EXCHANGE INCOME CORP (EIF.CA) Stock Fundamental Analysis
TSX:EIF - Toronto Stock Exchange - CA3012831077 - Common Stock - Currency: CAD
Overall EIF gets a fundamental rating of 5 out of 10. We evaluated EIF against 9 industry peers in the Passenger Airlines industry. While EIF has a great profitability rating, there are quite some concerns on its financial health. EIF has a correct valuation and a medium growth rate. Finally EIF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EIF was profitable.
In the past year EIF had a positive cash flow from operations.
Each year in the past 5 years EIF has been profitable.
In the past 5 years EIF always reported a positive cash flow from operatings.
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.
With an excellent Return On Equity value of 8.47%, EIF belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
EIF has a Return On Invested Capital of 6.04%. This is in the better half of the industry: EIF outperforms 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 5.50%.
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 better Profit Margin (4.54%) than 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.
The Gross Margin of EIF (36.84%) is comparable to the rest of the 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EIF is destroying value.
EIF has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, EIF has more shares outstanding
Compared to 1 year ago, EIF has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.58, we must say that EIF is in the distress zone and has some risk of bankruptcy.
EIF has a Altman-Z score (1.58) which is in line with its industry peers.
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 of 1.53. This is comparable to the rest of the industry: EIF outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.58 |
ROIC/WACC0.74
WACC8.16%
2.3 Liquidity
A Current Ratio of 1.94 indicates that EIF should not have too much problems paying its short term obligations.
EIF has a Current ratio of 1.94. This is amongst the best in the industry. EIF outperforms 100.00% of its industry peers.
A Quick Ratio of 1.18 indicates that EIF should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.18, EIF belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| 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.
The Earnings Per Share has been decreasing by -0.27% on average over the past years.
EIF shows a small growth in Revenue. In the last year, the Revenue has grown by 5.95%.
The Revenue has been growing by 14.67% on average over the past years. This is quite good.
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
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.04 indicates a rather expensive valuation of EIF.
Based on the Price/Earnings ratio, EIF is valued a bit cheaper than 77.78% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.28. EIF is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.34 indicates a correct valuation of EIF.
Based on the Price/Forward Earnings ratio, EIF is valued a bit cheaper than 77.78% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. EIF is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.04 | ||
| Fwd PE | 14.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EIF is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.5 |
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.
A more expensive valuation may be justified as EIF's earnings are expected to grow with 19.62% in the coming years.
PEG (NY)0.79
PEG (5Y)N/A
EPS Next 2Y22.76%
EPS Next 3Y19.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.30%, EIF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.30, 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
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 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
103.51% of the earnings are spent on dividend by EIF. 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 (7/2/2025, 7:00:00 PM)
63.76
+1.03 (+1.64%)
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 Cap3.27B
Analysts82.67
Price Target71.96 (12.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
Yearly Dividend2.6
Dividend Growth(5Y)3.39%
DP103.51%
Div Incr Years3
Div Non Decr Years20
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)1.84%
PT rev (3m)0.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.21%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.04 | ||
| Fwd PE | 14.34 | ||
| P/S | 1.2 | ||
| P/FCF | N/A | ||
| P/OCF | 8.28 | ||
| P/B | 2.24 | ||
| P/tB | 11.79 | ||
| EV/EBITDA | 8.5 |
EPS(TTM)3.03
EY4.75%
EPS(NY)4.45
Fwd EY6.97%
FCF(TTM)-2.44
FCFYN/A
OCF(TTM)7.7
OCFY12.08%
SpS53.09
BVpS28.5
TBVpS5.41
PEG (NY)0.79
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 | 1.58 |
F-Score6
WACC8.16%
ROIC/WACC0.74
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%