TFI International (TSX:TFII) Could Be 38% Undervalued On Strong Third Quarter Results

TFI International (TSX:TFII) just posted third quarter earnings that showed higher sales, revenue, and net income compared with a year earlier, along with a maintained dividend and no share repurchases in the recent buyback window.

The latest quarterly report landed against a tricky backdrop for TFI International, with the share price up 3.64% on the day to CA$140.06 but still down 27.42% over 90 days. However, the 1 year total shareholder return of 13.52% shows the longer term record has held up better than recent momentum suggests.

Scan beyond TFI International and evaluate transport and logistics peers with resilient balance sheets and stable fundamentals using our curated list of solid balance sheet and fundamentals (6 results) for comparison.

TFI International just bounced on its latest results, yet the share price is still well below where it traded 3 months ago. Has most of the easy upside already played out, or does the current valuation still leave meaningful room?

Most Popular Narrative: 38% Undervalued

On the most followed view of TFI International, a fair value of CA$225.49 is set against the latest close of CA$140.06. This points to a large gap that the narrative ties directly to earnings power and free cash flow assumptions.

Strong free cash flow generation, with more than US$440m year to date in 2026 and a lower funded debt to EBITDA ratio of 2.1x by September, gives TFI International room to continue dividends, evaluate buybacks and pursue tuck in M&A. This supports earnings per share and operating income even if freight volumes fluctuate.

See why 54 investors see TFI International as 38% undervalued.

Result: Fair Value of CA$225.49 (UNDERVALUED)

Still, U.S. LTL running near a 97% operating ratio, along with pressure from higher fuel and interest costs, could easily undermine the bullish TFI International narrative.

Find out about the key risks to this TFI International narrative.

Next Steps

Conflicted by both the bullish and cautious signals around TFI International? Act quickly, review the underlying metrics yourself, then weigh the 6 key rewards and 1 important warning sign.

Looking for more investment ideas beyond TFI International?

Do not stop with TFI International. Put today’s research to work by lining up fresh candidates that match your risk appetite, income needs, and return expectations.

• Target resilience first and stress test your portfolio against shocks by scanning a 9 resilient stocks with low risk scores built around companies with more defensive profiles.
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