ELEMENT FLEET MANAGEMENT COR (EFN.CA) Stock Fundamental Analysis
TSX:EFN - Toronto Stock Exchange - CA2861812014 - Common Stock - Currency: CAD
EFN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 24 industry peers in the Commercial Services & Supplies industry. EFN scores excellent on profitability, but there are some minor concerns on its financial health. EFN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year EFN was profitable.
In the past year EFN had a positive cash flow from operations.
In the past 5 years EFN has always been profitable.
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
The Return On Assets of EFN (2.97%) is better than 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 14.38%, EFN belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
EFN has a Return On Invested Capital (2.73%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for EFN is significantly below the industry average of 7.99%.
| 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 has a Profit Margin of 18.57%. This is amongst the best in the industry. EFN outperforms 91.67% of its industry peers.
In the last couple of years the Profit Margin of EFN has grown nicely.
The Operating Margin of EFN (20.45%) is better than 100.00% of its industry peers.
EFN's Operating Margin has improved in the last couple of years.
EFN has a better Gross Margin (72.30%) 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.
Compared to 1 year ago, EFN has more shares outstanding
The number of shares outstanding for EFN has been reduced compared to 5 years ago.
EFN has a worse debt/assets ratio than last year.
2.2 Solvency
EFN has an Altman-Z score of 1.42. This is a bad value and indicates that EFN is not financially healthy and even has some risk of bankruptcy.
EFN has a Altman-Z score of 1.42. This is comparable to the rest of the industry: EFN outperforms 45.83% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 86.48, EFN is doing worse than 62.50% of the companies in the same industry.
EFN has a Debt/Equity ratio of 3.36. This is a high value indicating a heavy dependency on external financing.
EFN has a Debt to Equity ratio of 3.36. This is in the lower half of the industry: EFN underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.36 | ||
| Debt/FCF | 86.48 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.35
WACC7.71%
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.
EFN has a Quick Ratio of 6.16. This indicates that EFN is financially healthy and has no problem in meeting its short term obligations.
EFN's Quick ratio of 6.16 is amongst the best of 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.
EFN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.75% yearly.
Looking at the last year, EFN shows a decrease in Revenue. The Revenue has decreased by -6.39% in the last 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)-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
Based on estimates for the next years, EFN will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.67% on average per year.
The Revenue is expected to grow by 8.02% on average over the next years. This is quite good.
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
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.
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
A Price/Earnings ratio of 20.51 indicates a rather expensive valuation of EFN.
Compared to the rest of the industry, the Price/Earnings ratio of EFN indicates a somewhat cheap valuation: EFN is cheaper than 75.00% of the companies listed in the same industry.
EFN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.53.
With a Price/Forward Earnings ratio of 16.50, EFN is valued correctly.
EFN's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.27. EFN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.51 | ||
| Fwd PE | 16.5 |
4.2 Price Multiples
EFN's Enterprise Value to EBITDA ratio is in line with the industry average.
EFN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 88.45 | ||
| EV/EBITDA | 17.33 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
EFN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.7
PEG (5Y)4.32
EPS Next 2Y12.6%
EPS Next 3Y11.67%
5. Dividend
5.1 Amount
EFN has a Yearly Dividend Yield of 1.63%.
Compared to an average industry Dividend Yield of 2.40, EFN pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.39, EFN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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.
EFN has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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.
EFN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.2%
EPS Next 2Y12.6%
EPS Next 3Y11.67%
TSX:EFN (6/6/2025, 7:00:00 PM)
31.79
-0.15 (-0.47%)
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 Cap12.80B
Analysts73.85
Price Target35.61 (12.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Yearly Dividend0.51
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)0.64%
PT rev (3m)4.41%
EPS NQ rev (1m)-2.08%
EPS NQ rev (3m)-4.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.8%
Revenue NQ rev (1m)-2.02%
Revenue NQ rev (3m)-2.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.51 | ||
| Fwd PE | 16.5 | ||
| P/S | 4.44 | ||
| P/FCF | 88.45 | ||
| P/OCF | 54.38 | ||
| P/B | 3.43 | ||
| P/tB | 8.81 | ||
| EV/EBITDA | 17.33 |
EPS(TTM)1.55
EY4.88%
EPS(NY)1.93
Fwd EY6.06%
FCF(TTM)0.36
FCFY1.13%
OCF(TTM)0.58
OCFY1.84%
SpS7.17
BVpS9.26
TBVpS3.61
PEG (NY)1.7
PEG (5Y)4.32
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 | 1.42 |
F-Score3
WACC7.71%
ROIC/WACC0.35
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