EXCHANGE INCOME CORP (EIF.CA) Stock Fundamental Analysis
TSX:EIF - Toronto Stock Exchange - CA3012831077 - Common Stock - Currency: CAD
Taking everything into account, EIF scores 5 out of 10 in our fundamental rating. EIF was compared to 8 industry peers in the Passenger Airlines industry. While EIF belongs to the best of the industry regarding profitability, there are concerns on its financial health. EIF has a correct valuation and a medium growth rate. 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.
EIF had positive earnings in each of the past 5 years.
EIF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.83%, EIF belongs to the top of the industry, outperforming 90.00% 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 90.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.24%, EIF is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
EIF had an Average Return On Invested Capital over the past 3 years of 5.68%. This is in line with the industry average of 6.19%.
The 3 year average ROIC (5.68%) for EIF is below the current ROIC(6.24%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 4.64%, EIF belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
EIF's Profit Margin has declined in the last couple of years.
EIF has a better Operating Margin (11.62%) 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.
EIF has a Gross Margin (35.72%) which is in line with its industry peers.
In the last couple of years the Gross Margin of EIF has declined.
| 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.
Compared to 1 year ago, EIF has more shares outstanding
EIF has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EIF has been reduced compared to a year ago.
2.2 Solvency
EIF has an Altman-Z score of 1.47. This is a bad value and indicates that EIF is not financially healthy and even has some risk of bankruptcy.
EIF has a Altman-Z score of 1.47. This is in the better half of the industry: EIF outperforms 70.00% of its industry peers.
EIF has a Debt/Equity ratio of 1.64. This is a high value indicating a heavy dependency on external financing.
EIF has a Debt to Equity ratio (1.64) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.47 |
ROIC/WACC0.76
WACC8.18%
2.3 Liquidity
EIF has a Current Ratio of 1.76. This is a normal value and indicates that EIF is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of EIF (1.76) is better than 100.00% of its industry peers.
A Quick Ratio of 1.14 indicates that EIF should not have too much problems paying its short term obligations.
The Quick ratio of EIF (1.14) is better than 100.00% 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.
EIF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.73% yearly.
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
EIF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.98% yearly.
EIF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.66% yearly.
EPS Next Y0.12%
EPS Next 2Y11.83%
EPS Next 3Y14.98%
EPS Next 5YN/A
Revenue Next Year7.84%
Revenue Next 2Y9.71%
Revenue Next 3Y8.66%
Revenue Next 5YN/A
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.01, which indicates a rather expensive current valuation of EIF.
Based on the Price/Earnings ratio, EIF is valued cheaper than 90.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of EIF to the average of the S&P500 Index (29.62), we can say EIF is valued slightly cheaper.
EIF is valuated correctly with a Price/Forward Earnings ratio of 13.73.
80.00% 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 valuation a bit cheaper than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 13.73 |
4.2 Price Multiples
EIF's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EIF is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
EIF has a very decent profitability rating, which may justify a higher PE ratio.
EIF's earnings are expected to grow with 14.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)151.14
PEG (5Y)10.75
EPS Next 2Y11.83%
EPS Next 3Y14.98%
5. Dividend
5.1 Amount
EIF has a Yearly Dividend Yield of 5.06%, which is a nice return.
Compared to an average industry Dividend Yield of 5.06, EIF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, EIF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
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
EIF pays out 101.94% 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.
DP101.94%
EPS Next 2Y11.83%
EPS Next 3Y14.98%
TSX:EIF (2/21/2025, 7:00:00 PM)
51.7
-0.51 (-0.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners10.9%
Inst Owner ChangeN/A
Ins Owners6.18%
Ins Owner ChangeN/A
Market Cap2.56B
Analysts82.67
Price Target71.12 (37.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
Yearly Dividend2.56
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)0.62%
PT rev (3m)1.05%
EPS NQ rev (1m)-2.58%
EPS NQ rev (3m)-2.58%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)-4.54%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 13.73 | ||
| P/S | 0.98 | ||
| P/FCF | N/A | ||
| P/OCF | 6.64 | ||
| P/B | 2.01 | ||
| P/tB | 11.53 | ||
| EV/EBITDA | 7.8 |
EPS(TTM)2.87
EY5.55%
EPS(NY)3.76
Fwd EY7.28%
FCF(TTM)-2.71
FCFYN/A
OCF(TTM)7.79
OCFY15.06%
SpS53
BVpS25.67
TBVpS4.49
PEG (NY)151.14
PEG (5Y)10.75
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 | 1.47 |
F-Score5
WACC8.18%
ROIC/WACC0.76
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 Y0.12%
EPS Next 2Y11.83%
EPS Next 3Y14.98%
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 2Y9.71%
Revenue Next 3Y8.66%
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%