NYSE:FLT

Stock Analysis Report

FleetCor Technologies

Executive Summary

FleetCor Technologies, Inc. provides commercial payment solutions in North America, Latin America, Europe, and Australasia.

Rewards

Trading at 9% below its fair value

Earnings are forecast to grow 12.24% per year

Earnings have grown 22% per year over the past 5 years

Risk Analysis

Has a high level of debt



Snowflake Analysis

Excellent balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has FleetCor Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FLT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

FLT

2.1%

US IT

0.06%

US Market


1 Year Return

40.9%

FLT

37.4%

US IT

19.4%

US Market

Return vs Industry: FLT exceeded the US IT industry which returned 37.4% over the past year.

Return vs Market: FLT exceeded the US Market which returned 19.4% over the past year.


Shareholder returns

FLTIndustryMarket
7 Day1.3%2.1%0.06%
30 Day3.4%4.6%1.1%
90 Day8.6%14.9%8.9%
1 Year40.9%40.9%38.8%37.4%21.9%19.4%
3 Year91.9%91.9%111.5%102.4%48.9%39.3%
5 Year104.3%104.3%147.5%125.5%71.9%53.1%

Price Volatility Vs. Market

How volatile is FleetCor Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is FleetCor Technologies undervalued compared to its fair value and its price relative to the market?

9.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FLT ($320.57) is trading below our estimate of fair value ($352.14)

Significantly Below Fair Value: FLT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FLT is good value based on its PE Ratio (30.9x) compared to the IT industry average (33.1x).

PE vs Market: FLT is poor value based on its PE Ratio (30.9x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: FLT is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: FLT is overvalued based on its PB Ratio (7.4x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is FleetCor Technologies forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLT's forecast earnings growth (12.2% per year) is above the savings rate (1.7%).

Earnings vs Market: FLT's earnings (12.2% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: FLT's revenue (9.3% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: FLT's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FLT's Return on Equity is forecast to be high in 3 years time (22.4%)


Next Steps

Past Performance

How has FleetCor Technologies performed over the past 5 years?

22.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FLT has high quality earnings.

Growing Profit Margin: FLT's current net profit margins (33.8%) are higher than last year (33.3%).


Past Earnings Growth Analysis

Earnings Trend: FLT's earnings have grown significantly by 22% per year over the past 5 years.

Accelerating Growth: FLT's earnings growth over the past year (10.3%) is below its 5-year average (22% per year).

Earnings vs Industry: FLT earnings growth over the past year (10.3%) underperformed the IT industry 12%.


Return on Equity

High ROE: Whilst FLT's Return on Equity (24.12%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is FleetCor Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: FLT's short term assets ($4.6B) exceed its short term liabilities ($4.4B).

Long Term Liabilities: FLT's short term assets ($4.6B) exceed its long term liabilities ($4.1B).


Debt to Equity History and Analysis

Debt Level: FLT's debt to equity ratio (133.1%) is considered high.

Reducing Debt: FLT's debt to equity ratio has reduced from 137.1% to 133.1% over the past 5 years.

Debt Coverage: FLT's debt is well covered by operating cash flow (23.5%).

Interest Coverage: FLT's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet

Inventory Level: FLT has a low level of unsold assets or inventory.

Debt Coverage by Assets: FLT's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is FleetCor Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate FLT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate FLT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FLT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FLT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FLT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Ron Clarke (62yo)

19.5yrs

Tenure

US$7,757,388

Compensation

Mr. Ronald F. Clarke, also known as Ron, has been the Chairman of FleetCor Technologies, Inc. since March 2003 and its Chief Executive Officer and President since August 2000. He serves as a Member of Advi ...


CEO Compensation Analysis

Compensation vs Market: Ron's total compensation ($USD7.76M) is about average for companies of similar size in the US market ($USD10.78M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ronald Clarke
Chairman19.5yrsUS$7.76m1.46% $398.9m
Eric Dey
CFO & Corporate Secretary17.3yrsUS$865.50k0.022% $6.1m
Armando Netto
President of Brazil5.7yrsUS$1.98m0.011% $3.1m
Scott Dufour
Global Chief Information Officer1yrsno data0.0010% $276.3k
James Eglseder
Head of investor relations2.1yrsno datano data
Sean Bowen
Senior Vice President and General Counsel0yrsno datano data
Steve Greene
Executive Vice President of Corporate Development & Strategy0.2yrsno datano data
H. Smith
Executive Vice President of Strategic Partnerships0yrsno datano data
John Coughlin
Group President of Payables0.5yrsUS$5.05m0.020% $5.4m
Patrick Ducharme
Managing Director of Canada Region5.7yrsno datano data

3.9yrs

Average Tenure

54.5yo

Average Age

Experienced Management: FLT's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ronald Clarke
Chairman19.5yrsUS$7.76m1.46% $398.9m
Steven Stull
Independent Director19.3yrsUS$259.68k0.024% $6.4m
Michael Buckman
Independent Director6.6yrsUS$259.68k0.021% $5.9m
Thomas Hagerty
Independent Director5.3yrsUS$309.68k0.0050% $1.4m
Richard Macchia
Independent Director9.6yrsUS$309.68k0.018% $4.8m
Mark Johnson
Independent Director16.9yrsUS$259.68k0.12% $31.6m
Hala Moddelmog
Independent Director2.8yrsUS$259.68k0.0055% $1.5m
Jeffrey Sloan
Independent Director6.6yrsUS$259.68k0.016% $4.3m
Joseph Farrelly
Independent Director5.8yrsUS$309.68k0.014% $3.9m

6.6yrs

Average Tenure

63yo

Average Age

Experienced Board: FLT's board of directors are considered experienced (6.6 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.


Ownership Breakdown

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


Top Shareholders

Company Information

FleetCor Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FleetCor Technologies, Inc.
  • Ticker: FLT
  • Exchange: NYSE
  • Founded: 1986
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$27.358b
  • Shares outstanding: 85.34m
  • Website: https://www.fleetcor.com

Number of Employees


Location

  • FleetCor Technologies, Inc.
  • 5445 Triangle Parkway
  • Suite 400
  • Peachtree Corners
  • Georgia
  • 30092
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FLTNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2010
07GDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2010
0IPNLSE (London Stock Exchange)YesCommon StockGBUSDDec 2010
FLT *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 2010
FLTC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 0.25 COM USD0.001BRBRLMay 2019

Biography

FleetCor Technologies, Inc. provides commercial payment solutions in North America, Latin America, Europe, and Australasia. The company offers fuel payment solutions to businesses and government entities that operate vehicle fleets, as well as to oil and leasing companies, and fuel marketers. Its fuel payment products are in the form of plastic cards, electronic RFID tags, and paper vouchers to purchase fuel, oil, vehicle maintenance supplies and services, and building supplies. The company also provides lodging payment solutions to businesses that have employees who travel overnight for work purposes. In addition, it offers electronic toll and parking payments products to businesses and consumers in the form of RFID tags affixed to vehicles’ windshields; and prepaid paper vouchers as a means of payment on toll roads. Further, the company provides corporate payments solutions with vertical-specific applications, which enable its customers to manage and control electronic payments across their enterprise, optimize corporate spending, and offer innovative services that enhance employee efficiency and customer loyalty. Its primary corporate payments products include virtual cards, purchasing cards, travel and entertainment cards, payroll cards, and cross-border payment facilitation. Additionally, it offers gift card product management and processing services, such as card design, production and packaging, delivery and fulfillment, card and account management, transaction processing, promotion development and management, Website design and hosting, program analytics, and card distribution channel management. The company also provides vehicle maintenance, employee benefit payment, and long haul transportation-related services. The company markets its products and services through field sales, telesales, direct marketing, point-of-sale marketing, and the Internet. FleetCor Technologies, Inc. was founded in 1986 and is headquartered in Peachtree Corners, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 01:39
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
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.