Element Fleet Management (EFN) AI Stock Analysis

• Market Cap: C$14.55B
• Dividend Yield: 1.42%
• Average Volume (3M): 697.91K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 0.75
• Revenue Growth: 13.20%
• EPS Growth: 11.74%
• Country: CA
• Employees: 2,900
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 0.42
• Shares Outstanding: 401,146,450
• 10 Day Avg. Volume: 1,048,071
• 30 Day Avg. Volume: 697,914
• PEG Ratio: 1.60
• Price to Book (P/B): 2.89
• Price to Sales (P/S): 3.63
• P/FCF Ratio: -43.52
• 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$41.86
• Price Target Upside: 14.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 70 Outperform
• Price Target: C$40.00 ▲(9.23% Upside)

Element Fleet Management's overall stock score is driven by strong earnings call results and solid technical indicators. Financial performance is robust but tempered by high leverage and cash flow challenges. The valuation suggests the stock is relatively expensive, which slightly offsets the positive aspects. The absence of notable corporate events means the focus remains on financial and operational metrics.

Positive Factors

Negative Factors

Element Fleet Management Business Overview & Revenue Model

Company Description

Element Fleet Management (EFN) is a leading provider of fleet management services in North America, specializing in optimizing vehicle fleets for businesses across various sectors, including transportation, construction, and logistics. The company offers a comprehensive suite of services, including vehicle acquisition, financing, maintenance management, telematics, and remarketing, aimed at helping clients enhance operational efficiency and reduce costs associated with fleet management.

How the Company Makes Money

Element Fleet Management generates revenue through multiple key streams. Primarily, the company earns money by providing fleet financing solutions, including leasing and loans for vehicles. This includes both full-service leasing, which encompasses vehicle maintenance and management services, and finance leasing, where the customer takes on more responsibilities. Additionally, EFN earns revenue from maintenance services, telematics solutions, and remarketing vehicles at the end of their lifecycle. Significant partnerships with vehicle manufacturers, service providers, and technology firms enhance its service offerings and drive additional revenue. The company also benefits from economies of scale, leveraging its large fleet portfolio to negotiate better terms with suppliers and service providers, thereby increasing profitability.

Element Fleet Management Financial Statement Overview

Summary

Element Fleet Management demonstrates strong revenue growth and profitability, with solid margins in the income statement. However, the high leverage and low equity ratio in the balance sheet indicate potential financial risks. The cash flow statement highlights challenges in cash generation, with negative free cash flow growth. Overall, while the company is profitable, it faces risks related to leverage and cash flow management.

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	2.22B	2.20B	1.91B	1.46B	1.15B	1.12B
Gross Profit	2.03B	2.16B	1.87B	1.42B	1.15B	1.12B
EBITDA	1.29B	1.11B	925.71M	648.40M	0.00	0.00
Net Income	405.84M	386.77M	344.77M	305.30M	279.19M	224.89M
Balance Sheet
Total Assets	13.86B	12.70B	9.36B	7.87B	7.98B	9.21B
Cash, Cash Equivalents and Short-Term Investments	143.78M	128.84M	72.60M	37.82M	27.84M	5.40M
Total Debt	9.55B	8.56B	8.21B	6.80B	6.43B	7.85B
Total Liabilities	11.08B	9.92B	12.57B	10.65B	9.52B	11.21B
Stockholders Equity	2.77B	2.77B	2.94B	2.74B	2.71B	2.96B
Cash Flow
Free Cash Flow	-270.93M	-460.26M	-1.31B	-46.00M	1.73B	1.92B
Operating Cash Flow	710.66M	541.53M	-102.72M	814.78M	2.50B	2.60B
Investing Cash Flow	-793.40M	-814.01M	-985.42M	-697.68M	-607.80M	-443.37M
Financing Cash Flow	317.24M	480.30M	1.04B	3.93M	-1.85B	-2.23B

Element Fleet Management Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.62
• 50DMA: Positive
• 100DMA: Positive
• 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 36.62 is below the 20-day moving average (MA) of 36.62, above the 50-day MA of 36.51, and above the 200-day MA of 31.76, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 52.60 is Neutral, neither overbought nor oversold. The STOCH value of 33.71 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
STN	75 Outperform	C$17.32B	39.67	14.35%	0.58%	12.49%	26.18%
ATRL	72 Outperform	C$16.69B	6.87	48.30%	0.08%	13.07%	697.05%
FTT	71 Outperform	C$8.69B	18.48	23.51%	1.76%	2.36%	0.62%
EFN	70 Outperform	C$14.55B	25.95	14.26%	1.42%	13.20%	11.74%
TFII	63 Neutral	C$10.28B	20.53	―	2.03%	6.04%	-20.31%
BBU.UN	57 Neutral	C$4.09B	-206.69	1.45%	0.76%	-36.55%	-102.52%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Element Fleet Management Corporate Events

Element Fleet Management Reports Record Q2 2025 Results Amid Economic Challenges

Element Fleet Management Corp. reported record quarterly results for Q2 2025, showcasing the resilience of its business model amid challenging economic conditions. The company achieved a 6% year-over-year increase in net revenues, driven by higher services and net financing revenue, despite unfavorable foreign currency impacts. Adjusted operating expenses rose by 5%, resulting in an expanded operating margin of 55.8%. The company also saw a 7% increase in adjusted diluted EPS and an 8% growth in diluted free cash flow per share. Element’s global committed order pipeline reached $1.7 billion, reflecting strong client demand, and the company anticipates ending the year at or above the high-end of its guidance ranges in all metrics except originations. Additionally, Element repurchased 3.1 million common shares for approximately $64 million, underscoring its commitment to creating shareholder value.

The most recent analyst rating on (TSE:EFN) stock is a Buy with a C$33.00 price target. To see the full list of analyst forecasts on Element Fleet Management stock, see the TSE:EFN Stock Forecast page.

Element Fleet Management Advances Sustainability with 2025 Report

Element Fleet Management has released its 2025 Sustainability Report, highlighting significant progress in its climate strategy and transparency efforts. The report showcases achievements such as surpassing Scope 1 and 2 emission reduction targets, aligning decarbonization initiatives with global best practices, and enhancing sustainability governance and disclosure practices. Element’s commitment to sustainability is evident in its efforts to foster inclusion and belonging, and its dedication to continuous improvement positions the company for long-term resilience and shared prosperity.

The most recent analyst rating on (TSE:EFN) stock is a Buy with a C$33.00 price target. To see the full list of analyst forecasts on Element Fleet Management stock, see the TSE:EFN Stock Forecast page.