FLTX

Fleetmatics Group

TMT


Presented:12/09/2014
Price:$36.80
Cap:$1.36B
Current Price:$60.00
Cap:$2.35B

Presented

Date12/09/2014
Price$36.80
Market Cap$1.36B
Ent Value$1.25B
P/E Ratio44.9x
Book Value$6.26
Div Yield0%
Shares O/S37.75M
Ave Daily Vol350,300
Short Int22.26%

Current

Price$60.00
Market Cap$2.35B
Fleetmatics Group PLC provides software-as-a-service fleet management solutions for small and medium-sized businesses worldwide. The company offers Web-based and mobile application solutions that provide fleet operators with visibility into vehicle location, fuel usage, speed and mileage, and other insights into their mobile workforce under the FleetMatics or SageQuest names. It serves owners and managers in the service and distribution industries that operate fleets of commercial vehicles. The company was founded in 2004 and is based in Tallaght, Ireland.

Publicly traded companies mentioned herein: Danaher Corp (DHR), FleetCor Technologies Inc (FLT), FleetMatics Group PLC (FLTX), Garmin Ltd (GRMN), Google Inc (GOOG), Verizon Communications Inc (VZ)

Highlights

FleetMatics Group (FLTX) is a global provider of fleet management telematics for tracking drivers/ vehicles. The presenter is short FLTX, and thinks the risk/ reward and entry point in the mid-$30s (~$36) are attractive. The company presents itself as a cloud-based SaaS solutions provider, but in reality “the company offers a commodity software/ service” to fleet operators. Cumulatively FLTX has spent $40 million on R&D, yet the company holds just two patents, and in the presenter’s opinion there is no substantive proprietary technology involved in the offering. While there is a solid ROI associated with the use of fleet management telematics, FLTX is likely to face increasing competition and pressure on prices, which could lead to fairly substantial downside for shareholders at present levels.

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Idea Discussion

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