I own this stock of TFI International (TSX-TFII, OTC-TFIFF). I read a report called "6 Canadian Dividend Stocks That Fly Under the Radar" by John Heinzl in April of 2013. This is one of the stocks mentioned. There was also a good review of this stock by Advice Hotline by MPL Communications. I bought this stock to replace DH Corp stock
This used to be an income trust. When it changed to a corporation, it cut its dividends by almost 75% in 2008. In 2011, it started to increase the dividends again. The average dividend increase over the past 5 years is over 10%.
Income Trust companies can payout a dividend higher than a corporation can. By cutting the dividend, they were able to get their dividend in a good payout ratio with EPS. The Dividend Payout Ratio for 2017 is 45% with 5 year coverage of 27%.
The Total Return is show below for years of 5 to 27. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See charts below. Shareholders have enjoyed some good returns over the years.
| Years | Div Gth | Tot Ret | Cap Gain | Div |
|---|---|---|---|---|
| 5 | 9.18% | 13.23% | 10.60% | 2.63% |
| 10 | -7.03% | 17.38% | 13.53% | 3.85% |
| 15 | -2.67% | 19.72% | 10.25% | 9.46% |
| 20 | 33.23% | 17.76% | 15.48% | |
| 25 | 18.67% | 12.66% | 6.01% | |
| 27 | 17.89% | 12.58% | 5.31% |
The 5 year low, median and high median Price/Earnings per Share Ratios are 15.72, 18.39 and 21.05. The corresponding 10 year ratios are 11.55, 14.34 and 17.12. The historical ones are 8.45, 11.23 and 13.45. The current P/E Ratio is 16.26 based on a stock price of $37.24. This stock price testing suggests that the stock price is relatively reasonable, but above the median.
I get a Graham Price of $28.60. The 10 year low, median and high median Price/Graham Price Ratios are 0.80, 1.14 and 1.33. The current P/GP Ratio is 1.30 based on a stock price of $37.24. This stock price testing suggests that the stock price is relatively reasonable, but above the median.
I get a 10 year median Price/Book Value per Share of 1.89. The current P/B Ratio is 2.35 based on Book Value of $1,415M, Book Value of $15.88 and a stock price of $37.24. The current ratio is some 24% above the 10 year ratio. If the current ratio is more than 10% above the 10 year ratio, then the stock is considered expensive. This stock price testing suggests that the stock price is relatively expensive.
I get an historical median dividend yield of 3.79%. The 5 and 10 median dividend yields are 2.43% and 2.75%. This used to be income trust company and income trust companies can afford much higher yields than corporations. If you use the 5 and 10 year median dividend yields, the current dividend yield of 2.26% is some 7% and 18% lower. The current dividend yield is based on dividends of $0.84 and a stock price of $37.24. This stock price testing suggests that the stock price is relatively reasonable, but above the median to expensive.
The 10 year median Price/Sales (Revenue) Ratio is 0.55. The current P/S Ratio is 0.67 based on 2018 Revenue estimate of $4,918M, Revenue per Share of $55.18 and a stock price of $37.24. The current ratio is some 24% higher than the 10 year median ratio. If the current ratio is more than 10% above the 10 year ratio, then the stock is considered expensive. This stock price testing suggests that the stock price is relatively expensive.
When I look at analysts' recommendations I find Strong Buy (1), Buy (9) and Hold (3). The consensus recommendations would be a Buy. The 12 month stock price consensus is $39.62. This implies a total return of 8.65% with 6.39% from Capital Gains and 2.26% from dividends based on a current price of $37.24.
Will Ashworth on Motley Fool gives 3 reasons to own this stock. The company announces 2018 first quarterly results on Globe News Wire. Terence Moore on STMV News gives this stock a Piotroski F-Score of 5 for financial strength where 1 is low and 9 is high. Ingrid Hart on Simply Wall Street says that the company can afford and cover its debt load. See what analysts are saying about this company on Stock Chase. They mostly like it.
TFI International Inc. provides transportation and logistics services. Its activities include package and courier, less-than-truckload, truckload and logistics. Its web site is here TFI International Inc.
The last stock I wrote about was about was McCoy Global Inc. (TSX-MCB, OTC-MCCRF)... learn more. The next stock I will write about will be Power Financial Corp. (TSX-PWF, OTC-POFNF)... learn more on Monday, May 7, 2018 around 5 pm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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