TFI International Inc. Common Shares (TFII)
CyclicalFairStock Score: 35/100 — MIXED
Key Financials
| Current Price | $141.15 |
| Market Cap | $11.3B |
| P/E Ratio | 39.32 |
| ROE | 11.26% |
| Dividend Yield | 1.15% |
| Sector | Industrials |
Strengths
- Generates $645 million in annual free cash flow (5.7% yield on market cap)
- Solid return on equity of 11.6% above cost of capital
- Established organization with 24,900 employees providing operational scale
Concerns
- Trades significantly above Graham Number ($52) with negative 163% margin of safety—limited downside protection
- Revenue declining at 7.8% year-over-year signals potential demand weakness or market share loss
AI Analysis
TFI International Inc. Common Shares is a mid-cap industrials company valued at $11.3 billion. The business generates $7.9 billion in annual revenue with a 0.9% net margin and $645 million in free cash flow. From a quality standpoint, TFI shows Altman Z-Score of 2.1 in the grey zone and adequate 12% ROE. On valuation, the stock is trading at a premium 37.1x earnings, with trades far above its Graham Number ($52) with no margin of safety. Growth dynamics show revenue growing at -7.8% and profit growth of -14.6%. The 1.4% dividend yield adds an income component for patient holders. Our composite FairStock Score of 35/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $645 million in annual free cash flow (5.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
At 37x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Sluggish -8% growth in a large-cap company leaves the stock vulnerable to de-rating if the market rotates toward higher-growth opportunities.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer