EXCHANGE INCOME CORP (EIF-DB-M.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:EIF-DB-M - CA301283AP29
120 CAD
-10.22 (-7.85%)
Overall EIF-DB-M gets a fundamental rating of 4 out of 10. We evaluated EIF-DB-M against 6 industry peers in the Passenger Airlines industry. While EIF-DB-M is still in line with the averages on profitability rating, there are concerns on its financial health. EIF-DB-M is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- EIF-DB-M had positive earnings in the past year.
- EIF-DB-M had a positive operating cash flow in the past year.
- In the past 5 years EIF-DB-M has always been profitable.
- In the past 5 years EIF-DB-M always reported a positive cash flow from operatings.
1.2 Ratios
- EIF-DB-M has a better Return On Assets (2.75%) than 71.43% of its industry peers.
- EIF-DB-M has a better Return On Equity (8.76%) than 85.71% of its industry peers.
- EIF-DB-M's Return On Invested Capital of 5.80% is in line compared to the rest of the industry. EIF-DB-M outperforms 57.14% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EIF-DB-M is in line with the industry average of 4.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 8.76% | ||
| ROIC | 5.8% |
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-DB-M has a Profit Margin of 4.75%. This is in the better half of the industry: EIF-DB-M outperforms 71.43% of its industry peers.
- EIF-DB-M's Profit Margin has declined in the last couple of years.
- EIF-DB-M has a Operating Margin of 11.47%. This is amongst the best in the industry. EIF-DB-M outperforms 85.71% of its industry peers.
- EIF-DB-M's Operating Margin has been stable in the last couple of years.
- EIF-DB-M has a worse Gross Margin (36.67%) than 71.43% of its industry peers.
- EIF-DB-M's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.47% | ||
| PM (TTM) | 4.75% | ||
| GM | 36.67% |
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-DB-M has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for EIF-DB-M has been increased compared to 1 year ago.
- The number of shares outstanding for EIF-DB-M has been increased compared to 5 years ago.
- The debt/assets ratio for EIF-DB-M is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.02 indicates that EIF-DB-M is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.02, EIF-DB-M is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
- EIF-DB-M has a Debt/Equity ratio of 1.50. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.50, EIF-DB-M is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.02 |
ROIC/WACC0.73
WACC7.95%
2.3 Liquidity
- A Current Ratio of 1.79 indicates that EIF-DB-M should not have too much problems paying its short term obligations.
- With an excellent Current ratio value of 1.79, EIF-DB-M belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- A Quick Ratio of 1.14 indicates that EIF-DB-M should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.14, EIF-DB-M is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 15.68% over the past year.
- Measured over the past years, EIF-DB-M shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.27% on average per year.
- EIF-DB-M shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.47%.
- EIF-DB-M shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.67% yearly.
EPS 1Y (TTM)15.68%
EPS 3Y9.61%
EPS 5Y-0.27%
EPS Q2Q%15.25%
Revenue 1Y (TTM)15.47%
Revenue growth 3Y23.47%
Revenue growth 5Y14.67%
Sales Q2Q%35.2%
3.2 Future
- EIF-DB-M is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.69% yearly.
- The Revenue is expected to grow by 14.83% on average over the next years. This is quite good.
EPS Next Y22.07%
EPS Next 2Y19.52%
EPS Next 3Y18.6%
EPS Next 5Y19.69%
Revenue Next Year20.1%
Revenue Next 2Y16.05%
Revenue Next 3Y12.76%
Revenue Next 5Y14.83%
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-DB-M is valuated quite expensively with a Price/Earnings ratio of 36.14.
- The rest of the industry has a similar Price/Earnings ratio as EIF-DB-M.
- EIF-DB-M is valuated rather expensively when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 28.48, the valuation of EIF-DB-M can be described as expensive.
- EIF-DB-M's Price/Forward Earnings is on the same level as the industry average.
- EIF-DB-M is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.14 | ||
| Fwd PE | 28.48 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EIF-DB-M is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.69 |
4.3 Compensation for Growth
- EIF-DB-M's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- EIF-DB-M has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as EIF-DB-M's earnings are expected to grow with 18.60% in the coming years.
PEG (NY)1.64
PEG (5Y)N/A
EPS Next 2Y19.52%
EPS Next 3Y18.6%
5. Dividend
5.1 Amount
- EIF-DB-M has a Yearly Dividend Yield of 3.45%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.95, EIF-DB-M pays a better dividend. On top of this EIF-DB-M pays more dividend than 100.00% of the companies listed in the same industry.
- EIF-DB-M's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
- The dividend of EIF-DB-M has a limited annual growth rate of 3.39%.
- EIF-DB-M 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
- EIF-DB-M pays out 93.13% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of EIF-DB-M is growing, but earnings are growing more, so the dividend growth is sustainable.
DP93.13%
EPS Next 2Y19.52%
EPS Next 3Y18.6%
EXCHANGE INCOME CORP / EIF-DB-M.CA FAQ
What is the ChartMill fundamental rating of EXCHANGE INCOME CORP (EIF-DB-M.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to EIF-DB-M.CA.
What is the valuation status of EXCHANGE INCOME CORP (EIF-DB-M.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to EXCHANGE INCOME CORP (EIF-DB-M.CA). This can be considered as Overvalued.
Can you provide the profitability details for EXCHANGE INCOME CORP?
EXCHANGE INCOME CORP (EIF-DB-M.CA) has a profitability rating of 6 / 10.
What is the valuation of EXCHANGE INCOME CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for EXCHANGE INCOME CORP (EIF-DB-M.CA) is 36.14 and the Price/Book (PB) ratio is 3.97.
How financially healthy is EXCHANGE INCOME CORP?
The financial health rating of EXCHANGE INCOME CORP (EIF-DB-M.CA) is 3 / 10.