ELEMENT FLEET MANAGEMENT - EFNCN 6.21 PERP (EFN-PR-C.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:EFN-PR-C - CA2861818391
25 CAD
+0.02 (+0.08%)
EFN-PR-C gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 24 industry peers in the Commercial Services & Supplies industry. While EFN-PR-C has a great profitability rating, there are some minor concerns on its financial health. EFN-PR-C is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year EFN-PR-C was profitable.
- In the past year EFN-PR-C has reported a negative cash flow from operations.
- Each year in the past 5 years EFN-PR-C has been profitable.
- Of the past 5 years EFN-PR-C 4 years had a positive operating cash flow.
1.2 Ratios
- EFN-PR-C's Return On Assets of 3.25% is fine compared to the rest of the industry. EFN-PR-C outperforms 70.37% of its industry peers.
- Looking at the Return On Equity, with a value of 14.70%, EFN-PR-C belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
- EFN-PR-C has a Return On Invested Capital (2.92%) which is comparable to the rest of the industry.
- EFN-PR-C had an Average Return On Invested Capital over the past 3 years of 2.76%. This is below the industry average of 5.81%.
- The last Return On Invested Capital (2.92%) for EFN-PR-C is above the 3 year average (2.76%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 14.7% | ||
| ROIC | 2.92% |
ROA(3y)2.91%
ROA(5y)2.13%
ROE(3y)11.59%
ROE(5y)8.54%
ROIC(3y)2.76%
ROIC(5y)2.2%
1.3 Margins
- With an excellent Profit Margin value of 17.86%, EFN-PR-C belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
- EFN-PR-C's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 19.63%, EFN-PR-C belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
- In the last couple of years the Operating Margin of EFN-PR-C has declined.
- EFN-PR-C has a Gross Margin of 73.48%. This is amongst the best in the industry. EFN-PR-C outperforms 92.59% of its industry peers.
- In the last couple of years the Gross Margin of EFN-PR-C has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.63% | ||
| PM (TTM) | 17.86% | ||
| GM | 73.48% |
OM growth 3Y-3.76%
OM growth 5YN/A
PM growth 3Y8.06%
PM growth 5YN/A
GM growth 3Y-1.66%
GM growth 5Y0.58%
2. Health
2.1 Basic Checks
- EFN-PR-C has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- EFN-PR-C has less shares outstanding than it did 1 year ago.
- EFN-PR-C has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.49, we must say that EFN-PR-C is in the distress zone and has some risk of bankruptcy.
- EFN-PR-C has a Altman-Z score (1.49) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 3.14 is on the high side and indicates that EFN-PR-C has dependencies on debt financing.
- The Debt to Equity ratio of EFN-PR-C (3.14) is worse than 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.49 |
ROIC/WACC0.39
WACC7.59%
2.3 Liquidity
- EFN-PR-C has a Current Ratio of 7.35. This indicates that EFN-PR-C is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of EFN-PR-C (7.35) is better than 96.30% of its industry peers.
- EFN-PR-C has a Quick Ratio of 7.35. This indicates that EFN-PR-C is financially healthy and has no problem in meeting its short term obligations.
- The Quick ratio of EFN-PR-C (7.35) is better than 96.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.35 | ||
| Quick Ratio | 7.35 |
3. Growth
3.1 Past
- EFN-PR-C shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.03%.
- The Earnings Per Share has been growing by 11.35% on average over the past years. This is quite good.
- Looking at the last year, EFN-PR-C shows a very strong growth in Revenue. The Revenue has grown by 22.62%.
- Measured over the past years, EFN-PR-C shows a small growth in Revenue. The Revenue has been growing by 6.61% on average per year.
EPS 1Y (TTM)1.03%
EPS 3Y12.31%
EPS 5Y11.35%
EPS Q2Q%-16.24%
Revenue 1Y (TTM)22.62%
Revenue growth 3Y12.5%
Revenue growth 5Y6.61%
Sales Q2Q%-51.42%
3.2 Future
- Based on estimates for the next years, EFN-PR-C will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.19% on average per year.
- The Revenue is expected to grow by 12.49% on average over the next years. This is quite good.
EPS Next Y23.95%
EPS Next 2Y16.05%
EPS Next 3Y16.19%
EPS Next 5YN/A
Revenue Next Year9.85%
Revenue Next 2Y9.52%
Revenue Next 3Y12.49%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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 21.19, the valuation of EFN-PR-C can be described as rather expensive.
- 70.37% of the companies in the same industry are more expensive than EFN-PR-C, based on the Price/Earnings ratio.
- EFN-PR-C's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 15.06 indicates a correct valuation of EFN-PR-C.
- 70.37% of the companies in the same industry are more expensive than EFN-PR-C, based on the Price/Forward Earnings ratio.
- EFN-PR-C's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.19 | ||
| Fwd PE | 15.06 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as EFN-PR-C.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.91 |
4.3 Compensation for Growth
- EFN-PR-C's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- EFN-PR-C has a very decent profitability rating, which may justify a higher PE ratio.
- EFN-PR-C's earnings are expected to grow with 16.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)1.87
EPS Next 2Y16.05%
EPS Next 3Y16.19%
5. Dividend
5.1 Amount
- EFN-PR-C has a Yearly Dividend Yield of 1.91%. Purely for dividend investing, there may be better candidates out there.
- EFN-PR-C's Dividend Yield is a higher than the industry average which is at 1.00.
- EFN-PR-C's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
- The dividend of EFN-PR-C has a limited annual growth rate of 3.41%.
- EFN-PR-C has paid a dividend for at least 10 years, which is a reliable track record.
- EFN-PR-C has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.41%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- EFN-PR-C pays out 39.89% of its income as dividend. This is a sustainable payout ratio.
- The dividend of EFN-PR-C is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.89%
EPS Next 2Y16.05%
EPS Next 3Y16.19%
ELEMENT FLEET MANAGEMENT - EFNCN 6.21 PERP / EFN-PR-C.CA FAQ
What is the fundamental rating for EFN-PR-C stock?
ChartMill assigns a fundamental rating of 5 / 10 to EFN-PR-C.CA.
What is the valuation status for EFN-PR-C stock?
ChartMill assigns a valuation rating of 4 / 10 to ELEMENT FLEET MANAGEMENT - EFNCN 6.21 PERP (EFN-PR-C.CA). This can be considered as Fairly Valued.
What is the profitability of EFN-PR-C stock?
ELEMENT FLEET MANAGEMENT - EFNCN 6.21 PERP (EFN-PR-C.CA) has a profitability rating of 7 / 10.
How financially healthy is ELEMENT FLEET MANAGEMENT - EFNCN 6.21 PERP?
The financial health rating of ELEMENT FLEET MANAGEMENT - EFNCN 6.21 PERP (EFN-PR-C.CA) is 4 / 10.
Is the dividend of ELEMENT FLEET MANAGEMENT - EFNCN 6.21 PERP sustainable?
The dividend rating of ELEMENT FLEET MANAGEMENT - EFNCN 6.21 PERP (EFN-PR-C.CA) is 6 / 10 and the dividend payout ratio is 39.89%.