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NFI Group Inc T.NFI

Alternate Symbol(s):  NFYEF | T.NFI.DB

NFI Group Inc. is a Canada-based independent bus and coach manufacturer. The Company specializes in zero-emission electric mass mobility solutions. Its segments include Manufacturing Operations and Aftermarket Operations. Manufacturing Operations segment includes design, manufacture, service and support of new transit buses, motor coaches, medium-duty, cutaway buses, and installation of infrastructure for electric vehicles and fiberglass reinforced polymer components. It offers aftermarket parts for transit buses, coaches and medium duty/cutaway buses, both for the Company's and third-party products. It offers a range of sustainable drive systems, including zero-emission electric (trolley, battery, and fuel cell), natural gas, electric hybrid, and clean diesel. The Company's brands include New Flyer (heavy-duty transit buses), MCI (motor coaches), Alexander Dennis Limited (single- and double-deck buses), Plaxton (motor coaches), and ARBOC (low-floor cutaway and medium-duty buses).


TSX:NFI - Post by User

Comment by EventHorizonon May 14, 2021 3:29pm
312 Views
Post# 33205041

RE:CIBC

RE:CIBCThanks for the response and for posting the analyst reports. :)

NFI will hopefully do well in the future. It is not easy to succeed in a shrinking market with modest margins and some irrational competitors (SPACs). Let's keep our fingers crossed for a large pick up in orders. If transit agencies decide to electrify ahead of normal 12+ year replacement cycle, this could give New Flyer a nice boost. ADL's Berlin contract could also meaningfully help. MCI coach business will likely be impaired for the foreseeable future (for e.g. Greyhound leaving Canada - so less parts for the old MCIs and fewer new coach purchases... even though they were buying only Prevost for a while). Not sure what will happen in HongKong for the future, given China's nationalist and anti-foreigner policies. I am also not sure what will happen with ARBOC given its issues with chassis deliveries. NFI needs more orders. More orders will mean better asset utilization and marginal EBITDA, which in turn will normalize the leverage ratio levels and boost ROE which will boost share price multiple. It does not matter whether the orders are electric or diesel. We just need the factories and all of the machinery to be rolling out more new vehicles.
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