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Summary
- As coronavirus cases continue to rise in Canada, the logistics industry is set to play an instrumental role in ensuring the flow of goods.
- This brings some logistics stocks to the limelight, such as TFI International Inc (TSX:TFII) and Mullen Group Ltd (TSX:MTL) stocks.
- In the last three months, TFI International's stock shot up by about 46 per cent.
As coronavirus cases continue to rise in Canada, the logistics industry is set to play an instrumental role in ensuring the flow of goods, vaccines and other essential items in such turbulent times. This brings some logistics stocks to the limelight, such as TFI International Inc (TSX:TFII) and Mullen Group Ltd (TSX:MTL) stocks.
The logistics industry remains an integral part of the supply chain management, and on that note, let’s explore the profiles of these two transportation stocks.
TFI International Inc. (TSX:TFII)
TFI International, a leading transportation and logistics enterprise in North America, acquired Ontario-based Fleetway Transport in February this year.
In the last three months, TFI International's stock grew by 46.3 per cent. Its one-year growth stands at about 186 per cent.
One-year stock performance of TFI International (Source: EODHD/Others/Thomson Reuters)
The C$ 8.9-billion market cap company has a price-to-book (P/B) ratio of 3.99 and a price-to-earnings (P/E) ratio of 21.1, as per TMX. TFI International posts a return on equity (ROE) of 19.15 per cent.
On the dividend front, the logistics firm distributes a quarterly dividend of US$ 0.23.
The Montreal-based company posted a revenue of US$ 1.1 billion in Q4 2020, up from US$ 989 million in Q42019. Its adjusted EBITDA increased to US$ 193.5 million in the latest quarter, up from that of US$ 163.4 million in Q4 2019.
TFI’s net income from continuing operations shot up to US$ 86.3 million in 2020’s fourth quarter, a notable jump from US$ 58 million in Q4 2019.
Mullen Group Ltd (TSX:MTL)
Canadian company Mullen Group offers various trucking and logistics services in the country and it is said to be expanding its business via acquisitions.
Mullen acquired Badstra Group of Companies and its transportation business earlier in April in a move that will help the company increase its presence in British Columbia. Back in March, Mullen had also announced the acquisition of APPS Transport Group.
According to TMX data, the C$-1.3 billion company’s P/B ratio stands at 1.459 and its ROE is a 7.05 per cent at the moment.
Mullen stock skyrocketed by about 178 per cent in last one year. Its year-to-date (YTD) growth is 23.7 per cent.
One-year stock performance of Mullen Group (Source: EODHD/Others/Thomson Reuters)
In Q4 2020, Mullen's net income grew 20.2 per cent year-over-year (YoY) to C$ 10.1 million. Its revenue, on the other hand, was down by 5.4 per cent to C$ 297.7 million in the latest quarter.
The logistics services provider’s annual net cash from operating activities increased to C$ 224.8 million in 2020, up by 31.8 per cent YoY from 2019.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
