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 23 industry peers in the Commercial Services & Supplies industry. EFN has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, EFN is valued expensive at the moment.
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.
Each year in the past 5 years EFN has 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
EFN's Return On Assets of 2.97% is fine compared to the rest of the industry. EFN outperforms 65.22% of its industry peers.
With an excellent Return On Equity value of 14.38%, EFN belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
With a Return On Invested Capital value of 2.73%, EFN perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
The Profit Margin of EFN (18.57%) is better than 91.30% of its industry peers.
EFN's Profit Margin has improved in the last couple of years.
EFN has a better Operating Margin (20.45%) 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 95.65% of its industry peers.
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 | 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
EFN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
EFN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, EFN has less shares outstanding
The debt/assets ratio for EFN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.50, we must say that EFN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of EFN (1.50) is comparable to the rest of the 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.
With a Debt to FCF ratio value of 86.48, EFN is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
A Debt/Equity ratio of 3.36 is on the high side and indicates that EFN has dependencies on debt financing.
With a Debt to Equity ratio value of 3.36, EFN is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.36 | ||
| Debt/FCF | 86.48 | ||
| Altman-Z | 1.5 |
ROIC/WACC0.34
WACC7.96%
2.3 Liquidity
A Current Ratio of 6.16 indicates that EFN has no problem at all paying its short term obligations.
With an excellent Current ratio value of 6.16, EFN belongs to the best 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
EFN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.41%.
EFN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.75% yearly.
EFN shows a decrease in Revenue. In the last year, the revenue decreased by -6.39%.
EFN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.38% yearly.
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.
Based on estimates for the next years, EFN will show a small growth in Revenue. The Revenue will grow by 7.83% on average per year.
EPS Next Y12.07%
EPS Next 2Y12.6%
EPS Next 3Y11.67%
EPS Next 5YN/A
Revenue Next Year6.8%
Revenue Next 2Y8.1%
Revenue Next 3Y7.83%
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
EFN is valuated rather expensively with a Price/Earnings ratio of 23.75.
69.57% of the companies in the same industry are more expensive than EFN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.73, EFN is valued at the same level.
A Price/Forward Earnings ratio of 19.11 indicates a rather expensive valuation of EFN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EFN is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 34.61. EFN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.75 | ||
| Fwd PE | 19.11 |
4.2 Price Multiples
EFN's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 102.2 | ||
| EV/EBITDA | 18.73 |
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)1.97
PEG (5Y)5
EPS Next 2Y12.6%
EPS Next 3Y11.67%
5. Dividend
5.1 Amount
EFN has a Yearly Dividend Yield of 1.43%. 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 2.39.
Compared to an average S&P500 Dividend Yield of 2.39, EFN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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
37.20% 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.
DP37.2%
EPS Next 2Y12.6%
EPS Next 3Y11.67%
TSX:EFN (8/11/2025, 7:00:00 PM)
37.05
+0.28 (+0.76%)
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 Cap14.88B
Analysts80
Price Target41.07 (10.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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)11.6%
PT rev (3m)15.33%
EPS NQ rev (1m)1.02%
EPS NQ rev (3m)-0.57%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)-1.75%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.75 | ||
| Fwd PE | 19.11 | ||
| P/S | 5.12 | ||
| P/FCF | 102.2 | ||
| P/OCF | 62.83 | ||
| P/B | 3.97 | ||
| P/tB | 10.18 | ||
| EV/EBITDA | 18.73 |
EPS(TTM)1.56
EY4.21%
EPS(NY)1.94
Fwd EY5.23%
FCF(TTM)0.36
FCFY0.98%
OCF(TTM)0.59
OCFY1.59%
SpS7.23
BVpS9.34
TBVpS3.64
PEG (NY)1.97
PEG (5Y)5
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 | 1.5 |
F-Score3
WACC7.96%
ROIC/WACC0.34
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 Year6.8%
Revenue Next 2Y8.1%
Revenue Next 3Y7.83%
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