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%)
We assign a fundamental rating of 5 out of 10 to EIF-DB-L. 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. While showing a medium growth rate, EIF-DB-L is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- EIF-DB-L had positive earnings in the past year.
- In the past year EIF-DB-L had a positive cash flow from operations.
- EIF-DB-L had positive earnings in each of the past 5 years.
- In the past 5 years EIF-DB-L always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.75%, EIF-DB-L is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 9.07%, EIF-DB-L is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- EIF-DB-L's Return On Invested Capital of 5.96% is fine compared to the rest of the industry. EIF-DB-L outperforms 62.50% of its industry peers.
- EIF-DB-L 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 | 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
- The Profit Margin of EIF-DB-L (4.71%) is better than 62.50% of its industry peers.
- In the last couple of years the Profit Margin of EIF-DB-L has declined.
- EIF-DB-L has a better Operating Margin (11.97%) than 87.50% of its industry peers.
- EIF-DB-L's Operating Margin has been stable in the last couple of years.
- The Gross Margin of EIF-DB-L (37.29%) is worse than 62.50% of its industry peers.
- In the last couple of years the Gross Margin of EIF-DB-L 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-DB-L is destroying value.
- Compared to 1 year ago, EIF-DB-L has more shares outstanding
- Compared to 5 years ago, EIF-DB-L has more shares outstanding
- 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.
- EIF-DB-L has a Altman-Z score of 2.01. This is in the better half of the industry: EIF-DB-L outperforms 62.50% of its industry peers.
- EIF-DB-L has a Debt/Equity ratio of 1.67. This is a high value indicating a heavy dependency on external financing.
- EIF-DB-L has a Debt to Equity ratio of 1.67. This is comparable to the rest of the industry: EIF-DB-L outperforms 50.00% of its industry peers.
| 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.
- EIF-DB-L's Current ratio of 2.24 is amongst the best of the industry. EIF-DB-L outperforms 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.
- EIF-DB-L has a Quick ratio of 1.47. This is amongst the best in the industry. EIF-DB-L outperforms 87.50% 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-DB-L shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.27% on average per year.
- EIF-DB-L shows a small growth in Revenue. In the last year, the Revenue has grown by 6.87%.
- Measured over the past years, EIF-DB-L shows a quite strong growth in Revenue. The Revenue has been growing by 14.67% on average per year.
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-DB-L will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.12% on average per year.
- 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.
- 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
- Based on the Price/Earnings ratio of 34.65, the valuation of EIF-DB-L can be described as expensive.
- Based on the Price/Earnings ratio, EIF-DB-L is valued a bit cheaper than 62.50% of the companies in the same industry.
- EIF-DB-L is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- EIF-DB-L is valuated rather expensively with a Price/Forward Earnings ratio of 23.39.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EIF-DB-L indicates a somewhat cheap valuation: EIF-DB-L is cheaper than 62.50% of the companies listed in the same industry.
- EIF-DB-L's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| 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.
- The decent profitability rating of EIF-DB-L may justify a higher PE ratio.
- A more expensive valuation may be justified as EIF-DB-L's earnings are expected to grow with 22.70% in the coming years.
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%.
- 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 1.81, 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 is new to the dividend game and has less than 3 years of track record.
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%.