Element Fleet Management (TSE:EFN)
TSX:EFN
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Element Fleet Management
(TSX:EFN)
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Rating:60Neutral
Price Target:
C$33.00
▲(0.82% Upside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by mixed fundamentals: strong growth and profitability are outweighed by elevated leverage and weakened cash generation. Positive, specific 2026 guidance and capital returns help offset these risks, while technicals remain weak with the stock trading below key moving averages.
Positive Factors
Recurring services revenue
A $623M services base growing ~5% annually indicates durable, fee-based recurring revenue beyond leasing spreads. Services (maintenance, telematics, fuel, remarketing) diversify income, increase client stickiness and cross-sell, and support margin stability as fleet scale rises.
Negative Factors
High and rising leverage
Material debt growth to ~$13.6B with debt-to-equity ~3.64x elevates refinancing and interest-rate risk. A highly levered capital structure limits flexibility for strategic investments, increases exposure to funding market stress, and can force conservative capital allocation if earnings soften.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring services revenue
A $623M services base growing ~5% annually indicates durable, fee-based recurring revenue beyond leasing spreads. Services (maintenance, telematics, fuel, remarketing) diversify income, increase client stickiness and cross-sell, and support margin stability as fleet scale rises.
Read all positive factors
Element Fleet Management (EFN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$12.90B
Dividend Yield1.42%
Average Volume (3M)715.16K
Price to Earnings (P/E)51.0
Beta (1Y)0.59
Revenue Growth2.57%
EPS Growth-26.10%
CountryCA
Employees2,900
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)0.45
Shares Outstanding397,899,020
10 Day Avg. Volume625,499
30 Day Avg. Volume715,163
Financial Highlights & Ratios
PEG Ratio-1.96
Price to Book (P/B)5.33
Price to Sales (P/S)6.41
P/FCF Ratio-65.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$41.80Price Target Upside27.71% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.42
Revenue Forecast (FY)C$1.30B
Element Fleet Management Business Overview & Revenue Model
Company Description
Element Fleet Management Corp. operates as a fleet management company primarily in Canada, the United States, Mexico, Australia, and New Zealand. The company offers fleet management services comprising vehicle acquisition, financing, program manag...
How the Company Makes Money
Element primarily makes money through (1) lease and financing-related income and (2) fee-based fleet management services. Lease/financing income is generated when Element funds or arranges the funding of client vehicles and earns revenue over the ...
Element Fleet Management Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call highlights strong, broad-based operational and financial progress in 2025: record net revenue, higher margins, EPS growth, improved ROE, solid free cash flow, active capital returns, electrification gains and tangible progress on digitization and mobility M&A (Autofleet and Car IQ). Most negative items were one-time accounting/transition costs (deferred tax asset adjustment and legacy platform write-off), a below-guidance originations year and slower early-year VUM/services growth, and an underperforming insurance initiative now being reworked. Management provided constructive 2026 guidance (8%–10% revenue growth, margin expansion, EPS and FCF per share growth) and emphasized momentum into 2026.Positive Updates
Record Net Revenue and Top-Line Growth
Net revenue of $1.2 billion in 2025, up 9% year-over-year; Q4 record quarterly revenue of $313 million with 16% year-over-year growth.
Negative Updates
Significant Nonrecurring Q4 Charges
Reported Q4 impacted by $130 million deferred tax asset partial derecognition, $52 million write-off of legacy ordering platform, and $9 million of restructuring/acquisition costs related to Car IQ; these were noncash or one-time items excluded from adjusted results but large in reported results.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Net Revenue and Top-Line Growth
Net revenue of $1.2 billion in 2025, up 9% year-over-year; Q4 record quarterly revenue of $313 million with 16% year-over-year growth.
Read all positive updates
Company Guidance
Element guided 2026 net revenue growth of 8%–10%, targeting $1.28–$1.305 billion of net revenue, adjusted operating income of $720–$745 million (adjusted operating margin 56.3%–57.3%), adjusted EPS of $1.40–$1.45, adjusted free cash flow per share of $1.67–$1.72, and originations of $6.5–$6.9 billion; management said positive operating leverage combined with ongoing share repurchases (already $34 million repurchased in the first two months of 2026 and a historical target of ~1–2% of shares) should drive strong EPS and FCFPS growth, and noted these ranges are provided prior to any material foreign‑exchange fluctuations or adverse impacts from changes in global trade agreements or political uncertainty (they also increased the annual common dividend 15% to $0.60 per share).Element Fleet Management Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
52
Neutral
Cash Flow
28
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.26B | 2.20B | 1.91B | 1.46B | 1.15B |
| Gross Profit | 745.95M | 2.16B | 1.87B | 1.42B | 1.15B |
| EBITDA | 1.81B | 1.11B | 925.71M | 648.40M | 0.00 |
| Net Income | 284.02M | 386.77M | 344.77M | 305.30M | 279.19M |
Balance Sheet | |||||
| Total Assets | 13.86B | 12.70B | 9.36B | 7.87B | 7.98B |
| Cash, Cash Equivalents and Short-Term Investments | 503.14M | 128.84M | 72.60M | 37.82M | 27.84M |
| Total Debt | 9.88B | 8.56B | 8.21B | 6.80B | 6.43B |
| Total Liabilities | 11.14B | 9.92B | 12.57B | 10.65B | 9.52B |
| Stockholders Equity | 2.72B | 2.77B | 2.94B | 2.74B | 2.71B |
Cash Flow | |||||
| Free Cash Flow | -222.35M | -264.85M | -1.39B | 118.45M | 1.90B |
| Operating Cash Flow | -149.95M | -154.11M | -1.29B | 169.19M | 1.97B |
| Investing Cash Flow | -139.24M | -227.00M | -99.28M | -48.34M | -67.41M |
| Financing Cash Flow | 510.99M | 654.08M | 1.40B | -5.60M | -1.87B |
Element Fleet Management Technical Analysis
Neutral
32.73
Price Trends
32.22
Positive
33.80
Negative
34.95
Negative
Market Momentum
0.24
Negative
59.62
Neutral
75.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EFN, the sentiment is Neutral. The current price of 32.73 is above the 20-day moving average (MA) of 31.24, above the 50-day MA of 32.22, and below the 200-day MA of 34.95, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 59.62 is Neutral, neither overbought nor oversold. The STOCH value of 75.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:EFN.
Element Fleet Management Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | C$13.00B | 19.57 | 24.05% | 1.58% | -2.20% | 4.64% | |
65 Neutral | C$1.97B | 19.45 | 8.72% | 5.21% | 7.92% | -14.19% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | C$12.90B | 50.96 | 10.09% | 1.42% | 2.57% | -26.10% | |
60 Neutral | C$15.97B | 73.02 | 11.65% | 1.75% | -7.84% | -21.07% | |
56 Neutral | C$5.35B | 27.75 | 30.13% | ― | 3.31% | -44.10% | |
52 Neutral | C$1.19B | 16.01 | 10.73% | 1.67% | -0.81% | -22.95% |
* Industrials Sector Average
TSE:EFN
Element Fleet Management
32.01
1.26
4.09%
TSE:TFII
TFI International
193.46
82.01
73.58%
TSE:AC
Air Canada
18.26
3.57
24.30%
TSE:FTT
Finning International
99.40
60.61
156.25%
TSE:MTL
Mullen Group
20.54
8.00
63.85%
TSE:CJT
Cargojet
77.62
-5.46
-6.57%
Element Fleet Management Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Element Fleet Management Taps Former Equinix CFO Keith Taylor for Board Role
Positive
Apr 1, 2026
Element Fleet Management has nominated veteran finance executive Keith Taylor for election to its board of directors at the May 7, 2026 annual general meeting, succeeding outgoing director Joan Lamm-Tennant at the end of her term limit. The move b...
Business Operations and Strategy
Element Barometer Shows Fleets Shift From EV Ambition to Cost-Driven Execution
Positive
Mar 19, 2026
Element Fleet Management and its global partners Arval and SMAS have released the 2026 Global Fleet and Mobility Barometer, based on responses from more than 10,000 fleet decision makers in 33 countries. The report shows that corporate fleets are ...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Element Fleet Management Posts Record 2025 Results, Boosts Dividend and Sets Ambitious 2026 Targets
Positive
Feb 25, 2026
Element Fleet Management reported record 2025 net revenue of $1.2 billion, up 9% year over year, with adjusted diluted EPS rising 13% and operating margin expanding to 56.2%, supported by disciplined expense growth. Strong client demand drove reco...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.