EXCHANGE INCOME CORP (EIF.CA) Stock Fundamental Analysis
TSX:EIF - CA3012831077 - Common Stock
71.78 CAD
-0.45 (-0.62%)
Taking everything into account, EIF scores 5 out of 10 in our fundamental rating. EIF was compared to 8 industry peers in the Passenger Airlines industry. EIF has an excellent profitability rating, but there are concerns on its financial health. EIF has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
EIF had positive earnings in the past year.
EIF had a positive operating cash flow in the past year.
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 87.50% of its industry peers.
With an excellent Return On Equity value of 9.07%, EIF belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.96%, 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 5.44%.
| 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
With an excellent Profit Margin value of 4.71%, EIF belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Profit Margin of EIF has declined.
EIF has a better Operating Margin (11.97%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of EIF has remained more or less at the same level.
EIF has a Gross Margin (37.29%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of EIF has declined.
| 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.
EIF has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.66, we must say that EIF is in the distress zone and has some risk of bankruptcy.
EIF has a Altman-Z score (1.66) which is in line with its industry peers.
A Debt/Equity ratio of 1.67 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 1.67, 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 | 1.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.66 |
ROIC/WACC0.7
WACC8.53%
2.3 Liquidity
A Current Ratio of 2.24 indicates that EIF has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.24, EIF belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 1.47 indicates that EIF should not have too much problems paying 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
EIF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.95%, which is quite good.
EIF shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.27% yearly.
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 13.84% on average per year.
Based on estimates for the next years, EIF will show a quite strong growth in Revenue. The Revenue will grow by 15.17% on average per year.
EPS Next Y27.78%
EPS Next 2Y24.79%
EPS Next 3Y22.7%
EPS Next 5Y13.84%
Revenue Next Year13.98%
Revenue Next 2Y12.86%
Revenue Next 3Y11.35%
Revenue Next 5Y15.17%
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
With a Price/Earnings ratio of 22.86, EIF is valued on the expensive side.
75.00% of the companies in the same industry are more expensive than EIF, based on the Price/Earnings ratio.
EIF is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.62, EIF is valued correctly.
Based on the Price/Forward Earnings ratio, EIF is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.76, EIF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.86 | ||
| Fwd PE | 15.62 |
4.2 Price Multiples
62.50% of the companies in the same industry are more expensive than EIF, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.9 |
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.
EIF's earnings are expected to grow with 22.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.82
PEG (5Y)N/A
EPS Next 2Y24.79%
EPS Next 3Y22.7%
5. Dividend
5.1 Amount
EIF has a Yearly Dividend Yield of 3.65%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.83, EIF pays a bit more dividend than its industry peers.
EIF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
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 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 2Y24.79%
EPS Next 3Y22.7%
TSX:EIF (8/29/2025, 7:00:00 PM)
71.78
-0.45 (-0.62%)
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 Cap3.71B
Analysts81.18
Price Target82.93 (15.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
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)13.23%
PT rev (3m)17.37%
EPS NQ rev (1m)6.51%
EPS NQ rev (3m)-36.77%
EPS NY rev (1m)1%
EPS NY rev (3m)1%
Revenue NQ rev (1m)7.27%
Revenue NQ rev (3m)25.53%
Revenue NY rev (1m)3%
Revenue NY rev (3m)2.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.86 | ||
| Fwd PE | 15.62 | ||
| P/S | 1.33 | ||
| P/FCF | N/A | ||
| P/OCF | 8.28 | ||
| P/B | 2.56 | ||
| P/tB | 13.15 | ||
| EV/EBITDA | 8.9 |
EPS(TTM)3.14
EY4.37%
EPS(NY)4.59
Fwd EY6.4%
FCF(TTM)-1.16
FCFYN/A
OCF(TTM)8.67
OCFY12.07%
SpS53.94
BVpS28.03
TBVpS5.46
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 | 1.66 |
F-Score5
WACC8.53%
ROIC/WACC0.7
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 Y27.78%
EPS Next 2Y24.79%
EPS Next 3Y22.7%
EPS Next 5Y13.84%
Revenue 1Y (TTM)6.87%
Revenue growth 3Y23.47%
Revenue growth 5Y14.67%
Sales Q2Q%8.99%
Revenue Next Year13.98%
Revenue Next 2Y12.86%
Revenue Next 3Y11.35%
Revenue Next 5Y15.17%
EBIT growth 1Y14.84%
EBIT growth 3Y30.33%
EBIT growth 5Y14.87%
EBIT Next Year98.94%
EBIT Next 3Y32.31%
EBIT Next 5Y28.71%
FCF growth 1Y11.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y31.27%
OCF growth 3Y7.79%
OCF growth 5Y10.45%