TFII CN

TFI International, Inc.

Industrial/Transportation


Presented:03/12/2018
Price:CA$33.33
Cap:$2.45B
Current Price:CA$192.00
Cap:$12.99B

Presented

Date03/12/2018
PriceCA$33.33
Market Cap$2.45B
Ent Value$3.57B
P/E Ratio18.82x
Book ValueCA$14.95
Div Yield2.52%
Shares O/S92.13M
Ave Daily Vol232,748
Short IntN/A

Current

PriceCA$192.00
Market Cap$12.99B
TFI International, Inc. provides freight transportation and logistics services. It operates through the following segments: Package & Courier, Less-Than-Truckload, Truckload, and Logistics Services. The Package & Courier segment engages in pickup, transport, tracking and delivery of items across North America. The Less-Than-Truckload segment offers pickup, consolidation, transport and delivery of smaller loads. The Truckload segment includes expedited transportation, flatbed, container and dedicated services. The Logistics segment provides logistics services. The company was founded on March 28, 2008 and is headquartered in Saint-Laurent, Canada.

Publicly traded companies mentioned herein: FedEx Inc (FDX), Heartland Express Inc (HTLD), Knight-Swift Transportation Holdings Inc (KNX), TFI International Inc (TFII CN), Werner Enterprises Inc (WERN), XPO Logistics Inc (XPO)

Highlights

The presenter is optimistic about the potential for Canadian trucking and logistics company TFI International (TFII CN; formerly known as TransForce) to execute a turnaround of its US truckload (“TL”) operations, and is long the stock. He views the risk/reward as favorable in the low C$30s with upside potential possible - due to strong industry dynamics - even if the company-specific initiatives to improve operating margins fall short of expectations. With a base case 2018 EPS forecast of C$2.00, and 60 - 70 cents (CAD) of benefit to be had from operating margin improvement, the stock is cheap relative to the peer group. Additionally, he opined that potential catalysts such as a US listing or breakup of the company may provide optionality. Overall, patient shareholders could see 50% - 70% upside over an 18 - 24 month holding period if his thesis proves to be accurate.

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Idea Discussion

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