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Market Cap

CA$1.4b

Last Updated

2021/04/16 23:22 UTC

Data Sources

Company Financials +

Executive Summary

Exchange Income Corporation engages in aerospace and aviation services and equipment, and manufacturing businesses worldwide. More Details


Snowflake Analysis

Established dividend payer with reasonable growth potential.

Share Price & News

How has Exchange Income's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EIF is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: EIF's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.5%

EIF

-6.1%

CA Airlines

0.6%

CA Market


1 Year Return

68.2%

EIF

100.4%

CA Airlines

38.5%

CA Market

Return vs Industry: EIF underperformed the Canadian Airlines industry which returned 109.2% over the past year.

Return vs Market: EIF exceeded the Canadian Market which returned 42.1% over the past year.


Shareholder returns

EIFIndustryMarket
7 Day-0.5%-6.1%0.6%
30 Day-3.5%-11.3%1.3%
90 Day3.0%8.6%8.7%
1 Year80.7%68.2%100.6%100.4%43.3%38.5%
3 Year49.6%22.3%1.1%-1.1%32.0%19.2%
5 Year82.4%32.1%24.7%19.8%57.5%33.4%

Long-Term Price Volatility Vs. Market

How volatile is Exchange Income's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Exchange Income undervalued compared to its fair value and its price relative to the market?

49.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EIF (CA$38.79) is trading below our estimate of fair value (CA$75.15)

Significantly Below Fair Value: EIF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EIF is poor value based on its PE Ratio (48.5x) compared to the XX Airlines industry average (24.4x).

PE vs Market: EIF is poor value based on its PE Ratio (48.5x) compared to the Canadian market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: EIF is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: EIF's PB Ratio (2x) is in line with the CA Airlines industry average.


Future Growth

How is Exchange Income forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

43.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EIF's forecast earnings growth (43.3% per year) is above the savings rate (1.5%).

Earnings vs Market: EIF's earnings (43.3% per year) are forecast to grow faster than the Canadian market (20% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EIF's revenue (10.7% per year) is forecast to grow faster than the Canadian market (6.7% per year).

High Growth Revenue: EIF's revenue (10.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EIF's Return on Equity is forecast to be low in 3 years time (15.2%).


Past Performance

How has Exchange Income performed over the past 5 years?

1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EIF has high quality earnings.

Growing Profit Margin: EIF's current net profit margins (2.4%) are lower than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: EIF's earnings have grown by 1% per year over the past 5 years.

Accelerating Growth: EIF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EIF had negative earnings growth (-66.4%) over the past year, making it difficult to compare to the Airlines industry average (-23.8%).


Return on Equity

High ROE: EIF's Return on Equity (4.1%) is considered low.


Financial Health

How is Exchange Income's financial position?


Financial Position Analysis

Short Term Liabilities: EIF's short term assets (CA$619.0M) exceed its short term liabilities (CA$295.3M).

Long Term Liabilities: EIF's short term assets (CA$619.0M) do not cover its long term liabilities (CA$1.3B).


Debt to Equity History and Analysis

Debt Level: EIF's debt to equity ratio (163.5%) is considered high.

Reducing Debt: EIF's debt to equity ratio has increased from 113.8% to 163.5% over the past 5 years.

Debt Coverage: EIF's debt is well covered by operating cash flow (23.2%).

Interest Coverage: EIF's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Dividend

What is Exchange Income current dividend yield, its reliability and sustainability?

5.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EIF's dividend (5.88%) is higher than the bottom 25% of dividend payers in the Canadian market (1.48%).

High Dividend: EIF's dividend (5.88%) is in the top 25% of dividend payers in the Canadian market (4.74%)


Stability and Growth of Payments

Stable Dividend: EIF's dividends per share have been stable in the past 10 years.

Growing Dividend: EIF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (284.8%), EIF's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EIF's dividends in 3 years are forecast to be covered by earnings (73% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

Mike Pyle (56 yo)

14.67yrs

Tenure

CA$2,185,570

Compensation

Mr. Michael C. Pyle, also known as Mike, MBA, ICD.D., has been the Chief Executive Officer at Exchange Income Corporation since August 01, 2006. Mr. Pyle served as the Chief Financial Officer of Exchange I...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD1.74M) is above average for companies of similar size in the Canadian market ($USD1.21M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: EIF's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: EIF's board of directors are seasoned and experienced ( 11.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EIF insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

Company Information

Exchange Income Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Exchange Income Corporation
  • Ticker: EIF
  • Exchange: TSX
  • Founded: NaN
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: CA$1.361b
  • Shares outstanding: 35.52m
  • Website: https://www.exchangeincomecorp.ca

Number of Employees


Location

  • Exchange Income Corporation
  • 101-990 Lorimer Boulevard
  • Winnipeg
  • Manitoba
  • R3P 0Z9
  • Canada

Listings


Biography

Exchange Income Corporation engages in aerospace and aviation services and equipment, and manufacturing businesses worldwide. It operates through two segments, Aerospace & Aviation, and Manufacturing. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 23:22
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.