ELEMENT FLEET MANAGEMENT COR (EFN.CA) Stock Fundamental Analysis
TSX:EFN - CA2861812014 - Common Stock
36.63 CAD
+0.07 (+0.19%)
We assign a fundamental rating of 5 out of 10 to EFN. EFN was compared to 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. EFN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
EFN had positive earnings in the past year.
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
With a decent Return On Assets value of 2.91%, EFN is doing good in the industry, outperforming 69.57% of the companies in the same industry.
EFN has a Return On Equity of 14.55%. This is amongst the best in the industry. EFN outperforms 82.61% of its industry peers.
EFN has a Return On Invested Capital of 2.60%. This is comparable to the rest of the industry: EFN outperforms 43.48% of its industry peers.
EFN had an Average Return On Invested Capital over the past 3 years of 2.62%. This is below the industry average of 6.97%.
| 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
With an excellent Profit Margin value of 19.11%, EFN belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
In the last couple of years the Profit Margin of EFN has grown nicely.
EFN's Operating Margin of 20.35% is amongst the best of the industry. EFN outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of EFN has grown nicely.
The Gross Margin of EFN (72.83%) is better than 95.65% 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.
EFN has more shares outstanding than it did 1 year ago.
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
Based on the Altman-Z score of 1.44, 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 1.44, EFN is in line with its industry, outperforming 43.48% of the companies in the same 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.
The Debt to FCF ratio of EFN (713.34) is worse than 60.87% of its industry peers.
A Debt/Equity ratio of 3.43 is on the high side and indicates that EFN has dependencies on debt financing.
With a Debt to Equity ratio value of 3.43, 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 | 3.43 | ||
| Debt/FCF | 713.34 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.33
WACC7.85%
2.3 Liquidity
EFN has a Current Ratio of 5.86. This indicates that EFN is financially healthy and has no problem in meeting its short term obligations.
EFN's Current ratio of 5.86 is amongst the best of the industry. EFN outperforms 100.00% of its industry peers.
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.
EFN's Quick ratio of 5.86 is amongst the best of the industry. EFN outperforms 100.00% of its industry peers.
| 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.
The Revenue has been growing slightly by 1.38% on average over the past years.
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 12.73% yearly.
EPS Next Y13.14%
EPS Next 2Y13.73%
EPS Next 3Y13.64%
EPS Next 5YN/A
Revenue Next Year8.79%
Revenue Next 2Y10.47%
Revenue Next 3Y12.73%
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
EFN is valuated rather expensively with a Price/Earnings ratio of 23.18.
EFN's Price/Earnings ratio is a bit cheaper when compared to the industry. EFN is cheaper than 78.26% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.17. EFN is around the same levels.
With a Price/Forward Earnings ratio of 18.43, EFN is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EFN is on the same level as its industry peers.
EFN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.18 | ||
| Fwd PE | 18.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EFN is valued a bit more expensive than the industry average as 65.22% of the companies are valued more cheaply.
EFN's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. EFN is more expensive than 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 794.85 | ||
| EV/EBITDA | 19.02 |
4.3 Compensation for Growth
EFN's 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.
A more expensive valuation may be justified as EFN's earnings are expected to grow with 13.64% in the coming years.
PEG (NY)1.76
PEG (5Y)4.88
EPS Next 2Y13.73%
EPS Next 3Y13.64%
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 2.34.
EFN's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
The dividend of EFN is nicely growing with an annual growth rate of 7.62%!
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 36.15% of its income as dividend. This is a 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 (8/28/2025, 7:00:00 PM)
36.63
+0.07 (+0.19%)
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 Cap14.71B
Analysts80
Price Target43.31 (18.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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)13.95%
PT rev (3m)21.62%
EPS NQ rev (1m)1.54%
EPS NQ rev (3m)0.1%
EPS NY rev (1m)0.95%
EPS NY rev (3m)0.95%
Revenue NQ rev (1m)2.59%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)2.04%
Revenue NY rev (3m)2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.18 | ||
| Fwd PE | 18.43 | ||
| P/S | 5.02 | ||
| P/FCF | 794.85 | ||
| P/OCF | 140.97 | ||
| P/B | 3.83 | ||
| P/tB | 9.53 | ||
| EV/EBITDA | 19.02 |
EPS(TTM)1.58
EY4.31%
EPS(NY)1.99
Fwd EY5.43%
FCF(TTM)0.05
FCFY0.13%
OCF(TTM)0.26
OCFY0.71%
SpS7.29
BVpS9.57
TBVpS3.85
PEG (NY)1.76
PEG (5Y)4.88
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 | 1.44 |
F-Score5
WACC7.85%
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 Year8.79%
Revenue Next 2Y10.47%
Revenue Next 3Y12.73%
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