NFI Group
NFI.TO (TSX)
NFI Group stands out as a leading Canadian manufacturer of zero-emission buses, specializing in electric and hydrogen transit solutions for public transportation. With a solid backlog and a dividend yield of 2.86%, the company is positioned well for future growth, though its one-year return of nearly 30% contrasts sharply with a 42% decline over the past five years. Analysts currently rate the stock as a D+, reflecting concerns over its high net debt to EBITDA ratio, despite some long-term buy signals.
Pros:
- Strong 1-year return
- Leadership in zero-emission vehicles
Cons:
- Negative 5-year return
- High net debt to EBITDA ratio
NFI Group (NFI.TO) may be suitable for investors seeking exposure to the growing sector of zero-emission public transportation, particularly those who are comfortable with volatility and the potential for long-term recovery. However, the contrasting performance metrics and analysts' cautious ratings suggest that it may be more appropriate for risk-tolerant investors who can navigate the uncertainties associated with high debt levels and past performance declines.