EXCHANGE INCOME CORP (EIF.CA) Stock Fundamental Analysis
TSX:EIF - Toronto Stock Exchange - CA3012831077 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to EIF. EIF was compared to 8 industry peers in the Passenger Airlines industry. EIF scores excellent on profitability, but there are concerns on its financial health. EIF has a correct valuation and a medium growth rate. EIF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EIF was profitable.
In the past year EIF had a positive cash flow from operations.
EIF had positive earnings in each of the past 5 years.
Each year in the past 5 years EIF had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.69%, EIF belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
EIF has a better Return On Equity (8.47%) than 87.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.04%, EIF is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EIF is in line with the industry average of 5.39%.
The last Return On Invested Capital (6.04%) for EIF is above the 3 year average (5.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 8.47% | ||
| ROIC | 6.04% |
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's Profit Margin of 4.54% is amongst the best of the industry. EIF outperforms 87.50% of its industry peers.
EIF's Profit Margin has declined in the last couple of years.
The Operating Margin of EIF (11.88%) is better than 100.00% of its industry peers.
EIF's Operating Margin has been stable in the last couple of years.
EIF has a Gross Margin (36.84%) which is comparable to the rest of the industry.
EIF's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.88% | ||
| PM (TTM) | 4.54% | ||
| GM | 36.84% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EIF is destroying value.
EIF has more shares outstanding than it did 1 year ago.
EIF has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EIF is higher compared to a year ago.
2.2 Solvency
EIF has an Altman-Z score of 1.62. This is a bad value and indicates that EIF is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.62, EIF is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 1.53 is on the high side and indicates that EIF has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.53, EIF is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.62 |
ROIC/WACC0.73
WACC8.31%
2.3 Liquidity
EIF has a Current Ratio of 1.94. This is a normal value and indicates that EIF is financially healthy and should not expect problems in meeting its short term obligations.
EIF has a Current ratio of 1.94. This is amongst the best in the industry. EIF outperforms 100.00% of its industry peers.
EIF has a Quick Ratio of 1.18. This is a normal value and indicates that EIF is financially healthy and should not expect problems in meeting its short term obligations.
EIF has a Quick ratio of 1.18. This is amongst the best in the industry. EIF outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.06% over the past year.
The Earnings Per Share has been decreasing by -0.27% on average over the past years.
EIF shows a small growth in Revenue. In the last year, the Revenue has grown by 5.95%.
EIF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.67% yearly.
EPS 1Y (TTM)3.06%
EPS 3Y9.61%
EPS 5Y-0.27%
EPS Q2Q%40%
Revenue 1Y (TTM)5.95%
Revenue growth 3Y23.47%
Revenue growth 5Y14.67%
Sales Q2Q%11.05%
3.2 Future
EIF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.62% yearly.
EIF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.16% yearly.
EPS Next Y26.52%
EPS Next 2Y22.76%
EPS Next 3Y19.62%
EPS Next 5YN/A
Revenue Next Year10.77%
Revenue Next 2Y9.69%
Revenue Next 3Y8.16%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.95, which indicates a rather expensive current valuation of EIF.
Based on the Price/Earnings ratio, EIF is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
EIF's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 14.96, EIF is valued correctly.
EIF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EIF is cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EIF to the average of the S&P500 Index (21.76), we can say EIF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.95 | ||
| Fwd PE | 14.96 |
4.2 Price Multiples
EIF's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EIF is cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.83 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EIF has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as EIF's earnings are expected to grow with 19.62% in the coming years.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y22.76%
EPS Next 3Y19.62%
5. Dividend
5.1 Amount
EIF has a Yearly Dividend Yield of 4.08%, which is a nice return.
EIF's Dividend Yield is a higher than the industry average which is at 3.15.
EIF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
5.2 History
The dividend of EIF has a limited annual growth rate of 3.39%.
EIF has paid a dividend for at least 10 years, which is a reliable track record.
EIF has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.39%
Div Incr Years3
Div Non Decr Years20
5.3 Sustainability
EIF pays out 103.51% of its income as dividend. This is not a sustainable payout ratio.
The dividend of EIF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP103.51%
EPS Next 2Y22.76%
EPS Next 3Y19.62%
TSX:EIF (7/11/2025, 7:00:00 PM)
66.5
-1.35 (-1.99%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners10.86%
Inst Owner ChangeN/A
Ins Owners6.1%
Ins Owner ChangeN/A
Market Cap3.41B
Analysts82.67
Price Target71.96 (8.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
Yearly Dividend2.6
Dividend Growth(5Y)3.39%
DP103.51%
Div Incr Years3
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.63%
Min EPS beat(2)-10.57%
Max EPS beat(2)-4.7%
EPS beat(4)0
Avg EPS beat(4)-7.55%
Min EPS beat(4)-10.7%
Max EPS beat(4)-4.24%
EPS beat(8)1
Avg EPS beat(8)-4.99%
EPS beat(12)3
Avg EPS beat(12)-1.35%
EPS beat(16)7
Avg EPS beat(16)8.34%
Revenue beat(2)0
Avg Revenue beat(2)-2.48%
Min Revenue beat(2)-4.33%
Max Revenue beat(2)-0.64%
Revenue beat(4)0
Avg Revenue beat(4)-3.59%
Min Revenue beat(4)-5.7%
Max Revenue beat(4)-0.64%
Revenue beat(8)3
Avg Revenue beat(8)-1.28%
Revenue beat(12)7
Avg Revenue beat(12)1.61%
Revenue beat(16)11
Avg Revenue beat(16)3.29%
PT rev (1m)1.84%
PT rev (3m)0.91%
EPS NQ rev (1m)-3.58%
EPS NQ rev (3m)-6.67%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.95 | ||
| Fwd PE | 14.96 | ||
| P/S | 1.25 | ||
| P/FCF | N/A | ||
| P/OCF | 8.64 | ||
| P/B | 2.33 | ||
| P/tB | 12.3 | ||
| EV/EBITDA | 8.83 |
EPS(TTM)3.03
EY4.56%
EPS(NY)4.45
Fwd EY6.69%
FCF(TTM)-2.44
FCFYN/A
OCF(TTM)7.7
OCFY11.58%
SpS53.09
BVpS28.5
TBVpS5.41
PEG (NY)0.83
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 8.47% | ||
| ROCE | 8.2% | ||
| ROIC | 6.04% | ||
| ROICexc | 6.12% | ||
| ROICexgc | 8.8% | ||
| OM | 11.88% | ||
| PM (TTM) | 4.54% | ||
| GM | 36.84% | ||
| FCFM | N/A |
ROA(3y)2.91%
ROA(5y)2.52%
ROE(3y)9.73%
ROE(5y)8.37%
ROIC(3y)5.98%
ROIC(5y)5.34%
ROICexc(3y)6.18%
ROICexc(5y)5.52%
ROICexgc(3y)9.03%
ROICexgc(5y)8.05%
ROCE(3y)8.13%
ROCE(5y)7.25%
ROICexcg growth 3Y4.16%
ROICexcg growth 5Y1.41%
ROICexc growth 3Y5.19%
ROICexc growth 5Y0.27%
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%
F-Score6
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.47 | ||
| Cap/Depr | 161.1% | ||
| Cap/Sales | 19.09% | ||
| Interest Coverage | 2.64 | ||
| Cash Conversion | 61.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.62 |
F-Score6
WACC8.31%
ROIC/WACC0.73
Cap/Depr(3y)171.71%
Cap/Depr(5y)149%
Cap/Sales(3y)18.83%
Cap/Sales(5y)17.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.06%
EPS 3Y9.61%
EPS 5Y-0.27%
EPS Q2Q%40%
EPS Next Y26.52%
EPS Next 2Y22.76%
EPS Next 3Y19.62%
EPS Next 5YN/A
Revenue 1Y (TTM)5.95%
Revenue growth 3Y23.47%
Revenue growth 5Y14.67%
Sales Q2Q%11.05%
Revenue Next Year10.77%
Revenue Next 2Y9.69%
Revenue Next 3Y8.16%
Revenue Next 5YN/A
EBIT growth 1Y10.39%
EBIT growth 3Y30.33%
EBIT growth 5Y14.87%
EBIT Next Year98.94%
EBIT Next 3Y32.31%
EBIT Next 5YN/A
FCF growth 1Y-37.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y32.12%
OCF growth 3Y7.79%
OCF growth 5Y10.45%