.55%) than 66.67% of its industry peers.
- In the last couple of years the Gross Margin of TFII has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.19% | ||
| PM (TTM) | 4.01% | ||
| GM | 50.55% |
OM growth 3Y-1.21%
OM growth 5Y0.12%
PM growth 3Y-21.62%
PM growth 5Y-3.42%
GM growth 3Y2.19%
GM growth 5Y2.12%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TFII is still creating some value.
- TFII has about the same amout of shares outstanding than it did 1 year ago.
- TFII has more shares outstanding than it did 5 years ago.
- TFII has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.96 indicates that TFII is not a great score, but indicates only limited risk for bankruptcy at the moment.
- TFII has a better Altman-Z score (2.96) than 100.00% of its industry peers.
- TFII has a debt to FCF ratio of 4.37. This is a neutral value as TFII would need 4.37 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.37, TFII is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- A Debt/Equity ratio of 1.05 is on the high side and indicates that TFII has dependencies on debt financing.
- TFII has a Debt to Equity ratio of 1.05. This is in the lower half of the industry: TFII underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 2.96 |
ROIC/WACC0.76
WACC9.31%
2.3 Liquidity
- TFII has a Current Ratio of 1.06. This is a normal value and indicates that TFII is financially healthy and should not expect problems in meeting its short term obligations.
- TFII's Current ratio of 1.06 is fine compared to the rest of the industry. TFII outperforms 66.67% of its industry peers.
- TFII has a Quick Ratio of 1.05. This is a normal value and indicates that TFII is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.05, TFII is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
- The earnings per share for TFII have decreased strongly by -28.27% in the last year.
- The Earnings Per Share has been growing by 14.09% on average over the past years. This is quite good.
- The Revenue has decreased by -2.91% in the past year.
- The Revenue has been growing by 16.56% on average over the past years. This is quite good.
EPS 1Y (TTM)-28.27%
EPS 3Y3.08%
EPS 5Y14.09%
EPS Q2Q%-25%
Revenue 1Y (TTM)-2.91%
Revenue growth 3Y5.16%
Revenue growth 5Y16.56%
Sales Q2Q%-9.88%
3.2 Future
- Based on estimates for the next years, TFII will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.09% on average per year.
- Based on estimates for the next years, TFII will show a small growth in Revenue. The Revenue will grow by 3.53% on average per year.
EPS Next Y-26.32%
EPS Next 2Y-3.72%
EPS Next 3Y5.82%
EPS Next 5Y11.09%
Revenue Next Year-7.42%
Revenue Next 2Y-2.45%
Revenue Next 3Y-0.61%
Revenue Next 5Y3.53%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 23.91, which indicates a rather expensive current valuation of TFII.
- Based on the Price/Earnings ratio, TFII is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
- When comparing the Price/Earnings ratio of TFII to the average of the S&P500 Index (27.25), we can say TFII is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 20.18, the valuation of TFII can be described as rather expensive.
- 66.67% of the companies in the same industry are cheaper than TFII, based on the Price/Forward Earnings ratio.
- TFII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.91 | ||
| Fwd PE | 20.18 |
4.2 Price Multiples
- TFII's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TFII is cheaper than 66.67% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, TFII is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.87 | ||
| EV/EBITDA | 9.93 |
4.3 Compensation for Growth
- The decent profitability rating of TFII may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.7
EPS Next 2Y-3.72%
EPS Next 3Y5.82%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.68%, TFII has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.69, TFII pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, TFII has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
- On average, the dividend of TFII grows each year by 17.09%, which is quite nice.
- TFII has paid a dividend for at least 10 years, which is a reliable track record.
- TFII has decreased its dividend in the last 3 years.
Dividend Growth(5Y)17.09%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- TFII pays out 45.70% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of TFII is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.7%
EPS Next 2Y-3.72%
EPS Next 3Y5.82%
TFI INTERNATIONAL INC / TFII.CA FAQ
What is the fundamental rating for TFII stock?
ChartMill assigns a fundamental rating of 5 / 10 to TFII.CA.
What is the valuation status of TFI INTERNATIONAL INC (TFII.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to TFI INTERNATIONAL INC (TFII.CA). This can be considered as Overvalued.
Can you provide the profitability details for TFI INTERNATIONAL INC?
TFI INTERNATIONAL INC (TFII.CA) has a profitability rating of 6 / 10.
What are the PE and PB ratios of TFI INTERNATIONAL INC (TFII.CA) stock?
The Price/Earnings (PE) ratio for TFI INTERNATIONAL INC (TFII.CA) is 23.91 and the Price/Book (PB) ratio is 3.34.
Is the dividend of TFI INTERNATIONAL INC sustainable?
The dividend rating of TFI INTERNATIONAL INC (TFII.CA) is 5 / 10 and the dividend payout ratio is 45.7%.