TFII and CIX: 2 Canadian value stocks to ease recession worries

Many Canadians are concerned about the possibility of a recession amid the rising interest rates to counter increasing inflationary pressure. Investors stressing about recession could focus on TSX value stocks like TFI International (TSX: TFII) and CI Financial (TSX: CIX).

Rate hikes and inflationary pressure seem to have broadly affected the global equity markets. On Wednesday, June 22, the TSX benchmark index fell by 1.31 per cent as Statistics Canada reported that inflation surged by 7.7 per cent in May. In such an economic state, investors looking for value can explore the TSX stocks discussed below.

TFI International Inc (TSX: TFII)

Canadian transport and logistics company TFI International said that its total revenue grew by 91 per cent year-over-year (YoY) to US$ 2.19 billion in the first three months of 2022. The mid-cap transportation company also saw a notable rise of 121 per cent in its net profit to US$ 147.7 million in the latest quarter.

TFI also delivers a dividend payment to its shareholders every quarter. The TSX-listed company is scheduled to deliver a dividend of US$ 0.27 per share on July 15.

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TFI International held a return on equity (ROE) of 36.46 per cent, reflecting its profitability relative to shareholders' equity. Its debt-to-equity (D/E) ratio was 0.93, denoting its preference for equity than debt financing.

TFII stock plunged by roughly 36 per cent from a 52-week high of C$ 148.43 (October 28, 2021). On a yearly basis, the transportation stock lost more than 15 per cent in value on June 22.

CI Financial Corp (TSX: CIX)

CI Financial is a Canadian asset manager with a market capitalization exceeding C$ 2.6 billion. The financial service company held a dividend yield of over five per cent.

CIX will dole out a quarterly dividend of C$ 0.18 on October 14. On the financial front, CI Financial’s net profit swelled to C$ 137.5 million in Q1 2022, higher than C$ 123.7 million a year ago.

CIX stock declined by almost 55 per cent from a 52-weel high of C$ 30.88 (November 11, 2021). In 12 months, CIX stock slipped by nearly 38 per cent.

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Bottomline

TFI International and CI Financial are two TSX value stocks that investors can explore amid rising recession worries. In addition, these dividend-paying stocks could enhance your portfolio income.

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.