Breaking Down TFI International Inc. (TFII) Financial Health: Key Insights for Investors

Are you keeping a close eye on your investments in the transportation and logistics sector? Have you been wondering how TFI International Inc. (TFII) is navigating the current economic landscape? In 2024, the company reported a revenue of $8.40 billion and a net income of $422.5 million, but how do these figures truly reflect the company's financial health? With operating income at $151.6 million in the first quarter, compared to $166.4 million in the same quarter last year, and a diluted EPS of $1.09, down from $1.27 in Q1 2023, is TFII on solid ground, or are there challenges ahead that investors should be aware of? Let's delve into the key insights that can help you make informed decisions.

TFI International Inc. (TFII) Revenue Analysis

TFI International Inc. (TFII) operates with a diverse range of revenue streams, primarily categorized by its various operating segments. These segments include Package and Courier, Less-Than-Truckload (LTL), Truckload, and Logistics. Understanding the contribution of each segment is crucial for investors to gauge the company's overall financial health and strategic direction. For more in-depth insights, you might find this resource helpful: Exploring TFI International Inc. (TFII) Investor Profile: Who’s Buying and Why?

Analyzing the year-over-year revenue growth rate provides insights into TFI International Inc.'s (TFII) performance and market position. Fluctuations in these rates can indicate the impact of economic conditions, strategic acquisitions, or operational efficiencies. Monitoring these trends helps investors assess the company's ability to sustain growth and adapt to changing market dynamics.

The contribution of different business segments to TFI International Inc.'s (TFII) overall revenue highlights the strengths and dependencies within the company's operational structure. Examining these contributions helps in understanding which segments are driving growth and which may require strategic adjustments.

Here's a breakdown of what to consider when analyzing TFI International Inc.'s (TFII) revenue streams:

• Package and Courier: Revenue generated from the delivery of small packages and courier services.
• Less-Than-Truckload (LTL): Revenue from transporting smaller freight loads that do not require a full truckload.
• Truckload: Revenue derived from transporting full truckloads of freight for single customers.
• Logistics: Revenue from providing a range of logistics services, including freight management, warehousing, and distribution.

Investors should also be aware of any significant changes in TFI International Inc.'s (TFII) revenue streams, which may stem from acquisitions, divestitures, or shifts in market focus. These changes can have a substantial impact on future revenue and profitability.

A detailed look at TFI International Inc.'s (TFII) revenue streams involves assessing the percentage of total revenue each segment contributes. Understanding these proportions helps investors identify the core drivers of the company's financial performance.

To illustrate, consider a hypothetical breakdown (note: this is for illustrative purposes and not actual data):

Analyzing historical data and trends in these percentages can reveal important insights into TFI International Inc.'s (TFII) strategic shifts and operational effectiveness. For example, a growing logistics segment might indicate a strategic move towards integrated supply chain solutions, while a decline in truckload revenue could signal changing market conditions or competitive pressures.

TFI International Inc. (TFII) Profitability Metrics

Understanding TFI International Inc.'s profitability involves examining several key metrics that provide insights into its financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins. Analyzing these figures over time and comparing them with industry averages helps investors gauge the company’s performance and competitive positioning.

Here’s a breakdown of TFI International Inc.'s profitability metrics based on the 2024 fiscal year data:

• Gross Profit: Gross profit is the revenue remaining after deducting the cost of goods sold (COGS). It indicates how efficiently a company manages its production costs. For TFI International Inc., monitoring the trend in gross profit helps assess its ability to control these costs and maintain pricing power.
• Operating Profit: Operating profit is calculated by subtracting operating expenses (such as administrative and sales costs) from gross profit. This metric reflects the profitability of the company’s core business operations before interest and taxes.
• Net Profit: Net profit, often referred to as the bottom line, is what remains after all expenses, including interest and taxes, have been deducted from total revenue. The net profit margin, which is net profit divided by total revenue, provides a clear picture of the company's overall profitability.

To provide a clearer picture, here's a hypothetical overview of TFI International Inc.'s profitability metrics for the 2024 fiscal year. Please note that the following table contains fictional data for illustrative purposes only.

Evaluating trends in TFI International Inc.'s profitability over several periods offers valuable insights. Consistent growth in gross profit and operating profit margins suggests improving operational efficiency and effective cost management. However, a decline in these margins may indicate rising costs, increased competition, or pricing pressures.

Comparing TFI International Inc.'s profitability ratios with industry averages is crucial for benchmarking its performance. If the company’s gross and operating margins are higher than the industry average, it may indicate a competitive advantage. Conversely, lower margins may signal areas needing improvement.

Analysis of operational efficiency involves examining how well TFI International Inc. manages its costs and assets to generate profits. Key areas to consider include:

• Cost Management: Efficient cost management is vital for maintaining and improving profitability. Analyzing the company’s ability to control operating expenses and cost of goods sold provides insights into its operational effectiveness.
• Gross Margin Trends: Monitoring gross margin trends helps assess the company’s pricing strategy and its ability to pass on cost increases to customers. A rising gross margin typically indicates stronger pricing power or improved cost efficiencies.

For more insights into the company's guiding principles, consider exploring: Mission Statement, Vision, & Core Values of TFI International Inc. (TFII).

TFI International Inc. (TFII) Debt vs. Equity Structure

Understanding how TFI International Inc. (TFII) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and overall approach to balancing debt and equity funding.

As of December 31, 2024, TFI International Inc. (TFII) reported the following debt figures:

• Total long-term debt: $2.372 billion
• Short-term debt: $144.445 million

The debt-to-equity ratio is a key metric for assessing a company's financial leverage. As of the most recent data, TFI International Inc. (TFII)'s debt-to-equity ratio can be calculated using the total liabilities and shareholders' equity figures from their balance sheet. The most recent debt-to-equity ratio for TFI International Inc. (TFII) is approximately 1.04. This ratio indicates that TFI International Inc. (TFII) has about $1.04 in debt for every $1 of equity.

Here is a table summarizing the key components used to derive the debt-to-equity ratio:

Recent activities, such as debt issuances, credit ratings, or refinancing, can significantly impact TFI International Inc. (TFII)'s financial structure. For instance, in early February 2024, TFI International Inc. (TFII) successfully refinanced and upsized its existing credit facilities. The new $1.1 billion senior secured credit facility includes a $900 million term loan and a $200 million revolving credit facility. This refinancing extends the maturity date to February 4, 2029, providing the company with enhanced financial flexibility.

Balancing debt and equity is vital for sustainable growth. TFI International Inc. (TFII)'s approach includes strategic debt refinancing to manage interest expenses and extend maturity dates, alongside utilizing equity to fund acquisitions and support operational needs. The company’s financial strategy aims to maintain a healthy balance sheet, ensuring it can invest in growth opportunities while managing financial risk effectively. You might also be interested in: Mission Statement, Vision, & Core Values of TFI International Inc. (TFII).

TFI International Inc. (TFII) Liquidity and Solvency

Assessing TFI International Inc.'s (TFII) financial health involves a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency concerns its ability to meet long-term obligations.

Here's an overview of TFII's liquidity, working capital, and cash flow trends, as of the end of fiscal year 2024:

• Current Ratio: A measure of a company's ability to pay short-term obligations, TFII's current ratio as of December 31, 2024, was 1.03.
• Quick Ratio: This ratio, which excludes inventory from current assets, stood at 1.02 as of December 31, 2024.

These ratios suggest that TFI International Inc. has sufficient liquid assets to cover its short-term liabilities.

Here's a look at how the current and quick ratios have trended over the recent quarters:

An analysis of TFI International Inc.'s working capital trends reveals the following:

• The Net Current Asset Value for December 2024 is reported as $ -3.44B.

This indicates that TFI International Inc. has negative net working capital, which could signal potential liquidity issues if not managed carefully.

Below is an overview of TFI International Inc.'s cash flow statements, highlighting operating, investing, and financing cash flow trends for the year 2024:

• Operating Cash Flow: For the year ending December 31, 2024, TFI International Inc.'s operating cash flow was $1.06B, a 4.81% increase year-over-year.
• Investing Cash Flow: The investing cash flow for the same period was -$1.24B.
• Financing Cash Flow: The financing cash flow was -$164.43M.

TFI International Inc. generated over $260 million of net cash from operating activities and over $200 million of free cash flow in the fourth quarter of 2024. The full-year free cash flow was more than $750 million for the third year in a row.

Navigate through TFI International Inc.'s (TFII) strategic vision and values. Discover more about: Mission Statement, Vision, & Core Values of TFI International Inc. (TFII).

TFI International Inc. (TFII) Valuation Analysis

Assessing whether TFI International Inc. (TFII) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and expert opinions.

Key Valuation Ratios:

• Price-to-Earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of TFI International Inc.'s earnings.
• Price-to-Book (P/B) Ratio: The P/B ratio compares TFI International Inc.'s market capitalization to its book value, offering insights into whether the stock is trading at a premium or discount to its net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares TFI International Inc.'s enterprise value (total market value plus debt minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA), providing a valuation measure that is independent of capital structure and accounting policies.

Recent data shows the following valuation metrics for TFI International Inc. (TFII):

Stock Price Trends:

Analyzing TFI International Inc.'s stock price trends over the past year provides a view of market sentiment and investor confidence. As of April 18, 2025, TFI International Inc. (TFII) is trading at $135.18. The stock has shown some volatility, with a 52-week range between $94.54 and $141.88. Monitoring these trends helps investors gauge potential entry and exit points.

Dividend Yield and Payout Ratios:

For investors seeking income, dividend yield and payout ratios are crucial. TFI International Inc. (TFII) offers a dividend, providing a yield of approximately 1.19%. The annual dividend amount is $1.61 per share. The payout ratio, which indicates the proportion of earnings paid out as dividends, can offer insights into the sustainability of dividend payments.

Analyst Consensus:

Analyst ratings provide a consolidated view of expert opinions on TFI International Inc.'s stock. The consensus rating is based on evaluations from multiple analysts, typically categorized as buy, hold, or sell. According to recent data, the consensus among analysts is to buy TFI International Inc. (TFII), with a price target suggesting potential upside. As of April 16, 2025, the consensus estimate for TFI International Inc. (TFII) is $148.86.

Discover more about TFI International Inc. (TFII) investors: Exploring TFI International Inc. (TFII) Investor Profile: Who’s Buying and Why?

TFI International Inc. (TFII) Risk Factors

Understanding the risks that TFI International Inc. (TFII) faces is crucial for investors. These risks can stem from both internal and external factors, impacting the company's financial health and future performance. Some of the key risks include industry competition, regulatory changes, and overall market conditions.

Here's an overview of potential risks:

• Industry Competition: The transportation and logistics industry is highly competitive. TFII faces competition from various players, including large multinational corporations and smaller regional companies. Intense competition can pressure pricing and margins, affecting profitability.
• Regulatory Changes: Changes in transportation regulations, environmental laws, and labor laws can significantly impact TFII's operations. Compliance with new regulations may require substantial investments and could increase operating costs.
• Market Conditions: Economic downturns, fluctuations in fuel prices, and shifts in trade policies can all affect the demand for transportation services. A decline in economic activity can reduce shipping volumes, impacting TFII's revenue.

To provide a clearer picture, consider the following potential risk factors that might be detailed in TFI International Inc.'s (TFII) recent earnings reports or filings:

• Operational Risks: These include risks related to the company's ability to manage its operations efficiently, such as maintaining service quality, managing its workforce, and ensuring the safety and security of its shipments.
• Financial Risks: These involve risks related to the company's financial structure, such as debt levels, access to capital, and the ability to manage cash flow. Fluctuations in exchange rates can also pose a financial risk for companies with international operations.
• Strategic Risks: These pertain to risks associated with the company's strategic decisions, such as acquisitions, expansions, and investments in new technologies. There is always a risk that these initiatives may not deliver the expected returns.

Mitigation strategies are essential for managing these risks. While specific strategies can vary, common approaches include:

• Diversification: Expanding into different markets and service offerings can reduce the company's reliance on any single area.
• Operational Efficiency: Improving efficiency through technology and process optimization can help to lower costs and improve profitability.
• Risk Management Programs: Implementing comprehensive risk management programs to identify, assess, and mitigate potential risks.

For further insights into TFI International Inc.'s (TFII) investor profile, explore Exploring TFI International Inc. (TFII) Investor Profile: Who’s Buying and Why?

TFI International Inc. (TFII) Growth Opportunities

TFI International Inc. (TFII) exhibits promising future growth prospects driven by strategic acquisitions, market expansions, and innovative service offerings. These factors collectively contribute to the company's potential for increased revenue and earnings.

Key growth drivers for TFI International Inc. (TFII) include:

• Strategic Acquisitions: TFI International Inc. (TFII) has a track record of successful acquisitions, which have expanded its service offerings and geographic reach. These acquisitions enable the company to enter new markets and enhance its existing capabilities.
• Market Expansion: TFI International Inc. (TFII) continues to expand its presence in key markets, both organically and through acquisitions. This expansion allows the company to capitalize on growing demand for transportation and logistics services.
• Service Innovation: TFI International Inc. (TFII) is focused on developing and implementing innovative service offerings, such as advanced tracking and tracing technologies, to meet the evolving needs of its customers.

While specific future revenue growth projections and earnings estimates for TFI International Inc. (TFII) can vary based on market conditions and company performance, analysts generally anticipate continued growth in the coming years. These projections are based on the company's historical performance, current market trends, and strategic initiatives.

Strategic initiatives and partnerships that may drive future growth include:

• Technology Investments: TFI International Inc. (TFII) is investing in technology to improve operational efficiency, enhance customer service, and develop new service offerings.
• Sustainability Initiatives: TFI International Inc. (TFII) is implementing sustainability initiatives to reduce its environmental impact and meet the growing demand for environmentally friendly transportation solutions.
• Strategic Partnerships: TFI International Inc. (TFII) is forming strategic partnerships with other companies to expand its service offerings and geographic reach.

TFI International Inc. (TFII) possesses several competitive advantages that position it for future growth:

• Diversified Service Offerings: TFI International Inc. (TFII) offers a wide range of transportation and logistics services, which reduces its reliance on any single market or service.
• Extensive Network: TFI International Inc. (TFII) has an extensive network of terminals and equipment, which allows it to efficiently serve customers across North America.
• Experienced Management Team: TFI International Inc. (TFII) has an experienced management team with a proven track record of success.

For further insights into the company's mission, vision, and core values, you can explore: Mission Statement, Vision, & Core Values of TFI International Inc. (TFII).