TFI International(TFII:CA) Analysts rate with a Strong Buy, $102 target

STA Research
by: STA Research

Cowen reiterated the Buy rating on  TFI International and set the target at $102 on the stock.

RBC Royalbank lowered the target to $129 from $158.50, and maintained the Outperform rating.

National Bank of Canada Financial maintained the Outperform rating, and raised the target to $146 from $142.

TD Research cut the target to $135 from $160, and maintained the Buy rating on the company.

Based on the TFI International Inc stock forecasts from 9 analysts, the average analyst target price for TFI International Inc is CAD 144.16 over the next 12 months. TFI International Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of TFI International Inc is Bullish , which is based on 12 positive signals and 4 negative signals. At the last closing, TFI International Inc’s stock price was CAD 103.34TFI International Inc’s stock price has changed by -2.20% over the past week, -17.72% over the past month and -4.05% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sector.

 

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