EXCHANGE INCOME CORP (EIF.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:EIF - CA3012831077 - Common Stock
97.17 CAD
+0.22 (+0.23%)
Overall EIF gets a fundamental rating of 5 out of 10. We evaluated EIF against 6 industry peers in the Passenger Airlines industry. While EIF is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, EIF is valued expensive at the moment. EIF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- EIF had positive earnings in the past year.
- EIF had a positive operating cash flow in the past year.
- In the past 5 years EIF has always been profitable.
- EIF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- EIF has a better Return On Assets (2.75%) than 83.33% of its industry peers.
- EIF has a better Return On Equity (8.76%) than 100.00% of its industry peers.
- EIF has a better Return On Invested Capital (5.80%) than 66.67% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EIF 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
- Looking at the Profit Margin, with a value of 4.75%, EIF belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- EIF's Profit Margin has declined in the last couple of years.
- EIF's Operating Margin of 11.47% is amongst the best of the industry. EIF outperforms 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 (36.67%) is worse than 66.67% of its industry peers.
- In the last couple of years the Gross Margin of EIF has declined.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EIF is destroying value.
- Compared to 1 year ago, EIF has more shares outstanding
- 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
- An Altman-Z score of 1.81 indicates that EIF is not a great score, but indicates only limited risk for bankruptcy at the moment.
- EIF's Altman-Z score of 1.81 is fine compared to the rest of the industry. EIF outperforms 66.67% of its industry peers.
- EIF has a Debt/Equity ratio of 1.50. This is a high value indicating a heavy dependency on external financing.
- EIF's Debt to Equity ratio of 1.50 is in line compared to the rest of the industry. EIF outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.81 |
ROIC/WACC0.67
WACC8.67%
2.3 Liquidity
- A Current Ratio of 1.79 indicates that EIF should not have too much problems paying its short term obligations.
- The Current ratio of EIF (1.79) is better than 83.33% of its industry peers.
- EIF has a Quick Ratio of 1.14. 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 Quick ratio value of 1.14, EIF belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
- EIF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.68%, which is quite good.
- Measured over the past years, EIF shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.27% on average per year.
- EIF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.47%.
- The Revenue has been growing by 14.67% on average over the past years. This is quite good.
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
- Based on estimates for the next years, EIF will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.12% 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 14.29% on average per year.
EPS Next Y21.44%
EPS Next 2Y19.35%
EPS Next 3Y18.81%
EPS Next 5Y19.12%
Revenue Next Year20.1%
Revenue Next 2Y16.05%
Revenue Next 3Y12.76%
Revenue Next 5Y14.29%
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 is valuated quite expensively with a Price/Earnings ratio of 29.27.
- Compared to the rest of the industry, the Price/Earnings ratio of EIF indicates a somewhat cheap valuation: EIF is cheaper than 66.67% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of EIF to the average of the S&P500 Index (27.25), we can say EIF is valued inline with the index average.
- With a Price/Forward Earnings ratio of 23.12, EIF is valued on the expensive side.
- EIF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EIF is cheaper than 66.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, EIF is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.27 | ||
| Fwd PE | 23.12 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EIF is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.93 |
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 may justify a higher PE ratio.
- EIF's earnings are expected to grow with 18.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.37
PEG (5Y)N/A
EPS Next 2Y19.35%
EPS Next 3Y18.81%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.82%, EIF has a reasonable but not impressive dividend return.
- EIF's Dividend Yield is rather good when compared to the industry average which is at 0.95. EIF pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, EIF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
5.2 History
- The dividend of EIF has a limited annual growth rate of 3.39%.
- EIF has paid a dividend for at least 10 years, which is 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 Years3
Div Non Decr Years20
5.3 Sustainability
- EIF pays out 93.13% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of EIF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP93.13%
EPS Next 2Y19.35%
EPS Next 3Y18.81%
EXCHANGE INCOME CORP / EIF.CA FAQ
Can you provide the ChartMill fundamental rating for EXCHANGE INCOME CORP?
ChartMill assigns a fundamental rating of 5 / 10 to EIF.CA.
What is the valuation status for EIF stock?
ChartMill assigns a valuation rating of 3 / 10 to EXCHANGE INCOME CORP (EIF.CA). This can be considered as Overvalued.
Can you provide the profitability details for EXCHANGE INCOME CORP?
EXCHANGE INCOME CORP (EIF.CA) has a profitability rating of 6 / 10.
What are the PE and PB ratios of EXCHANGE INCOME CORP (EIF.CA) stock?
The Price/Earnings (PE) ratio for EXCHANGE INCOME CORP (EIF.CA) is 29.27 and the Price/Book (PB) ratio is 3.21.
How financially healthy is EXCHANGE INCOME CORP?
The financial health rating of EXCHANGE INCOME CORP (EIF.CA) is 3 / 10.