Quote:
Originally Posted by numbeo
what is happening with efn? down 20% today
wasnt down, it spun off the asset lending business (ECN) from fleet (EFN).
Company decided to make fleet a pure play ebcause they thought they wernt getting the right valuation. Asset lenders often trade at book because its not a great business. Fleet business is going to be something like 60% service revenues and 40% asset lending revenues (the trucks themselves).
Service revenues comprise things like purchases, gas, logistics, maintenance and others im forgetting. Is more sticky and higher quality than pure NIM business on asset lending side.
Sell side is saying fleet should do about 1$ next year. 15x multiple seems about right given decent organic growth, plus a $2 NPV of tax shields. Means should be about a $17 stock.
ECN book is $4.40