TSX:EIF

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Reasonable growth potential average dividend payer.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.9%

EIF

1.2%

CA Airlines

1.1%

CA Market


1 Year Return

-20.7%

EIF

-43.7%

CA Airlines

-5.8%

CA Market

Return vs Industry: EIF exceeded the Canadian Airlines industry which returned -44.3% over the past year.

Return vs Market: EIF underperformed the Canadian Market which returned -5.6% over the past year.


Shareholder returns

EIFIndustryMarket
7 Day-1.9%1.2%1.1%
30 Day-4.1%-2.8%-2.6%
90 Day10.8%5.3%4.0%
1 Year-14.7%-20.7%-43.2%-43.7%-2.5%-5.8%
3 Year5.9%-13.5%-40.1%-42.3%5.7%-4.5%
5 Year76.1%26.8%-23.8%-28.0%32.6%12.3%

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?

31.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EIF (CA$30.37) is trading below our estimate of fair value (CA$44.04)

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 (20x) compared to the XN Airlines industry average (8.9x).

PE vs Market: EIF is poor value based on its PE Ratio (20x) compared to the Canadian market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: EIF is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: EIF is overvalued based on its PB Ratio (1.5x) compared to the XN Airlines industry average (1x).


Next Steps

Future Growth

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

62.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EIF's forecast earnings growth (62.1% per year) is above the savings rate (1.7%).

Earnings vs Market: EIF's earnings (62.1% per year) are forecast to grow faster than the Canadian market (22.7% per year).

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

Revenue vs Market: EIF's revenue (12.8% per year) is forecast to grow faster than the Canadian market (5.3% per year).

High Growth Revenue: EIF's revenue (12.8% 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


Next Steps

Past Performance

How has Exchange Income performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EIF has high quality earnings.

Growing Profit Margin: EIF's current net profit margins (4.1%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: EIF's earnings have grown by 15.9% 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 (-28.4%) over the past year, making it difficult to compare to the Airlines industry average (-48.2%).


Return on Equity

High ROE: EIF's Return on Equity (7.3%) is considered low.


Next Steps

Financial Health

How is Exchange Income's financial position?


Financial Position Analysis

Short Term Liabilities: EIF's short term assets (CA$604.1M) exceed its short term liabilities (CA$265.3M).

Long Term Liabilities: EIF's short term assets (CA$604.1M) do not cover its long term liabilities (CA$1.3B).


Debt to Equity History and Analysis

Debt Level: EIF's debt to equity ratio (158.3%) is considered high.

Reducing Debt: EIF's debt to equity ratio has reduced from 172.4% to 158.3% over the past 5 years.

Debt Coverage: EIF's debt is well covered by operating cash flow (22.8%).

Interest Coverage: EIF's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Next Steps

Dividend

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

7.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EIF's dividend (7.51%) is higher than the bottom 25% of dividend payers in the Canadian market (1.72%).

High Dividend: EIF's dividend (7.51%) is in the top 25% of dividend payers in the Canadian market (5.93%)


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 (149.5%), EIF's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EIF's dividends in 3 years are not forecast to be well covered by earnings (92.4% payout ratio).


Next Steps

Management

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

6.2yrs

Average management tenure


CEO

Mike Pyle (56 yo)

14.08yrs

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 ($USD1.64M) is about average for companies of similar size in the Canadian market ($USD1.41M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Pyle
CEO & Director14.08yrsCA$2.19m0.052%
CA$ 554.2k
Duncan Jessiman
Executive Vice Chairmanno dataCA$248.40k0.35%
CA$ 3.8m
Carmele Peter
President6.17yrsCA$1.61m0.014%
CA$ 154.3k
Darryl Bergman
Chief Financial Officer1.42yrsCA$919.88kno data
Doron Marom
Chief Executive Officer of Regional Oneno dataCA$1.16mno data
Richard Wowryk
Corporate Controllerno dataCA$317.17kno data
Hank Gibson
President of Regional Oneno dataCA$910.14kno data
Darwin Sparrow
Chief Operating Officer5.33yrsCA$447.22k0.0069%
CA$ 73.5k
Dianne Spencer
Manager of Compliance & Corporate Secretary15.08yrsno data0.0019%
CA$ 20.6k
Adam Terwin
Chief Corporate Development Officer6.17yrsCA$672.71k0.11%
CA$ 1.2m
David Patrick
Chief Operating Officer of Manufacturingno dataCA$335.82kno data
David White
Executive Vice President of Aviation2.67yrsno data0.0025%
CA$ 26.9k

6.2yrs

Average Tenure

55.5yo

Average Age

Experienced Management: EIF's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Pyle
CEO & Director14.08yrsCA$2.19m0.052%
CA$ 554.2k
Duncan Jessiman
Executive Vice Chairmanno dataCA$248.40k0.35%
CA$ 3.8m
Grace Schalkwyk
Independent Director0.25yrno datano data
Gary Filmon
Independent Chairmanno dataCA$207.75k0.20%
CA$ 2.1m
Edward Warkentin
Independent Director11.17yrsCA$124.25k0.012%
CA$ 133.7k
Donald Streuber
Independent Director11.17yrsCA$155.25k0.34%
CA$ 3.7m
Melissa Sonberg
Independent Director2.33yrsCA$125.75kno data
Gary Buckley
Independent Director11.17yrsCA$132.75k1.07%
CA$ 11.5m
W. J. Bennett
Independent Director11.17yrsCA$142.25kno data
Polly Craik
Independent Director2.33yrsCA$109.25k0.0098%
CA$ 105.4k

11.2yrs

Average Tenure

62.5yo

Average Age

Experienced Board: EIF's board of directors are seasoned and experienced ( 11.2 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 9.3%.


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:
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: CA$1.071b
  • Shares outstanding: 35.26m
  • Website: https://www.exchangeincomecorp.ca

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EIFTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2002
EIFZ.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2002
0ONDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2002

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 Analysis2020/10/01 00:52
End of Day Share Price2020/09/30 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.