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Investor Insights

This summary was created by AI, based on 7 opinions in the last 12 months.

Element Fleet Management (EFN-T) is a well-managed, global fleet management company with a fee-based business model. It has shown great growth potential with strong financial performance, beating revenue and EPS estimates. The stock pays a 2% dividend, trades at a reasonable valuation, and has a focus on data-centric and capital-light operations. The company's high net debt balance is a concern, but overall it has received positive market reaction and is considered buyable at this time.

Consensus
Positive
Valuation
Fair Value
PAST TOP PICK
(A Top Pick Apr 13/23, Up 23%)

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. 

0
BUY

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.

0
PAST TOP PICK
(A Top Pick Feb 13/23, Up 23%)

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.

0
WAIT

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.

0
PAST TOP PICK
(A Top Pick Oct 19/22, Up 19%)

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

0
WAIT

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

0
BUY ON WEAKNESS
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

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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0
TOP PICK

Capital light, free cashflowing, cleaner story for investors. Valuation still reasonable. Supply chains easing allows them to deliver on backlog of contracts. Fix up cars, so it's downside protection and inflation-protected. Inflation does eat into some of their margins. Should perform well over the next few years, and valuation should expand. Focused on becoming data-centric to better serve its clients. Global. Yield is 2.27%.

(Analysts’ price target is $23.33)
0
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

EFN pays a dividend yield of 2.2%, has shown decent growth over the past year, and has a strong profit margin. 
Its valuation is reasonable (6.2X forward P/S and 15.9X forward P/E). 
Its net debt of $8.9B relative to its equity position of $3.7B is somewhat concerning, although the company generates some positive free cash flows. Aside from its somewhat weak balance sheet, its margins and revenue growth look decent, and 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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0
TOP PICK

Average investors don't know about company.
Very undervalued company.
Excellent management with good assets.
Fantastic niche position. 
Strong business model going forward.

0
TOP PICK
Still room to run. Growing in NA, with a significant presence in NZ and Australia. Cross-selling services to customers and growing customer count. Can enter new markets such as Mexico. Growth has been 20%, 15x multiple. Growth rate could slow, but multiple can still expand. Yield is 2.05%. (Analysts’ price target is $22.08)
0
TOP PICK
NA's largest fleet manager, also in Australia. Steadily executing. Nice, solid growth story. Even after the runup, trading at 15x, going higher. Yield is 1.72%. (Analysts’ price target is $19.36)
0
PAST TOP PICK
(A Top Pick Nov 28/19, Up 11%) An example of looking 12 months out. Good cashflow. Leader in fleet management. Lets corporate customers outsource that task. Earnings are going up. Trades at 10x earnings. Stock will do well no matter what the market's doing.
0
TOP PICK
They had changed some key management positions, which has cleaned the company up along with the balance sheet over the past couple of quarters. It trades at about 12 times earnings and earnings are growing by 20% next year. It is also a play on Amazon as there are rumours they will provide more fleet equipment to them and perhaps even receive some financial backing from them. Yield 1.42% (Analysts’ price target is $13.91)
0
BUY ON WEAKNESS
More upside? He took profit a while ago. It has great price momentum, but the low ROE, high valuation metrics, and high debt levels make it look very expensive. He would like to see it pullback before buying in again.
0
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Element Fleet Management(EFN-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 5

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 5

Stockchase rating for Element Fleet Management is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Element Fleet Management(EFN-T) Frequently Asked Questions

What is Element Fleet Management stock symbol?

Element Fleet Management is a Canadian stock, trading under the symbol EFN-T on the Toronto Stock Exchange (EFN-CT). It is usually referred to as TSX:EFN or EFN-T

Is Element Fleet Management a buy or a sell?

In the last year, 5 stock analysts published opinions about EFN-T. 5 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Element Fleet Management.

Is Element Fleet Management a good investment or a top pick?

Element Fleet Management was recommended as a Top Pick by on . Read the latest stock experts ratings for Element Fleet Management.

Why is Element Fleet Management stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Element Fleet Management worth watching?

5 stock analysts on Stockchase covered Element Fleet Management In the last year. It is a trending stock that is worth watching.

What is Element Fleet Management stock price?

On 2024-04-15, Element Fleet Management (EFN-T) stock closed at a price of $21.31.