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Element Fleet Management (TSE:EFN)
TSX:EFN
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Element Fleet Management (EFN) AI Stock Analysis

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TSE:EFN

Element Fleet Management

(TSX:EFN)

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Neutral 58 (OpenAI - 5.2)
Rating:58Neutral
Price Target:
C$31.00
▲(12.65% Upside)
Action:Reiterated
Date:08/10/26
The score is anchored by a better-than-average earnings call with reaffirmed guidance, growth and profitability highlights, and active capital returns. This is tempered most by balance-sheet and cash-flow risk (high leverage and historically volatile cash conversion), while technicals are mixed/neutral and valuation appears somewhat expensive for the risk profile.
Positive Factors
Reaccelerating Revenue and Profitability
Strong TTM growth and sustained double-digit net margins indicate renewed demand and operating leverage. The Q2 margin and EPS gains support the view that Element’s outsourced fleet model can scale profitably over the next several quarters.
Negative Factors
High Financial Leverage
Elevated leverage leaves less protection if funding costs rise, asset values weaken or credit conditions deteriorate. Although management remains within its capital target, the balance sheet can constrain investment and amplify earnings volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Reaccelerating Revenue and Profitability
Strong TTM growth and sustained double-digit net margins indicate renewed demand and operating leverage. The Q2 margin and EPS gains support the view that Element’s outsourced fleet model can scale profitably over the next several quarters.
Read all positive factors

Element Fleet Management (EFN) vs. iShares MSCI Canada ETF (EWC)

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 procure...
How the Company Makes Money
Element Fleet Management generates revenue primarily by providing a suite of fleet management and financing-related services over the life cycle of a client’s fleet. Key revenue streams include: (1) Financing/lease-related revenue: Element provide...

Element Fleet Management Earnings Call Summary

Earnings Call Date:Aug 05, 2026
(Q2-2026)
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% Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial picture: double-digit top-line and EPS growth, margin expansion, yield improvement, strategic funding innovation (equity residual transaction), a marquee Waymo partnership, and technology-driven efficiency gains expected to deliver ~$20 million of annualized savings in 2027. Key near-term headwinds include originations volatility (down 9% YoY), a quarter-over-quarter cash tax-driven dip in FCF per share, expense inflation tied to growth investments, and a timing-related reduction in interest income from the new funding structure. On balance, the highlights — consistent revenue and EPS growth, strong ROE, diversified funding and strategic growth initiatives — materially outweigh the lowlights.
Positive Updates
Top-Line and EPS Growth
Adjusted net revenue increased 10% year-over-year to $318 million in Q2; adjusted EPS grew 12% and first-half revenue rose 13% with EPS up 18% year-over-year, demonstrating durable earnings growth.
Negative Updates
Originations Volatility and YoY Decline
Originations were $1.7 billion, down 9% YoY (though up 19% sequentially); the YoY decline was driven by normalization from a large originate-to-syndicate client and creates near-term variability in asset growth.
Read all updates
Q2-2026 Updates
Negative
Top-Line and EPS Growth
Adjusted net revenue increased 10% year-over-year to $318 million in Q2; adjusted EPS grew 12% and first-half revenue rose 13% with EPS up 18% year-over-year, demonstrating durable earnings growth.
Read all positive updates
Company Guidance
Element said it remains positioned to deliver within its full‑year 2026 guidance ranges while targeting 2–4% annual VUM growth and expecting annual credit losses to normalize to roughly 1–2 basis points; management highlighted that its inaugural equity‑residual transaction removed ~$700M of receivables effective May 1 (distributions began July 1) with revenue recognized over an ~4‑year asset life and that the balance sheet sits at a 76.5% debt‑to‑capital ratio (target 73–77%). The company expects the Q2 organizational actions (affecting ~8% of the workforce) to generate about $20M of annualized run‑rate savings in 2027, reiterated Dublin targets of $30–45M incremental net revenue and $22–37M of adjusted operating income by 2028, and said the Waymo partnership will begin contributing to services growth in 2027 (helping add a few percentage points to services revenue). Management also emphasized capital deployment flexibility—returning $163M to shareholders in Q2 (including $120M to repurchase 5.8M shares) and repurchasing 8.1M shares (~2% of shares outstanding) in H1—while aiming for medium‑term revenue growth in the ~6–8% range with service revenue making a larger contribution versus financing income.

Element Fleet Management Financial Statement Overview

Summary
Income statement momentum is solid (TTM revenue +25.6% with healthy net margins), but overall quality is constrained by high leverage (debt-to-equity ~3.6x) and a history of volatile cash generation. While TTM operating/free cash flow rebounded strongly, multi-year cash burn and weaker net-income-to-FCF conversion reduce confidence in durability.
Income Statement
72
Positive
Balance Sheet
48
Neutral
Cash Flow
41
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.37B2.26B2.20B1.91B1.46B1.59B
Gross Profit739.14M745.95M2.16B1.87B1.42B467.44M
EBITDA1.72B1.81B1.11B925.71M648.40M1.19B
Net Income288.22M284.02M386.77M344.77M409.64M356.01M
Balance Sheet
Total Assets13.39B13.86B12.70B16.47B14.33B12.97B
Cash, Cash Equivalents and Short-Term Investments503.52M503.14M128.84M72.60M37.82M27.84M
Total Debt9.50B9.88B8.56B8.21B6.80B8.30B
Total Liabilities10.73B11.14B9.92B12.57B10.65B9.52B
Stockholders Equity2.66B2.72B2.77B3.90B3.68B3.45B
Cash Flow
Free Cash Flow849.46M-222.35M-264.85M-1.39B118.45M1.90B
Operating Cash Flow1.34B-149.95M-154.11M-1.29B169.19M1.97B
Investing Cash Flow-578.19M-139.24M-227.00M-99.28M-48.34M-67.41M
Financing Cash Flow-434.64M510.99M654.08M1.40B-5.60M-1.87B

Element Fleet Management Technical Analysis

Technical Analysis Sentiment
Negative
Last Price27.52
Price Trends
50DMA
29.22
Negative
100DMA
29.07
Negative
200DMA
31.42
Negative
Market Momentum
MACD
-0.91
Positive
RSI
34.02
Neutral
STOCH
15.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EFN, the sentiment is Negative. The current price of 27.52 is below the 20-day moving average (MA) of 27.59, below the 50-day MA of 29.22, and below the 200-day MA of 31.42, indicating a bearish trend. The MACD of -0.91 indicates Positive momentum. The RSI at 34.02 is Neutral, neither overbought nor oversold. The STOCH value of 15.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:EFN.

Element Fleet Management Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
C$2.35B21.739.35%5.21%8.87%-1.05%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
C$11.08B21.1619.22%1.14%0.31%18.50%
62
Neutral
C$7.86B19.7516.92%5.63%-65.53%
61
Neutral
C$1.20B26.026.30%1.72%0.80%-66.47%
60
Neutral
C$14.60B29.2912.39%1.22%-2.61%-6.43%
58
Neutral
C$10.25B26.3510.57%1.79%5.15%-27.32%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:EFN
Element Fleet Management
26.33
-9.66
-26.84%
TSE:TFII
TFI International
183.20
51.76
39.38%
TSE:AC
Air Canada
28.73
9.65
50.58%
TSE:FTT
Finning International
90.06
32.71
57.04%
TSE:MTL
Mullen Group
25.07
11.83
89.31%
TSE:CJT
Cargojet
80.44
-17.49
-17.86%

Element Fleet Management Corporate Events

Business Operations and StrategyM&A Transactions
Element Tables All-Cash Bid for ANZ Fleet Manager FleetPartners
Positive
Aug 10, 2026
Element Fleet Management has made a non-binding, all-cash proposal to acquire Australia- and New Zealand-based FleetPartners Group for A$3.80 per share, valuing the target at about A$820 million and offering a 34.3% premium to its recent undisturb...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Element Fleet Management posts strong Q2 2026 results and expands mobility strategy
Positive
Aug 5, 2026
Element Fleet Management reported adjusted net revenue of $318 million for Q2 2026, up 10% year over year, with services revenue rising 8% to $164 million as vehicles under management grew 3% to 1.561 million. Adjusted diluted EPS increased 12% to...
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.Date of analysis: Aug 10, 2026