Element Fleet Management (61F) AI Stock Analysis

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Element Fleet Management

(Frankfurt:61F)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

High client retention and competitive positionClient revenue retention of 97% to 98% supports recurring, durable demand and indicates that Element is embedded in customer fleet workflows. Retention, combined with management’s cited scale and technology advantages, can protect the installed base while supporting cross-selling and long-term market position.

Negative Factors

Historically high and uncertain leverageHistorically elevated leverage increases sensitivity to funding conditions and can constrain financial flexibility in a leasing business. Although TTM leverage appears much lower, the possible reporting or definition shift makes the improvement less certain and keeps balance-sheet risk relevant.

Element Fleet Management (61F) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 5.40B
Dividend Yield: 2.92%
Average Volume (3M): 2,578
Price to Earnings (P/E): 18.6
Beta (1Y): 0.18
Revenue Growth: 0.22%
EPS Growth: -32.97%
Country: Germany
Employees: 3,000
Sector: Industrials
Sector Strength: 63
Industry: Rental & Leasing Services

Element Fleet Management Business Overview & Revenue Model

Company Description

Element Fleet Management Corp. is a prominent provider of fleet management services, with its core operations spanning Canada, the U.S., Mexico, Australia, and New Zealand. It furnishes a comprehensive suite of solutions, including vehicle procuremen...

Element Fleet Management Earnings Call Summary

Earnings Call Date:Nov 03, 2026(Q3-2026)|% Change Since:-12.77%|Next Earnings Date:Mar 02, 2027

Earnings Call SentimentNeutral

The call was mixed. Element reported solid profitability, cash generation, returns, client retention, productivity progress, and a strong balance sheet, while also highlighting meaningful challenges in commercial execution, services penetration, originations, expense leverage, macroeconomic conditions, and the outlook for 2026 and 2027. Management was confident in the underlying franchise and outlined concrete corrective actions, but near-term growth expectations are subdued.

Positive Updates

Solid Third-Quarter Profitability and Cash Generation

Q3 net revenue was $321 million, up 5% year-over-year, driven by growth in both net financing and services revenue. Adjusted EPS increased 6% to $0.35, free cash flow per share grew 7% to $0.45, and return on equity expanded to 20.2%.

Negative Updates

Moderating Revenue Growth

Management said revenue growth has moderated and expects growth to moderate in Q4 and in 2027.

Company Guidance

Element expects growth to moderate in Q4 and in 2027, with 2026 full year originations below the company's previously published guidance range and other 2026 full year financial metrics at or near the lower end of the guidance ranges. For 2027, it expects net revenue growth to moderate to low-single-digit range, excluding the impact of foreign exchange translation, with the Mexican peso creating an additional headwind and a meaningful headwind of approximately 2% to 3% headwind to reported results. It remains on track to deliver approximately $20 million in annualized run rate savings beginning in 2027, expects expense growth to moderate in 2027 with a clear focus on restoring positive operating leverage throughout the year, and expects commercial changes to build progressively through 2027 with a more meaningful impact thereafter, based on typical fleet sales cycles of 130 to 250 days; formal 2027 financial guidance will be provided with fourth quarter results in February.

Element Fleet Management Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:61F against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:MTL	69Neutral	CAD 2.89B	23.66	10.58%	2.77%	11.69%	18.18%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TSE:FTT	63Neutral	CAD 11.54B	21.03	18.81%	1.42%	1.93%	6.53%
TSE:CJT	61Neutral	CAD 1.61B	28.57	7.67%	1.39%	10.04%	-52.29%
TSE:AC	48Neutral	CAD 5.71B	21.99	12.10%	―	12.72%	―
TSE:TFII	47Neutral	CAD 11.23B	20.46	12.95%	1.92%	3.39%	12.07%

* Industrials Sector Average

Performance Comparison

DE:61F and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:61F	Element Fleet Management Corp.	12.30	-8.47	-40.79%
TSE:TFII	Tfi International Inc	136.93	20.31	17.42%
TSE:AC	Air Canada	22.65	4.76	26.61%
TSE:FTT	Finning International	88.74	16.70	23.17%
TSE:MTL	Mullen Group Ltd.	30.28	16.86	125.55%
TSE:CJT	Cargojet (OTC)	108.28	36.19	50.20%

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.

Element Fleet Management AI Stock Analysis