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Stockchase Opinions

Ryan BushellToromont IndustriesTIH.TOCOMMENTAug 18, 2020

A very well run company with a pristine track record. It pays a low yield, and he looks for higher ones. He needs a sustained income. If the company pays a low yield, you expect the company to somehow raise its share price. Tailwinds for TIH are rising infrastructure spends in Quebec and Ontario plus a mining boom especially in gold. He has never found the right entry point for TIH, but he won't object if you buy it.
$73.50

Stock price when the opinion was issued

$239.00

As of Jun 19, 2026. Market Open.

machinery
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DON'T BUY

It's been stuck in consolidation for 3 years, failing to break above $110 a few times. If it falls back to $100, it could be worth a trade. Otherwise, he's cool towards it.

COMMENT

The question was on his preference between Toromont or TFI International. Although Toromnt is good he prefers TFI which has been a great stock and huge performer. It has great management which has deployed capital very well and made smart acquisitions. There is more upside.

BUY ON WEAKNESS

Eastern Canada Caterpillar dealer.
Very strong company.
Used to own shares in company.
Valuation full at the moment.
Wait for shares to fall before buying. 

Unspecified

There is not great growth in the industry of heavy equipment but it has good management making good acquisitions. It is less exposed to the commodity cycle than Finning. He likes it but doesn't own it.

BUY
It's the time for industrials, from late January into early May. TIH could do well in February. The chart shows higher lows, which is good.
BUY ON WEAKNESS
We're in a recessionary timeframe right now, so companies that provide heavy equipment tend not to do well. Higher recurring revenues from maintenance, so they've been able to hold their own. Refrigeration unit is struggling, but backlog continues to grow. Low $90s a good time to buy.
PAST TOP PICK
(A Top Pick Feb 03/21, Up 58%) Continues to like the name. Fits peanut butter & chocolate play (intersection of industrial and materials business). Will continue to hold.
PAST TOP PICK
(A Top Pick Apr 08/22, Down 13%) Disappointing. Concerns on slowdown of the economy. 40% of revenue comes from maintenance and support, so it's less cyclical than others. Still likes its fundamentals. Good backlog. Should benefit from government infrastructure spend during a slowdown.
TOP PICK
Very difficult to get construction equipment given supply chain disruptions - creating opportunity for business. Back -log at record high with improving margins and strong earnings/revenue. Pristine balance sheet with no debt and net cash. Likely will see company increase M&A activity. Strong management team with good track record of capital allocation.
BUY
Distributes Caterpillar and heavy equipment. It is conservatively managed and financed and has been a perennial out-performer with dividend growth. Some cyclicality but less than producers since they are dealerships. It is asset light so has lower costs.
BUY
Long term investment and owned since 1998. Up 28% YTD, 23% for 5 Years and 16% the last 15 years. Above average growth rates because is oligopoly. Covers most of Eastern Canada. Current assets greater than current liabilities. Great management team and returns continue to grow. Dividend has averaged around 14% growth per year.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company looks pretty good today. The valuation is now down slightly although the fundamentals remain sound. A good buying opportunity. Cash balance has increased and it continues to grow its equity position.EPS is projected to grow quite nicely. Unlock Premium - Try 5i Free

TOP PICK
One of his favourite companies in Canada. Lower risk. Hold it for the long term. A first-class business. The CEO delivers beat after beat, sometimes by a wide margin. Lower risk. Yield is 1.30%. (Analysts’ price target is $112.67)
BUY
Just had a great quarter. The company just keeps chugging. This name keeps getting better. Beat earnings by 20% and 26% up YoY. Backlog is at record levels, and anticipated recovery. Excellent balance sheet with capital ready to deploy for acquisitions. Modelling 21% EPS growth. Trades at 24x. Bought after earnings and you can continue to build positions into this name.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The latest earnings were solid with EPS beating estimates by 19% at 58 cents. Sales were $806M. They raised their dividend by 13% and sales also rose the same percentage point. The balance sheet is strong and growth forecasts remain strong. Not cheap at 27x earnings, but looks solid. Unlock Premium - Try 5i Free