Q: I am considering taking a position in this company. Your overall thoughts on the company would be appreciated and as well is this a good time to start a position? Thank You.
5i Research Answer:
TFII is one of the largest Less-Than-Truckload (LTL) companies In Canada, the company is now trading at 16x times' Forward P/E. We have liked the company and management team for a while, we think this is one of the most well-managed companies in the industry, with strong revenue growth (5-year revenue growth of around 16%) and aggressive share repurchase over the years. The overall industry is currently in a downturn due to volume and prices charged coming down (from the industry’s significant tailwind during the pandemic). Its peer company KNX reported its earnings recently indicating a-better-than-expected operating result, which bodes well for TFII. Overall, we like the company and view it as a BUY for growth.