WEBULL

NFI Group (TSX:NFI) Valuation After Battery Recall Losses and Signs of Recovery

Simply Wall St · 11/13/2025 06:25

NFI Group (TSX:NFI) just released its latest quarterly results, showing a considerable net loss as the company tackles a massive battery recall that impacted roughly 700 buses. The earnings update highlights some positive underlying trends alongside the financial hit from this recall campaign.

See our latest analysis for NFI Group.

After a rough patch driven by the costly battery recall, NFI Group’s share price has slumped in recent months, weighing on short-term sentiment. Despite this, the company’s three-year total shareholder return of 32% hints that longer-term holders have still seen meaningful gains. Recent momentum is weaker as investors weigh the latest risks and future potential.

If you’re keeping an eye on transport and industrial trends, it might be the right moment to broaden your search and discover See the full list for free.

With the stock still trading well below analyst targets, but recent results painting a mixed picture, the key question is whether NFI Group’s current valuation reflects the challenges ahead or if there is genuine upside for patient investors.

Most Popular Narrative: 37% Undervalued

NFI Group’s most widely followed valuation narrative suggests the fair value is significantly above the latest closing price, putting the spotlight on what could be supporting this optimism. As investors grapple with short-term setbacks, the long-term fundamentals argued by the narrative command attention.

Record multiyear backlog (over $13.5 billion, with high option conversion rates and strong book-to-bill ratios) provides significant forward visibility and positions NFI to benefit from the ongoing replacement cycle of aging bus fleets in North America and Europe, directly supporting future revenue growth.

Read the complete narrative.

Want to see the real drivers behind this bullish stance? The cornerstone is a massive order backlog, but there is more. What bold projections and assumptions fuel this valuation? Uncover the inside story by diving into the full narrative and find out what is keeping analysts confident about future returns.

Result: Fair Value of $21.54 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, execution risks remain. These include volatile demand for zero-emission vehicles and ongoing pressure from international competition, both of which could dampen recovery momentum.

Find out about the key risks to this NFI Group narrative.

Build Your Own NFI Group Narrative

If you see things differently or want to piece together your own perspective, it only takes a few minutes to create your own narrative. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding NFI Group.

Looking for more investment ideas?

Great opportunities often move quickly. Give yourself an edge by checking out these standout stocks and themes tailored for forward-thinking investors on Simply Wall Street.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.