EXCHANGE INCOME CORP (EIF.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:EIF - CA3012831077 - Common Stock
96.95 CAD
-0.89 (-0.91%)
Taking everything into account, EIF scores 5 out of 10 in our fundamental rating. EIF was compared to 6 industry peers in the Passenger Airlines industry. EIF has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, EIF is valued expensive at the moment. Finally 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.
- In the past 5 years EIF has always been profitable.
- Each year in the past 5 years EIF had a positive operating cash flow.
1.2 Ratios
- EIF has a better Return On Assets (2.75%) than 83.33% of its industry peers.
- The Return On Equity of EIF (8.76%) is better than 100.00% of its industry peers.
- The Return On Invested Capital of EIF (5.80%) is better than 66.67% of its industry peers.
- EIF had an Average Return On Invested Capital over the past 3 years of 5.98%. This is in line with the industry average of 4.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 8.76% | ||
| ROIC | 5.8% |
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 has a better Profit Margin (4.75%) than 83.33% of its industry peers.
- In the last couple of years the Profit Margin of EIF has declined.
- EIF has a better Operating Margin (11.47%) than 100.00% of its industry peers.
- EIF's Operating Margin has been stable in the last couple of years.
- EIF has a worse Gross Margin (36.67%) than 66.67% of its industry peers.
- In the last couple of years the Gross Margin of EIF has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.47% | ||
| PM (TTM) | 4.75% | ||
| GM | 36.67% |
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 is destroying value.
- The number of shares outstanding for EIF has been increased compared to 1 year ago.
- EIF has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, EIF has a worse debt to assets ratio.
2.2 Solvency
- EIF has an Altman-Z score of 1.82. This is not the best score and indicates that EIF is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of EIF (1.82) is better than 66.67% of its industry peers.
- EIF has a Debt/Equity ratio of 1.50. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.50, EIF perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.82 |
ROIC/WACC0.67
WACC8.67%
2.3 Liquidity
- EIF has a Current Ratio of 1.79. This is a normal value and indicates that EIF is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.79, EIF belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- A Quick Ratio of 1.14 indicates that EIF should not have too much problems paying its short term obligations.
- EIF has a Quick ratio of 1.14. This is amongst the best in the industry. EIF outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 15.68% over the past year.
- Measured over the past years, EIF shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.27% on average per year.
- The Revenue has grown by 15.47% in the past year. This is quite good.
- 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)15.68%
EPS 3Y9.61%
EPS 5Y-0.27%
EPS Q2Q%15.25%
Revenue 1Y (TTM)15.47%
Revenue growth 3Y23.47%
Revenue growth 5Y14.67%
Sales Q2Q%35.2%
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 19.12% yearly.
- The Revenue is expected to grow by 14.29% on average over the next years. This is quite good.
EPS Next Y22.07%
EPS Next 2Y19.52%
EPS Next 3Y18.6%
EPS Next 5Y19.12%
Revenue Next Year20.1%
Revenue Next 2Y16.05%
Revenue Next 3Y12.76%
Revenue Next 5Y14.29%
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
- With a Price/Earnings ratio of 29.20, EIF can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, EIF is valued a bit cheaper than 66.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, EIF is valued at the same level.
- EIF is valuated rather expensively with a Price/Forward Earnings ratio of 23.01.
- EIF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EIF is cheaper than 66.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, EIF is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.2 | ||
| Fwd PE | 23.01 |
4.2 Price Multiples
- EIF's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.98 |
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 may justify a higher PE ratio.
- EIF's earnings are expected to grow with 18.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.32
PEG (5Y)N/A
EPS Next 2Y19.52%
EPS Next 3Y18.6%
5. Dividend
5.1 Amount
- EIF has a Yearly Dividend Yield of 2.82%. Purely for dividend investing, there may be better candidates out there.
- EIF's Dividend Yield is rather good when compared to the industry average which is at 0.95. EIF pays more dividend than 100.00% of the companies in the same industry.
- EIF's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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
- 93.13% of the earnings are spent on dividend by EIF. This is not a sustainable payout ratio.
- EIF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP93.13%
EPS Next 2Y19.52%
EPS Next 3Y18.6%
EXCHANGE INCOME CORP / EIF.CA FAQ
Can you provide the ChartMill fundamental rating for EXCHANGE INCOME CORP?
ChartMill assigns a fundamental rating of 5 / 10 to EIF.CA.
What is the valuation status for EIF stock?
ChartMill assigns a valuation rating of 3 / 10 to EXCHANGE INCOME CORP (EIF.CA). This can be considered as Overvalued.
Can you provide the profitability details for EXCHANGE INCOME CORP?
EXCHANGE INCOME CORP (EIF.CA) has a profitability rating of 6 / 10.
What are the PE and PB ratios of EXCHANGE INCOME CORP (EIF.CA) stock?
The Price/Earnings (PE) ratio for EXCHANGE INCOME CORP (EIF.CA) is 29.2 and the Price/Book (PB) ratio is 3.21.
How financially healthy is EXCHANGE INCOME CORP?
The financial health rating of EXCHANGE INCOME CORP (EIF.CA) is 3 / 10.