FleetCor Technologies, Inc. EBITDA surged on 19.1% and EBITDA Margin increased on 5.1 pp from 50.8% to 55.9%
02/06/2019 • About FleetCor Technologies, Inc. (
$FLT) • By InTwits
FleetCor Technologies, Inc. reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- FleetCor Technologies, Inc. is a fast growth stock: 2018 revenue growth was 8.2%, 5 year revenue CAGR was 22.1% at 2018 ROIC 12.4%
- FleetCor Technologies, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's in pair with industry average of 7.4%
- CAPEX is quite volatile: $81m in 2018, $70m in 2017, $59m in 2016, $42m in 2015, $27m in 2014
- In the last 5 years the company invested considerably less than D&A: $279m vs. $1,023m. In 2018 this situation was still the same: CAPEX was 81 while D&A was 269
- The company has highly profitable business model: ROIC is 12.4%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.8x while industry average is 2.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
FleetCor Technologies, Inc.'s Revenue increased on 8.2%. Revenue growth showed slowdown in 18Q4 - it was 5.5% YoY. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 7.4 pp from 23.1% to 30.6% in 2018.
SG&A as a % of Revenue decreased slightly on 1.3 pp from 24.8% to 23.5% in 2018. Stock Based Compensation (SBC) as a % of Revenue decreased slightly on 1.3 pp from 4.1% to 2.9% in 2018.
Net Income margin showed almost no change in 2018. During the last 5 years Net Income margin bottomed in 2015 at 21.3% and was growing since that time. The efficient tax rate was 25.9% in 2018 while the average for the last five years was 25.7%.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 3.3% in 2018. The company's CAPEX/Revenue increased slightly on 0.89 pp from 2.5% in 2015 to 3.3% in 2018. It's average level of CAPEX/Revenue for the last three years was 3.2%. CAPEX as a % of Revenue grew at 0.28 pp per annum in the last 5 years.
Accounts receivable as a % of Revenue decreased on 4.2 pp from 99.2% to 95.0% in 2018. Accounts payable as a % of Revenue didn't change in 2018.
FleetCor Technologies, Inc. has spent
$21m on M&A in 2018 which accounts for 0.86% of revenue.
Return on investment
The company operates at high and attractive ROE (23.1%) while ROIC is a bit lower (12.4%). ROIC increased slightly on 1.7 pp from 10.7% to 12.4% in 2018. ROE increased slightly on 1.2 pp from 21.9% to 23.1% in 2018. During 2014-2018 ROIC bottomed in 2015 at 9.9% and was growing since that time. During the last 5 years ROE bottomed in 2015 at 13.3% and was growing since that time.
Leverage (Debt)
Debt level is 2.8x Net Debt / EBITDA and 3.5x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 3.2x to 2.8x in 2018. Debt increased on 6.6% while cash jumped on 12.9%.
FleetCor Technologies, Inc. has short term refinancing risk: cash is only 49.8% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 16.5x and P/E 23.0x.
Management team
Ronald F Clarke "Ron" is a the company's CEO. Ronald F Clarke "Ron" is a founder and has spent 16 years with the company. CEO total compensation was
$7,757,388 in 2018 which included
$1,000,000 salary. Eric R Dey is a FleetCor Technologies, Inc.'s CFO. Eric R Dey has spent 16 years at the company.
1.6% of the company is owned by insiders. Insider ownership didn't change in 2018.
The company has 7,580 employees. The number of employees decreased on 3.9%. Average revenue per employee in 2018 was
$321,041 and it surged on 12.6%.
Financial and operational results
FY ended 12/31/2018
FleetCor Technologies, Inc. ($FLT) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 1,199 | 1,703 | 1,832 | 2,250 | 2,433 | 8.2% |
| SG&A | 281 | 407 | 415 | 558 | 572 | 2.4% |
| EBITDA | 673 | 858 | 952 | 1,142 | 1,360 | 19.1% |
| EBIT | 565 | 668 | 754 | 884 | 1,091 | 23.4% |
| Tax | 144 | 174 | 191 | 153 | 284 | 84.9% |
| Net Income | 369 | 362 | 452 | 740 | 811 | 9.6% |
| Stock Based Compensation | -19 | 64 | 64 | 93 | 70 | -25.0% |
Balance Sheet
|
|---|
| Cash | 477 | 447 | 475 | 914 | 1,031 | 12.9% |
| Accounts Receivable | 1,349 | 1,253 | 1,793 | 2,231 | 2,312 | 3.6% |
| Accounts Payable | 717 | 670 | 1,151 | 1,437 | 1,118 | -22.2% |
| Short Term Debt | 1,425 | 875 | 1,337 | 1,617 | 2,071 | 28.1% |
| Long Term Debt | 2,169 | 2,060 | 2,522 | 2,902 | 2,748 | -5.3% |
Cash flow
|
|---|
| Capex | 27 | 42 | 59 | 70 | 81 | 16.1% |
| Acquisitions | 2,567 | 58 | 1,332 | 705 | 21 | -97.0% |
Ratios
|
|---|
| Revenue growth | 34.0% | 42.0% | 7.6% | 22.8% | 8.2% | |
| EBITDA growth | 38.2% | 27.5% | 11.0% | 19.9% | 19.1% | |
|
|---|
| EBITDA Margin | 56.1% | 50.4% | 52.0% | 50.8% | 55.9% | 5.1% |
| EBIT Margin | 47.1% | 39.2% | 41.2% | 39.3% | 44.8% | 5.5% |
| SG&A, % of revenue | 23.5% | 23.9% | 22.7% | 24.8% | 23.5% | -1.3% |
| SBC, % of revenue | -1.6% | 3.7% | 3.5% | 4.1% | 2.9% | -1.3% |
| Net Income Margin | 30.7% | 21.3% | 24.7% | 32.9% | 33.3% | 0.4% |
| CAPEX, % of revenue | 2.3% | 2.5% | 3.2% | 3.1% | 3.3% | 0.2% |
|
|---|
| ROIC | 11.3% | 9.9% | 10.6% | 10.7% | 12.4% | 1.7% |
| ROE | 19.1% | 13.3% | 15.3% | 21.9% | 23.1% | 1.2% |
| Net Debt/EBITDA | 4.6x | 2.9x | 3.6x | 3.2x | 2.8x | -0.4x |
People
|
|---|
| Insider ownership | 1.6% | 1.6% | 1.6% | 1.6% | 1.6% | 0.0% |
| Employees | 4,780 | 5,330 | 7,100 | 7,890 | 7,580 | -3.9% |
| Revenue/Employee, th. $ | 251 | 319 | 258 | 285 | 321 | 12.6% |
FleetCor Technologies, Inc. ($FLT) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 586 | 585 | 620 | 643 | | 12.5% | 8.1% | 7.2% | 5.5% |
| EBITDA | 330 | 332 | 347 | 351 | | 27.8% | 19.0% | 15.5% | 15.2% |
| Net Income | 175 | 177 | 158 | 302 | | 41.4% | 35.0% | -22.3% | 6.8% |
Balance Sheet
|
|---|
| Cash | 980 | 920 | 924 | 1,031 | | 79.2% | 62.9% | 10.7% | 12.9% |
| Short Term Debt | 1,622 | 1,916 | 1,700 | 2,071 | | 15.2% | 32.7% | 6.1% | 28.1% |
| Long Term Debt | 2,868 | 2,832 | 2,773 | 2,748 | | 16.5% | 18.3% | -5.5% | -5.3% |
Ratios
|
|---|
| EBITDA Margin | 56.4% | 56.8% | 56.0% | 54.5% | | 6.8% | 5.2% | 4.0% | 4.6% |
| Net Income Margin | 29.9% | 30.2% | 25.5% | 46.9% | | 6.1% | 6.0% | -9.6% | 0.6% |
Peers in Data Processing & Outsourced S
Below you can find FleetCor Technologies, Inc. benchmarking vs. other companies in Data Processing & Outsourced S industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Verra Mobility Corp ($VRRM) | | | | | 167.8% |
| StoneCo Ltd ($STNE) | | | | 74.3% | 106.0% |
| PagSeguro Digital Ltd. ($PAGS) | | 107.1% | 68.7% | 121.7% | 71.8% |
| Payment Data Systems, Inc. ($PYDS) | | 7.4% | -16.0% | 20.7% | 71.7% |
| StarTek, Inc. ($SRT) | | 12.8% | 8.9% | -4.8% | 66.4% |
| |
|---|
| Median (55 companies) | | 7.0% | 7.7% | 10.1% | 7.4% |
|---|
| FleetCor Technologies, Inc. ($FLT) | | 42.0% | 7.6% | 22.8% | 8.2% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Verra Mobility Corp ($VRRM) | | | | 97.4% | 97.5% |
| Everi Holdings Inc. ($EVRI) | 25.8% | 38.3% | 36.1% | 34.5% | 79.9% |
| StoneCo Ltd ($STNE) | | | 69.7% | 70.8% | 79.5% |
| Paychex, Inc. ($PAYX) | 70.9% | 70.5% | 71.0% | 70.8% | 69.9% |
| Global Payments Inc. ($GPN) | 62.7% | 63.2% | 60.4% | 51.5% | 67.5% |
| |
|---|
| Median (45 companies) | 38.8% | 39.5% | 39.3% | 39.3% | 41.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Visa Inc. ($V) | 64.0% | 68.9% | 55.6% | 69.2% | 65.8% |
| StoneCo Ltd ($STNE) | | | 31.4% | 26.0% | 53.0% |
| Mastercard Incorporated ($MA) | 57.5% | 56.3% | 56.9% | 56.5% | 51.8% |
| Everi Holdings Inc. ($EVRI) | 9.6% | 14.7% | 3.0% | 20.4% | 45.2% |
| Black Knight, Inc. ($BKI) | | | 43.0% | 44.6% | 43.3% |
| |
|---|
| Median (56 companies) | 20.4% | 21.0% | 21.2% | 20.6% | 19.2% |
|---|
| FleetCor Technologies, Inc. ($FLT) | 56.1% | 50.4% | 52.0% | 50.8% | 55.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Crypto Co/The ($CRCW) | 0.0% | 0.0% | | 1,216.6% | 853.5% |
| Steel Connect, Inc. ($STCN) | 0.6% | 1.5% | 1.7% | 1.1% | 75.6% |
| Everi Holdings Inc. ($EVRI) | 3.0% | 9.3% | 9.4% | 9.9% | 21.9% |
| StoneCo Ltd ($STNE) | | | 7.2% | 18.4% | 8.9% |
| Cardtronics plc ($CATM) | 10.2% | 11.9% | 9.9% | 9.6% | 8.0% |
| |
|---|
| Median (56 companies) | 3.1% | 3.0% | 3.2% | 2.9% | 3.0% |
|---|
| FleetCor Technologies, Inc. ($FLT) | 2.3% | 2.5% | 3.2% | 3.1% | 3.3% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| GreenSky, Inc. ($GSKY) | | | | 156.4% | 93.7% |
| Mastercard Incorporated ($MA) | 63.5% | 57.5% | 57.5% | 60.6% | 64.7% |
| Paychex, Inc. ($PAYX) | 54.5% | 58.7% | 61.9% | 63.9% | 64.5% |
| NIC Inc. ($EGOV) | 64.6% | 61.2% | 63.1% | 52.1% | 39.3% |
| Automatic Data Processing, Inc. ($ADP) | 23.9% | 28.9% | 37.9% | 36.6% | 37.5% |
| |
|---|
| Median (62 companies) | 14.1% | 13.1% | 11.7% | 10.6% | 10.2% |
|---|
| FleetCor Technologies, Inc. ($FLT) | 11.3% | 9.9% | 10.6% | 10.7% | 12.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| StarTek, Inc. ($SRT) | -0.1x | | 2.2x | 2.3x | 18.4x |
| Square, Inc. ($SQ) | | | | | 13.3x |
| Steel Connect, Inc. ($STCN) | -12.5x | | | | 12.6x |
| Exela Technologies Inc ($XELAU) | | | 8.1x | | 9.7x |
| Alliance Data Systems Corporation ($ADS) | 9.3x | 9.1x | 10.7x | 10.1x | 9.0x |
| |
|---|
| Median (54 companies) | 0.4x | 0.5x | 1.3x | 2.3x | 2.0x |
|---|
| FleetCor Technologies, Inc. ($FLT) | 4.6x | 2.9x | 3.6x | 3.2x | 2.8x |
