TFI INTERNATIONAL INC (TFII) Stock Fundamental Analysis
NYSE:TFII - New York Stock Exchange, Inc. - CA87241L1094 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to TFII. TFII was compared to 41 industry peers in the Ground Transportation industry. While TFII belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TFII is not valued too expensively and it also shows a decent growth rate. TFII also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year TFII was profitable.
In the past year TFII had a positive cash flow from operations.
TFII had positive earnings in each of the past 5 years.
TFII had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TFII has a Return On Assets of 5.42%. This is in the better half of the industry: TFII outperforms 65.85% of its industry peers.
Looking at the Return On Equity, with a value of 14.66%, TFII is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
The Return On Invested Capital of TFII (8.26%) is better than 68.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TFII is above the industry average of 8.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.42% | ||
| ROE | 14.66% | ||
| ROIC | 8.26% |
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
With a decent Profit Margin value of 4.54%, TFII is doing good in the industry, outperforming 65.85% of the companies in the same industry.
TFII's Profit Margin has declined in the last couple of years.
The Operating Margin of TFII (7.88%) is better than 68.29% of its industry peers.
TFII's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 50.28%, TFII is doing good in the industry, outperforming 60.98% of the companies in the same industry.
TFII's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.88% | ||
| PM (TTM) | 4.54% | ||
| GM | 50.28% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TFII is creating some value.
The number of shares outstanding for TFII remains at a similar level compared to 1 year ago.
TFII has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TFII is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.76 indicates that TFII is not a great score, but indicates only limited risk for bankruptcy at the moment.
TFII's Altman-Z score of 2.76 is fine compared to the rest of the industry. TFII outperforms 70.73% of its industry peers.
TFII has a debt to FCF ratio of 4.26. This is a neutral value as TFII would need 4.26 years to pay back of all of its debts.
TFII's Debt to FCF ratio of 4.26 is fine compared to the rest of the industry. TFII outperforms 75.61% of its industry peers.
TFII has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
TFII's Debt to Equity ratio of 1.03 is on the low side compared to the rest of the industry. TFII is outperformed by 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 4.26 | ||
| Altman-Z | 2.76 |
ROIC/WACC1.06
WACC7.76%
2.3 Liquidity
TFII has a Current Ratio of 1.03. This is a normal value and indicates that TFII is financially healthy and should not expect problems in meeting its short term obligations.
TFII has a Current ratio of 1.03. This is comparable to the rest of the industry: TFII outperforms 48.78% of its industry peers.
TFII has a Quick Ratio of 1.02. This is a normal value and indicates that TFII is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of TFII (1.02) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
TFII shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.91%.
The Earnings Per Share has been growing by 14.09% on average over the past years. This is quite good.
TFII shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.58%.
The Revenue has been growing by 16.56% on average over the past years. This is quite good.
EPS 1Y (TTM)-13.91%
EPS 3Y3.08%
EPS 5Y14.09%
EPS Q2Q%-38.71%
Revenue 1Y (TTM)12.58%
Revenue growth 3Y5.16%
Revenue growth 5Y16.56%
Sales Q2Q%5%
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 14.68% on average per year.
TFII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.21% yearly.
EPS Next Y-1.23%
EPS Next 2Y12.29%
EPS Next 3Y13.77%
EPS Next 5Y14.68%
Revenue Next Year-0.54%
Revenue Next 2Y2.05%
Revenue Next 3Y3.22%
Revenue Next 5Y6.21%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
TFII is valuated correctly with a Price/Earnings ratio of 15.67.
Based on the Price/Earnings ratio, TFII is valued cheaper than 82.93% of the companies in the same industry.
When comparing the Price/Earnings ratio of TFII to the average of the S&P500 Index (27.75), we can say TFII is valued slightly cheaper.
A Price/Forward Earnings ratio of 11.38 indicates a reasonable valuation of TFII.
Based on the Price/Forward Earnings ratio, TFII is valued cheaply inside the industry as 85.37% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.49, TFII is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.67 | ||
| Fwd PE | 11.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TFII is valued a bit cheaper than the industry average as 70.73% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TFII is valued cheaply inside the industry as 95.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.97 | ||
| EV/EBITDA | 7.52 |
4.3 Compensation for Growth
TFII has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TFII's earnings are expected to grow with 13.77% in the coming years.
PEG (NY)N/A
PEG (5Y)1.11
EPS Next 2Y12.29%
EPS Next 3Y13.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.33%, TFII has a reasonable but not impressive dividend return.
In the last 3 months the price of TFII has falen by -37.49%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
TFII's Dividend Yield is rather good when compared to the industry average which is at 1.71. TFII pays more dividend than 90.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, TFII has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
5.2 History
The dividend of TFII is nicely growing with an annual growth rate of 17.09%!
TFII has been paying a dividend for at least 10 years, so it has a reliable track record.
TFII has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)17.09%
Div Incr Years14
Div Non Decr Years15
5.3 Sustainability
TFII pays out 35.91% of its income as dividend. This is a sustainable payout ratio.
TFII's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.91%
EPS Next 2Y12.29%
EPS Next 3Y13.77%
82.4
+2.22 (+2.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners75.6%
Inst Owner ChangeN/A
Ins Owners6.03%
Ins Owner ChangeN/A
Market Cap6.92B
Analysts76
Price Target108.55 (31.74%)
Short Float %0.96%
Short Ratio1.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
Yearly Dividend1.59
Dividend Growth(5Y)17.09%
DP35.91%
Div Incr Years14
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-24.67%
Min EPS beat(2)-26.96%
Max EPS beat(2)-22.39%
EPS beat(4)1
Avg EPS beat(4)-14.35%
Min EPS beat(4)-26.96%
Max EPS beat(4)3.74%
EPS beat(8)2
Avg EPS beat(8)-11.23%
EPS beat(12)4
Avg EPS beat(12)-4.51%
EPS beat(16)8
Avg EPS beat(16)4.22%
Revenue beat(2)0
Avg Revenue beat(2)-6.39%
Min Revenue beat(2)-6.55%
Max Revenue beat(2)-6.23%
Revenue beat(4)0
Avg Revenue beat(4)-5.05%
Min Revenue beat(4)-6.55%
Max Revenue beat(4)-2.27%
Revenue beat(8)0
Avg Revenue beat(8)-3.91%
Revenue beat(12)1
Avg Revenue beat(12)-4.06%
Revenue beat(16)5
Avg Revenue beat(16)0.28%
PT rev (1m)-9.02%
PT rev (3m)-24.42%
EPS NQ rev (1m)-2.29%
EPS NQ rev (3m)-28.31%
EPS NY rev (1m)-5.77%
EPS NY rev (3m)-36.15%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-5.52%
Revenue NY rev (1m)-1.1%
Revenue NY rev (3m)-7.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.67 | ||
| Fwd PE | 11.38 | ||
| P/S | 0.81 | ||
| P/FCF | 9.97 | ||
| P/OCF | 6.56 | ||
| P/B | 2.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.52 |
EPS(TTM)5.26
EY6.38%
EPS(NY)7.24
Fwd EY8.78%
FCF(TTM)8.26
FCFY10.03%
OCF(TTM)12.57
OCFY15.26%
SpS101.11
BVpS31.34
TBVpS-0.04
PEG (NY)N/A
PEG (5Y)1.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.42% | ||
| ROE | 14.66% | ||
| ROCE | 11.02% | ||
| ROIC | 8.26% | ||
| ROICexc | 8.28% | ||
| ROICexgc | 14.66% | ||
| OM | 7.88% | ||
| PM (TTM) | 4.54% | ||
| GM | 50.28% | ||
| FCFM | 8.17% |
ROA(3y)9.63%
ROA(5y)9.78%
ROE(3y)22.9%
ROE(5y)23.35%
ROIC(3y)11.81%
ROIC(5y)10.93%
ROICexc(3y)12.24%
ROICexc(5y)11.2%
ROICexgc(3y)20.24%
ROICexgc(5y)19.48%
ROCE(3y)15.76%
ROCE(5y)14.58%
ROICexcg growth 3Y-5.37%
ROICexcg growth 5Y-1.39%
ROICexc growth 3Y-6.67%
ROICexc growth 5Y1.25%
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%
F-Score6
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 4.26 | ||
| Debt/EBITDA | 2.11 | ||
| Cap/Depr | 58.7% | ||
| Cap/Sales | 4.26% | ||
| Interest Coverage | 3.93 | ||
| Cash Conversion | 82.12% | ||
| Profit Quality | 179.87% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 2.76 |
F-Score6
WACC7.76%
ROIC/WACC1.06
Cap/Depr(3y)77.96%
Cap/Depr(5y)70.47%
Cap/Sales(3y)4.55%
Cap/Sales(5y)4.26%
Profit Quality(3y)120.13%
Profit Quality(5y)121.28%
High Growth Momentum
Growth
EPS 1Y (TTM)-13.91%
EPS 3Y3.08%
EPS 5Y14.09%
EPS Q2Q%-38.71%
EPS Next Y-1.23%
EPS Next 2Y12.29%
EPS Next 3Y13.77%
EPS Next 5Y14.68%
Revenue 1Y (TTM)12.58%
Revenue growth 3Y5.16%
Revenue growth 5Y16.56%
Sales Q2Q%5%
Revenue Next Year-0.54%
Revenue Next 2Y2.05%
Revenue Next 3Y3.22%
Revenue Next 5Y6.21%
EBIT growth 1Y-7.88%
EBIT growth 3Y3.89%
EBIT growth 5Y16.69%
EBIT Next Year71.22%
EBIT Next 3Y27.66%
EBIT Next 5Y18.73%
FCF growth 1Y-4.15%
FCF growth 3Y4.62%
FCF growth 5Y24.3%
OCF growth 1Y-0.99%
OCF growth 3Y7.5%
OCF growth 5Y16.82%