FLT

Fleetcor Technologies Inc

Finance/Real Estate


Presented:03/24/2020
Price:$190.43
Cap:$16.27B
Current Price:$342.54
Cap:$23.78B

Presented

Date03/24/2020
Price$190.43
Market Cap$16.27B
Ent Value$29.48B
P/E Ratio19.18x
Book Value$43.49
Div Yield0%
Shares O/S85.43M
Ave Daily Vol1,144,851
Short IntN/A

Current

Price$342.54
Market Cap$23.78B
FleetCor Technologies, Inc. engages in the provision of business payments solutions. It operates through North America and International geographical segments. The firm's solutions include fuel, payables, tools, and lodging. The company was founded by W. Boatner Reily, III and Ronald F. Clarke in 1985 and is headquartered in Norcross, GA.

Publicly traded companies mentioned herein: Fidelity National Information Services Inc (FIS), Fiserv Inc (FISV), FleetCor Technologies Inc (FLT), Global Payments Inc (GPN)

Highlights

The presenter is long shares of FleetCor Technologies (FLT), the $18B payments company that offers solutions in fuel, corporate payments, tolls, and lodging. He believes FLT has strong structural growth, underappreciated defensiveness, and thinks the sell off combined with other considerations may have created a unique setup for M&A upside over the next ~18 months. Historically, FLT’s stock has been relatively undervalued compared to other payments businesses, and has traded in the low-20x earnings multiple range. The stock currently trades at ~$190 per share, or 12x - 13x 2021 EPS estimates. Although growth for 2020 is difficult to estimate given the unknown duration of an economic shutdown, the presenter thinks FLT can achieve 10% - 11% topline growth and EPS growth in the low-20% range while continuing its strong capital allocation activity through stock buybacks. 

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Idea Discussion

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