Dixon Mitchell Investment Counsel Adds Another $7 Million of TFI International Stock on the Dip

Dixon Mitchell Investment Counsel disclosed a $7m purchase of 93,705 shares of TFI International, boosting its position to 912,039 shares worth $80.72m as of Sept. 30, 2025 and making TFI 2.87% of the fund’s AUM. TFI shares were trading at $99.17 on Dec. 10, 2025, down about 35% over the past year and roughly 36% below their 52-week high; the company reports TTM revenue of $8.06bn and net income of $323.5m, with the stock trading near 26x earnings and 12x free cash flow. Having held TFI since 2020 and nearly doubling its stake since late 2024, Dixon Mitchell’s accumulation signals a buy-the-dip conviction in a cash-generative, acquisitive logistics operator that may offer upside if management sustains its tuck-in M&A strategy, though near-term recovery remains tied to execution and broader cyclicality.

Analysis

Dixon Mitchell Investment Counsel disclosed a purchase of 93,705 shares of TFI International (TFII) in its Nov. 13, 2025 13F filing, increasing its holding by an estimated $7 million to a total 912,039 shares valued at $80.72 million as of Sept. 30, 2025; the stake represents 2.87% of the fund’s AUM and the manager has held TFI since 2020, nearly doubling its position since late 2024. This accumulation signals a deliberate buy-the-dip conviction by a long-term holder rather than a transient trade.

TFI traded at $99.17 on Dec. 10, 2025, down ~35% over the past year and ~36% below its 52-week high, underperforming the S&P 500 by roughly 48 percentage points. Trailing metrics cited include $8.06 billion in TTM revenue, $323.46 million TTM net income, a 1.81% dividend yield, and valuation around 26x earnings and 12x FCF, while historical operating performance shows ~14% five-year average ROIC and ~14% average annual sales growth over the last decade.

The investment case rests on TFI’s acquisitive, integrated asset-based/asset-light model and repeat tuck-in M&A, which has supported long-term compounding but leaves the name exposed to cyclical freight demand and execution risk on integrations. Fund-level concentration versus other large holdings (IEFA, MSFT) and the manager’s incremental purchases are useful real-time signals; near-term upside depends on recovery in volumes, margin stability and FCF conversion.

Key Decisions for Investors

• Consider initiating or adding to a small, staged position given Dixon Mitchell’s accumulation and discounted multiples, but size exposure conservatively to reflect TFI’s cyclical revenue profile
• Monitor operational indicators—quarterly volumes, margin trends, free cash flow, and progress on tuck-in integrations—using those metrics as triggers to scale exposure up or down
• If already long, maintain a core holding while trimming into rallies toward prior highs or employing short-duration downside protection if macro freight demand worsens
• Watch subsequent 13F or fund disclosures for further accumulation by Dixon Mitchell as a positive confirmation and treat any sustained selling by the manager as a meaningful warning signal