TSX:EIF

Stock Analysis Report

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Market Cap

CA$1.6b

Last Updated

2021/07/31 06:07 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 +/- 2% a week.

Volatility Over Time: EIF's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

1.1%

EIF

-1.5%

CA Airlines

1.4%

CA Market


1 Year Return

54.8%

EIF

60.4%

CA Airlines

29.1%

CA Market

Return vs Industry: EIF underperformed the Canadian Airlines industry which returned 60.4% over the past year.

Return vs Market: EIF exceeded the Canadian Market which returned 29.1% over the past year.


Shareholder returns

EIFIndustryMarket
7 Day1.1%-1.5%1.4%
30 Day3.3%-7.4%-0.2%
90 Day6.9%-18.8%3.9%
1 Year64.7%54.8%60.6%60.4%33.0%29.1%
3 Year45.5%19.3%-21.1%-22.6%31.5%18.7%
5 Year64.7%19.6%9.8%5.7%51.8%29.4%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EIF (CA$41.19) is trading below our estimate of fair value (CA$101.71)

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 (35.9x) compared to the North American Airlines industry average (27.4x).

PE vs Market: EIF is poor value based on its PE Ratio (35.9x) compared to the Canadian market (13.6x).


Price to Earnings Growth Ratio

PEG Ratio: EIF is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: EIF's PB Ratio (2.2x) is in line with the XN Airlines industry average.


Future Growth

How is Exchange Income forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

44.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EIF's forecast earnings growth (44.1% per year) is above the savings rate (1.5%).

Earnings vs Market: EIF's earnings (44.1% per year) are forecast to grow faster than the Canadian market (13.6% per year).

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

Revenue vs Market: EIF's revenue (12.3% per year) is forecast to grow faster than the Canadian market (5.4% per year).

High Growth Revenue: EIF's revenue (12.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EIF's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Exchange Income performed over the past 5 years?

-2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EIF has high quality earnings.

Growing Profit Margin: EIF's current net profit margins (3.5%) are lower than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: EIF's earnings have declined by 2.8% 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 (-42.9%) over the past year, making it difficult to compare to the Airlines industry average (-42.9%).


Return on Equity

High ROE: EIF's Return on Equity (6%) is considered low.


Financial Health

How is Exchange Income's financial position?


Financial Position Analysis

Short Term Liabilities: EIF's short term assets (CA$642.2M) exceed its short term liabilities (CA$330.1M).

Long Term Liabilities: EIF's short term assets (CA$642.2M) do not cover its long term liabilities (CA$1.3B).


Debt to Equity History and Analysis

Debt Level: EIF's debt to equity ratio (168.8%) is considered high.

Reducing Debt: EIF's debt to equity ratio has increased from 130.7% to 168.8% over the past 5 years.

Debt Coverage: EIF's debt is well covered by operating cash flow (24.9%).

Interest Coverage: EIF's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Dividend

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

5.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EIF's dividend (5.54%) is higher than the bottom 25% of dividend payers in the Canadian market (1.58%).

High Dividend: EIF's dividend (5.54%) is in the top 25% of dividend payers in the Canadian market (4.57%)


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 (198.5%), 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 (74.8% payout ratio).


Next Steps

Management

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

7.0yrs

Average management tenure


CEO

Mike Pyle (57 yo)

14.92yrs

Tenure

CA$1,714,696

Compensation

Mr. Michael C. Pyle, also known as Mike, MBA, ICD.D., is a Independent Director of Next Hydrogen Solutions Inc. since July 2021. He has been the Chief Executive Officer at Exchange Income Corporation since...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD1.38M) is below average for companies of similar size in the Canadian market ($USD2.07M).

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 (7 years average tenure).


Board Members

Experienced Board: EIF's board of directors are seasoned and experienced ( 12 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 8.5%.


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$1.561b
  • Shares outstanding: 37.89m
  • 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 Analysis2021/07/31 06:07
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
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.