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TSE:NFI

New Flyer Industries Inc. (NFI.TO)

22.69
-0.09 (0.40%)
as of Jun 19, 2026, 8:00:00 pm Market Open.
378 watching
0
WATCH
They are the second biggest bus manufacturer in North America. They made an excellent acquisition in Britain earlier in the year but had difficulties getting a new plant going, also. It is on his radar and once they get things going and things have turned, this will probably be a good name. He does not believe the dividend is in jeopardy.
WATCH
It's down 50% since its high. They made a big acquisition and there were problems that came out. However, they have an excellent reputation for delivering public transportation. He's watching it and waiting for the base to form before entering.
SELL
He's not sure why, but the chart is in a long-term downtrend since 2018. In contrast, the TSX has gone up while NFI has gone down. A year ago, he advised taking profits. Now, sell.
DON'T BUY
Earnings in the most recent four quarters have declined. In 2021 they expect an 8% decline in earnings.
WAIT
He use to to own them but sold earlier this year. The bus segment is eroding and new competitor from Europe is entering. Bus service is shrinking regionally. Transit is their area of growth and it is declining there as well. He would wait.
BUY
5.9% yield. He recently bought it. He has faith in it. It is not a cyclical stock. It's defensive and has a free cash flow. EV to EBITDA trades at 7x when it should be 10x. The price has dropped so much, so now is a good entry point.
BUY
He started purchasing in April of this year. You have to remember that there is the company and the stock market. It ran it up to $65 last year. Everyone ran to the exit with the 'R' recession word. About $30, it is tremendous value.
WEAK BUY

vs. Linamar This and Linamar have been cut in half as industrial stocks have been pressured. NFI is selling at 10x earnings, with Linamar at 5x. Both will recover, but he prefers Linamar because it's a stronger company. About NFI, politicians will buy buses, but when? (See his Top Picks for LNR.)

BUY
It's one of the cheapest TSX stocks. They made a few missteps, like order delays, but they will iron them out. They made a big UK acquisition. A good moat around it with few competitors. A very stable market for replacement buses. NFI also leads in e-buses. Trades at a low 10x PE. This will do well in the long run.
TOP PICK
It hasn't performed well lately; it'll bottom in the $20's. Likes it now, because they're positioned well in the bus sector. What's interesting is that they're branching away from diesel into electric buses--the future. They're ahead of the curve. It's not a large-cap stock, so don't throw a lot of money into it, but it's a good entry point now. (Analysts’ price target is $38.50)
TOP PICK
Continued urbanization will help NFI. Also, more people need public transit in North American cities. NFI is a leader in the zero-emissions electric buses and this space will continue to grow for years as cities want greener transportation. NFI has been pressured for the past year, because of lower guidance and orders. This is a great long-term opportunity. Pays a yield over 5% at a cash flow yield of 10%. (Analysts’ price target is $38.50)
PAST TOP PICK
(A Top Pick Aug 08/18, Down 47%) He sold and minimized his losses and kept the money in cash. He always uses stops. Don't buy it now.
WAIT
One problem is free cash flow is down 13%, and gross margins were down. Private coach business declining, parts business under pressure. Huge dividend for a cyclical company. Last numbers disappointed. Wait a bit for it to go sideways before putting money in.
WATCH

She expects them to be reporting earnings in the next couple of days. This bus manufacturing company has made a purchase in the UK for double-decker buses. This is not a great growth sector. She wants to see how the recent acquisition plays out.

SELL
It's in a long-term downtrend with strong resistance at $30. If markets re-accelerate, sell it--once it bounces back to $30, it will resume its downtrend. More downside is coming.
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