FLT

Fleetcor Technologies Inc

Finance/Real Estate, TMT


Presented:11/30/2021
Price:$207.13
Cap:$16.82B
Current Price:$342.54
Cap:$23.78B

Presented

Date11/30/2021
Price$207.13
Market Cap$16.82B
Ent Value$25.55B
P/E Ratio21.38x
Book Value$39.10
Div Yield0%
Shares O/S81.20M
Ave Daily Vol525,280
Short Int2.44%

Current

Price$342.54
Market Cap$23.78B
FLEETCOR Technologies, Inc. engages in the provision of digital payment solutions that enables businesses to control purchases and make payments. It operates through the following geographical segments: North America, International, and Brazil. The company was founded by William Boatner Reily III and Ronald F. Clarke in 1985 and is headquartered in Atlanta, GA.

Please note, this is an update to FleetCor Technologies Inc (FLT) – Long, initially presented on 3/24/2020.

Publicly traded companies mentioned herein: FleetCor Technologies Inc (FLT)

Highlights

The presenter remains long shares of FleetCor Technologies Inc (FLT), which is a complicated company comprised of five businesses: fuel cards, corporate payments, Brazilian tolls, lodging, and gift cards. While each of these businesses comes with some issues, he likes that none of them sit in the crosshairs of the merchant acquirer competition narrative, meaning that FLT’s competitive positioning is more insulated than the peer group it trades with. FLT trades at 13x next year’s consensus earnings, which is just over half the valuation it has traded at in the past. CEO Ron Clarke has been a strong capital allocator over time, and the presenter expects him to take advantage of the current dislocation to the benefit of shareholders. Based on his forecast for topline growth, margin expansion, and share repurchases, he sees $24 of earnings power two years out on a current share price of $207, creating upside for the stock. 

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Idea Discussion

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