NFI Group Inc (TSE:NFI): The Best Of Both Worlds

I’ve been keeping an eye on NFI Group Inc (TSE:NFI) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe NFI has a lot to offer. Basically, it is a company with a a strong track record of performance, trading at a discount. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on NFI Group here.

Good value with proven track record

Over the past few years, NFI has demonstrated a proven ability to generate robust returns of 24% Unsurprisingly, NFI surpassed the Machinery industry return of 12%, which gives us more confidence of the company’s capacity to drive earnings going forward. NFI is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if NFI’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, NFI’s share price is trading below the group’s average. This further reaffirms that NFI is potentially undervalued.

TSX:NFI Income Statement Export November 4th 18

Next Steps:

For NFI Group, I’ve compiled three relevant aspects you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for NFI’s future growth? Take a look at our free research report of analyst consensus for NFI’s outlook.

2. Financial Health: Are NFI’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NFI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.