Element Fleet Management is a market leader in the fleet management space, which is a $20B industry in the U.S. and Canada alone.
Element is in the business of managing corporate fleets on behalf of small and large businesses; in doing so Element saves its customers money and helps simplify their day-to-day operations.
Element competitive advantage comes from its massive scale, which allows it to save its customers 15-20% from a total cost of ownership perspective.
Biz model is highly resilient to economic cycle: 80% of Element's vehicles are service vehicles (think vans and trucks) with a good percentage being deployed to provide essential services.
With a market cap of ~$5B the business is currently selling for 10x LTM free cash flow (10% yield); significant upside remains from earnings growth and multiple appreciation.
*Note all figures mentioned in this article are in Canadian Dollars unless otherwise noted
Element (OTC:ELEEF) is a high-quality business, led by a strong management team with a long runway for growth. The