EXCHANGE INCOME CORP (EIF.CA) Stock Fundamental Analysis
TSX:EIF - Toronto Stock Exchange - CA3012831077 - Common Stock - Currency: CAD
EIF gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 9 industry peers in the Passenger Airlines industry. EIF scores excellent on profitability, but there are concerns on its financial health. EIF is not valued too expensively and it also shows a decent growth rate. EIF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
EIF had positive earnings in the past year.
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
With an excellent Return On Assets value of 2.69%, EIF belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
EIF's Return On Equity of 8.47% is amongst the best of the industry. EIF outperforms 88.89% of its industry peers.
The Return On Invested Capital of EIF (6.04%) 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 5.85%.
The 3 year average ROIC (5.98%) for EIF is below the current ROIC(6.04%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 4.54%. This is amongst the best in the industry. EIF outperforms 88.89% of its industry peers.
In the last couple of years the Profit Margin of EIF has declined.
The Operating Margin of EIF (11.88%) is better 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.
With a Gross Margin value of 36.84%, EIF perfoms like the industry average, outperforming 44.44% of the companies in the same 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
EIF has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, EIF has more shares outstanding
Compared to 5 years ago, EIF has more shares outstanding
EIF has a worse debt/assets ratio than last year.
2.2 Solvency
EIF has an Altman-Z score of 1.51. 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 1.51, EIF is in line with its industry, outperforming 55.56% of the companies in the same industry.
EIF has a Debt/Equity ratio of 1.53. This is a high value indicating a heavy dependency on external financing.
EIF has a Debt to Equity ratio (1.53) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.51 |
ROIC/WACC0.79
WACC7.64%
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.
With an excellent Current ratio value of 1.94, EIF belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 1.18 indicates that EIF should not have too much problems paying its short term obligations.
EIF's Quick ratio of 1.18 is amongst the best of 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.
EIF shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.27% yearly.
The Revenue has been growing slightly by 5.95% in the past year.
Measured over the past years, EIF shows a quite strong growth in Revenue. The Revenue has been growing by 14.67% on average per year.
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
Based on estimates for the next years, EIF will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.62% 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 8.16% on average per year.
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
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.
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
A Price/Earnings ratio of 18.75 indicates a rather expensive valuation of EIF.
77.78% of the companies in the same industry are more expensive than EIF, based on the Price/Earnings ratio.
EIF's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.82.
EIF is valuated correctly with a Price/Forward Earnings ratio of 12.78.
Based on the Price/Forward Earnings ratio, EIF is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
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 | 18.75 | ||
| Fwd PE | 12.78 |
4.2 Price Multiples
77.78% 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 | 7.95 |
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.
EIF has a very decent profitability rating, which may justify a higher PE ratio.
EIF's earnings are expected to grow with 19.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.71
PEG (5Y)N/A
EPS Next 2Y22.76%
EPS Next 3Y19.62%
5. Dividend
5.1 Amount
EIF has a Yearly Dividend Yield of 4.57%, which is a nice return.
EIF's Dividend Yield is a higher than the industry average which is at 4.57.
EIF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
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 Years2
Div Non Decr Years19
5.3 Sustainability
EIF pays out 103.51% of its income as dividend. This is not a sustainable payout ratio.
EIF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP103.51%
EPS Next 2Y22.76%
EPS Next 3Y19.62%
TSX:EIF (5/23/2025, 7:00:00 PM)
56.81
-0.09 (-0.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners10.9%
Inst Owner ChangeN/A
Ins Owners6.18%
Ins Owner ChangeN/A
Market Cap2.92B
Analysts82.67
Price Target70.66 (24.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
Yearly Dividend2.6
Dividend Growth(5Y)3.39%
DP103.51%
Div Incr Years2
Div Non Decr Years19
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)-0.91%
PT rev (3m)-0.65%
EPS NQ rev (1m)-3.21%
EPS NQ rev (3m)-2.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.85%
Revenue NQ rev (1m)-0.67%
Revenue NQ rev (3m)14.58%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.75 | ||
| Fwd PE | 12.78 | ||
| P/S | 1.07 | ||
| P/FCF | N/A | ||
| P/OCF | 7.38 | ||
| P/B | 1.99 | ||
| P/tB | 10.51 | ||
| EV/EBITDA | 7.95 |
EPS(TTM)3.03
EY5.33%
EPS(NY)4.45
Fwd EY7.83%
FCF(TTM)-2.44
FCFYN/A
OCF(TTM)7.7
OCFY13.55%
SpS53.09
BVpS28.5
TBVpS5.41
PEG (NY)0.71
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 | 1.51 |
F-Score6
WACC7.64%
ROIC/WACC0.79
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%