FleetCor Technologies, Inc. reports 21.3% Net Income decline in 2020 and 5.4 pp EBITDA Margin decline from 57.6% to 52.2%
02/04/2021 • About FleetCor Technologies, Inc. (
$FLT) • By InTwits
FleetCor Technologies, Inc. reported 2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- FleetCor Technologies, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's a lot of higher than industry average of 6.0%.
- CAPEX is quite volatile: $57m in FY2020, $69m in FY2019, $68m in FY2018, $44m in FY2017, $26m in FY2016
- In the last 5 years the company invested considerably less than D&A: $364m vs. $726m
- The company has business model with average profitability: ROIC is 10.9%
- It operates with high leverage: Net Debt/EBITDA is 2.8x while industry average is 1.7x
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 decreased on 9.8%. Revenue decline showed acceleration in 20Q4 - it was 11.7% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.8 pp from 19.0% to 20.8% in FY2020.
SG&A as a % of Revenue increased slightly on 0.65 pp from 23.1% to 23.8% in 2020.
Net Income margin decreased on 4.3 pp from 33.8% to 29.5% in 2020. During 2016-2020 Net Income margin topped in 2019 at 33.8%.
Investments (CAPEX, working capital and M&A)
In 2020 FleetCor Technologies, Inc. had CAPEX/Revenue of 3.3%. FleetCor Technologies, Inc. showed almost no change in CAPEX/Revenue from 2017 to 2020. Average CAPEX/Revenue for the last three years was 3.2%.
Return on investment
The company operates at good ROE (19.9%) while ROIC is low (10.9%). ROIC decreased on 2.6 pp from 13.5% to 10.9% in 2020. ROE decreased on 5.5 pp from 25.4% to 19.9% in 2020. During 2016-2020 ROIC topped in 2019 at 13.5%. During the last 5 years ROE topped in 2019 at 25.4%.
Leverage (Debt)
Debt level is 2.8x Net Debt / EBITDA and 3.5x Debt / EBITDA. Net Debt / EBITDA jumped on 0.3x from 2.5x to 2.8x in 2020. Debt dropped on 13.8% while cash dropped on 26.5%. During 2016-2020 Net Debt/EBITDA bottomed in 2019 at 2.5x.
FleetCor Technologies, Inc. has short term refinancing risk: cash is only 76.5% of short term debt.
Valuation and dividends
FleetCor Technologies, Inc.'s trades at EV/EBITDA 20.5x and P/E 31.3x.
Management team
The company's CEO is Ronald F Clarke "Ron". Ronald F Clarke "Ron" has 20 years tenure with the company. FleetCor Technologies, Inc.'s CFO is Charles Richard Freund. Charles Richard Freund has 6 months years tenure at the company.
Financial and operational results
FY ended 12/31/2020
FleetCor Technologies, Inc. ($FLT) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 1,832 | 2,250 | 2,433 | 2,649 | 2,389 | -9.8% |
| SG&A | 415 | 558 | 572 | 612 | 567 | -7.3% |
| EBITDA | 952 | 1,142 | 1,360 | 1,526 | 1,248 | -18.2% |
| EBIT | 754 | 884 | 1,091 | | | |
| Tax | 191 | 153 | 284 | | | |
| Net Income | 452 | 740 | 811 | 895 | 704 | -21.3% |
| Stock Based Compensation | 64 | 93 | 70 | | | |
Balance Sheet
|
|---|
| Cash | 475 | 914 | 1,031 | 1,271 | 935 | -26.5% |
| Accounts Receivable | 1,793 | 2,231 | 2,312 | | | |
| Accounts Payable | 1,151 | 1,437 | 1,118 | | | |
| Short Term Debt | 1,337 | 1,617 | 2,071 | 1,764 | 1,223 | -30.7% |
| Long Term Debt | 2,522 | 2,902 | 2,748 | 3,372 | 3,202 | -5.0% |
Cash flow
|
|---|
| Capex | 59 | 70 | 81 | 75 | 78 | 4.3% |
| Acquisitions | 1,332 | 705 | 21 | | | |
Ratios
|
|---|
| Revenue growth | 7.6% | 22.8% | 8.2% | 8.8% | -9.8% | |
| EBITDA growth | 11.0% | 19.9% | 19.1% | 12.2% | -18.2% | |
|
|---|
| EBITDA Margin | 52.0% | 50.8% | 55.9% | 57.6% | 52.2% | -5.4% |
| EBIT Margin | 41.2% | 39.3% | 44.8% | | |
| SG&A, % of revenue | 22.7% | 24.8% | 23.5% | 23.1% | 23.8% | 0.6% |
| SBC, % of revenue | 3.5% | 4.1% | 2.9% | | |
| Net Income Margin | 24.7% | 32.9% | 33.3% | 33.8% | 29.5% | -4.3% |
| CAPEX, % of revenue | 3.2% | 3.1% | 3.3% | 2.8% | 3.3% | 0.4% |
|
|---|
| ROIC | 10.6% | 10.7% | 12.4% | 13.5% | 10.9% | -2.6% |
| ROE | 15.3% | 21.9% | 23.1% | 25.4% | 19.9% | -5.5% |
| Net Debt/EBITDA | 3.6x | 3.2x | 2.8x | 2.5x | 2.8x | 0.3x |
People
|
|---|
| Insider ownership | 1.6% | 1.6% | 1.6% | | | |
| Employees | 7,100 | 7,890 | 7,580 | | | |
| Revenue/Employee, th. $ | 258 | 285 | 321 | | | |
FleetCor Technologies, Inc. ($FLT) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 661 | 525 | 585 | 617 | | 6.3% | -18.8% | -14.1% | -11.7% |
| EBITDA | 271 | 275 | 328 | 359 | | -23.9% | -26.3% | -18.4% | -9.2% |
| Net Income | 147 | 158 | 189 | 210 | | -14.6% | -39.4% | -16.4% | -10.9% |
Balance Sheet
|
|---|
| Cash | 1,071 | 766 | 789 | 935 | | 1.2% | -34.6% | -25.5% | -26.5% |
| Short Term Debt | 1,930 | 1,245 | 1,334 | 1,223 | | 5.9% | -36.1% | 13.0% | -30.7% |
| Long Term Debt | 3,327 | 3,202 | 3,159 | 3,202 | | 20.0% | 16.5% | -6.7% | -5.0% |
Ratios
|
|---|
| EBITDA Margin | 41.0% | 52.4% | 56.0% | 58.1% | | -16.3% | -5.3% | -3.0% | 1.6% |
| Net Income Margin | 22.2% | 30.2% | 32.3% | 34.0% | | -5.4% | -10.3% | -0.9% | 0.3% |
Peers in Data Processing & Outsourced Services
Below you can find FleetCor Technologies, Inc. benchmarking vs. other companies in Data Processing & Outsourced Services 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Square, Inc. ($SQ) | - | 29.6% | 49.0% | 42.9% | 101.5% |
| Global Payments Inc. ($GPN) | - | 37.2% | -15.3% | 45.9% | 51.1% |
| Fiserv, Inc. ($FISV) | - | 3.5% | 2.2% | 74.9% | 45.8% |
| NIC Inc. ($EGOV) | - | 5.8% | 2.5% | 2.7% | 30.0% |
| StoneCo Ltd ($STNE) | - | 74.3% | 106.0% | 63.1% | 28.9% |
| |
|---|
| Median (39 companies) | 6.7% | 10.1% | 7.4% | 11.5% | -2.7% |
|---|
| FleetCor Technologies, Inc. ($FLT) | - | 22.8% | 8.2% | 8.8% | -9.8% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Verra Mobility Corp ($VRRM) | - | 97.4% | 97.5% | 95.7% | 91.5% |
| EVO Payments, Inc. ($EVOP) | - | - | - | 80.2% | 80.8% |
| StoneCo Ltd ($STNE) | 69.7% | 70.8% | 79.5% | 83.4% | 76.8% |
| WEX Inc. ($WEX) | 54.7% | 58.8% | 63.3% | 61.7% | 56.8% |
| Sabre Corporation ($SABR) | 32.2% | 30.1% | 27.8% | 56.6% | 56.6% |
| |
|---|
| Median (32 companies) | 39.3% | 39.3% | 41.0% | 41.0% | 36.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Visa Inc. ($V) | 55.6% | 69.2% | 65.8% | 68.1% | 68.5% |
| Mastercard Incorporated ($MA) | 56.9% | 56.5% | 51.8% | 60.9% | 56.6% |
| StoneCo Ltd ($STNE) | 31.4% | 26.0% | 53.0% | 62.4% | 52.1% |
| Black Knight, Inc. ($BKI) | 43.0% | 44.6% | 43.3% | 46.0% | 44.9% |
| Evertec, Inc. ($EVTC) | 42.8% | 36.9% | 41.5% | 45.2% | 43.1% |
| |
|---|
| Median (38 companies) | 21.2% | 20.6% | 19.2% | 21.7% | 18.2% |
|---|
| FleetCor Technologies, Inc. ($FLT) | 52.0% | 50.8% | 55.9% | 57.6% | 52.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| PagSeguro Digital Ltd. ($PAGS) | 6.4% | 4.3% | 1.4% | 5.8% | 22.3% |
| StoneCo Ltd ($STNE) | 7.2% | 18.4% | 8.9% | 12.9% | 11.2% |
| Cardtronics plc ($CATM) | 9.9% | 9.6% | 8.0% | 9.3% | 8.3% |
| Verra Mobility Corp ($VRRM) | - | 11.5% | 7.2% | 6.6% | 6.2% |
| Fiserv, Inc. ($FISV) | 5.3% | 5.0% | 6.2% | 7.1% | 6.1% |
| |
|---|
| Median (38 companies) | 3.2% | 2.9% | 3.0% | 3.3% | 3.0% |
|---|
| FleetCor Technologies, Inc. ($FLT) | 3.2% | 3.1% | 3.3% | 2.8% | 3.3% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mastercard Incorporated ($MA) | 57.5% | 60.6% | 64.7% | 72.7% | 47.6% |
| International Money Express, Inc. ($IMXI) | -1.3% | -1.4% | 12.1% | 36.0% | 31.4% |
| NIC Inc. ($EGOV) | 63.1% | 52.1% | 39.3% | 26.5% | 30.8% |
| Visa Inc. ($V) | 18.1% | 21.9% | 23.0% | 27.2% | 23.2% |
| Western Union Company (The) ($WU) | 10.7% | 11.9% | 27.8% | 21.5% | 22.1% |
| |
|---|
| Median (39 companies) | 11.7% | 10.6% | 10.2% | 8.2% | 5.5% |
|---|
| FleetCor Technologies, Inc. ($FLT) | 10.6% | 10.7% | 12.4% | 13.5% | 10.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| WEX Inc. ($WEX) | 6.7x | 4.4x | 3.1x | 3.4x | 12.1x |
| Exela Technologies Inc ($XELAU) | 8.1x | - | 9.7x | - | 10.7x |
| Alliance Data Systems Corporation ($ADS) | 10.7x | 10.1x | 9.0x | 11.7x | 9.2x |
| Verra Mobility Corp ($VRRM) | - | 10.7x | 6.9x | 3.5x | 4.7x |
| GreenSky, Inc. ($GSKY) | -1.5x | -1.5x | 0.5x | 1.5x | 4.6x |
| |
|---|
| Median (35 companies) | 1.3x | 2.3x | 2.0x | 2.1x | 1.9x |
|---|
| FleetCor Technologies, Inc. ($FLT) | 3.6x | 3.2x | 2.8x | 2.5x | 2.8x |
