EXCHANGE INCOME CORP (EIF.CA) Stock Fundamental Analysis
Canada - TSX:EIF - CA3012831077 - Common Stock
76.62 CAD
+1.74 (+2.32%)
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. Both the profitability and the financial health of EIF get a neutral evaluation. Nothing too spectacular is happening here. EIF has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year EIF was profitable.
EIF had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 2.75%, EIF is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Return On Equity of EIF (9.07%) is better than 83.33% of its industry peers.
EIF's Return On Invested Capital of 5.96% is amongst the best of the industry. EIF outperforms 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EIF is in line with the industry average of 5.56%.
| 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's Profit Margin of 4.71% is fine compared to the rest of the industry. EIF outperforms 66.67% of its industry peers.
EIF's Profit Margin has declined in the last couple of years.
EIF's Operating Margin of 11.97% is amongst the best of the industry. EIF outperforms 100.00% of its industry peers.
EIF's Operating Margin has been stable in the last couple of years.
EIF has a Gross Margin (37.29%) which is in line with its industry peers.
EIF'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 is destroying value.
Compared to 1 year ago, EIF has more shares outstanding
The number of shares outstanding for EIF has been increased compared to 5 years ago.
Compared to 1 year ago, EIF has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.71, we must say that EIF is in the distress zone and has some risk of bankruptcy.
EIF has a better Altman-Z score (1.71) than 66.67% of its industry peers.
A Debt/Equity ratio of 1.67 is on the high side and indicates that EIF has dependencies on debt financing.
The Debt to Equity ratio of EIF (1.67) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.71 |
ROIC/WACC0.73
WACC8.21%
2.3 Liquidity
A Current Ratio of 2.24 indicates that EIF has no problem at all paying its short term obligations.
EIF's Current ratio of 2.24 is amongst the best of the industry. EIF outperforms 100.00% of its industry peers.
EIF has a Quick Ratio of 1.47. 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 better Quick ratio (1.47) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.95% 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.
Looking at the last year, EIF shows a small growth in Revenue. The Revenue has grown by 6.87% in the last year.
The Revenue has been growing by 14.67% on average over the past years. This is quite good.
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
Based on estimates for the next years, EIF will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.12% on average per year.
The Revenue is expected to grow by 15.45% on average over the next years. This is quite good.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
EIF is valuated rather expensively with a Price/Earnings ratio of 24.40.
Compared to the rest of the industry, the Price/Earnings ratio of EIF indicates a somewhat cheap valuation: EIF is cheaper than 66.67% of the companies listed in the same industry.
EIF's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.91.
With a Price/Forward Earnings ratio of 16.48, EIF is valued correctly.
Based on the Price/Forward Earnings ratio, EIF is valued a bit cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.30. EIF is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.4 | ||
| Fwd PE | 16.48 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EIF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.29 |
4.3 Compensation for Growth
EIF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of EIF may justify a higher PE ratio.
A more expensive valuation may be justified as EIF's earnings are expected to grow with 22.70% in the coming years.
PEG (NY)0.82
PEG (5Y)N/A
EPS Next 2Y25.56%
EPS Next 3Y22.7%
5. Dividend
5.1 Amount
EIF has a Yearly Dividend Yield of 3.56%.
Compared to an average industry Dividend Yield of 2.85, EIF pays a better dividend. On top of this EIF pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, EIF pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
5.2 History
The dividend of EIF has a limited annual growth rate of 3.39%.
EIF has been paying a dividend for at least 10 years, so it has a reliable track record.
EIF has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.39%
Div Incr Years3
Div Non Decr Years20
5.3 Sustainability
EIF pays out 99.73% 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.
DP99.73%
EPS Next 2Y25.56%
EPS Next 3Y22.7%
TSX:EIF (10/8/2025, 7:00:00 PM)
76.62
+1.74 (+2.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners11.35%
Inst Owner ChangeN/A
Ins Owners6.07%
Ins Owner ChangeN/A
Market Cap3.97B
Analysts81.18
Price Target83.25 (8.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
Yearly Dividend2.6
Dividend Growth(5Y)3.39%
DP99.73%
Div Incr Years3
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.59%
Min EPS beat(2)-10.57%
Max EPS beat(2)-2.6%
EPS beat(4)0
Avg EPS beat(4)-5.53%
Min EPS beat(4)-10.57%
Max EPS beat(4)-2.6%
EPS beat(8)1
Avg EPS beat(8)-4.98%
EPS beat(12)2
Avg EPS beat(12)-5.38%
EPS beat(16)6
Avg EPS beat(16)7.57%
Revenue beat(2)0
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-2.71%
Max Revenue beat(2)-0.64%
Revenue beat(4)0
Avg Revenue beat(4)-3.34%
Min Revenue beat(4)-5.7%
Max Revenue beat(4)-0.64%
Revenue beat(8)2
Avg Revenue beat(8)-1.98%
Revenue beat(12)6
Avg Revenue beat(12)0.28%
Revenue beat(16)10
Avg Revenue beat(16)3.05%
PT rev (1m)0.38%
PT rev (3m)15.69%
EPS NQ rev (1m)1.71%
EPS NQ rev (3m)7.82%
EPS NY rev (1m)1.44%
EPS NY rev (3m)2.45%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)7.81%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)2.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.4 | ||
| Fwd PE | 16.48 | ||
| P/S | 1.42 | ||
| P/FCF | N/A | ||
| P/OCF | 8.86 | ||
| P/B | 2.74 | ||
| P/tB | 14.08 | ||
| EV/EBITDA | 9.29 |
EPS(TTM)3.14
EY4.1%
EPS(NY)4.65
Fwd EY6.07%
FCF(TTM)-1.16
FCFYN/A
OCF(TTM)8.64
OCFY11.28%
SpS53.79
BVpS27.95
TBVpS5.44
PEG (NY)0.82
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 9.07% | ||
| ROCE | 8.1% | ||
| ROIC | 5.96% | ||
| ROICexc | 6.32% | ||
| ROICexgc | 9.02% | ||
| OM | 11.97% | ||
| PM (TTM) | 4.71% | ||
| GM | 37.29% | ||
| 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-Score5
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.63 | ||
| Cap/Depr | 152.1% | ||
| Cap/Sales | 18.22% | ||
| Interest Coverage | 2.68 | ||
| Cash Conversion | 67.08% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 1.71 |
F-Score5
WACC8.21%
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)12.95%
EPS 3Y9.61%
EPS 5Y-0.27%
EPS Q2Q%14.29%
EPS Next Y29.63%
EPS Next 2Y25.56%
EPS Next 3Y22.7%
EPS Next 5Y14.12%
Revenue 1Y (TTM)6.87%
Revenue growth 3Y23.47%
Revenue growth 5Y14.67%
Sales Q2Q%8.99%
Revenue Next Year13.8%
Revenue Next 2Y12.79%
Revenue Next 3Y11.13%
Revenue Next 5Y15.45%
EBIT growth 1Y14.84%
EBIT growth 3Y30.33%
EBIT growth 5Y14.87%
EBIT Next Year108.55%
EBIT Next 3Y37.12%
EBIT Next 5Y29.03%
FCF growth 1Y11.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y31.27%
OCF growth 3Y7.79%
OCF growth 5Y10.45%