ELEMENT FLEET MANAGEMENT COR (EFN.CA) Stock Fundamental Analysis
TSX:EFN - Toronto Stock Exchange - CA2861812014 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to EFN. EFN was compared to 24 industry peers in the Commercial Services & Supplies industry. While EFN has a great profitability rating, there are some minor concerns on its financial health. EFN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
EFN had positive earnings in the past year.
EFN had a positive operating cash flow in the past year.
EFN had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: EFN reported negative operating cash flow in multiple years.
1.2 Ratios
EFN's Return On Assets of 2.97% is fine compared to the rest of the industry. EFN outperforms 66.67% of its industry peers.
EFN has a better Return On Equity (14.38%) than 83.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.73%, EFN is in line with its industry, outperforming 45.83% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EFN is below the industry average of 7.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 14.38% | ||
| ROIC | 2.73% |
ROA(3y)3.1%
ROA(5y)2.69%
ROE(3y)13.14%
ROE(5y)11.06%
ROIC(3y)2.92%
ROIC(5y)2.65%
1.3 Margins
EFN's Profit Margin of 18.57% is amongst the best of the industry. EFN outperforms 91.67% of its industry peers.
In the last couple of years the Profit Margin of EFN has grown nicely.
Looking at the Operating Margin, with a value of 20.45%, EFN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of EFN has grown nicely.
The Gross Margin of EFN (72.30%) is better than 95.83% of its industry peers.
EFN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.45% | ||
| PM (TTM) | 18.57% | ||
| GM | 72.3% |
OM growth 3Y-5.52%
OM growth 5Y21.37%
PM growth 3Y-4.09%
PM growth 5Y46.1%
GM growth 3Y-5.42%
GM growth 5Y-0.16%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EFN is destroying value.
The number of shares outstanding for EFN has been increased compared to 1 year ago.
EFN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for EFN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.45, we must say that EFN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.45, EFN is in line with its industry, outperforming 45.83% of the companies in the same industry.
The Debt to FCF ratio of EFN is 86.48, which is on the high side as it means it would take EFN, 86.48 years of fcf income to pay off all of its debts.
EFN has a Debt to FCF ratio (86.48) which is comparable to the rest of the industry.
EFN has a Debt/Equity ratio of 3.36. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of EFN (3.36) is worse than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.36 | ||
| Debt/FCF | 86.48 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.29
WACC9.45%
2.3 Liquidity
EFN has a Current Ratio of 6.16. This indicates that EFN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 6.16, EFN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 6.16 indicates that EFN has no problem at all paying its short term obligations.
EFN has a Quick ratio of 6.16. This is amongst the best in the industry. EFN outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.16 | ||
| Quick Ratio | 6.16 |
3. Growth
3.1 Past
The earnings per share for EFN have decreased by -4.41% in the last year.
The Earnings Per Share has been growing slightly by 4.75% on average over the past years.
Looking at the last year, EFN shows a decrease in Revenue. The Revenue has decreased by -6.39% in the last year.
The Revenue has been growing slightly by 1.38% on average over the past years.
EPS 1Y (TTM)-4.41%
EPS 3Y9.72%
EPS 5Y4.75%
EPS Q2Q%7.83%
Revenue 1Y (TTM)-6.39%
Revenue growth 3Y23.04%
Revenue growth 5Y1.38%
Sales Q2Q%5.23%
3.2 Future
EFN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.67% yearly.
EFN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.02% yearly.
EPS Next Y12.07%
EPS Next 2Y12.6%
EPS Next 3Y11.67%
EPS Next 5YN/A
Revenue Next Year6.62%
Revenue Next 2Y8.02%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.99, the valuation of EFN can be described as rather expensive.
Based on the Price/Earnings ratio, EFN is valued a bit cheaper than the industry average as 70.83% of the companies are valued more expensively.
EFN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.64 indicates a rather expensive valuation of EFN.
EFN's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of EFN to the average of the S&P500 Index (21.60), we can say EFN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 17.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EFN is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EFN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 94.56 | ||
| EV/EBITDA | 17.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of EFN may justify a higher PE ratio.
PEG (NY)1.82
PEG (5Y)4.63
EPS Next 2Y12.6%
EPS Next 3Y11.67%
5. Dividend
5.1 Amount
EFN has a Yearly Dividend Yield of 1.53%. Purely for dividend investing, there may be better candidates out there.
EFN's Dividend Yield is a higher than the industry average which is at 2.29.
EFN's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
The dividend of EFN is nicely growing with an annual growth rate of 7.62%!
EFN has been paying a dividend for at least 10 years, so it has a reliable track record.
As EFN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)7.62%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
EFN pays out 37.20% of its income as dividend. This is a sustainable payout ratio.
The dividend of EFN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.2%
EPS Next 2Y12.6%
EPS Next 3Y11.67%
TSX:EFN (6/27/2025, 7:00:00 PM)
33.87
-0.03 (-0.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners53.4%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap13.64B
Analysts73.85
Price Target36.8 (8.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Yearly Dividend0.5
Dividend Growth(5Y)7.62%
DP37.2%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.62%
Min EPS beat(2)-5.37%
Max EPS beat(2)-1.87%
EPS beat(4)2
Avg EPS beat(4)0.64%
Min EPS beat(4)-5.37%
Max EPS beat(4)6.78%
EPS beat(8)5
Avg EPS beat(8)2.41%
EPS beat(12)9
Avg EPS beat(12)6.57%
EPS beat(16)11
Avg EPS beat(16)6.15%
Revenue beat(2)0
Avg Revenue beat(2)-2.71%
Min Revenue beat(2)-3.21%
Max Revenue beat(2)-2.22%
Revenue beat(4)1
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)3.67%
Revenue beat(8)4
Avg Revenue beat(8)0.95%
Revenue beat(12)8
Avg Revenue beat(12)27.74%
Revenue beat(16)12
Avg Revenue beat(16)36.97%
PT rev (1m)3.34%
PT rev (3m)7.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.08%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 17.64 | ||
| P/S | 4.74 | ||
| P/FCF | 94.56 | ||
| P/OCF | 58.13 | ||
| P/B | 3.67 | ||
| P/tB | 9.42 | ||
| EV/EBITDA | 17.95 |
EPS(TTM)1.54
EY4.55%
EPS(NY)1.92
Fwd EY5.67%
FCF(TTM)0.36
FCFY1.06%
OCF(TTM)0.58
OCFY1.72%
SpS7.14
BVpS9.22
TBVpS3.6
PEG (NY)1.82
PEG (5Y)4.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 14.38% | ||
| ROCE | 3.59% | ||
| ROIC | 2.73% | ||
| ROICexc | 2.85% | ||
| ROICexgc | 3.36% | ||
| OM | 20.45% | ||
| PM (TTM) | 18.57% | ||
| GM | 72.3% | ||
| FCFM | 5.01% |
ROA(3y)3.1%
ROA(5y)2.69%
ROE(3y)13.14%
ROE(5y)11.06%
ROIC(3y)2.92%
ROIC(5y)2.65%
ROICexc(3y)2.96%
ROICexc(5y)2.68%
ROICexgc(3y)3.53%
ROICexgc(5y)3.19%
ROCE(3y)3.84%
ROCE(5y)3.48%
ROICexcg growth 3Y4.43%
ROICexcg growth 5Y33.75%
ROICexc growth 3Y5.28%
ROICexc growth 5Y32.79%
OM growth 3Y-5.52%
OM growth 5Y21.37%
PM growth 3Y-4.09%
PM growth 5Y46.1%
GM growth 3Y-5.42%
GM growth 5Y-0.16%
F-Score3
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.36 | ||
| Debt/FCF | 86.48 | ||
| Debt/EBITDA | 8.8 | ||
| Cap/Depr | 10.91% | ||
| Cap/Sales | 3.14% | ||
| Interest Coverage | 0.76 | ||
| Cash Conversion | 16.56% | ||
| Profit Quality | 27% | ||
| Current Ratio | 6.16 | ||
| Quick Ratio | 6.16 | ||
| Altman-Z | 1.45 |
F-Score3
WACC9.45%
ROIC/WACC0.29
Cap/Depr(3y)12.51%
Cap/Depr(5y)14.67%
Cap/Sales(3y)3.86%
Cap/Sales(5y)4.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.41%
EPS 3Y9.72%
EPS 5Y4.75%
EPS Q2Q%7.83%
EPS Next Y12.07%
EPS Next 2Y12.6%
EPS Next 3Y11.67%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.39%
Revenue growth 3Y23.04%
Revenue growth 5Y1.38%
Sales Q2Q%5.23%
Revenue Next Year6.62%
Revenue Next 2Y8.02%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-3.44%
EBIT growth 3Y16.26%
EBIT growth 5Y23.05%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y119.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y136.23%
OCF growth 3YN/A
OCF growth 5YN/A