FLT

Fleetcor Technologies Inc

Finance/Real Estate, TMT


Presented:08/31/2022
Price:$212.53
Cap:$15.94B
Current Price:$342.54
Cap:$23.78B

Presented

Date08/31/2022
Price$212.53
Market Cap$15.94B
Ent Value$20.96B
P/E Ratio18.26x
Book Value$35.40
Div Yield0%
Shares O/S75.01M
Ave Daily Vol562,172
Short Int1.51%

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.

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

Highlights

The presenter is long shares of FleetCor Technologies Inc (FLT), which consists of several related businesses, including fuel cards (40% of total revenues), corporate payments (23%), and other services (e.g., tolls, lodging, gift - 37%). Fuel cards act as credit cards with controls and specialized software for trucking companies and other fleets (plumbers, florists, etc.); the corporate payments business (i.e., B2B, cross-border payments) is currently being driven by its timely FX hedging offering; FLT also has an accounts payable automation business that it recently acquired. These segments are related because FLT’s target customers are SMBs, which tend to be unsophisticated, creating a need and massive cross-selling opportunity for these products. In his view, investor sentiment is overly negative, and he is bullish based on an underappreciated revenue growth profile, strong margins, and aggressive share repurchasing activity. At the current $213 share price, FLT is trading at 13x and 12x consensus 2023 and 2024 EPS, respectively. He underwrites slight multiple expansion to 14x his 2024 EPS to reach a one-year price target of $308 per share.

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Idea Discussion

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