If there’s one thing Canadians haven’t slowed down on, it’s ecommerce retail. Demand in this area seems to only be increasing, with consumers across the world simply shifting to lower-cost ecommerce companies rather than stopping altogether. Because of this, trucking and logistics remains one of the best investments, especially long term.
That’s why TFI International (TSX:TFII) is such a strong investment right now. This top TSX stock is an easy buy, so let’s get right into why.
What downturn?
As mentioned, ecommerce growth remains strong, and that was seen during the company’s recent quarterly results. Despite freight volumes being weak, TFI’s free cash flow (FCF) surged 20% year over year in the second quarter of 2025 to $182 million! Meanwhile, operating cash flow held steady at $247 million.
This demonstrated impressive resilience, even with revenue falling 10% and earnings per share (EPS) declining. Management used that cash to return $124 million in capital during the second quarter, comprised of $39 million in dividends and $85 million in buybacks. In fact, the dividend also got bumped 13% year over year, with a moderate 40% payout! Right now, even if you were able to put just $7,000 into this dividend stock, you could still generate $134 in dividends each and every year! And that’s certainly not nothing.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| TFII | $130.25 | 54 | $2.49 | $134 | Quarterly | $7,034 |
Long-term opportunity
That resilience shows this stock is a stellar long-term opportunity, especially at recent prices. The TSX stock is down around 34% over the past year, resetting from highs around $200, and now at $132. That’s actually good news, with the market pricing in freight weakness but overlooking the durability of its model.
Now, TFII stock trades at 15.2 times future earnings and under 1 times sales. This means investors are paying less than a dollar per sales dollar for a high quality operator! So when the freight cycle turns, TFI’s operating leverage should lift earnings sharply, so today’s investor will capture that value.
More to come
When that cycle shifts, TFI will be ready for it. The TSX stock is now one of the largest and most diversified carriers in North America, with exposure to less-than-truckload (LTL), truckload, logistics, and parcel. Diversification spreads out the risk of pressure on segments, and the Daseke acquisition also adds scale.
For now, the TSX stock is focusing on quality revenue and efficiency. TFI’s net loan growth and balance sheet discipline left it in a position to capture upside when freight demand recovers. Now, its disciplined strategy can drive long-term growth even if earnings fluctuate.
Bottom line
TFII looks like a strong stock to buy while shares are down, and a turnaround looks like it is on the way. It’s a high-quality TSX stock focusing on efficiency and quality revenue, with dividends and buybacks well supported by cash flow. Diversification also supports future upside, making this a top TSX stock for pretty much any investor to consider.
