EXCHANGE INCOME CORP (EIF.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:EIF - CA3012831077 - Common Stock
98.22 CAD
+1.05 (+1.08%)
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. EIF is quite expensive at the moment. It does show a decent growth rate. Finally EIF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year EIF was profitable.
- EIF had a positive operating cash flow in the past year.
- In the past 5 years EIF has always been profitable.
- Each year in the past 5 years EIF had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.75%, EIF belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 8.76%, EIF belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- The Return On Invested Capital of EIF (5.80%) is better than 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 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
- The Profit Margin of EIF (4.75%) is better than 83.33% of its industry peers.
- In the last couple of years the Profit Margin of EIF has declined.
- EIF's Operating Margin of 11.47% is amongst the best of the industry. EIF outperforms 100.00% of its industry peers.
- EIF's Operating Margin has been stable in the last couple of years.
- 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
- 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.
- EIF has more shares outstanding than it did 5 years ago.
- EIF has a worse debt/assets ratio than last year.
2.2 Solvency
- EIF has an Altman-Z score of 1.82. This is not the best score and indicates that EIF is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of EIF (1.82) is better than 66.67% of its industry peers.
- A Debt/Equity ratio of 1.50 is on the high side and indicates that EIF has dependencies on debt financing.
- EIF has a Debt to Equity ratio of 1.50. This is comparable 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 | 1.82 |
ROIC/WACC0.67
WACC8.64%
2.3 Liquidity
- A Current Ratio of 1.79 indicates that EIF should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.79, EIF belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- 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.
- EIF shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.27% yearly.
- Looking at the last year, EIF shows a quite strong growth in Revenue. The Revenue has grown by 15.47% in the last year.
- Measured over the past years, EIF shows a quite strong growth in Revenue. The Revenue has been growing by 14.67% on average per year.
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.
- The Revenue is expected to grow by 14.29% on average over the next years. This is quite good.
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
- 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 29.58, the valuation of EIF can be described as expensive.
- 66.67% of the companies in the same industry are more expensive than EIF, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.82. EIF is around the same levels.
- The Price/Forward Earnings ratio is 23.37, which indicates a rather expensive current valuation of EIF.
- 66.67% of the companies in the same industry are more expensive than EIF, based on the Price/Forward Earnings ratio.
- EIF's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.58 | ||
| Fwd PE | 23.37 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as EIF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.01 |
4.3 Compensation for Growth
- EIF's 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)1.38
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 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
- 93.13% 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.
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 29.58 and the Price/Book (PB) ratio is 3.25.
How financially healthy is EXCHANGE INCOME CORP?
The financial health rating of EXCHANGE INCOME CORP (EIF.CA) is 3 / 10.