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  5. TFII: Good Morning. [TFI International Inc.]
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Investment Q&A

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Q: Good Morning. Have looking for an entry into TFII. Based on what I have seen analyst are forecasting good earning growth over the next three years and with a current PE below 19, the future prospects seem good. I guess the overhang of a possible recession would put a damper on everything. Any perspective to help me assess risk reward into TFII would be appreciated. 3-5 years time horizon.

Thank you,
Frank
Asked by Francisco on June 24, 2025
5i Research Answer:

TFII guided lower earlier this year and essentially said it was in a 'frieght recession'. The guidance and comment really changed sentiment, as investors worried about a big slowdown. The stock has bounced off the lows, but is still down 36% on the year. TFII did say it passed on an acquisition. It does typically take advantage of slowdowns to buy businesses. Guidance still calls for a bit of EPS growth this year, with a big recovery expected in 2026. But it has missed six of eight quarters. We like it, but don't see a big rush to buy. It is the type of stock that can move quickly on sentiment, however. But we think the company will play it conservatively for awhile, pending the outcomes of tariffs and other factors. If buying, we think we would start with just a 1/4 position. It has seen P/Es as low as 15X historically.