Element Fleet Management (EFN-T)

Company based on effective management of auto fleets for corporate accounts. New apps and technology is allowing for better management of business. Recent share price strength good for long term investors - but would wait to buy on weakness. Overall a strong business. 

Good business, but his Canadian portfolio has 15 businesses, so this one just hasn't made the cut on quality and growth. Quite leveraged, earning a narrow spread. Management change. So big, that next step in growth would have to be outside NA to move the needle.

The stock is up 27% in the past year though down a bit since the US election. It reports earnings Feb 26, before the next tariff 'deadline'. So earnings may be the more important factor if buying in the next month. We think $26 would be attractive, barring any other news.
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How could you not like this chart? It's not gone parabolic. Doing a nice little roundover, may pull back a tiny bit more due to market volatility. See where it is compared to the 200-day MA; if it's 15% or more then worry, and if it's under that don't.

Leading fleet manager throughout the globe. Continues to grow towards ~$10 billion market cap. Demand for services within growing tech companies like Amazon. Ability to operate cheaply with high margins - top decile. Built a very strong business that is growing organically. 

It has been in an uptrend which looks a bit steep. If it pulls back to the trend line then buy.

It remains undervalued. Are more into financial services than most banks, so it's less risky. They're the largest operator in North America. They continue to grow their business and manage it efficiently. A great story that gets better.

They have 1.5 million cars on the road, 5,500 clients and 700 different industries. Are market leaders in North America, Australia and New Zealand. Good organic growth and a lean capital structure, driven by recurring earnings. It's done well and he's happy with it.

Darling amongst investors. Fleet management business very fragmented - expecting further consolidation. Large opportunity for organic growth as well. Balance sheet continues to clean up - expecting free cash flow to increase. Core holding that will continue to own. As business continues to perform - expecting share buybacks. 

Great ROE, dividend growth model, and free cashflow. Global scale. Fee-based business. Undemanding multiple of 14-15x earnings at most. Super-well managed. Great growth ahead.

Will continue to do well. Is a misunderstood business EFN is the world's largest fleet manager of delivery vehicles (Amazon, P&G); they outsource for these companies. There's little risk in this business. Pays a 2% dividend, trades at 15x PE and 8% free cash flow yield.

He's pretty conservative on the economy. Haven't seen full impact of higher rates. Good performance, but in a riskier space. Don't chase at these levels. Be cautious. Instead, earn 4.8% on your cash for 6 months, see how things go.

Getting up into large cap territory. Economic for companies to outsource to them. 14x earnings. Yield almost 3%.

Really good run. Very good business, with good ROE. He'd wait for a pullback. Not a bargain right now. Recession risk.

EPS of $0.31 beat estimates of $0.27 and revenues of $303.96M beat estimates of $282.22M. Net revenue grew by 16.5% for the quarter and it generated $0.37 of free cash flow per share for the quarter. Its capital-light business model expanded its ROE to 12.0%, and management raised its full-year 2023 guidance for net revenue, operating margin, adjusted operating income, adjusted EPS, free cash flow per share, and originations. It pays a yield close to 2%, has demonstrated strong margin expansion, forward estimates for growth are good, and it trades at a reasonable valuation. It does have a high net debt balance of $9.4B, but these were strong results and the market has reacted positively so far. We would consider the stock buyable at this time while being mindful of position sizing and the company's balance sheet risks.
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