Stock (Symbol) |
Fleetmatics (FLTX) |
Stock Price |
$58 |
Sector |
| Technology |
Data is as of |
| November 16, 2015 |
Expected to Report |
| Feb 22 – Feb 26 |
Company Description |
 Fleetmatics Group PLC is a holding company. The Company is a provider of fleet management solutions delivered as software-as-a-service (SaaS). Its mobile software platform enables businesses to manage their local fleets of commercial vehicles. It offers Web-based and mobile application solutions that provide fleet operators with access to vehicle location, fuel usage, speed and mileage and others into their mobile workforce. The Company’s product offerings include Fleetmatics REVEAL, a business intelligence-based fleet management solution for small and midsize businesses (SMBs); Fleetmatics REVEAL+, which extends Fleetmatics REVEAL to larger enterprises, and Fleetmatics WORK, a field service management solution. Source: Thomson Financial. |
Sharek’s Take |
 Fleetmatics (FLTX) is a software service which lets businesses track their fleet of vehicles electronically, and showing where each is on a map. This stops unauthorized vehicle use (including theft), wasteful idling, excessive overtime, etc. Companies save money on gas and overtime, but pay for the cost of Fleetmatics service, which for a fleet of 16 vehicles is $35 to $40 each van or truck. Clients sign three-year contracts, which means recurring revenue and that’s good. Last qtr FLTX beat the 34 cent profit estimate by 7 cents and had 41% profit growth on 22% sales growth. It was a good qtr, with the company adding 30,000 customers for a total of 655,000 and the stock went up on the news. Profits are expected to climb 21% in 2016 and estimates are increasing. FLTX has a 2016 Fair Value of $62, and a 2017 Fair Value of $75 and I think it’s a good value in the low-$50s. |
One Year Chart |
 This stock has had a very good year, but qtrly estimates don’t look hot with -11% and +18% profit growth expected the next 2 qtrs. Under closer examination the company had a HUGE qtr in 2014 Q4 and that comparison is the reason for the negative expectations for next qtr. At 33x earnings the stock’s around Fair Value when it’s in the high-$50s and seems to lose momentum there. |
Fair Value |
 FLTX has earned a high P/E each year since it went public in 2012. The company is expanding overseas to keep growth going, but just bought an Italian firm and that might cause issues as FLTX might have to deal with payoff issues with the certain organizations in that country. |
Bottom Line |
 Fleetmatics is a young rapidly growing company which has been building a solid subscription based revenue model geared to help businesses. Profits are expected to grow 21% next year and since FLTX usually beats the street the company might attain 30% growth. At $58 and 33x earnings the stock’s around its $62 Fair Value thus I would recommend investors take positions in the low-$50s. FLTX ranks 9th in the Growth Portfolio and Aggressive Growth Portfolio Power Rankings. I might sell the stock from the Aggressive Growth Portfolio this qtr if it reaches its Fair Value. |
Power Rankings |
Growth Stock Portfolio
9 of 34Aggressive Growth Portfolio 9 of 15Conservative Stock Portfolio N/A |
