Q: Is it too late to sell TFII? It continues to fall and I wonder what will reverse its fotune. I presume if tariffs land softer than assumed right now or when TFII reports in April. Would you hold and wait until say the next April report and reassess based on what management says at that point?
5i Research Answer:
Yes; TFII has been beaten up badly as investors fear a recession. But in past cycles it has managed economic volatility quite well. The balance sheet is OK (some leverage) and consensus does still call for EPS growth over the next two years (this of course could change). But it has been profitable every year since 1997, including the financial crisis and pandemic. It will get through this 'crisis'.