How This Canadian Stock Quietly Beat the Market for a Decade

While others chased headlines, this Canadian stock kept delivering results – rewarding patient investors with nearly 400% gains in just a decade.

| More on:
delivery truck drives into sunset

Source: Getty Images

Key Points

  • TFI International has quietly outperformed the market, growing shareholder wealth nearly fivefold over the past decade.
  • Strong operational efficiency allowed TFI to achieve a 20% increase in free cash flow and maintain robust profit margins in the second quarter, even amidst declining revenues.
  • With a focus on strategic acquisitions and long-term growth, TFI remains an attractive investment despite recent industry headwinds and stock volatility.

While many companies may be good at making headlines, long-term investors know those headlines don’t always result in gains. More often than not, the real winners operate quietly, compounding returns while the world chases the next big trend.

One such Canadian stock, TFI International (TSX:TFII), has not only delivered consistently but has multiplied shareholder wealth nearly five times over the last decade. Let’s take a closer look at TFI International’s recent financial growth trends and fundamentals to find out why it still deserves a place in your portfolio.

It doesn’t need the spotlight to deliver results

Even if transportation isn’t a hot topic, TFI International has still quietly managed to build a business that’s anything but ordinary. If you don’t know it already, this Saint-Laurent headquartered company is one of North America’s biggest players in freight and logistics. Geographically, it operates across the United States, Canada, and Mexico.

TFI stock is currently trading at $124.96 per share, giving it a market cap of $10.3 billion. It also offers a small but growing annualized dividend yield of nearly 2%, paid out quarterly.

Although the stock has witnessed a sharp downside correction in the last year due mainly to recent transportation industry headwinds, it has climbed over 390% in the past 10 years, outpacing many headline-grabbing stocks and the TSX Composite Index.

Recent results show strength despite slower market conditions

In the second quarter of 2025, TFI faced challenges with weaker volumes across the transportation space. But despite these challenges, it managed to put up some solid numbers where it mattered most. The company’s total revenue for the quarter came in at US$2 billion, which was lower than a year ago due to softer market demand and reduced fuel surcharge revenues. Still, its free cash flow jumped 20% YoY (year-over-year) to US$182.3 million, clearly reflecting its focus on operational efficiency and cost discipline.

In addition, TFI’s focus on quality of revenue and cost control helped it maintain a healthy adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin of 18.2%, which improved compared to a year ago.

Meanwhile, the company continued to return value to shareholders despite a drop in revenue. In the latest quarter alone, it paid out US$38.8 million in dividends and repurchased US$84.9 million worth of shares.

Focus on the long term

Even as revenue across all its key segments declined in recent quarters, TFI continues to invest in its future growth prospects. It’s not just about cutting costs, but about making smart acquisitions, integrating them well, and gradually improving their margins. For example, its 2024 acquisition of Daseke has already started contributing to its truckload segment, which posted an 18% YoY revenue increase in the first half of 2025.

At a time when many transportation firms are struggling with volatility and inconsistent cash flow, TFI’s consistent free cash flow and balance sheet strength make its robust business model stand out.

A great Canadian stock to buy at a bargain

Despite recent earnings dips and a tough macroeconomic environment, TFI’s long-term growth prospects look solid. Even amid industry-wide challenges, it continues to maintain strong profitability, return capital to shareholders, and invest in the business.

Yes, the last 12 months have been bumpy for TFI stock. But zoom out a bit, and you’ll see a stock that has stayed committed to steady execution and compounding investor wealth over the long term. That’s why, for investors looking beyond the headlines and focusing on real performance, TFI International looks like a great long-term stock, especially after the recent dip.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends TFI International. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

Here’s the Average TFSA Balance at Age 55 in Canada

Turning 55? See how a TFSA and a low‑volatility income ETF like ZPAY can boost tax‑free retirement cash flow while…

Read more »

dividends can compound over time
Dividend Stocks

TD Bank’s Earnings Beat & Dividend Hike: Told You So!

The Toronto-Dominion Bank (TSX:TD) just released its fourth quarter earnings and hiked its dividend by 2.9%.

Read more »

senior couple looks at investing statements
Dividend Stocks

Here’s the Average TFSA Balance at Age 54 in Canada

Holding the iShares S&P/TSX Capped Composite Index Fund (TSX:XIC) in a TFSA can maximize your wealth.

Read more »

Train cars pass over trestle bridge in the mountains
Dividend Stocks

1 Top-Tier TSX Stock Down 18% to Buy and Hold Forever

Down almost 20% from all-time highs, Canadian Pacific Kansas City is a blue-chip TSX stock that offers upside potential in…

Read more »

View of high rise corporate buildings in the financial district of Toronto, Canada
Dividend Stocks

How to Use Your TFSA to Earn $275 in Monthly Tax-Free Income

Discover how True North Commercial REIT’s government‑anchored leases could help turn a TFSA into monthly, tax‑free income even amid a…

Read more »

dividends can compound over time
Dividend Stocks

Got $3,000? 3 Top Canadian Stocks to Buy Right Now

These three Canadian stocks offer attractive buying opportunities.

Read more »

how to save money
Dividend Stocks

Build a Cash-Gushing Passive-Income Portfolio With just $40,000

Building a passive income portfolio can be as simple as investing in dividend ETFs or prudently in individual stocks more…

Read more »

hot air balloon in a blue sky
Dividend Stocks

3 Elite Canadian Dividend Stocks Ready to Soar Higher in 2026

Let's dive into three elite Canadian dividend stocks, and why they make excellent long-term holdings for those seeking stability and…

Read more »