Element Fleet Management (EFN) AI Stock Analysis

• Market Cap: C$14.43B
• Dividend Yield: 1.44%
• Average Volume (3M): 715.16K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.72
• Revenue Growth: 11.96%
• EPS Growth: 18.67%
• Country: CA
• Employees: 2,900
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 0.46
• Shares Outstanding: 399,938,870
• 10 Day Avg. Volume: 625,499
• 30 Day Avg. Volume: 715,163
• PEG Ratio: 2.30
• Price to Book (P/B): 4.16
• Price to Sales (P/S): 5.24
• P/FCF Ratio: -25.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$42.29
• Price Target Upside: 17.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: C$36.00 ▼(-0.22% Downside)

Element Fleet Management's overall score is driven by strong profitability but offset by high leverage and negative cash flows. Technical indicators suggest bearish momentum, and the valuation is moderate with a reasonable P/E ratio and low dividend yield.

Positive Factors

Revenue Growth

The company's consistent revenue growth, even amid foreign exchange challenges, indicates strong market demand and effective business strategies, supporting long-term expansion.

Client Acquisition

Strong client acquisition and service expansion demonstrate the company's ability to attract and retain customers, which is crucial for sustained revenue growth and market leadership.

Digital Innovation

Investing in digital and tech-enabled solutions positions the company to capitalize on industry trends, enhancing operational efficiency and competitive advantage.

Negative Factors

High Leverage

Significant leverage poses financial risks, potentially limiting flexibility and increasing vulnerability to economic downturns, impacting long-term financial health.

Negative Cash Flows

Negative cash flows indicate liquidity concerns, which could hinder the company's ability to invest in growth opportunities and meet financial obligations.

Decline in Originations

A decline in originations suggests potential challenges in market demand or competitive pressures, which could affect future revenue streams and growth prospects.

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 management, and remarketing services to corporate, commercial, government, and public service vehicle fleets. It serves construction, energy, oil and gas, food and beverage, healthcare, services, transportation, and utility industries. Element Fleet Management Corp. is headquartered in Toronto, Canada.

How the Company Makes Money

Element Fleet Management generates revenue primarily through its fleet management services, which include vehicle leasing, financing solutions, and maintenance services. The company earns money by charging fees for vehicle leases, interest on financing, and service fees associated with fleet management and optimization. Key revenue streams include the sale of telematics services and data analytics, which help clients manage their fleets more effectively. Additionally, Element may partner with vehicle manufacturers and dealerships to facilitate vehicle acquisition, further enhancing its revenue potential through strategic alliances. Overall, the company's earnings are bolstered by a strong focus on customer retention and long-term contracts with clients.

Element Fleet Management Financial Statement Overview

Summary

Element Fleet Management shows strong revenue growth and profitability with solid margins. However, high leverage and low equity ratio indicate financial risks, and cash flow challenges are evident with negative free cash flow growth.

Income Statement

Element Fleet Management shows a solid revenue growth rate of 7.56% TTM, indicating a positive trajectory. The gross profit margin of 36.63% and net profit margin of 18.26% TTM reflect strong profitability. However, the EBIT margin of 24.12% and EBITDA margin of 51.96% TTM suggest room for improvement in operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 3.39 TTM, indicating significant leverage, which could pose financial risks. The return on equity of 14.68% TTM is commendable, showing effective use of equity. However, the equity ratio of 20.02% TTM suggests a lower proportion of equity financing, which may affect financial stability.

Cash Flow

The free cash flow growth rate is significantly negative at -92.22% TTM, indicating potential cash flow challenges. The operating cash flow to net income ratio of 0.055 TTM is low, suggesting limited cash generation from operations. However, the free cash flow to net income ratio of 0.177 TTM shows some ability to convert profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.26B	2.20B	1.91B	1.46B	1.15B	1.12B
Gross Profit	1.71B	2.16B	1.87B	1.42B	1.15B	1.12B
EBITDA	1.20B	1.11B	925.71M	648.40M	0.00	0.00
Net Income	432.85M	386.77M	344.77M	305.30M	279.19M	224.89M
Balance Sheet
Total Assets	14.08B	12.70B	9.36B	7.87B	7.98B	9.21B
Cash, Cash Equivalents and Short-Term Investments	168.74M	128.84M	72.60M	37.82M	27.84M	5.40M
Total Debt	9.47B	8.56B	8.21B	6.80B	6.43B	7.85B
Total Liabilities	11.25B	9.92B	12.57B	10.65B	9.52B	11.21B
Stockholders Equity	2.83B	2.77B	2.94B	2.74B	2.71B	2.96B
Cash Flow
Free Cash Flow	-514.46M	-264.85M	-1.39B	118.45M	1.90B	2.11B
Operating Cash Flow	-428.42M	-154.11M	-1.29B	169.19M	1.97B	2.18B
Investing Cash Flow	-202.54M	-227.00M	-99.28M	-48.34M	-67.41M	-7.55M
Financing Cash Flow	1.11B	654.08M	1.40B	-5.60M	-1.87B	-2.22B

Element Fleet Management Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EFN, the sentiment is Positive. The current price of 36.08 is below the 20-day moving average (MA) of 36.32, below the 50-day MA of 36.70, and above the 200-day MA of 34.05, indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 47.79 is Neutral, neither overbought nor oversold. The STOCH value of 53.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EFN.

Element Fleet Management Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTT	78 Outperform	C$9.64B	18.54	19.66%	1.61%	1.32%	24.27%
MTL	74 Outperform	C$1.53B	14.69	9.33%	5.24%	5.53%	-21.87%
CJT	67 Neutral	$1.26B	10.55	16.75%	1.67%	7.71%	3170.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TFII	63 Neutral	$11.85B	26.75	11.98%	1.76%	-0.25%	-28.71%
EFN	53 Neutral	C$14.43B	24.07	14.26%	1.44%	11.96%	18.67%
AC	47 Neutral	$5.76B	-29.72	-10.66%	―	-0.09%	-109.21%

Element Fleet Management Corporate Events

Element Fleet Management Acquires Car IQ to Revolutionize Fleet Payments

Element Fleet Management announced its acquisition of Car IQ, a technology company specializing in connected vehicle payments, to enhance its position as a leader in the connected-fleet ecosystem in North America. This strategic move will integrate Car IQ’s vehicle-initiated payment technology into Element’s platform, offering clients improved transaction efficiency, reduced fraud exposure, and new data-driven opportunities, thereby redefining fleet operations in a digital and autonomous world.

Element Fleet Management Announces $500 Million Senior Notes Offering

Element Fleet Management announced the pricing of a private offering of US$500 million in Senior Notes due 2030, with proceeds intended for working capital and general corporate purposes, potentially including debt repayment. This strategic financial move, expected to close on November 24, 2025, underlines Element’s efforts to strengthen its financial position and enhance its service offerings, thereby potentially impacting its market positioning and stakeholder interests positively.

Element Fleet Management Proposes Private Offering of Senior Notes

Element Fleet Management has announced a proposed private offering of senior unsecured notes, aiming to use the proceeds for working capital and general corporate purposes, potentially including debt repayment. This strategic move reflects Element’s focus on financial optimization and operational efficiency, potentially strengthening its market position and offering implications for stakeholders in terms of enhanced financial performance and service offerings.

Element Fleet Management Achieves Record Q3 2025 Results with Strong Revenue Growth

Element Fleet Management reported record quarterly results for Q3 2025, with net revenues increasing by 10% year-over-year, driven by strong performance across all revenue categories. The company achieved a 14% increase in adjusted diluted EPS and a 17% rise in adjusted diluted free cash flow per share, reflecting solid operational execution and strong cash generation. Client originations remained robust, particularly in Mexico, and vehicles under management increased by 2% year-over-year. Element repurchased 4.1 million common shares, demonstrating confidence in its growth strategy, which focuses on automation, digital capabilities, and enhancing client experience.