ELEMENT FLEET MANAGEMENT COR (EFN.CA) Stock Fundamental Analysis
TSX:EFN - Toronto Stock Exchange - CA2861812014 - Common Stock - Currency: CAD
Overall EFN gets a fundamental rating of 5 out of 10. We evaluated EFN against 23 industry peers in the Commercial Services & Supplies industry. While EFN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. EFN is quite expensive at the moment. 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 has reported a negative cash flow from operations.
EFN had positive earnings in each of the past 5 years.
In multiple years EFN reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of EFN (2.99%) is better than 69.57% of its industry peers.
Looking at the Return On Equity, with a value of 13.69%, EFN belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
EFN has a Return On Invested Capital (2.80%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for EFN is significantly below the industry average of 8.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.99% | ||
| ROE | 13.69% | ||
| ROIC | 2.8% |
ROA(3y)3.15%
ROA(5y)2.72%
ROE(3y)13.38%
ROE(5y)11.21%
ROIC(3y)2.98%
ROIC(5y)2.68%
1.3 Margins
With an excellent Profit Margin value of 18.04%, EFN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
EFN's Profit Margin has improved in the last couple of years.
EFN has a better Operating Margin (19.96%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of EFN has grown nicely.
EFN has a Gross Margin of 71.98%. This is amongst the best in the industry. EFN outperforms 91.30% 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 | 19.96% | ||
| PM (TTM) | 18.04% | ||
| GM | 71.98% |
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.
The number of shares outstanding for EFN has been increased compared to 1 year ago.
EFN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, EFN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.38, we must say that EFN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of EFN (1.38) is comparable to the rest of the industry.
A Debt/Equity ratio of 3.08 is on the high side and indicates that EFN has dependencies on debt financing.
The Debt to Equity ratio of EFN (3.08) is worse than 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.08 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.38 |
ROIC/WACC0.37
WACC7.47%
2.3 Liquidity
A Current Ratio of 5.17 indicates that EFN has no problem at all paying its short term obligations.
EFN's Current ratio of 5.17 is amongst the best of the industry. EFN outperforms 95.65% of its industry peers.
EFN has a Quick Ratio of 5.17. This indicates that EFN is financially healthy and has no problem in meeting its short term obligations.
EFN has a better Quick ratio (5.17) than 95.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.17 | ||
| Quick Ratio | 5.17 |
3. Growth
3.1 Past
EFN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.96%.
EFN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.75% yearly.
The Revenue has decreased by -7.37% 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)-9.96%
EPS 3Y9.72%
EPS 5Y4.75%
EPS Q2Q%11.37%
Revenue 1Y (TTM)-7.37%
Revenue growth 3Y23.04%
Revenue growth 5Y1.38%
Sales Q2Q%10.6%
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 12.60% on average per year.
The Revenue is expected to grow by 8.52% on average over the next years. This is quite good.
EPS Next Y12.07%
EPS Next 2Y12.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.43%
Revenue Next 2Y8.52%
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
The Price/Earnings ratio is 19.93, which indicates a rather expensive current valuation of EFN.
73.91% of the companies in the same industry are more expensive than EFN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of EFN to the average of the S&P500 Index (28.22), we can say EFN is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.73, which indicates a rather expensive current valuation of EFN.
Based on the Price/Forward Earnings ratio, EFN is valued a bit cheaper than 60.87% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, EFN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.93 | ||
| Fwd PE | 17.73 |
4.2 Price Multiples
EFN's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.77 |
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.
EFN's earnings are expected to grow with 12.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.65
PEG (5Y)4.2
EPS Next 2Y12.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.68%, EFN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.43, EFN pays a bit more dividend than its industry peers.
EFN's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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
38.63% 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.
DP38.63%
EPS Next 2Y12.6%
EPS Next 3YN/A
TSX:EFN (5/1/2025, 7:00:00 PM)
30.5
+0.31 (+1.03%)
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 Cap12.28B
Analysts75
Price Target35.38 (16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend0.51
Dividend Growth(5Y)7.62%
DP38.63%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.18%
Min EPS beat(2)-5.37%
Max EPS beat(2)3.01%
EPS beat(4)3
Avg EPS beat(4)2.12%
Min EPS beat(4)-5.37%
Max EPS beat(4)6.78%
EPS beat(8)6
Avg EPS beat(8)4.24%
EPS beat(12)10
Avg EPS beat(12)8.08%
EPS beat(16)12
Avg EPS beat(16)6.5%
Revenue beat(2)0
Avg Revenue beat(2)-1.69%
Min Revenue beat(2)-3.21%
Max Revenue beat(2)-0.16%
Revenue beat(4)2
Avg Revenue beat(4)1.61%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)6.13%
Revenue beat(8)5
Avg Revenue beat(8)12.27%
Revenue beat(12)9
Avg Revenue beat(12)33.58%
Revenue beat(16)13
Avg Revenue beat(16)41.16%
PT rev (1m)3.74%
PT rev (3m)6.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.95%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.93 | ||
| Fwd PE | 17.73 | ||
| P/S | 4.22 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.2 | ||
| P/tB | 8.06 | ||
| EV/EBITDA | 16.77 |
EPS(TTM)1.53
EY5.02%
EPS(NY)1.72
Fwd EY5.64%
FCF(TTM)-0.63
FCFYN/A
OCF(TTM)-0.37
OCFYN/A
SpS7.23
BVpS9.53
TBVpS3.78
PEG (NY)1.65
PEG (5Y)4.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.99% | ||
| ROE | 13.69% | ||
| ROCE | 3.67% | ||
| ROIC | 2.8% | ||
| ROICexc | 2.83% | ||
| ROICexgc | 3.35% | ||
| OM | 19.96% | ||
| PM (TTM) | 18.04% | ||
| GM | 71.98% | ||
| FCFM | N/A |
ROA(3y)3.15%
ROA(5y)2.72%
ROE(3y)13.38%
ROE(5y)11.21%
ROIC(3y)2.98%
ROIC(5y)2.68%
ROICexc(3y)3.01%
ROICexc(5y)2.71%
ROICexgc(3y)3.59%
ROICexgc(5y)3.23%
ROCE(3y)3.91%
ROCE(5y)3.52%
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-Score2
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.08 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.29 | ||
| Cap/Depr | 12.59% | ||
| Cap/Sales | 3.66% | ||
| Interest Coverage | 0.77 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 5.17 | ||
| Quick Ratio | 5.17 | ||
| Altman-Z | 1.38 |
F-Score2
WACC7.47%
ROIC/WACC0.37
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)-9.96%
EPS 3Y9.72%
EPS 5Y4.75%
EPS Q2Q%11.37%
EPS Next Y12.07%
EPS Next 2Y12.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.37%
Revenue growth 3Y23.04%
Revenue growth 5Y1.38%
Sales Q2Q%10.6%
Revenue Next Year7.43%
Revenue Next 2Y8.52%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.85%
EBIT growth 3Y16.26%
EBIT growth 5Y23.05%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y82.41%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y88.96%
OCF growth 3YN/A
OCF growth 5YN/A