EXCHANGE INCOME CORP (EIF-DB-L.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:EIF-DB-L - CA301283AN70
108.8 CAD
-27.2 (-20%)
EIF-DB-L gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 6 industry peers in the Passenger Airlines industry. EIF-DB-L has only an average score on both its financial health and profitability. While showing a medium growth rate, EIF-DB-L is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- EIF-DB-L had positive earnings in the past year.
- EIF-DB-L had a positive operating cash flow in the past year.
- EIF-DB-L had positive earnings in each of the past 5 years.
- Each year in the past 5 years EIF-DB-L had a positive operating cash flow.
1.2 Ratios
- EIF-DB-L has a better Return On Assets (2.75%) than 62.50% of its industry peers.
- EIF-DB-L has a Return On Equity of 9.07%. This is in the better half of the industry: EIF-DB-L outperforms 75.00% of its industry peers.
- The Return On Invested Capital of EIF-DB-L (5.96%) is better than 62.50% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EIF-DB-L is in line with the industry average of 4.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 9.07% | ||
| ROIC | 5.96% |
ROA(3y)2.91%
ROA(5y)2.52%
ROE(3y)9.73%
ROE(5y)8.37%
ROIC(3y)5.98%
ROIC(5y)5.34%
1.3 Margins
- EIF-DB-L has a Profit Margin of 4.71%. This is in the better half of the industry: EIF-DB-L outperforms 62.50% of its industry peers.
- In the last couple of years the Profit Margin of EIF-DB-L has declined.
- EIF-DB-L has a Operating Margin of 11.97%. This is amongst the best in the industry. EIF-DB-L outperforms 87.50% of its industry peers.
- In the last couple of years the Operating Margin of EIF-DB-L has remained more or less at the same level.
- The Gross Margin of EIF-DB-L (37.29%) is worse than 62.50% of its industry peers.
- EIF-DB-L's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.97% | ||
| PM (TTM) | 4.71% | ||
| GM | 37.29% |
OM growth 3Y5.55%
OM growth 5Y0.17%
PM growth 3Y-2.07%
PM growth 5Y-6.07%
GM growth 3Y-0.42%
GM growth 5Y-1.74%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EIF-DB-L is destroying value.
- EIF-DB-L has more shares outstanding than it did 1 year ago.
- EIF-DB-L has more shares outstanding than it did 5 years ago.
- EIF-DB-L has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.01 indicates that EIF-DB-L is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.01, EIF-DB-L is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
- EIF-DB-L has a Debt/Equity ratio of 1.67. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of EIF-DB-L (1.67) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.01 |
ROIC/WACC0.71
WACC8.44%
2.3 Liquidity
- EIF-DB-L has a Current Ratio of 2.24. This indicates that EIF-DB-L is financially healthy and has no problem in meeting its short term obligations.
- EIF-DB-L has a better Current ratio (2.24) than 87.50% of its industry peers.
- A Quick Ratio of 1.47 indicates that EIF-DB-L should not have too much problems paying its short term obligations.
- EIF-DB-L has a better Quick ratio (1.47) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
- EIF-DB-L shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.95%, which is quite good.
- The Earnings Per Share has been decreasing by -0.27% on average over the past years.
- Looking at the last year, EIF-DB-L shows a small growth in Revenue. The Revenue has grown by 6.87% in the last year.
- EIF-DB-L shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.67% yearly.
EPS 1Y (TTM)12.95%
EPS 3Y9.61%
EPS 5Y-0.27%
EPS Q2Q%14.29%
Revenue 1Y (TTM)6.87%
Revenue growth 3Y23.47%
Revenue growth 5Y14.67%
Sales Q2Q%8.99%
3.2 Future
- EIF-DB-L is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.12% yearly.
- Based on estimates for the next years, EIF-DB-L will show a quite strong growth in Revenue. The Revenue will grow by 15.45% on average per year.
EPS Next Y29.63%
EPS Next 2Y25.56%
EPS Next 3Y22.7%
EPS Next 5Y14.12%
Revenue Next Year13.8%
Revenue Next 2Y12.79%
Revenue Next 3Y11.13%
Revenue Next 5Y15.45%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 34.65 indicates a quite expensive valuation of EIF-DB-L.
- Compared to the rest of the industry, the Price/Earnings ratio of EIF-DB-L indicates a somewhat cheap valuation: EIF-DB-L is cheaper than 62.50% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of EIF-DB-L to the average of the S&P500 Index (27.30), we can say EIF-DB-L is valued slightly more expensively.
- With a Price/Forward Earnings ratio of 23.39, EIF-DB-L is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EIF-DB-L indicates a somewhat cheap valuation: EIF-DB-L is cheaper than 62.50% of the companies listed in the same industry.
- EIF-DB-L's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.65 | ||
| Fwd PE | 23.39 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EIF-DB-L is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.79 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of EIF-DB-L may justify a higher PE ratio.
- A more expensive valuation may be justified as EIF-DB-L's earnings are expected to grow with 22.70% in the coming years.
PEG (NY)1.17
PEG (5Y)N/A
EPS Next 2Y25.56%
EPS Next 3Y22.7%
5. Dividend
5.1 Amount
- EIF-DB-L has a Yearly Dividend Yield of 3.56%.
- Compared to an average industry Dividend Yield of 1.02, EIF-DB-L pays a better dividend. On top of this EIF-DB-L pays more dividend than 87.50% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, EIF-DB-L pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
5.2 History
- The dividend of EIF-DB-L has a limited annual growth rate of 3.39%.
- EIF-DB-L is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)3.39%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 99.73% of the earnings are spent on dividend by EIF-DB-L. This is not a sustainable payout ratio.
- EIF-DB-L's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP99.73%
EPS Next 2Y25.56%
EPS Next 3Y22.7%
EXCHANGE INCOME CORP / EIF-DB-L.CA FAQ
What is the ChartMill fundamental rating of EXCHANGE INCOME CORP (EIF-DB-L.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to EIF-DB-L.CA.
Can you provide the valuation status for EXCHANGE INCOME CORP?
ChartMill assigns a valuation rating of 3 / 10 to EXCHANGE INCOME CORP (EIF-DB-L.CA). This can be considered as Overvalued.
How profitable is EXCHANGE INCOME CORP (EIF-DB-L.CA) stock?
EXCHANGE INCOME CORP (EIF-DB-L.CA) has a profitability rating of 6 / 10.
Can you provide the financial health for EIF-DB-L stock?
The financial health rating of EXCHANGE INCOME CORP (EIF-DB-L.CA) is 4 / 10.
How sustainable is the dividend of EXCHANGE INCOME CORP (EIF-DB-L.CA) stock?
The dividend rating of EXCHANGE INCOME CORP (EIF-DB-L.CA) is 4 / 10 and the dividend payout ratio is 99.73%.