Last stock in the clip; he and his family also own it personally. GLTA
https://www.bnnbloomberg.ca/video/james-telfser-s-top-picks~2666989
Element Fleet Management (EFN TSX) Element Fleet is one of the world's largest fleet management companies, and we believe the company is set up for success over the medium term. With aging existing fleets and a robust backlog, there is considerable pent-up demand for both services and vehicle replacement. With auto OEMs struggling to produce new vehicles recently due to supply constraints, there is a steady stream of contracted orders to fulfill irrespective of the economic landscape. Element currently generates a significant amount of free cash flow (~8-10 per cent free cash flow yield) and we believe it will achieve future margin growth despite some financing headwinds in the short term. The current business model is attractive given its asset-light nature and the current valuation is undemanding at ~14x price-to-earnings.
TOP PICK
Element Fleet Management(EFN-T)
13/04/2023
Capital light, free cashflowing, cleaner story for investors. Valuation still reasonable. Supply chains easing allows them to deliver on backlog of contracts. Fix up cars, so it's downside protection and inflation-protected. Inflation does eat into some of their margins. Should perform well over the next few years, and valuation should expand. Focused on becoming data-centric to better serve its clients. Global. Yield is 2.27%.
(Analysts’ price target is $23.33)
James Telfser
$17.660
Owned