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. While EFN has a great profitability rating, 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
In the past year EFN was profitable.
EFN had a positive operating cash flow in the past year.
Each year in the past 5 years EFN has been profitable.
In multiple years EFN reported negative operating cash flow during the last 5 years.
1.2 Ratios
EFN has a better Return On Assets (2.97%) than 66.67% of its industry peers.
The Return On Equity of EFN (14.38%) is better than 83.33% of its industry peers.
With a Return On Invested Capital value of 2.73%, EFN perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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 91.67% of its industry peers.
In the last couple of years the Profit Margin of EFN has grown nicely.
EFN's Operating Margin of 20.45% is amongst the best of the industry. EFN outperforms 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.
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 1.46. This is a bad value and indicates that EFN is not financially healthy and even has some risk of bankruptcy.
EFN's Altman-Z score of 1.46 is in line compared to the rest of the industry. EFN outperforms 45.83% of its industry peers.
EFN has a debt to FCF ratio of 86.48. This is a negative value and a sign of low solvency as EFN would need 86.48 years to pay back of all of its debts.
EFN's Debt to FCF ratio of 86.48 is in line compared to the rest of the industry. EFN outperforms 41.67% of its industry peers.
EFN has a Debt/Equity ratio of 3.36. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.36, EFN is doing worse than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.36 | ||
| Debt/FCF | 86.48 | ||
| Altman-Z | 1.46 |
ROIC/WACC0.36
WACC7.65%
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.
EFN's Current ratio of 6.16 is amongst the best of the industry. EFN outperforms 100.00% of its industry peers.
A Quick Ratio of 6.16 indicates that EFN has no problem at all paying its short term obligations.
The Quick ratio of EFN (6.16) is better than 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.
The Earnings Per Share has been growing slightly by 4.75% on average over the past years.
The Revenue has decreased by -6.39% in the past 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
The Earnings Per Share is expected to grow by 11.67% on average over the next years. This is quite good.
Based on estimates for the next years, EFN will show a quite strong growth in Revenue. The Revenue will grow by 8.02% on average per year.
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
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
With a Price/Earnings ratio of 22.53, EFN is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of EFN indicates a somewhat cheap valuation: EFN is cheaper than 70.83% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, EFN is valued at the same level.
EFN is valuated rather expensively with a Price/Forward Earnings ratio of 18.15.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EFN is on the same level as its industry peers.
EFN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.53 | ||
| Fwd PE | 18.15 |
4.2 Price Multiples
EFN's Enterprise Value to EBITDA is on the same level as the industry average.
EFN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 97.29 | ||
| EV/EBITDA | 18.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EFN does not grow enough to justify the current Price/Earnings ratio.
EFN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)4.75
EPS Next 2Y12.6%
EPS Next 3Y11.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.52%, EFN has a reasonable but not impressive dividend return.
EFN's Dividend Yield is a higher than the industry average which is at 2.30.
EFN's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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
37.20% of the earnings are spent on dividend by EFN. This is a low number and 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 (7/4/2025, 7:00:00 PM)
34.69
+0.37 (+1.08%)
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 Cap13.97B
Analysts80
Price Target36.8 (6.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend0.5
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)3.34%
PT rev (3m)7.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.08%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.53 | ||
| Fwd PE | 18.15 | ||
| P/S | 4.88 | ||
| P/FCF | 97.29 | ||
| P/OCF | 59.82 | ||
| P/B | 3.78 | ||
| P/tB | 9.69 | ||
| EV/EBITDA | 18.12 |
EPS(TTM)1.54
EY4.44%
EPS(NY)1.91
Fwd EY5.51%
FCF(TTM)0.36
FCFY1.03%
OCF(TTM)0.58
OCFY1.67%
SpS7.11
BVpS9.18
TBVpS3.58
PEG (NY)1.87
PEG (5Y)4.75
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 | 1.46 |
F-Score3
WACC7.65%
ROIC/WACC0.36
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