Element Fleet ManagementTSX:EFN +0.10%68 Gross Margin % is 36.27% as of Mar. 2026, which is 2% below its 10-year median of 36.89. GuruFocus rates TSX:EFN with a GF Score™ of 68/100 and a GF Value™ of C$27.36 (Fairly Valued). The stock has 7 warning signs investors should review. Among 1,006 Business Services companies, Element Fleet Management ranks better than 54.37% on this metric.
TSX:EFN's Gross Margin % is ranked better than 54.37% of 1006
companies
in the Business Services industry
Industry Median: 34.46
vs TSX:EFN: 37.27
Element Fleet Management had a gross margin of 36.27% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Element Fleet Management was -1.40% per year.
Element Fleet Management (TSX:EFN) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Element Fleet Management had a gross margin of 36.27% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Element Fleet Management Gross Margin % Related Terms
Element Fleet Management Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSX:EFN vs URI, SUNB, AER: Gross Margin % Comparison
For the Rental & Leasing Services subindustry, Element Fleet Management's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Element Fleet Management Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Element Fleet Management's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Element Fleet Management's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Element Fleet Management (TSX:EFN) has a Gross Margin % of 36.27% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Element Fleet Management and its competitors. This is near median its historical median of 36.89. Over the past decade, Element Fleet Management's Gross Margin % has ranged from 30.65 to 41.29. According to the industry distribution chart, Element Fleet Management ranks #459 out of 1006 companies in the Business Services industry, placing it in the top 45.6%.
Is Element Fleet Management's Gross Margin % too high?
Element Fleet Management's current Gross Margin % of 36.27% is near median its 10-year median of 36.89. Over the past 10 years, this metric has ranged from a low of 30.65 to a high of 41.29. The Business Services industry median Gross Margin % is 34.46. Element Fleet Management's value of 36.27% is 5.3% above this industry median. Based on the distribution chart, Element Fleet Management ranks #459 out of 1006 companies in the Business Services industry, which is above the industry midpoint. Overall, Element Fleet Management has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Element Fleet Management's Gross Margin % compare to URI and SUNB?
According to the Business Services industry distribution chart, Element Fleet Management ranks #459 out of 1006 companies for Gross Margin %. This puts Element Fleet Management in the upper half of its industry. The industry median Gross Margin % is 34.46. Element Fleet Management's value of 36.27% is 5.3% above this benchmark. Historically, Element Fleet Management's own Gross Margin % has ranged from 30.65 to 41.29 over the past decade. While the company's 10-year median is 36.89 vs. the industry median of 34.46, Element Fleet Management has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Business Services company?
The median Gross Margin % among Business Services companies is 34.46, based on 1,006 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Element Fleet Management's current Gross Margin % of 36.27% is 5.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Element Fleet Management and its competitors. For the Business Services industry, the median Gross Margin % is 34.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Element Fleet Management's current Gross Margin % is 36.27%, which is near median its own 10-year median of 36.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Element Fleet Management stock overvalued right now?
Based on GuruFocus' analysis, Element Fleet Management (TSX:EFN) is currently considered Fairly Valued. The stock's GF Value™ is C$27.36, compared to a current price of C$29.83 — trading 9% above its estimated fair value. The current Gross Margin % is 36.27%, which is near median its 10-year median of 36.89 and 5.3% above the Business Services industry median of 34.46. Element Fleet Management's overall GF Score™ is 68/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Element Fleet Management (TSX:EFN), the current Gross Margin % is 36.27% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Element Fleet Management (TSX:EFN) Overvalued in 2026?
Based on GuruFocus' analysis, Element Fleet Management stock appears to be overvalued.
The current stock price of C$29.83 is trading 9% above its estimated GF Value™ of C$27.36.
GuruFocus considers Element Fleet Management to be Fairly Valued.
Key valuation signals for TSX:EFN:
Gross Margin %: 36.27% (near median its 10-year median of 36.89)
GF Value™: C$27.36 vs. price of C$29.83 (9% above fair value)
Industry Position: 5.3% above the Business Services median (#459 of 1006)
No single metric tells the full story. See the TSX:EFN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Element Fleet Management Corp is a fleet management company, providing services and financing for commercial vehicle and equipment fleets. Their services include vehicle acquisition, maintenance, route optimization, risk management, and remarketing, as well as advising on decarbonization efforts, integration of electric vehicles, and managing the complexity of gradual fleet electrification.
68GF Score
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