EzFill Holdings: A True Pioneer In The Mobile Fueling Industry

Despite the emergence and popularity of electric vehicles, there is little doubt that the internal combustion engine in vehicles is not going anywhere for the coming decades. Fueling of these ICE-based vehicles continues to be a necessity and it is interesting to see how some emerging companies have brought innovation to such a mundane activity. This new concept of on-demand mobile fueling is becoming increasingly desirable for customers as they have the ability to choose the time and location of their fueling needs. Our small-cap pick for the day is one of the fastest growing on-demand mobile fuel delivery providers that caters to consumers as well as commercial, and specialty (including marine) fueling needs – EzFill Holdings Inc. (NASDAQ: EZFL).

Company Overview

EzFill is one of the fast-growing incumbents in the rapidly expanding mobile fuel sector. The company is the market leader in its home state of Florida. By bringing on-demand fueling services to customers’ and companies’ locations, the company aims to upend the traditional fueling model at gas stations. For commercial and specialty buyers, on-site delivery of fuel enables operators to start their regular operations with fully fueled vehicles and this is a market that EzFill is targeting. The fact remains that corporate behemoths like Shell, Exxon, GM, Enterprise, Bridgestone, and Mitsubishi have realized the growing shift in commercial and consumer behaviour. Thus, they are investing in the quickly expanding on-demand mobile fueling sector as the number of gas stations in the United States continues to decline. EzFill is well-positioned to benefit from the rising demand for convenient and affordable mobile fueling options because it is the only business that offers fuel supply in three vertical markets, including consumer, commercial, and specialty markets like marine. The company was founded in 2019 and is headquartered in Aventura, Florida.

Business Model & Macro Trends For On-Demand Mobile Fuel

EzFill operates a rapidly expanding fleet of fuel tanker trucks that are dispatched to the relevant location based on the orders that it receives for fueling. Its on-demand mobile fuel delivery allows people to fill up their cars without leaving the convenience and security of their home or place of employment. Customers simply need to open the EzFill app on their mobile device, provide their location, and schedule a delivery time for fueling their vehicle. Mobile fuel delivery also offers a safer option for everyone in light of the rising crime, a problem at some gas stations, including credit card fraud and skimming. Based on the research of the company, the market for automotive fuel delivery systems was estimated to be worth $3.77 billion in 2021 and is anticipated to grow to $ 5.29 billion by 2027, registering a CAGR of more than 5.8% over the forecast period of 2022-2027. While EzFill is dominating the Florida market, the overall mobile fuel delivery market is majorly dominated by some key industry players like Robert Bosch, Magna International, Denso Corporation, Magneti Marelli SPA, and so on. Even oil majors like Shell are entering this domain and a classic example of this is the Shell TapUp. Thus, it is easy to deduce that EzFill is operating in a highly lucrative and fast-growing market.

Acquisition-Led Growth & Fuel Supply Agreement With Palmdale

EzFill Holdings has been enhancing its top-line growth trajectory through relevant acquisitions. The company looks to acquire the assets of relevant players in this space particularly trucking assets and customers so that they can expand their reach. The company was recently in the news for acquiring the assets of Full Service Fueling Inc., a mobile fuel delivery company and an affiliate of Palmdale Oil Company based in  West Palm Beach, Florida. The fueling trucks and customers of the target are the acquired assets in the deal. In connection with the transaction, EzFill has signed an operating and supply agreement with Palmdale, one of the biggest wholesale fuel suppliers in the State of Florida. With over 35 years of experience serving the needs of various industries for fuel, lubricants, and chemicals, Palmdale Oil Company is a family-owned petroleum wholesale and distribution company. According to the agreement, Palmdale will be one of the primary fuel suppliers for EzFill in Florida, with preferred pricing. EzFill will have access to parking at Palmdale locations across the state. The operating and supply agreement with Palmdale will help EzFill with its short-term growth prospects and further solidify its position as the market leader in Florida’s mobile fuel sector. These resources, along with the expanding number of fleet customers on their client list, will allow them to scale more quickly and effectively.

Fleet Fueling Services

EzFill’s largest target market is commercial operators running fleets of trucks that require regular fueling. Fleet Fueling Agreements in this B2B domain can quickly scale the revenues of the company. In Fact, EzFill has already seen its revenues grow from $1.22 million in 2019 to $8.05 million in the trailing 12-month period, a staggering 700% growth. The company offers a number of benefits of mobile fuel delivery for commercial fleets and specialty operators, including reduction of travel to and from nearby gas stations.  Additionally, by doing away with the need for fuel cards, mobile fuel delivery contributes to a reduction in employee fraud. As more fleet owners are using EzFill to fuel their service vehicles, their drivers can work more effectively because the downtime associated with refueling is eliminated.

Fleet Fueling Expansion

EzFill Holdings has signed over 40 new fleet customers since the beginning of 2022.  Two of those are with Servpro of North Miami and nexAir. The ServPro fleet in North Miami will receive daily scheduled fueling from EzFill, with plans to grow and service fleets in additional markets in the near future. EzFill will provide regular mobile fuel service for nexAir’s Miami location, which also serves as its Florida centralized warehouse. EzFill currently provides services to over 50 fleets and the management is looking to rapidly expand their fleet customers. This will be a critical growth driver in the long term.

Final Thoughts

Source: TradingView

As we can see in the above chart, the EzFill stock has taken a beating along with broader markets, particularly like other high-growth companies. While the company may not have direct competitors who are listed peers, it is disrupting a transportation domain just like larger listed players like Uber and Lyft for cabs, Grubhub and Doordash for food, and Instacart and Shipt for groceries. This implies that the company could easily command a double-digit revenue multiple but it is trading at an enterprise-value-to-revenue multiple of barely 1.16. It is important to highlight that the company has a solid subscription product where consumer customers can pay $9.99 per month for unlimited deliveries. This could become a huge prospective recurring revenue stream and its upside has not been accounted for in its current share price. Overall, we believe that despite being a pioneer in its domain, EzFill is valued very cheaply by the market and it is an excellent investment proposition at current levels.

---

Disclaimer

This website is a wholly owned subsidiary of SCD Media, LLC, herein referred to as Smallcaps Daily. Our publications are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. We may receive compensation for this article on a PPC basis as an affiliate. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use. PLEASE NOTE WELL: Smallcaps Daily and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.Release of Liability: Through use of this website viewing or using you agree to hold Smallcaps Daily, its operators owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. Smallcaps Daily encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and Smallcaps Daily makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provided herein. Instead Smallcaps Daily strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. Smallcaps Daily is compliant with the Can Spam Act of 2003. Salesparq, LLC does not offer such advice or analysis, and Smallcaps Daily further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries and extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled. The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results.In preparing this publication, Smallcaps Daily, has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. Smallcaps Daily has not been compensated for this article. The advertisements in this website are believed to be reliable, however, Smallcaps Daily and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. Smallcaps Daily is not responsible for any claims made by the companies advertised herein, nor is Smallcaps Daily responsible for any other promotional firm, its program or its structure. Smallcaps Daily is not affiliated with any exchange, electronic quotation system, the Securities Exchange Commission or FINRA.