FLT - Embedded Expectations Analysis - 2020 07 10
FLEETCOR Technologies, Inc. (FLT:USA) currently trades near historical highs relative to UAFRS-based (Uniform) earnings, with a 24.5x Uniform P/E. Even at these levels, markets have bearish expectations for the firm, and management may be concerned about their ability to protect their bottom line, their revenue expectations, and covenantsSpecifically, management is confident they will need to trim their capital plan to protect their bottom line. Also, they may be downplaying concerns about growth in their toll business, and might have concerns about expectations for revenue recovery in the back part of the year. In addition, they may lack confidence in their ability to ensure the safety of their employees worldwide, reduce their selling system and technology costs, and return back to work when their clients return as well. Finally, they may lack confidence in their ability to remain within covenant levels
FleetCor Technologies is provider of commercial payment solutions. The company's five primary product lines are Fuel, which provides fuel payment solutions to businesses and government entities who operate vehicle fleets, as well as to main oil companies;Lodging, which provides lodging payment solutions to employees who travel overnight for work purposes; Tolls, which provides an electronic toll and parking payments product; Corporate Payments, which include virtual cards, purchasing cards, travel and entertainment cards; and Gift, which provides gift card product management and processing services. Additionally, the company provides other payment products including fleet maintenance and employee benefits.
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