Element Fleet Management

EFN-T

Analysis and Opinions about EFN-T

Signal
Opinion
Expert
BUY WEAKNESS
BUY WEAKNESS
January 17, 2020
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.
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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.
TOP PICK
TOP PICK
November 28, 2019
New management team has done quite well this year. NA's leading fleet manager. Recently had a debt upgrade, so this will add to its profitability. Nice free cashflow. Small, but growing, dividend. Trades at only 11x next year's earnings. Yield is 1.57%. (Analysts’ price target is $13.86)
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New management team has done quite well this year. NA's leading fleet manager. Recently had a debt upgrade, so this will add to its profitability. Nice free cashflow. Small, but growing, dividend. Trades at only 11x next year's earnings. Yield is 1.57%. (Analysts’ price target is $13.86)
WATCH
WATCH
November 7, 2019
They just had a pretty solid quarter. They are doing some cost-cutting and achieved greater than targeted results. They are on the higher risk end of the spectrum but with these results it is looking interesting.
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They just had a pretty solid quarter. They are doing some cost-cutting and achieved greater than targeted results. They are on the higher risk end of the spectrum but with these results it is looking interesting.
PAST TOP PICK
PAST TOP PICK
August 26, 2019
(A Top Pick Sep 05/18, Up 53%) He had to stomach a lot of volatility to hang onto it. He took some losses initially. 18 months ago they went into a leasing venture with an American company that didn't work out. EFN was a favourite short on the market, bottoming around $3. But it's the #1 fleet manager in North America and Australia, a great business which generates a ton of free cash flow. New managers have turned EFN around, fixing the balance sheet.
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(A Top Pick Sep 05/18, Up 53%) He had to stomach a lot of volatility to hang onto it. He took some losses initially. 18 months ago they went into a leasing venture with an American company that didn't work out. EFN was a favourite short on the market, bottoming around $3. But it's the #1 fleet manager in North America and Australia, a great business which generates a ton of free cash flow. New managers have turned EFN around, fixing the balance sheet.
DON'T BUY
DON'T BUY
August 16, 2019
It is a fairly new company on the market. A dividend of 9% is a warning signal and the dividend could be cut or illuminated. If this happens, the stock price will take a hit.
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It is a fairly new company on the market. A dividend of 9% is a warning signal and the dividend could be cut or illuminated. If this happens, the stock price will take a hit.
PAST TOP PICK
PAST TOP PICK
July 26, 2019
(A Top Pick Jul 06/18, Up 76%) #1 in corporate vehicle leasing. He bought it when they just came off a failed sale, and had to restructure with a write-down. The CEO was replaced. Now, earnings have recovered. Scores in the top 5% for price momentum. It's now expensive with high valuations. They beat a recent quarter, but carry a lot of debt. Valuation is way up. Pays only 1.7% yield, so you rely on growth.
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(A Top Pick Jul 06/18, Up 76%) #1 in corporate vehicle leasing. He bought it when they just came off a failed sale, and had to restructure with a write-down. The CEO was replaced. Now, earnings have recovered. Scores in the top 5% for price momentum. It's now expensive with high valuations. They beat a recent quarter, but carry a lot of debt. Valuation is way up. Pays only 1.7% yield, so you rely on growth.
DON'T BUY
DON'T BUY
May 10, 2019
Had beaten earnings strongly recently. It now has price momentum. It still holds a lot of debt. It has a low ROE. Not one he would own. (Analysts’ price target is $11.38)
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Had beaten earnings strongly recently. It now has price momentum. It still holds a lot of debt. It has a low ROE. Not one he would own. (Analysts’ price target is $11.38)
TOP PICK
TOP PICK
September 5, 2018

Unknown in Canada so it's subject to volatility. It's the North American and Australian leader in fleet management. Generates a lot of free cash flow. Trades at a discount to book value at 8x next year's earnings. (4.3% dividend, Analysts' price target: $7.55)

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Unknown in Canada so it's subject to volatility. It's the North American and Australian leader in fleet management. Generates a lot of free cash flow. Trades at a discount to book value at 8x next year's earnings. (4.3% dividend, Analysts' price target: $7.55)

TOP PICK
TOP PICK
July 6, 2018

This was rumoured to be up for sale but the value-maximization process failed and many US catalyst-investors dumped their shares, creating a compelling valuation. It trades at 0.7x book, which is well below its historical average and below the industry. They do fleet management, their leasing business is fairly stable and mainly in the U.S. They have good customer diversity and increasing origination. The yield is 5% and well covered. He thinks the worst is behind this stock and it is time to pick it up. (Analysts’ price target is $7.06)

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This was rumoured to be up for sale but the value-maximization process failed and many US catalyst-investors dumped their shares, creating a compelling valuation. It trades at 0.7x book, which is well below its historical average and below the industry. They do fleet management, their leasing business is fairly stable and mainly in the U.S. They have good customer diversity and increasing origination. The yield is 5% and well covered. He thinks the worst is behind this stock and it is time to pick it up. (Analysts’ price target is $7.06)

PAST TOP PICK
PAST TOP PICK
June 14, 2018

(A Top Pick Sept 27/17, down 27%). Company generates a lot of free cash flow. All through their downturn, still generated free cash flow. Market leader in fleet management, have worked through their earlier problems, insider buyer in stock, and pays a nice dividend. Is cheap at this price. Really likes it.

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(A Top Pick Sept 27/17, down 27%). Company generates a lot of free cash flow. All through their downturn, still generated free cash flow. Market leader in fleet management, have worked through their earlier problems, insider buyer in stock, and pays a nice dividend. Is cheap at this price. Really likes it.

COMMENT
COMMENT
June 1, 2018

He used to own it. They had an opportunity to grow their leasing platform in the U.S., but in mid-2016 their strategy stalled. They tried to sell data analytics to their clients without success. That's when he exited. Also, management has turned over recently and the company is now heavily leveraged. Stock is cheap, so now may be an opportunity. The risk has likely passed.

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He used to own it. They had an opportunity to grow their leasing platform in the U.S., but in mid-2016 their strategy stalled. They tried to sell data analytics to their clients without success. That's when he exited. Also, management has turned over recently and the company is now heavily leveraged. Stock is cheap, so now may be an opportunity. The risk has likely passed.

DON'T BUY
DON'T BUY
May 10, 2018

The split created liquidity. It is low now. In his experience stock don’t do well after splits. Hitting lows on high volume which is not positive.

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The split created liquidity. It is low now. In his experience stock don’t do well after splits. Hitting lows on high volume which is not positive.

SPECULATIVE BUY
SPECULATIVE BUY
April 10, 2018

Lost half its value this year. Doesn't look good, fundamentally. Buy on a short-term basis. Stock has been consolidating. Set a $3.80 stop. Could reach $5 short-term. Volume is okay.

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Lost half its value this year. Doesn't look good, fundamentally. Buy on a short-term basis. Stock has been consolidating. Set a $3.80 stop. Could reach $5 short-term. Volume is okay.

DON'T BUY
DON'T BUY
April 2, 2018

Like Bombardier, management and the board are poor. They've destroyed large amounts of value. Yield is over 7% and questionable if it can last while their capital ratios are impaired. Banks and funding partners may not lend them money.

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Like Bombardier, management and the board are poor. They've destroyed large amounts of value. Yield is over 7% and questionable if it can last while their capital ratios are impaired. Banks and funding partners may not lend them money.

DON'T BUY
DON'T BUY
March 21, 2018

The high yield suggests the dividend might be at risk, however, it has a modest 15% payout ratio. The biggest challenge is that earnings were down 21% and now analysts are revising their earnings down 18%. The stock appears cheap at a 6 times earnings price. At the moment, because of the high-yield he thinks there is more risk than he is comfortable with. Yield 7.4%.

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The high yield suggests the dividend might be at risk, however, it has a modest 15% payout ratio. The biggest challenge is that earnings were down 21% and now analysts are revising their earnings down 18%. The stock appears cheap at a 6 times earnings price. At the moment, because of the high-yield he thinks there is more risk than he is comfortable with. Yield 7.4%.

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