Why did NFI Group (TSX: NFI) stock plummet 22%?

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 Why did NFI Group (TSX: NFI) stock plummet 22%?
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Highlights

  • NFI Group Inc (TSX: NFI) is drawing attention in the stock market after its stock sank as low as C$ 14.83 apiece during the trading session Thursday, March 10
  • This sharp fall in its stock price came as the company reported its fourth-quarter and year-end results for fiscal 2021
  • NFI's Board took a “prudent” decision to cut down its quarterly dividend from C$ 0.212 to C$ 0.053 apiece, payable April 15

NFI Group Inc (TSX: NFI) is drawing attention in the stock market after its stock sank as low as C$ 14.83 apiece during the trading session on Thursday, March 10. This sharp fall in its stock price came as the company reported its fourth-quarter and year-end results for fiscal 2021.

Let us have a glance at NFI's overall performance.

NFI Group’s (TSX: NFI) performance in Q4 FY2021

The Winnipeg-based automobile maker saw its revenue decrease two per cent year-over-year (YoY) to US$ 695 million in the fourth quarter of fiscal 2021. Its net loss was US$ 9 million in the latest quarter.

Meanwhile, its full-year revenue was US$ 2.34 billion, and net loss amounted to US$ 14 million in 2021.

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NFI said that it launched six new battery electric vehicles (EVs), a 70 per cent surge in zero-emission bus deliveries. The EV maker added that it entered new geographies and executed its cost-reduction initiative to enhance competition. 

However, the pandemic challenges and the global supply chain disruptions continued to affect NFI's business on the operational and financial front.

As a result, NFI's Board took a “prudent” decision to cut down its quarterly dividend from C$ 0.212 to C$ 0.0531 apiece, payable on April 15.

 NFI Group (TSX: NFI) Q4 FY2021 results

NFI stock’s performance

Stocks of NFI plunged by 22 per cent to close at C$ 14.99 apiece on Thursday, with a trading volume of 3.6 million. The auto stock slipped by roughly 51 per cent in the last 12 months.

Also read: Linamar (LNR) & WSP: Why are these TSX stocks trending?

Bottom line

NFI expects that it will continue to see increased opportunities across 2022 as the market rebounds from COVID challenges and new government funds become available to transit agencies. However, the mobility solutions company also anticipated that the supply chain worries will be a "significant factor" in its production adjustments in 2022.

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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