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How Do Analysts See TFI International Inc. (TSE:TFII) Performing In The Next 12 Months?

Simply Wall St

Since TFI International Inc. (TSE:TFII) released its earnings in December 2018, it seems that analyst expectations are fairly bearish, as a 5.0% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 27%. Presently, with latest-twelve-month earnings at CA$292m, we should see this growing to CA$307m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for TFI International in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.

See our latest analysis for TFI International

How is TFI International going to perform in the near future?

The view from 13 analysts over the next three years is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of TFII's earnings growth over these next few years.

TSX:TFII Past and Future Earnings, April 15th 2019

From the current net income level of CA$292m and the final forecast of CA$298m by 2022, the annual rate of growth for TFII’s earnings is 4.1%. EPS reaches CA$4.15 in the final year of forecast compared to the current CA$3.32 EPS today. However, the expansion of the current 5.7% margin is not expected to be sustained, as it begins to contract to 5.4% by the end of 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For TFI International, I've compiled three pertinent factors you should further examine:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  2. Valuation: What is TFI International worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TFI International is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of TFI International? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.