TFI International Inc (TFII.TO)

They just reported. The street likes their guidance. A former top pick of his and still owns it. It's well-positioned for the long term. There's a  huge different in their operating differential between Canada and the U.S. If they close that gap, their earnings will increase a lot. They just bought shares in a competitor, so maybe that's the first step in a full acquisition. Strong cash flow. They could increase their dividend, which is now modest, or increase buybacks.

It is an owner operated trucking company that is becoming an asset type of business, having made a great investment in buying a component from UPS. They are great asset allocators and could do 10 U.S. dollars per share in two years as well as see its share price reach $250 Canadian. An added attraction is that it will turn away business that is not profitable enough.

Owns shares and is one of few large caps that owns.
International trucking company that is very good a growing.
Very strong management team that is disciplined at capital allocation.
Will continue owning shares.
Lots of room for growth in the future.

(A Top Pick Jan 11/22, Up 11%) Pleased with economic performance. Supply chain bottlenecks have created large opportunity for company. Earnings slowing, but not a cyclical business. Very good at growing with very low costs. Not much debt with strong balance sheet.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Dividend raised. M&A growth needs time to be realized. Maintains strong ROE. Significant discount to peers. Unlock Premium - Try 5i Free

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research 10 acquisitions throughout 2021. Strong growth rates in LTL and Logistics. Outperformance led by acquisition of UPS. Continued growth in the e-commerce space. Valuation attractive relative to peers. Unlock Premium - Try 5i Free