EXTENDICARE INC (EXE.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:EXE • CA30224T8639
23.19 CAD
-0.14 (-0.6%)
Last: Jan 30, 2026, 07:00 PM
Taking everything into account, EXE scores 6 out of 10 in our fundamental rating. EXE was compared to 14 industry peers in the Health Care Providers & Services industry. EXE has an excellent profitability rating, but there are some minor concerns on its financial health. EXE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- EXE had positive earnings in the past year.
- EXE had a positive operating cash flow in the past year.
- EXE had positive earnings in each of the past 5 years.
- Each year in the past 5 years EXE had a positive operating cash flow.
1.2 Ratios
- EXE has a better Return On Assets (10.41%) than 85.71% of its industry peers.
- EXE's Return On Equity of 55.53% is amongst the best of the industry. EXE outperforms 92.86% of its industry peers.
- EXE has a better Return On Invested Capital (18.54%) than 100.00% of its industry peers.
- EXE had an Average Return On Invested Capital over the past 3 years of 11.40%. This is above the industry average of 7.74%.
- The 3 year average ROIC (11.40%) for EXE is below the current ROIC(18.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.41% | ||
| ROE | 55.53% | ||
| ROIC | 18.54% |
ROA(3y)8.13%
ROA(5y)6.26%
ROE(3y)56.07%
ROE(5y)44.35%
ROIC(3y)11.4%
ROIC(5y)10.15%
1.3 Margins
- Looking at the Profit Margin, with a value of 5.72%, EXE belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- In the last couple of years the Profit Margin of EXE has grown nicely.
- EXE's Operating Margin of 8.22% is fine compared to the rest of the industry. EXE outperforms 78.57% of its industry peers.
- EXE's Operating Margin has improved in the last couple of years.
- The Gross Margin of EXE (14.15%) is worse than 78.57% of its industry peers.
- In the last couple of years the Gross Margin of EXE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.22% | ||
| PM (TTM) | 5.72% | ||
| GM | 14.15% |
OM growth 3Y21.21%
OM growth 5Y10.26%
PM growth 3Y73.29%
PM growth 5Y15.22%
GM growth 3Y6.44%
GM growth 5Y3.11%
2. Health
2.1 Basic Checks
- EXE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, EXE has more shares outstanding
- The number of shares outstanding for EXE has been reduced compared to 5 years ago.
- EXE has a better debt/assets ratio than last year.
2.2 Solvency
- EXE has an Altman-Z score of 3.36. This indicates that EXE is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of EXE (3.36) is better than 85.71% of its industry peers.
- The Debt to FCF ratio of EXE is 3.39, which is a good value as it means it would take EXE, 3.39 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.39, EXE is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
- EXE has a Debt/Equity ratio of 1.94. This is a high value indicating a heavy dependency on external financing.
- EXE's Debt to Equity ratio of 1.94 is on the low side compared to the rest of the industry. EXE is outperformed by 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | 3.39 | ||
| Altman-Z | 3.36 |
ROIC/WACC2.38
WACC7.79%
2.3 Liquidity
- A Current Ratio of 0.81 indicates that EXE may have some problems paying its short term obligations.
- The Current ratio of EXE (0.81) is comparable to the rest of the industry.
- A Quick Ratio of 0.81 indicates that EXE may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.81, EXE is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
- EXE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.52%, which is quite impressive.
- The Earnings Per Share has been growing by 22.74% on average over the past years. This is a very strong growth
- EXE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.59%.
- The Revenue has been growing slightly by 5.31% on average over the past years.
EPS 1Y (TTM)52.52%
EPS 3Y92.12%
EPS 5Y22.74%
EPS Q2Q%65.04%
Revenue 1Y (TTM)11.59%
Revenue growth 3Y7.91%
Revenue growth 5Y5.31%
Sales Q2Q%22.62%
3.2 Future
- Based on estimates for the next years, EXE will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.75% on average per year.
- Based on estimates for the next years, EXE will show a quite strong growth in Revenue. The Revenue will grow by 10.83% on average per year.
EPS Next Y33.67%
EPS Next 2Y21.07%
EPS Next 3Y19.7%
EPS Next 5Y9.75%
Revenue Next Year15.35%
Revenue Next 2Y25.35%
Revenue Next 3Y18.26%
Revenue Next 5Y10.83%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- EXE is valuated rather expensively with a Price/Earnings ratio of 22.30.
- Based on the Price/Earnings ratio, EXE is valued a bit cheaper than 78.57% of the companies in the same industry.
- When comparing the Price/Earnings ratio of EXE to the average of the S&P500 Index (28.32), we can say EXE is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 19.83, the valuation of EXE can be described as rather expensive.
- 78.57% of the companies in the same industry are more expensive than EXE, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, EXE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.3 | ||
| Fwd PE | 19.83 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EXE indicates a somewhat cheap valuation: EXE is cheaper than 78.57% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, EXE is valued a bit cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.5 | ||
| EV/EBITDA | 12.75 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- EXE has an outstanding profitability rating, which may justify a higher PE ratio.
- EXE's earnings are expected to grow with 19.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.66
PEG (5Y)0.98
EPS Next 2Y21.07%
EPS Next 3Y19.7%
5. Dividend
5.1 Amount
- EXE has a Yearly Dividend Yield of 2.16%.
- EXE's Dividend Yield is a higher than the industry average which is at 1.35.
- EXE's Dividend Yield is comparable with the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
- The dividend of EXE has a limited annual growth rate of 2.79%.
- EXE has paid a dividend for at least 10 years, which is a reliable track record.
- EXE has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.79%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
- 45.22% of the earnings are spent on dividend by EXE. This is a bit on the high side, but may be sustainable.
- EXE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP45.22%
EPS Next 2Y21.07%
EPS Next 3Y19.7%
EXTENDICARE INC / EXE.CA FAQ
What is the fundamental rating for EXE stock?
ChartMill assigns a fundamental rating of 6 / 10 to EXE.CA.
What is the valuation status for EXE stock?
ChartMill assigns a valuation rating of 6 / 10 to EXTENDICARE INC (EXE.CA). This can be considered as Fairly Valued.
What is the profitability of EXE stock?
EXTENDICARE INC (EXE.CA) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for EXE stock?
The Earnings per Share (EPS) of EXTENDICARE INC (EXE.CA) is expected to grow by 33.67% in the next year.
Is the dividend of EXTENDICARE INC sustainable?
The dividend rating of EXTENDICARE INC (EXE.CA) is 5 / 10 and the dividend payout ratio is 45.22%.