TFII came down quite a bit. Is it corrected to its fair value?

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Do you see a huge upside from here?

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Asked on October 6, 2021 9:41 pm
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'TFII is well positioned to outperform over the next few years' - Excellent response Mat, thanks for your input which increased my conviction on TFI.

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Posted by Kannan Krishnaswamy
Answered on October 7, 2021 4:32 pm
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Hey there,

I guess it depends on your timeline for 'huge' and definition of such. TFII like many stocks have been in correction mode and in TFII's case, it could be viewed as an opportunity. The stock is only trading at 19 times earnings (16.81) on a forward basis and still has a PEG ratio below one. This implies that its share price is not keeping up with expected growth rates.

According to Ycharts, it is also trading at a high, single-digit discount to historical averages. This isn't earth shattering and at these levels, I'd say the company is fairly valued. This isn't necessarily a bad thing, investors can do quite well buying good companies at fair value. I think TFII fits that bill here. It is reasonable priced, expected to grow at a 20%+ clip and while its 0.91% yield is not all that attractive, the dividend is well covered and growing at a double-digit rate.

All things considered, TFII is well positioned to outperform over the next few years.

Mat

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Posted by Mathieu Litalien
Answered on October 7, 2021 2:51 pm