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    TFI International (TSX:TFII) Could Be 14% Undervalued On Its Higher Dividend

    Simply Wall St·08/13/2026 00:32:55
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    TFI International (TSX:TFII) recently raised its quarterly dividend to US$0.47 per share for Q4 2025, a 4% lift that puts the company’s cash returns and capital allocation approach in focus for investors.

    See our latest analysis for TFI International.

    At a share price of CA$203.35, TFI International has posted a strong year to date, with a 38.91% share price return and a 61.63% total shareholder return over the past 12 months, although momentum has softened over the past month.

    If this dividend move has you thinking about where else income and growth could come from in your portfolio, it may be worth scanning other opportunities using the 3 top founder-led companies

    After a strong run and a higher dividend, TFI International now sits at CA$203.35 with a premium to its intrinsic value estimate. Is most of the return already in the rear-view mirror, or does the valuation still leave room ahead?

    Most Popular Narrative: 14% Undervalued

    TFI International’s most followed narrative puts fair value at about CA$236.51, above the current CA$203.35 share price. That gap rests on a specific earnings and margin story rather than simple multiple expansion.

    The strong free cash flow generation, supported by disciplined CapEx, cost controls, and effective working capital management, enables accelerated share buybacks and ongoing dividends, driving per-share earnings growth independent of the near-term revenue environment.

    Read the complete narrative.

    Want to understand why this framework points to a higher fair value for TFI International? The narrative leans on a detailed path for revenue, earnings, and margins, plus a specific future earnings multiple that has to hold for the thesis to work.

    Result: Fair Value of CA$236.51 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, the TFI International narrative could still be knocked off course if weak North American freight demand persists, or if U.S. LTL pricing and efficiency improvements disappoint.

    Find out about the key risks to this TFI International narrative.

    Another View: What TFI International’s P/E Ratio Is Telling You

    The fair value narrative suggests TFI International is 14% undervalued, yet the current P/E of 35.7x sits above both the North American transportation industry at 28.9x and the peer average at 24.5x, and also above a fair ratio of 31.1x. That richer multiple could limit upside if sentiment cools.

    For a closer look at how this relates to earnings expectations and pricing risk, See what the numbers say about this price — find out in our valuation breakdown.

    TSX:TFII P/E Ratio as at Aug 2026
    TSX:TFII P/E Ratio as at Aug 2026

    Next Steps

    If the mixed signals around TFI International have you on the fence, this is a good moment to review the full picture of concerns and opportunities. You can see a concise breakdown of both sides in the 2 key rewards and 2 important warning signs

    Looking for more investment ideas beyond TFI International?

    If TFI International has sharpened your focus on quality, do not stop here. Use the screener to surface fresh ideas that match your goals and risk comfort.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.