Canada markets closed
  • S&P/TSX

    -36.37 (-0.16%)
  • S&P 500

    -39.59 (-0.71%)
  • DOW

    -377.49 (-0.93%)

    -0.0016 (-0.22%)

    -2.57 (-3.10%)
  • Bitcoin CAD

    +3,374.18 (+3.83%)
  • CMC Crypto 200

    +42.82 (+3.22%)

    -53.60 (-2.18%)
  • RUSSELL 2000

    -13.94 (-0.63%)
  • 10-Yr Bond

    +0.0500 (+1.19%)

    -144.28 (-0.81%)

    +0.59 (+3.70%)
  • FTSE

    -49.17 (-0.60%)
  • NIKKEI 225

    -62.56 (-0.16%)

    -0.0003 (-0.04%)

Is TFI Stock a Buy as It Re-approaches All-Time Highs?

Person slides down a stair handrail
Image source: Getty Images

Written by Amy Legate-Wolfe at The Motley Fool Canada

Shares of TFI International (TSX:TFII) continue to climb higher and higher. In fact, shares of the transportation and logistics company passed all-time highs this year, and are creeping back! TFI stock has seen its shares jump 37% in the last year, but still offer a bit of wiggle room. That’s because shares are still down from all-time highs, down by about 12% as of writing.

So, is it time to buy TFI stock as it gets closer to all-time highs?


To determine whether TFI stock is a buy, let’s first go over its earnings and financial health. TFI stock reported robust earnings for the first quarter of 2024. The company posted net income of $147.4 million, or $1.69 per diluted share, which represents a significant year-over-year increase. Revenue for the quarter was $2.1 billion, reflecting both organic growth and contributions from recent acquisitions.


Furthermore, key factors driving this performance include strong operational execution, cost management, and the successful integration of acquired businesses. The company’s focus on high-margin segments, particularly in less-than-truckload (LTL) and logistics, has paid off.

Then there’s the company’s balance sheet. TFI stock maintains a healthy balance sheet with manageable debt levels and strong cash flow generation. This financial stability allows the company to invest in growth opportunities and return capital to shareholders through dividends and share buybacks.


Even though TFI stock is hitting all-time highs, or at least surging back, that doesn’t mean it isn’t valuable. In fact, reaching highs merely reflects strong investor confidence following its recent earnings report. Over the past year, the stock has seen a steady upward trajectory, driven by consistent earnings growth and positive market sentiment.

What’s more, the price-to-earnings (P/E) ratio for TFI International is currently 24.9, which is reasonable considering the company’s growth prospects. This valuation is in line with industry peers and suggests that the stock is not overly expensive.

Add in that TFI stock also has a dividend yield currently at 1.2%. While not high, it indicates a commitment to returning value to shareholders. The dividend is well-supported by the company’s earnings and cash flow.


This is all well and good for now, but what about the future? The logistics and transportation industry is poised for continued growth, driven by increasing e-commerce activity, supply chain optimization, and economic recovery. TFI International, with its diversified service offerings and strong market position, is well-positioned to capitalize on these trends.

Furthermore, TFI International continues to pursue strategic acquisitions to enhance its market presence and service capabilities. The company’s disciplined approach to mergers and acquisitions has historically resulted in value-accretive deals. Add in its scale, efficiency, and investments in technology, and it certainly looks like a strong stock to consider.

Bottom line

So, is TFI stock a buy even at these heights? TFI stock has demonstrated strong financial performance, effective cost management, and successful execution of its growth strategy. The company’s healthy balance sheet, reasonable valuation, and positive industry outlook further support the investment case.

Yet, of course, there are always other factors to consider. Potential risks include macroeconomic uncertainties, regulatory changes, and integration challenges related to acquisitions. Yet given the recent strong earnings, positive industry outlook, and reasonable valuation, TFI International stock appears to be a good buy even at all-time weekly highs.

The post Is TFI Stock a Buy as It Re-approaches All-Time Highs? appeared first on The Motley Fool Canada.

Should you invest $1,000 in Tfi International right now?

Before you buy stock in Tfi International, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tfi International wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $17,363.76!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 26 percentage points since 2013*.

See the 10 stocks * Returns as of 6/3/24

More reading

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.