Element Fleet Management Corp. (EFN.TO) stock analysis

In our weekly check, Element Fleet Management Corp. is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 3, red flags: 9.

About Element Fleet Management Corp.

Element Fleet Management Corp. is an Industrials company (Rental & Leasing Services) based in Canada, listed on TSX as EFN.TO.

What our checks show for EFN.TO

Red flags

• Net debt is 5.4x a year of EBITDA (debt/equity 3.57). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 1.7 times: a weak year could make the payments hard.
• The net margin fell by 10.3 points over 5 years, to 12.2%: the company keeps less of each sale as profit.
• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Analysts expect revenue to shrink about 5.4% a year.
• Free cash flow is negative (-9.4% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 77% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 4.3 years.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Earnings per share fell 9.1% a year over the last 3 years.
• Net profit fell 11.1% a year over the last 3 years.
• Return on capital (ROCE) is only 6.3%.

Strengths

• The gross margin is 31.2% and has risen by 1.7 points: pricing power is holding.
• Analysts expect earnings per share to grow about 61% a year over the next years.
• Analysts expect the net margin to improve by 34.1 points from today's 12.2%.
• Revenue grew 17.5% a year over the last 3 years.
• Beta 0.48: the stock usually moves less than the market.

Next earnings report: 2026-11-03

Similar companies

UHAL · AYV.PA · R · GATX · HRI · EQPT

Questions

What grade does Element Fleet Management Corp. (EFN.TO) have?

In our weekly check, Element Fleet Management Corp. is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 3, red flags: 9. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of EFN.TO stock?

This week's biggest flags for Element Fleet Management Corp.: High debt, Weak interest cover, Margins falling. In total 12 of 25 checks show a warning or a red flag.

What does Element Fleet Management Corp. do?

Element Fleet Management Corp. is an Industrials company (Rental & Leasing Services) based in Canada, listed on TSX as EFN.TO.

When does Element Fleet Management Corp. report earnings next?

The next earnings report is expected on 2026-11-03. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

Open the full analysis