TFI International (TSX:TFII) Stocks Soar 29% On UPS Freight Acquisition

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 TFI International (TSX:TFII) Stocks Soar 29% On UPS Freight Acquisition

Summary

  • Stocks of the TFI International soared north over its announcement to acquire UPS Freight.
  • TFI expects to complete its transaction with UPS in the next quarter. It is paying US$ 800 million for the acquisition.
  • The Toronto-based company holds a dividend yield of 1.78 per cent and distributed a dividend of C$ 0.29 per share in the latest quarter.
  • After completing this acquisition, TFI will among the largest transportation companies in North America.

 

Stocks of TFI International Inc. (TSX: TFII) soared almost 29 per cent on Monday, January 25 (around 11 am EST), as the transportation company announced its acquisition of UPS Freight for US$ 800 million. The deal is likely to conclude in the second quarter of 2021.

After completing the acquisition, TFI will among the largest transportation companies in North America.

This strategic purchase help TFI enhance its operations in the US and it is a win-win transaction for both companies, said Alain Bédard, TFI Chairman and CEO in the company’s exchange filing.

UPS Freight earned a revenue of US$ 3 billion in 2020.

In the wake of this breaking news, let us check the market fundamental of the Toronto-based transportation company:

 

TFI International Inc. (TSX: TFII)

Current Market Stock: C$ 83.87

 

TFI scrips have zoomed approximately 94 per cent in one year. The mid-cap freight stock has 93.4 million listed outstanding shares, with a price-to-earnings ratio of 21.50.

The Canadian company operates across North America, with four primarily freight divisions: package and courier, truckload, logistics, and less-than-truckload.

TFI’s shares earnings per share is C$ 3.03. The stocks have added over 27 per cent year-to-date (YTD).

The industrial company raised its quarterly dividend to C$ 0.29 per stock in Q3 2020, a 12 per cent quarter-over-quarter surge from C$ 0.26 in Q2 2020. It holds a dividend yield of 1.78 per cent and 3-year average dividend growth of 9.77 per cent.

Image Source: Kalkine Group @2020

In its third quarter 2020 (ending on September 30, 2020), its net income grew by 34 per cent year-over-year to C$ 110.7 million.

TFI held cash from operating activities of C$ 189.6 million in Q3 2020 against $ 187.1 million in Q 3 2019. Its diluted EPS was C$ 1.19 in Q3 2020, improved from C$ 0.98 in the third quarter of 2019.

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