EXCHANGE INCOME CORP (EIF.CA)
CA3012831077 - Common Stock
Overall EIF gets a fundamental rating of 5 out of 10. We evaluated EIF against 12 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 decent growth rate and is not valued too expensively. Finally 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.
Each year in the past 5 years EIF has been profitable.
Each year in the past 5 years EIF had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 2.83%, EIF belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
With an excellent Return On Equity value of 9.59%, EIF belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
EIF has a Return On Invested Capital of 6.24%. This is in the better half of the industry: EIF outperforms 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 6.45%.
The last Return On Invested Capital (6.24%) for EIF is above the 3 year average (5.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 9.59% | ||
| ROIC | 6.24% |
ROA(3y)2.91%
ROA(5y)2.73%
ROE(3y)9.72%
ROE(5y)8.94%
ROIC(3y)5.68%
ROIC(5y)5.34%
1.3 Margins
With an excellent Profit Margin value of 4.64%, EIF belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
EIF's Profit Margin has declined in the last couple of years.
EIF has a Operating Margin of 11.62%. This is amongst the best in the industry. EIF outperforms 100.00% of its industry peers.
EIF's Operating Margin has been stable in the last couple of years.
EIF has a Gross Margin of 35.72%. This is comparable to the rest of the industry: EIF outperforms 50.00% of its industry peers.
EIF's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.62% | ||
| PM (TTM) | 4.64% | ||
| GM | 35.72% |
OM growth 3Y9.44%
OM growth 5Y-0.01%
PM growth 3Y26.05%
PM growth 5Y-3.61%
GM growth 3Y-4.65%
GM growth 5Y-2.1%
2. Health
2.1 Basic Checks
EIF has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
EIF has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, EIF has more shares outstanding
EIF has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.53, we must say that EIF is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of EIF (1.53) is worse than 66.67% of its industry peers.
A Debt/Equity ratio of 1.64 is on the high side and indicates that EIF has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.64, EIF is in line with its industry, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.53 |
ROIC/WACC0.89
WACC7.03%
2.3 Liquidity
A Current Ratio of 1.76 indicates that EIF should not have too much problems paying its short term obligations.
The Current ratio of EIF (1.76) is better than 91.67% of its industry peers.
A Quick Ratio of 1.14 indicates that EIF should not have too much problems paying its short term obligations.
EIF has a better Quick ratio (1.14) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
EIF shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.97%.
Measured over the past 5 years, EIF shows a small growth in Earnings Per Share. The EPS has been growing by 1.68% on average per year.
Looking at the last year, EIF shows a quite strong growth in Revenue. The Revenue has grown by 10.22% in the last year.
The Revenue has been growing by 15.73% on average over the past years. This is quite good.
EPS 1Y (TTM)-4.97%
EPS 3Y31.96%
EPS 5Y1.68%
EPS Q2Q%8.26%
Revenue 1Y (TTM)10.22%
Revenue growth 3Y29.53%
Revenue growth 5Y15.73%
Sales Q2Q%3.23%
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 16.38% on average per year.
The Revenue is expected to grow by 8.77% on average over the next years. This is quite good.
EPS Next Y0.54%
EPS Next 2Y12.76%
EPS Next 3Y16.38%
EPS Next 5YN/A
Revenue Next Year7.84%
Revenue Next 2Y9.78%
Revenue Next 3Y8.77%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EIF is valuated rather expensively with a Price/Earnings ratio of 20.45.
Based on the Price/Earnings ratio, EIF is valued cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of EIF to the average of the S&P500 Index (27.55), we can say EIF is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.33, the valuation of EIF can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EIF indicates a rather cheap valuation: EIF is cheaper than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, EIF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.45 | ||
| Fwd PE | 15.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EIF is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 16.38% in the coming years.
PEG (NY)37.96
PEG (5Y)12.2
EPS Next 2Y12.76%
EPS Next 3Y16.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.76%, EIF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.76, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
5.2 History
The dividend of EIF has a limited annual growth rate of 3.16%.
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)3.16%
Div Incr Years2
Div Non Decr Years19
5.3 Sustainability
101.94% of the earnings are spent on dividend by EIF. This is not a sustainable payout ratio.
The dividend of EIF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP101.94%
EPS Next 2Y12.76%
EPS Next 3Y16.38%
EXCHANGE INCOME CORP
TSX:EIF (12/24/2024, 7:00:00 PM)
58.68
+0.92 (+1.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners11.26%
Inst Owner ChangeN/A
Ins Owners6.44%
Ins Owner ChangeN/A
Market Cap2.82B
Analysts81.43
Price Target70.38 (19.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
Dividend Growth(5Y)3.16%
DP101.94%
Div Incr Years2
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.47%
Min EPS beat(2)-10.7%
Max EPS beat(2)-4.24%
EPS beat(4)1
Avg EPS beat(4)-3.44%
Min EPS beat(4)-10.7%
Max EPS beat(4)3.54%
EPS beat(8)1
Avg EPS beat(8)-6.17%
EPS beat(12)5
Avg EPS beat(12)10.85%
EPS beat(16)9
Avg EPS beat(16)16.8%
Revenue beat(2)0
Avg Revenue beat(2)-4.7%
Min Revenue beat(2)-5.7%
Max Revenue beat(2)-3.7%
Revenue beat(4)1
Avg Revenue beat(4)-2.89%
Min Revenue beat(4)-5.7%
Max Revenue beat(4)0.42%
Revenue beat(8)5
Avg Revenue beat(8)0.6%
Revenue beat(12)9
Avg Revenue beat(12)3.62%
Revenue beat(16)13
Avg Revenue beat(16)4.1%
PT rev (1m)5.17%
PT rev (3m)6.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.75%
EPS NY rev (1m)-4.14%
EPS NY rev (3m)-3.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)-2.02%
Revenue NY rev (3m)-2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.45 | ||
| Fwd PE | 15.33 | ||
| P/S | 1.07 | ||
| P/FCF | N/A | ||
| P/OCF | 7.31 | ||
| P/B | 2.22 | ||
| P/tB | 12.69 | ||
| EV/EBITDA | 8.23 |
EPS(TTM)2.87
EY4.89%
EPS(NY)3.83
Fwd EY6.52%
FCF(TTM)-2.8
FCFYN/A
OCF(TTM)8.03
OCFY13.68%
SpS54.64
BVpS26.46
TBVpS4.62
PEG (NY)37.96
PEG (5Y)12.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 9.59% | ||
| ROCE | 8.47% | ||
| ROIC | 6.24% | ||
| ROICexc | 6.34% | ||
| ROICexgc | 9.01% | ||
| OM | 11.62% | ||
| PM (TTM) | 4.64% | ||
| GM | 35.72% | ||
| FCFM | N/A |
ROA(3y)2.91%
ROA(5y)2.73%
ROE(3y)9.72%
ROE(5y)8.94%
ROIC(3y)5.68%
ROIC(5y)5.34%
ROICexc(3y)5.91%
ROICexc(5y)5.51%
ROICexgc(3y)8.71%
ROICexgc(5y)7.95%
ROCE(3y)7.71%
ROCE(5y)7.24%
ROICexcg growth 3Y19.05%
ROICexcg growth 5Y1.66%
ROICexc growth 3Y17.84%
ROICexc growth 5Y0.7%
OM growth 3Y9.44%
OM growth 5Y-0.01%
PM growth 3Y26.05%
PM growth 5Y-3.61%
GM growth 3Y-4.65%
GM growth 5Y-2.1%
F-Score5
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.46 | ||
| Cap/Depr | 174.06% | ||
| Cap/Sales | 19.81% | ||
| Interest Coverage | 2.68 | ||
| Cash Conversion | 63.88% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 1.53 |
F-Score5
WACC7.03%
ROIC/WACC0.89
Cap/Depr(3y)169.02%
Cap/Depr(5y)147.4%
Cap/Sales(3y)19.27%
Cap/Sales(5y)17.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.97%
EPS 3Y31.96%
EPS 5Y1.68%
EPS Q2Q%8.26%
EPS Next Y0.54%
EPS Next 2Y12.76%
EPS Next 3Y16.38%
EPS Next 5YN/A
Revenue 1Y (TTM)10.22%
Revenue growth 3Y29.53%
Revenue growth 5Y15.73%
Sales Q2Q%3.23%
Revenue Next Year7.84%
Revenue Next 2Y9.78%
Revenue Next 3Y8.77%
Revenue Next 5YN/A
EBIT growth 1Y9.36%
EBIT growth 3Y41.76%
EBIT growth 5Y15.72%
EBIT Next Year100.02%
EBIT Next 3Y35.26%
EBIT Next 5YN/A
FCF growth 1Y-41.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y58.08%
OCF growth 3Y10.75%
OCF growth 5Y16.5%