Unveiling the Investment Potential of Fleetcor Technologies Inc: A Comprehensive GF Score Analysis
Fleetcor Technologies Inc (NYSE:FLT) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $262.23, Fleetcor Technologies Inc has witnessed a surge of 1.62% over a period, marked against a three-month change of 10.23%. A thorough analysis, underlined by the GuruFocus Score Rating, suggests that Fleetcor Technologies Inc is well-positioned for substantial growth in the near future.
Decoding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
Here is a breakdown of Fleetcor Technologies Inc's GF Score:
1. Financial strength rank: 5/10
2. Profitability rank: 9/10
3. Growth rank: 9/10
4. GF Value rank: 9/10
5. Momentum rank: 9/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With high ranks in profitability, growth, GF value, and momentum, and a moderate rank in financial strength, GuruFocus assigned Fleetcor Technologies Inc the GF Score of 93 out of 100, which signals the highest outperformance potential.
Understanding Fleetcor Technologies Inc's Business
Fleetcor Technologies Inc, with a market cap of $19.39 billion, is a provider of specialised payment products. The company offers fleet cards, food cards, corporate lodging discount cards, and other specialised payment services. Fleetcor's systems enable its customers to manage and control their commercial payments and loyalty-card programmes. Customers include commercial fleet operators, major oil companies, petroleum marketers, and government entities. Further, Fleetcor offers customised analysis solutions to its clients, offering business productivity tracking capabilities. The United States is the largest geographic operating segment. The company's sales stand at $3.63 billion with an operating margin of 42.64%.
Profitability Rank Breakdown
The Profitability Rank shows Fleetcor Technologies Inc's impressive standing among its peers in generating profit. The Piotroski F-Score confirms Fleetcor Technologies Inc's solid financial situation based on Joseph Piotroski's nine-point scale, which measures a company's profitability, funding and operating efficiency. Fleetcor Technologies Inc's strong Predictability Rank of 3.5 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, Fleetcor Technologies Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 14.9%, which outperforms better than 65.13% of 2389 companies in the Software industry. Moreover, Fleetcor Technologies Inc has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 11.2, and the rate over the past five years is 8.3. This trend accentuates the company's continued capability to drive growth.
Conclusion
Given Fleetcor Technologies Inc's financial strength, profitability, and growth metrics, the GuruFocus Score Rating highlights the firm's unparalleled position for potential outperformance. This analysis underscores the company's robust financial health and its potential to deliver substantial returns to investors. GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
This article first appeared on GuruFocus.
