TSX:EFN

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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

Moderate growth potential 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 +/- 3% a week.

Volatility Over Time: EFN's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.2%

EFN

-0.3%

CA Diversified Financial

0.3%

CA Market


1 Year Return

-1.0%

EFN

9.8%

CA Diversified Financial

14.3%

CA Market

Return vs Industry: EFN underperformed the Canadian Diversified Financial industry which returned 7.3% over the past year.

Return vs Market: EFN underperformed the Canadian Market which returned 12.3% over the past year.


Shareholder returns

EFNIndustryMarket
7 Day0.2%-0.3%0.3%
30 Day5.7%8.4%6.5%
90 Day-3.4%4.9%8.6%
1 Year0.8%-1.0%12.0%9.8%18.5%14.3%
3 Year186.5%162.8%137.4%119.6%24.2%12.4%
5 Year17.7%-17.6%14.0%-18.2%58.5%34.4%

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?

114.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EFN (CA$12.56) is trading above our estimate of fair value (CA$10.4)

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 (114.4x) compared to the XN Diversified Financial industry average (17x).

PE vs Market: EFN is poor value based on its PE Ratio (114.4x) compared to the Canadian market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: EFN is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: EFN is overvalued based on its PB Ratio (1.7x) compared to the CA Diversified Financial industry average (1.2x).


Next Steps

Future Growth

How is Element Fleet Management forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

44.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EFN's forecast earnings growth (44.4% per year) is above the savings rate (1.5%).

Earnings vs Market: EFN's earnings (44.4% per year) are forecast to grow faster than the Canadian market (25.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EFN's revenue (1.2% per year) is forecast to grow slower than the Canadian market (7.9% per year).

High Growth Revenue: EFN's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EFN's Return on Equity is forecast to be low in 3 years time (12.6%).


Next Steps

Past Performance

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

-21.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EFN has a large one-off loss of CA$345.5M impacting its September 30 2020 financial results.

Growing Profit Margin: EFN's current net profit margins (3.3%) are lower than last year (14.4%).


Past Earnings Growth Analysis

Earnings Trend: EFN's earnings have declined by 21.6% per year over the past 5 years.

Accelerating Growth: EFN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EFN had negative earnings growth (-77.1%) over the past year, making it difficult to compare to the Diversified Financial industry average (-5.1%).


Return on Equity

High ROE: EFN's Return on Equity (2.5%) is considered low.


Next Steps

Financial Health

How is Element Fleet Management's financial position?


Financial Position Analysis

Short Term Liabilities: EFN's short term assets (CA$11.0B) exceed its short term liabilities (CA$911.3M).

Long Term Liabilities: EFN's short term assets (CA$11.0B) do not cover its long term liabilities (CA$11.1B).


Debt to Equity History and Analysis

Debt Level: EFN's debt to equity ratio (293.9%) is considered high.

Reducing Debt: EFN's debt to equity ratio has reduced from 325% to 293.9% over the past 5 years.

Debt Coverage: EFN's debt is well covered by operating cash flow (22.8%).

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


Balance Sheet


Next Steps

Dividend

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

2.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EFN's dividend (2.07%) is higher than the bottom 25% of dividend payers in the Canadian market (1.56%).

High Dividend: EFN's dividend (2.07%) is low compared to the top 25% of dividend payers in the Canadian market (4.92%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (163.9%), EFN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EFN's dividends in 3 years are forecast to be well covered by earnings (33.4% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Jay Forbes (59 yo)

2.75yrs

Tenure

CA$5,790,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD4.59M) is above average for companies of similar size in the Canadian market ($USD3.04M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jay Forbes
CEO, President & Executive Director2.75yrsCA$5.79m0.091%
CA$ 5.0m
Vito Culmone
Executive VP & CFO2.67yrsCA$2.51m0.028%
CA$ 1.6m
James Halliday
Executive VP & COO2.33yrsCA$3.40m0.019%
CA$ 1.1m
Vineet Gupta
Executive VP & CTO2.17yrsCA$1.85m0.0068%
CA$ 375.1k
Michael Barrett
Vice President of Investor Relations & Investmentsno datano datano data
David Colman
Executive VPno datano data0.0011%
CA$ 62.3k
Jacqueline Angela McGillivray
Executive VP & Chief People Officer3.17yrsno data0.0018%
CA$ 99.8k
Imran Hussein
Managing Director6.75yrsno datano data
Scott Corman
Executive Managing Director of Rail & Aviation Finance6.75yrsno datano data
David Madrigal
Executive VP & Chief Commercial Officer3.17yrsno data0.0022%
CA$ 120.3k
Aaron Baxter
Executive VP of Custom Fleet Australia & New Zealand3.17yrsno data0.0012%
CA$ 64.0k
Chris Gittens
Executive Vice President of Strategic Partnerships3.17yrsno data0.0015%
CA$ 83.8k

3.2yrs

Average Tenure

56yo

Average Age

Experienced Management: EFN's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jay Forbes
CEO, President & Executive Director2.75yrsCA$5.79m0.091%
CA$ 5.0m
Joan Lamm-Tennant
Independent Director6.75yrsCA$222.48k0.0069%
CA$ 378.4k
Andrew Clarke
Independent Director2.75yrsCA$211.12k0.0034%
CA$ 187.6k
Andrea Rosen
Independent Director1.83yrsCA$139.68k0.0023%
CA$ 125.2k
Paul Damp
Independent Director4.42yrsCA$222.48k0.023%
CA$ 1.3m
David Denison
Independent Chairman of the Board2.17yrsCA$402.85k0.0069%
CA$ 382.8k
Alexander Greene
Independent Director2.75yrsCA$211.12k0.011%
CA$ 625.0k
G. Graham
Independent Director2.83yrsCA$211.12k0.023%
CA$ 1.3m
Rubin McDougal
Independent Director2.83yrsCA$215.43k0.0052%
CA$ 287.4k
Virginia Addicott
Director0.42yrno data0.0011%
CA$ 62.3k

2.8yrs

Average Tenure

62yo

Average Age

Experienced Board: EFN's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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$5.516b
  • Shares outstanding: 441.31m
  • Website: https://www.elementfleet.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EFNTSX (The Toronto Stock Exchange)YesCommon StockCACADDec 2011
ELEE.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 2011
61FDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2011
EFN.PRATSX (The Toronto Stock Exchange)ELEMENT FLCACADDec 2013
EFN.PRCTSX (The Toronto Stock Exchange)6.5% 5 YR PFD CCACADMar 2014
EFN.PRITSX (The Toronto Stock Exchange)CUM PFD SHS ICACADMay 2017

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, including acquisition, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/02 23:21
End of Day Share Price2021/03/02 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.