FleetCor Technologies (NYSE:FLT)

CAPS Rating: 3 out of 5

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96 Outperform
3 Underperform
 

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Wall Street

3 Outperform
0 Underperform
 

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TMFPencils (99.92)
Submitted February 09, 2015

Still researching FleetCor, but I see the makings of a company/stock that has good odds to continue beating the market in the coming years: ** FleetCor provides payment solutions (fuel cards) -- workforce payment products -- for commercial operators… More

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FLT VS S&P 500 (SPY)

FLT Summary

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Recent Community Commentary

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Recs

0
Member Avatar Chopperlicious (74.21) Submitted: 11/29/2015 2:43:19 PM : Outperform Start Price: $152.85 FLT Score: +6.49

Quarterly revenue growth (YOY) at 52.90% and quarterly earnings growth (YOY) at 22.30%. I like this company very much.

Recs

0
Member Avatar WilliamCrook2003 (71.09) Submitted: 4/23/2015 6:47:22 PM : Outperform Start Price: $163.17 FLT Score: -1.44

Undervalued and improving as a business.

Recs

1
Member Avatar TMFPencils (99.92) Submitted: 2/9/2015 4:14:55 PM : Outperform Start Price: $146.78 FLT Score: +9.08

Still researching FleetCor, but I see the makings of a company/stock that has good odds to continue beating the market in the coming years:

** FleetCor provides payment solutions (fuel cards) -- workforce payment products -- for commercial operators around the world (including major oil companies, commercial fleets, government entities, and more), processing 651 million transactions in 2014. The company, however, offers multiple services (security protection, fleet management, and more) which reduces its dependence on higher fuel prices to generate revenue.

** FleetCor has an extensive network of merchants, partners, and other customers -- its payment networks cover thousands of fueling sites and other locations (like lodging and food) around the world. Classic network effect at play: the more locations FleetCor has in its network (e.g. the more sites where FleetCor's payment solutions are accepted), the more attractive FleetCor's solutions will be to potential clients. Think of it as a MasterCard or Visa for commercial clients (FleetCor actually has a partnership with MasterCard), particularly in the energy/fleet industry.

** Sales have grown at a pace of 32.2% annually over the past three years, with earnings growing 35.8% annually over the same period. 2015 will bring some headwinds with currency impact and lower oil prices, but the company should still grow earnings at a 17%+ rate for the year.

** This company is a true cash flow machine. Seriously. In 2014 capital expenditures were just $27.1 million and operating cash flow was a stellar $608.3 million. The company is plowing a lot of cash into acquisitions ($2.5 billion in 2014 thanks to the large Comdata acquisition) -- which could be a risk if an acquisition/integration goes sour -- but FleetCor's operating cash flow production has more than quadrupled since 2012.

** Leadership is very experienced. Chairman and CEO Ronald Clarke has been with the company since 2000. CFO Eric Dey has been with FleetCor since 2002. The Glassdoor ratings aren't that great (possibly because of numerous acquisitions over the years), unfortunately, so that will be something to watch going forward.

** Gross margin is at an all-time high at 77.5%. ROE has been above 18% since the company went public.

FleetCor is becoming a global force -- largely through acquisitions combined with organic expansion -- when it comes to offering workforce payment and various fleet management solutions for commercial enterprises. The company has a solid record of growth over the past several years, is churning out significant free cash flow (excluding acquisition costs), and seems to be in a position to continue growing in the coming years. The P/FCF multiple is a very reasonable 22, the lowest it has been in roughly two years.

The company's ability to successfully integrate its numerous acquisitions into the core business is the key thing to watch going forward. I like management's track record in this area so I'm going to call this an outperform on CAPS. The stock will probably be volatile considering the macro issues at play, but I like the competitive position FleetCor is in for the long haul. This is a strong operator extending its scale and network through global acquisitions, with consistent (and quickly growing) free cash flow production to boot. Outperform.

Leaderboard

Find the members with the highest scoring picks in FLT.

Score Leader

IPOMizzouFanVan

IPOMizzouFanVan (< 20) Score: +573.38

The Score Leader is the player with the highest score across all their picks in FLT.

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
Index
Gain
Score Commentary
IPOMizzouFanVan < 20 12/16/2010 Outperform 3Y $27.52 +706.69% +133.30% +573.38 0 Comment
KingMoneyBillz < 20 1/18/2012 Outperform 5Y $32.59 +581.19% +125.06% +456.13 0 Comment
EcoUSA 99.57 3/16/2012 Outperform 5Y $38.70 +473.64% +107.34% +366.31 0 Comment
closeopenodds 52.78 5/21/2012 Outperform 5Y $37.73 +488.39% +123.59% +364.80 0 Comment
DumDumStocks 64.98 8/13/2012 Outperform 5Y $40.71 +445.32% +106.98% +338.34 0 Comment
This player feels very strongly about this pick and has marked it a Top Pick. Top Picks do not affect a player’s score. rock1118xxx < 20 8/20/2012 Outperform 3W $42.93 +417.12% +104.97% +312.15 0 Comment
sensei100 47.08 8/23/2012 Outperform 5Y $42.97 +416.64% +105.71% +310.93 0 Comment
GettingBetter < 20 8/22/2012 Outperform 3M $43.11 +414.96% +105.81% +309.15 0 Comment
probuild < 20 10/3/2012 1/18/2016 Outperform 1Y $45.06 +392.68% +100.86% +291.82 0 Comment
KentPeacock 51.13 10/15/2012 Outperform NS $45.47 +388.23% +103.18% +285.05 0 Comment

Wall Street

See what the Wall Street professionals think, according to their public statements and filings.

Player Name Player
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
S&P
Gain
Score End Date Commentary
TrackDeutscheSec 84.72 12/8/2014 Outperform NS $152.69 +45.39% +40.24% +5.16 0 Comment
TrackJimCramer 85.74 2/28/2014 Outperform 3W $129.93 +70.86% +56.22% +14.64 0 Comment
TrackRonBaron 82.41 12/31/2010 Outperform NS $30.92 +617.98% +160.34% +457.65 0 Comment

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