TSX:EFN

Stock Analysis Report

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Market Cap

CA$5.9b

Last Updated

2021/07/31 23:29 UTC

Data Sources

Company Financials +

Executive Summary

Element Fleet Management Corp. operates as a fleet management company in Canada, the United States, Mexico, Australia, and New Zealand. More Details


Snowflake Analysis

Solid track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Element Fleet Management's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EFN is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: EFN's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.3%

EFN

1.2%

CA Diversified Financial

1.4%

CA Market


1 Year Return

27.0%

EFN

46.3%

CA Diversified Financial

29.0%

CA Market

Return vs Industry: EFN underperformed the Canadian Diversified Financial industry which returned 46.5% over the past year.

Return vs Market: EFN underperformed the Canadian Market which returned 29.1% over the past year.


Shareholder returns

EFNIndustryMarket
7 Day-0.3%1.2%1.4%
30 Day-1.2%2.2%-0.2%
90 Day-5.1%2.4%4.0%
1 Year29.4%27.0%49.0%46.3%32.9%29.0%
3 Year152.6%136.8%144.5%128.7%31.3%18.6%
5 Year45.7%1.5%38.9%-0.2%51.7%29.4%

Long-Term Price Volatility Vs. Market

How volatile is Element Fleet Management's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Element Fleet Management undervalued compared to its fair value and its price relative to the market?

21.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EFN (CA$14.28) is trading above our estimate of fair value (CA$12.24)

Significantly Below Fair Value: EFN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EFN is poor value based on its PE Ratio (21.5x) compared to the Canadian Diversified Financial industry average (18.6x).

PE vs Market: EFN is poor value based on its PE Ratio (21.5x) compared to the Canadian market (13.6x).


Price to Earnings Growth Ratio

PEG Ratio: EFN is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: EFN is overvalued based on its PB Ratio (2x) compared to the CA Diversified Financial industry average (1.6x).


Future Growth

How is Element Fleet Management forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

14.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EFN's forecast earnings growth (14.2% per year) is above the savings rate (1.5%).

Earnings vs Market: EFN's earnings (14.2% per year) are forecast to grow faster than the Canadian market (13.6% per year).

High Growth Earnings: EFN's earnings are forecast to grow, but not significantly.

Revenue vs Market: EFN's revenue is expected to decline over the next 3 years (-6.2% per year).

High Growth Revenue: EFN's revenue is forecast to decline over the next 3 years (-6.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EFN's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Element Fleet Management performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EFN has high quality earnings.

Growing Profit Margin: EFN's current net profit margins (20%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: EFN's earnings have grown by 2.8% per year over the past 5 years.

Accelerating Growth: EFN's earnings growth over the past year (515%) exceeds its 5-year average (2.8% per year).

Earnings vs Industry: EFN earnings growth over the past year (515%) exceeded the Diversified Financial industry 64.1%.


Return on Equity

High ROE: EFN's Return on Equity (9.2%) is considered low.


Financial Health

How is Element Fleet Management's financial position?


Financial Position Analysis

Short Term Liabilities: EFN's short term assets (CA$8.8B) exceed its short term liabilities (CA$1.1B).

Long Term Liabilities: EFN's short term assets (CA$8.8B) do not cover its long term liabilities (CA$8.9B).


Debt to Equity History and Analysis

Debt Level: EFN's debt to equity ratio (246%) is considered high.

Reducing Debt: EFN's debt to equity ratio has reduced from 329.7% to 246% over the past 5 years.

Debt Coverage: EFN's debt is well covered by operating cash flow (35.1%).

Interest Coverage: Insufficient data to determine if EFN's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Element Fleet Management current dividend yield, its reliability and sustainability?

1.82%

Current Dividend Yield


Upcoming Dividend Payment

TodayAug 01 2021Ex Dividend DateSep 28 2021Dividend Pay DateOct 15 202117 days from Ex DividendBuy in the next 58 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: EFN's dividend (1.82%) is higher than the bottom 25% of dividend payers in the Canadian market (1.58%).

High Dividend: EFN's dividend (1.82%) is low compared to the top 25% of dividend payers in the Canadian market (4.57%).


Stability and Growth of Payments

Stable Dividend: EFN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: EFN's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.1%), EFN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Jay Forbes (60 yo)

3yrs

Tenure

CA$5,680,000

Compensation

Mr. Jay A. Forbes, FCA, FCPA, has been President and Chief Executive Officer of Element Fleet Management Corp., since June 1, 2018 and serves as its Executive Director since May 14, 2018. Mr. Forbes served...


CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD4.55M) is above average for companies of similar size in the Canadian market ($USD3.02M).

Compensation vs Earnings: Jay's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: EFN's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: EFN's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Element Fleet Management Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Element Fleet Management Corp.
  • Ticker: EFN
  • Exchange: TSX
  • Founded: NaN
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: CA$5.947b
  • Shares outstanding: 416.43m
  • Website: https://www.elementfleet.com

Number of Employees


Location

  • Element Fleet Management Corp.
  • 161 Bay Street
  • Suite 3600
  • Toronto
  • Ontario
  • M5J 2S1
  • Canada

Listings


Biography

Element Fleet Management Corp. operates as a fleet management company in Canada, the United States, Mexico, Australia, and New Zealand. The company offers fleet management services comprising acquisition, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 23:29
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.