TFI International

The business

TFI International is a diversified North American transportation and logistics company spanning less-than-truckload (LTL, including US carrier TForce Freight), truckload, package & courier, and logistics/last-mile services.

Growth is powered by disciplined, cash-funded acquisitions and relentless focus on operating ratio, pricing and asset productivity; the company reports in US dollars.

The moat

Density and network scale in LTL — a business with high fixed costs and terminal-based barriers to entry — give incumbents durable cost advantages.

A rare, proven M&A-and-turnaround engine: management repeatedly buys underperforming carriers and lifts their margins, compounding per-share cash flow.

Diversification across freight modes cushions any single sub-market's downturn.

Financial snapshot

Most recent reported period : Q2 FY2026 (ended Jun 30, 2026). Figures reflect the review date — confirm current numbers before acting.

Free cash flow yield & sustainable growth

Free cash flow yield : ≈5.5% (est.)TTM free cash flow of ~US$659M divided by a market cap of ~US$12.0B (C$16.4B converted at ~1.37) ≈ 5.5%. Estimated because it involves a CAD/USD conversion of the market value.

Strong free-cash generation (~US$659M TTM) funds acquisitions, buybacks and the dividend; capital allocation is a core part of the return story.

Sustainable growth depends on a freight-cycle recovery lifting volumes and pricing, plus continued accretive M&A and margin repair at TForce Freight — Q2's ~39% net-income jump hints the trough may be passing.

See the full free-cash-flow yield ranking →

Valuation & what to watch

Reported figures are in USD; on TTM FCF of ~US$659M against a ~US$12.0B market value the FCF yield is roughly 5.5%.

At ~34x trailing GAAP earnings the multiple looks high, but it reflects a depressed, trough-earnings denominator after a multi-year freight recession — normalized on mid-cycle earnings the valuation is more moderate.

Dividend

Pays US$2.64 per share annually (yield ~1.39%). A steadily growing dividend, but capital allocation leans toward acquisitions and buybacks; the payout ratio is modest and well-covered by free cash flow.

Risks & the bear case

• Highly cyclical: freight demand, spot rates and industrial activity drive results, and the sector is only tentatively emerging from a prolonged downturn.
• Heavy US revenue exposure adds FX and US-economic sensitivity; integration risk from a very acquisitive strategy (notably TForce Freight's margin recovery) is real.
• Elevated GAAP P/E on trough earnings means the stock could de-rate if a freight recovery stalls.

Recent developments

Q2 FY2026 beat expectations with ~12% revenue growth, ~39% higher net income and adjusted EPS of US$1.85 versus ~US$1.59 consensus.

The stock has rallied strongly over the past year (market cap ~+62%) as investors anticipate a freight-cycle recovery and TForce margin gains.

Verdict

TFI is a best-in-class capital allocator in a brutally cyclical industry, with a track record of buying and fixing trucking assets and converting earnings into free cash. The Q2 beat suggests the freight trough is lifting, which supports the case — but the headline P/E sits high precisely because earnings are still depressed, so the thesis rests on a cyclical recovery actually materializing. A cyclical compounder to judge on normalized, not spot, earnings. CoinCompass is a publisher, not an investment adviser.