Exchange Income (TSX:EIF) - Share price, News & Analysis

EIF fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	4/6
Financial Health	1/6
Dividends	3/6

EIF Stock Overview

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

Rewards

Trading at 72.5% below our estimate of its fair value

Earnings are forecast to grow 39.76% per year

Earnings grew by 61.1% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 4.94% is not well covered by earnings or forecast to be in the next 3 years

Shareholders have been diluted in the past year

Exchange Income Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Exchange Income
Historical stock prices
Current Share Price	CA$46.16
52 Week High	CA$47.77
52 Week Low	CA$37.79
Beta	2.38
1 Month Change	8.36%
3 Month Change	2.51%
1 Year Change	15.83%
3 Year Change	27.73%
5 Year Change	34.23%
Change since IPO	669.33%

Shareholder Returns

	EIF	CA Airlines	CA Market
7D	19.0%	14.6%	2.8%
1Y	15.8%	-26.4%	5.9%

Return vs Industry: EIF exceeded the Canadian Airlines industry which returned -30.9% over the past year.

Return vs Market: EIF exceeded the Canadian Market which returned 4.3% over the past year.

Price Volatility

Is EIF's price volatile compared to industry and market?
EIF volatility
EIF Average Weekly Movement	5.3%
Airlines Industry Average Movement	11.8%
Market Average Movement	9.8%
10% most volatile stocks in CA Market	16.7%
10% least volatile stocks in CA Market	4.2%

Stable Share Price: EIF is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: EIF's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	n/a	Mike Pyle	https://www.exchangeincomecorp.ca

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 Aerospace & Aviation segment offers scheduled airline and charter services, and emergency medical services to communities located in Manitoba, Ontario, Nunavut, British Columbia, and Alberta, as well as Newfoundland and Labrador, Quebec, New Brunswick, and Nova Scotia.

Exchange Income Fundamentals Summary

How do Exchange Income's earnings and revenue compare to its market cap?
EIF fundamental statistics
Market Cap	CA$1.76b
Earnings (TTM)	CA$65.21m
Revenue (TTM)	CA$1.51b

28.1x

P/E Ratio

1.2x

P/S Ratio

Is EIF overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EIF income statement (TTM)
Revenue	CA$1.51b
Cost of Revenue	CA$977.04m
Gross Profit	CA$535.59m
Other Expenses	CA$470.37m
Earnings	CA$65.21m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.64
Gross Margin	35.41%
Net Profit Margin	4.31%
Debt/Equity Ratio	157.9%

How did EIF perform over the long term?

See historical performance and comparison

Dividends

4.9%

Current Dividend Yield

133%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: EIF (CA$46.16) is trading below our estimate of fair value (CA$167.66)

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 (28.1x) compared to the North American Airlines industry average (18.7x).

PE vs Market: EIF is poor value based on its PE Ratio (28.1x) compared to the Canadian market (11.4x).

Price to Earnings Growth Ratio

PEG Ratio: EIF is good value based on its PEG Ratio (0.7x)

Price to Book Ratio

PB vs Industry: EIF is overvalued based on its PB Ratio (2.3x) compared to the XN Airlines industry average (2.1x).

Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

39.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: EIF's forecast earnings growth (39.8% per year) is above the savings rate (1.6%).

Earnings vs Market: EIF's earnings (39.8% per year) are forecast to grow faster than the Canadian market (7.4% per year).

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

Revenue vs Market: EIF's revenue (10.5% per year) is forecast to grow faster than the Canadian market (6.3% per year).

High Growth Revenue: EIF's revenue (10.5% 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?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-5.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EIF has high quality earnings.

Growing Profit Margin: EIF's current net profit margins (4.3%) are higher than last year (3.5%).

Past Earnings Growth Analysis

Earnings Trend: EIF's earnings have declined by 5.5% per year over the past 5 years.

Accelerating Growth: EIF's earnings growth over the past year (61.1%) exceeds its 5-year average (-5.5% per year).

Earnings vs Industry: EIF earnings growth over the past year (61.1%) exceeded the Airlines industry 26.9%.

Return on Equity

High ROE: EIF's Return on Equity (8.3%) is considered low.

Financial Health

How is Exchange Income's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: EIF's short term assets (CA$736.2M) exceed its short term liabilities (CA$388.6M).

Long Term Liabilities: EIF's short term assets (CA$736.2M) do not cover its long term liabilities (CA$1.5B).

Debt to Equity History and Analysis

Debt Level: EIF's net debt to equity ratio (149%) is considered high.

Reducing Debt: EIF's debt to equity ratio has increased from 114.4% to 157.9% over the past 5 years.

Debt Coverage: EIF's debt is not well covered by operating cash flow (19.5%).

Interest Coverage: EIF's interest payments on its debt are not well covered by EBIT (2.5x coverage).

Balance Sheet

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.94%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EIF's dividend (4.94%) is higher than the bottom 25% of dividend payers in the Canadian market (1.88%).

High Dividend: EIF's dividend (4.94%) is low compared to the top 25% of dividend payers in the Canadian market (4.99%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (133.2%), EIF's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: EIF is paying a dividend but the company has no free cash flows.

Next Steps

Explore strong dividend paying companies in the Transportation industry.

Management

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

7.8yrs

Average management tenure

CEO

Mike Pyle (57 yo)

15.75yrs

Tenure

CA$3,235,996

Compensation

Mr. Michael C. Pyle, also known as Mike, MBA, ICD D., has been an Independent Director of Next Hydrogen Solutions Inc. (formerly, BioHEP Technologies Ltd. & Next Hydrogen Corporation) since June 24, 2021....

CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD2.52M) is about average for companies of similar size in the Canadian market ($USD2.25M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: EIF's management team is seasoned and experienced (7.8 years average tenure).

Board Members

Experienced Board: EIF's board of directors are seasoned and experienced ( 12.8 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: EIF insiders have 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 5.8%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31