Review of Element Fleet Management Corp

AUG 06, 2024 - Element Fleet Management Corp. (EFN) is the largest publicly traded pure play automotive fleet manager in the world. EFN provides business-to-business (B2B) services and financing to corporations, governments, and not-for-profits which operate fleets of mission critical vehicles. While the company is increasingly becoming a services business, leasing activities are still a large proportion of net revenue. General tailwinds of digitization, electrification, and lower interest rates could all potentially be positive catalysts. The business becoming increasingly capital light makes us like it even more, and a lower rate environment will help drive leasing demand. We are initiating coverage at a ‘B.’