ELEMENT FLEET MANAGEMENT COR (EFN.CA) Stock Fundamental Analysis
TSX:EFN - Toronto Stock Exchange - CA2861812014 - Common Stock - Currency: CAD
Taking everything into account, EFN scores 5 out of 10 in our fundamental rating. EFN was compared to 24 industry peers in the Commercial Services & Supplies industry. While EFN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. EFN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
EFN had positive earnings in the past year.
EFN had a negative operating cash flow in the past year.
Each year in the past 5 years EFN has been profitable.
In multiple years EFN reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.99%, EFN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
EFN has a better Return On Equity (13.69%) than 87.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.80%, 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 significantly below the industry average of 8.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.99% | ||
| ROE | 13.69% | ||
| ROIC | 2.8% |
ROA(3y)3.15%
ROA(5y)2.72%
ROE(3y)13.38%
ROE(5y)11.21%
ROIC(3y)2.98%
ROIC(5y)2.68%
1.3 Margins
EFN's Profit Margin of 18.04% is amongst the best of the industry. EFN outperforms 100.00% 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 19.96%, EFN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
EFN's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 71.98%, EFN belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Gross Margin of EFN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.96% | ||
| PM (TTM) | 18.04% | ||
| GM | 71.98% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EFN is destroying value.
The number of shares outstanding for EFN has been increased compared to 1 year ago.
The number of shares outstanding for EFN has been reduced compared to 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 1.32, 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 1.32, EFN is in line with its industry, outperforming 54.17% of the companies in the same industry.
A Debt/Equity ratio of 3.08 is on the high side and indicates that EFN has dependencies on debt financing.
The Debt to Equity ratio of EFN (3.08) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.08 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACC0.39
WACC7.1%
2.3 Liquidity
EFN has a Current Ratio of 5.17. This indicates that EFN is financially healthy and has no problem in meeting its short term obligations.
EFN has a better Current ratio (5.17) than 95.83% of its industry peers.
A Quick Ratio of 5.17 indicates that EFN has no problem at all paying its short term obligations.
EFN's Quick ratio of 5.17 is amongst the best of the industry. EFN outperforms 95.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.17 | ||
| Quick Ratio | 5.17 |
3. Growth
3.1 Past
EFN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.22%.
The Earnings Per Share has been growing by 51.13% on average over the past years. This is a very strong growth
The Revenue has decreased by -7.37% in the past year.
Measured over the past years, EFN shows a small growth in Revenue. The Revenue has been growing by 1.38% on average per year.
EPS 1Y (TTM)-9.22%
EPS 3Y20.8%
EPS 5Y51.13%
EPS Q2Q%11.74%
Revenue 1Y (TTM)-7.37%
Revenue growth 3Y23.04%
Revenue growth 5Y1.38%
Sales Q2Q%112.64%
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 10.58% yearly.
Based on estimates for the next years, EFN will show a quite strong growth in Revenue. The Revenue will grow by 8.40% on average per year.
EPS Next Y9.72%
EPS Next 2Y10.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.71%
Revenue Next 2Y8.4%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.87, the valuation of EFN can be described as rather expensive.
Based on the Price/Earnings ratio, EFN is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, EFN is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.68, which indicates a correct valuation of EFN.
Based on the Price/Forward Earnings ratio, EFN is valued a bit cheaper than 70.83% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, EFN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.87 | ||
| Fwd PE | 15.68 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EFN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.86 |
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)2.15
PEG (5Y)0.41
EPS Next 2Y10.58%
EPS Next 3YN/A
5. Dividend
5.1 Amount
EFN has a Yearly Dividend Yield of 1.85%.
EFN's Dividend Yield is a higher than the industry average which is at 2.38.
EFN's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
5.2 History
On average, the dividend of EFN grows each year by 7.62%, which is quite nice.
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
38.63% of the earnings are spent on dividend by EFN. This is a low number and sustainable payout ratio.
The dividend of EFN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.63%
EPS Next 2Y10.58%
EPS Next 3YN/A
TSX:EFN (3/7/2025, 7:00:00 PM)
28.18
+0.14 (+0.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners50.62%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap11.39B
Analysts75
Price Target34.11 (21.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
Yearly Dividend0.53
Dividend Growth(5Y)7.62%
DP38.63%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)42.96%
Min Revenue beat(2)-0.16%
Max Revenue beat(2)86.09%
Revenue beat(4)3
Avg Revenue beat(4)23.93%
Min Revenue beat(4)-0.16%
Max Revenue beat(4)86.09%
Revenue beat(8)6
Avg Revenue beat(8)23.43%
Revenue beat(12)10
Avg Revenue beat(12)41.02%
Revenue beat(16)14
Avg Revenue beat(16)46.74%
PT rev (1m)2.69%
PT rev (3m)3.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.87 | ||
| Fwd PE | 15.68 | ||
| P/S | 3.77 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.86 | ||
| P/tB | 7.21 | ||
| EV/EBITDA | 15.86 |
EPS(TTM)1.35
EY4.79%
EPS(NY)1.8
Fwd EY6.38%
FCF(TTM)-0.65
FCFYN/A
OCF(TTM)-0.38
OCFYN/A
SpS7.47
BVpS9.84
TBVpS3.91
PEG (NY)2.15
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.99% | ||
| ROE | 13.69% | ||
| ROCE | 3.67% | ||
| ROIC | 2.8% | ||
| ROICexc | 2.83% | ||
| ROICexgc | 3.35% | ||
| OM | 19.96% | ||
| PM (TTM) | 18.04% | ||
| GM | 71.98% | ||
| FCFM | N/A |
ROA(3y)3.15%
ROA(5y)2.72%
ROE(3y)13.38%
ROE(5y)11.21%
ROIC(3y)2.98%
ROIC(5y)2.68%
ROICexc(3y)3.01%
ROICexc(5y)2.71%
ROICexgc(3y)3.59%
ROICexgc(5y)3.23%
ROCE(3y)3.91%
ROCE(5y)3.52%
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-Score2
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.08 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.29 | ||
| Cap/Depr | 12.59% | ||
| Cap/Sales | 3.66% | ||
| Interest Coverage | 0.77 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 5.17 | ||
| Quick Ratio | 5.17 | ||
| Altman-Z | 1.32 |
F-Score2
WACC7.1%
ROIC/WACC0.39
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)-9.22%
EPS 3Y20.8%
EPS 5Y51.13%
EPS Q2Q%11.74%
EPS Next Y9.72%
EPS Next 2Y10.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.37%
Revenue growth 3Y23.04%
Revenue growth 5Y1.38%
Sales Q2Q%112.64%
Revenue Next Year7.71%
Revenue Next 2Y8.4%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.85%
EBIT growth 3Y16.26%
EBIT growth 5Y23.05%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y82.41%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y88.96%
OCF growth 3YN/A
OCF growth 5YN/A