EXCHANGE INCOME CORP (EIF-DB-L.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:EIF-DB-L - CA301283AN70
108.8 CAD
-27.2 (-20%)
Taking everything into account, EIF-DB-L scores 5 out of 10 in our fundamental rating. EIF-DB-L was compared to 6 industry peers in the Passenger Airlines industry. Both the profitability and the financial health of EIF-DB-L get a neutral evaluation. Nothing too spectacular is happening here. EIF-DB-L is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year EIF-DB-L was profitable.
- EIF-DB-L had a positive operating cash flow in the past year.
- EIF-DB-L had positive earnings in each of the past 5 years.
- Each year in the past 5 years EIF-DB-L had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 2.75%, EIF-DB-L is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- The Return On Equity of EIF-DB-L (9.07%) is better than 75.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.96%, EIF-DB-L is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for EIF-DB-L is in line with the industry average of 4.35%.
| 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 a decent Profit Margin value of 4.71%, EIF-DB-L is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- EIF-DB-L's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 11.97%, EIF-DB-L belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- EIF-DB-L's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 37.29%, EIF-DB-L is doing worse than 62.50% of the companies in the same industry.
- EIF-DB-L'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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EIF-DB-L is destroying value.
- Compared to 1 year ago, EIF-DB-L has more shares outstanding
- EIF-DB-L has more shares outstanding than it did 5 years ago.
- EIF-DB-L has a worse debt/assets ratio than last year.
2.2 Solvency
- EIF-DB-L has an Altman-Z score of 2.01. This is not the best score and indicates that EIF-DB-L is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.01, EIF-DB-L is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
- A Debt/Equity ratio of 1.67 is on the high side and indicates that EIF-DB-L has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.67, EIF-DB-L is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.01 |
ROIC/WACC0.71
WACC8.44%
2.3 Liquidity
- A Current Ratio of 2.24 indicates that EIF-DB-L has no problem at all paying its short term obligations.
- The Current ratio of EIF-DB-L (2.24) is better than 87.50% of its industry peers.
- A Quick Ratio of 1.47 indicates that EIF-DB-L should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.47, EIF-DB-L belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
- EIF-DB-L shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.95%, which is quite good.
- Measured over the past years, EIF-DB-L 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-DB-L 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
- EIF-DB-L is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.12% yearly.
- Based on estimates for the next years, EIF-DB-L will show a quite strong growth in Revenue. The Revenue will grow by 15.45% on average per year.
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
- 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- EIF-DB-L is valuated quite expensively with a Price/Earnings ratio of 34.65.
- Based on the Price/Earnings ratio, EIF-DB-L is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of EIF-DB-L to the average of the S&P500 Index (28.60), we can say EIF-DB-L is valued slightly more expensively.
- EIF-DB-L is valuated rather expensively with a Price/Forward Earnings ratio of 23.39.
- 62.50% of the companies in the same industry are more expensive than EIF-DB-L, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. EIF-DB-L is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.65 | ||
| Fwd PE | 23.39 |
4.2 Price Multiples
- EIF-DB-L's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.79 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- EIF-DB-L has a very decent profitability rating, which may justify a higher PE ratio.
- EIF-DB-L's earnings are expected to grow with 22.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.17
PEG (5Y)N/A
EPS Next 2Y25.56%
EPS Next 3Y22.7%
5. Dividend
5.1 Amount
- EIF-DB-L has a Yearly Dividend Yield of 3.56%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.95, EIF-DB-L pays a better dividend. On top of this EIF-DB-L pays more dividend than 87.50% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, EIF-DB-L pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
5.2 History
- The dividend of EIF-DB-L has a limited annual growth rate of 3.39%.
- EIF-DB-L does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)3.39%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 99.73% of the earnings are spent on dividend by EIF-DB-L. This is not a sustainable payout ratio.
- EIF-DB-L's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP99.73%
EPS Next 2Y25.56%
EPS Next 3Y22.7%
EXCHANGE INCOME CORP / EIF-DB-L.CA FAQ
What is the ChartMill fundamental rating of EXCHANGE INCOME CORP (EIF-DB-L.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to EIF-DB-L.CA.
Can you provide the valuation status for EXCHANGE INCOME CORP?
ChartMill assigns a valuation rating of 3 / 10 to EXCHANGE INCOME CORP (EIF-DB-L.CA). This can be considered as Overvalued.
How profitable is EXCHANGE INCOME CORP (EIF-DB-L.CA) stock?
EXCHANGE INCOME CORP (EIF-DB-L.CA) has a profitability rating of 6 / 10.
Can you provide the financial health for EIF-DB-L stock?
The financial health rating of EXCHANGE INCOME CORP (EIF-DB-L.CA) is 4 / 10.
How sustainable is the dividend of EXCHANGE INCOME CORP (EIF-DB-L.CA) stock?
The dividend rating of EXCHANGE INCOME CORP (EIF-DB-L.CA) is 4 / 10 and the dividend payout ratio is 99.73%.