ELEMENT FLEET MANAGEMENT COR (EFN.CA) Stock Fundamental Analysis
Canada - TSX:EFN - CA2861812014 - Common Stock
36.94 CAD
-0.27 (-0.73%)
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 not valued too expensively and it also shows a decent growth rate.
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.
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
The Return On Assets of EFN (2.91%) is better than 70.83% of its industry peers.
The Return On Equity of EFN (14.55%) is better than 83.33% of its industry peers.
The Return On Invested Capital of EFN (2.60%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for EFN is below the industry average of 7.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 14.55% | ||
| ROIC | 2.6% |
ROA(3y)2.76%
ROA(5y)2.49%
ROE(3y)11.73%
ROE(5y)10.22%
ROIC(3y)2.62%
ROIC(5y)2.47%
1.3 Margins
EFN has a Profit Margin of 19.11%. 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.
EFN has a Operating Margin of 20.35%. This is amongst the best in the industry. EFN outperforms 100.00% of its industry peers.
EFN's Operating Margin has improved in the last couple of years.
EFN's Gross Margin of 72.83% is amongst the best of the industry. EFN outperforms 95.83% of its industry peers.
EFN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.35% | ||
| PM (TTM) | 19.11% | ||
| GM | 72.83% |
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.
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
EFN has an Altman-Z score of 1.45. 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 (1.45) which is comparable to the rest of the industry.
The Debt to FCF ratio of EFN is 713.34, which is on the high side as it means it would take EFN, 713.34 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 713.34, EFN is in line with its industry, outperforming 41.67% of the companies in the same industry.
EFN has a Debt/Equity ratio of 3.43. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of EFN (3.43) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.43 | ||
| Debt/FCF | 713.34 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.33
WACC7.92%
2.3 Liquidity
A Current Ratio of 5.86 indicates that EFN has no problem at all paying its short term obligations.
With an excellent Current ratio value of 5.86, EFN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
EFN has a Quick Ratio of 5.86. This indicates that EFN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 5.86, EFN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.86 | ||
| Quick Ratio | 5.86 |
3. Growth
3.1 Past
The earnings per share for EFN have decreased by -0.18% in the last year.
Measured over the past 5 years, EFN shows a small growth in Earnings Per Share. The EPS has been growing by 4.75% on average per year.
The Revenue has decreased by -3.39% in the past year.
EFN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.38% yearly.
EPS 1Y (TTM)-0.18%
EPS 3Y9.72%
EPS 5Y4.75%
EPS Q2Q%3.45%
Revenue 1Y (TTM)-3.39%
Revenue growth 3Y23.04%
Revenue growth 5Y1.38%
Sales Q2Q%5.62%
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 13.64% yearly.
EFN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.40% yearly.
EPS Next Y13.14%
EPS Next 2Y13.73%
EPS Next 3Y13.64%
EPS Next 5YN/A
Revenue Next Year9.07%
Revenue Next 2Y10.59%
Revenue Next 3Y11.4%
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 23.53, the valuation of EFN can be described as rather expensive.
79.17% of the companies in the same industry are more expensive than EFN, based on the Price/Earnings ratio.
EFN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.20.
EFN is valuated rather expensively with a Price/Forward Earnings ratio of 18.71.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EFN indicates a somewhat cheap valuation: EFN is cheaper than 62.50% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of EFN to the average of the S&P500 Index (22.70), we can say EFN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.53 | ||
| Fwd PE | 18.71 |
4.2 Price Multiples
EFN's Enterprise Value to EBITDA ratio is in line with the industry average.
EFN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 806.53 | ||
| EV/EBITDA | 19.24 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of EFN may justify a higher PE ratio.
EFN's earnings are expected to grow with 13.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.79
PEG (5Y)4.96
EPS Next 2Y13.73%
EPS Next 3Y13.64%
5. Dividend
5.1 Amount
EFN has a Yearly Dividend Yield of 1.40%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.34, EFN pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.40, EFN pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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
36.15% 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.
DP36.15%
EPS Next 2Y13.73%
EPS Next 3Y13.64%
TSX:EFN (9/17/2025, 7:00:00 PM)
36.94
-0.27 (-0.73%)
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 Cap14.82B
Analysts80
Price Target44.12 (19.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
Yearly Dividend0.51
Dividend Growth(5Y)7.62%
DP36.15%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.93%
Min EPS beat(2)-1.87%
Max EPS beat(2)0.01%
EPS beat(4)2
Avg EPS beat(4)-1.06%
Min EPS beat(4)-5.37%
Max EPS beat(4)3.01%
EPS beat(8)5
Avg EPS beat(8)1.59%
EPS beat(12)9
Avg EPS beat(12)4.4%
EPS beat(16)12
Avg EPS beat(16)6.35%
Revenue beat(2)1
Avg Revenue beat(2)-0.75%
Min Revenue beat(2)-2.22%
Max Revenue beat(2)0.71%
Revenue beat(4)1
Avg Revenue beat(4)-1.22%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)0.71%
Revenue beat(8)4
Avg Revenue beat(8)0.73%
Revenue beat(12)8
Avg Revenue beat(12)21.37%
Revenue beat(16)12
Avg Revenue beat(16)33.2%
PT rev (1m)7.44%
PT rev (3m)23.91%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)-0.2%
EPS NY rev (1m)0.95%
EPS NY rev (3m)0.95%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)2.12%
Revenue NY rev (3m)2.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.53 | ||
| Fwd PE | 18.71 | ||
| P/S | 5.1 | ||
| P/FCF | 806.53 | ||
| P/OCF | 143.04 | ||
| P/B | 3.88 | ||
| P/tB | 9.67 | ||
| EV/EBITDA | 19.24 |
EPS(TTM)1.57
EY4.25%
EPS(NY)1.97
Fwd EY5.34%
FCF(TTM)0.05
FCFY0.12%
OCF(TTM)0.26
OCFY0.7%
SpS7.25
BVpS9.51
TBVpS3.82
PEG (NY)1.79
PEG (5Y)4.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 14.55% | ||
| ROCE | 3.42% | ||
| ROIC | 2.6% | ||
| ROICexc | 2.63% | ||
| ROICexgc | 3.06% | ||
| OM | 20.35% | ||
| PM (TTM) | 19.11% | ||
| GM | 72.83% | ||
| FCFM | 0.63% |
ROA(3y)2.76%
ROA(5y)2.49%
ROE(3y)11.73%
ROE(5y)10.22%
ROIC(3y)2.62%
ROIC(5y)2.47%
ROICexc(3y)2.64%
ROICexc(5y)2.49%
ROICexgc(3y)3.16%
ROICexgc(5y)2.97%
ROCE(3y)3.44%
ROCE(5y)3.24%
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-Score5
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.43 | ||
| Debt/FCF | 713.34 | ||
| Debt/EBITDA | 9.09 | ||
| Cap/Depr | 10.03% | ||
| Cap/Sales | 2.93% | ||
| Interest Coverage | 0.84 | ||
| Cash Conversion | 7.19% | ||
| Profit Quality | 3.31% | ||
| Current Ratio | 5.86 | ||
| Quick Ratio | 5.86 | ||
| Altman-Z | 1.45 |
F-Score5
WACC7.92%
ROIC/WACC0.33
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)-0.18%
EPS 3Y9.72%
EPS 5Y4.75%
EPS Q2Q%3.45%
EPS Next Y13.14%
EPS Next 2Y13.73%
EPS Next 3Y13.64%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.39%
Revenue growth 3Y23.04%
Revenue growth 5Y1.38%
Sales Q2Q%5.62%
Revenue Next Year9.07%
Revenue Next 2Y10.59%
Revenue Next 3Y11.4%
Revenue Next 5YN/A
EBIT growth 1Y-0.42%
EBIT growth 3Y16.26%
EBIT growth 5Y23.05%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y101%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y106%
OCF growth 3YN/A
OCF growth 5YN/A