NFYEF - NFI Group: Some Headwinds But Undervalued With A 4.7%-Yielding Dividend
Investment Thesis
NFI Group (NFYEF) ((TSX:NFI)) ("NFI") delivered poor Q4 2018 earnings with double-digit decline in its EBITDA. There are still some headwinds that the company is going through such as low booking forecast and weakness in its aftermarket business. We think this might continue to compress its valuation. However, the long-term outlook remains favorable as there should be significant increase in demand in electric & hybrid buses. NFI's shares are currently undervalued against its historical average. It also has a 4.7%-yielding dividend. We believe this stock is suitable for investors with a