Currency Exchange International (CXI) AI Stock Analysis

• Market Cap: C$127.31M
• Dividend Yield: N/A
• Average Volume (3M): 6.25K
• Price to Earnings (P/E): 38.7
• Beta (1Y): 0.26
• Revenue Growth: 6.08%
• EPS Growth: -73.47%
• Country: CA
• Employees: 397
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Capital Markets
• EPS (TTM): 0.52
• Shares Outstanding: 6,271,304
• 10 Day Avg. Volume: 7,076
• 30 Day Avg. Volume: 6,252
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.44
• Price to Cash Flow (P/CF): -3.30
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Currency Exchange International shows strong financial performance with consistent revenue growth and profitability, though liquidity management needs attention. The technical indicators suggest a bearish trend, and the valuation appears high. The earnings call offers a slightly positive outlook, focusing on strategic growth in the U.S. and operational improvements. The overall score reflects these strengths and challenges.

Currency Exchange International Business Overview & Revenue Model

Company Description

Currency Exchange International (CXI) is a leading provider of foreign currency exchange services in North America. The company operates in the financial services sector, offering a range of products including the exchange of more than 90 currencies, international wire transfers, and foreign check clearing services. CXI serves individual consumers, businesses, and financial institutions through a network of retail branches and strategic partnerships.

How the Company Makes Money

Currency Exchange International (CXI) generates revenue primarily through the spread between the buy and sell rates of foreign currencies. By offering competitive exchange rates and charging a small margin on each transaction, the company profits from the volume of exchanges it handles. Additionally, CXI earns fees from ancillary services such as international wire transfers and foreign check clearing. The company also benefits from partnerships with banks and financial institutions, which expand its customer base and service offerings. These partnerships, along with CXI's retail locations, are significant contributors to its earnings by increasing the volume of transactions processed.

Currency Exchange International Financial Statement Overview

Summary

Currency Exchange International demonstrates strong growth and profitability, with consistent revenue increases and solid profit margins. The balance sheet is stable with low debt levels, although recent cash flow challenges suggest a need for attention to liquidity management. Overall, the company is well-positioned in the capital markets industry but should focus on improving cash flow generation to sustain its growth momentum.

Income Statement

Currency Exchange International has shown a consistent upward trajectory in revenue growth, with a notable increase from 2022 to TTM (Trailing-Twelve-Months). The company maintains strong gross and net profit margins, reflecting efficient cost management and profitability. However, the net profit margin saw a slight decrease in the TTM compared to 2024, indicating some pressure on net earnings despite revenue growth. EBIT and EBITDA margins remain robust, supporting overall profitability.

Balance Sheet

The company's balance sheet exhibits a strong equity base with a healthy equity ratio, indicating good asset financing through equity. The debt-to-equity ratio is low, showcasing conservative leverage and financial stability. Return on Equity (ROE) remains positive, although it slightly decreased in the TTM, suggesting a need for improved net income efficiency relative to equity.

Cash Flow

Cash flow analysis shows fluctuations with a negative operating cash flow in the TTM, contrasting with positive operating cash flow in the previous period. The free cash flow has turned negative, indicating potential liquidity challenges. However, the company's ability to generate cash from operations compared to net income in previous periods suggests operational efficiency, despite recent setbacks.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
87.03M	85.24M	81.95M	66.28M	30.26M	25.01M
	Gross Profit
59.35M	48.11M	80.94M	40.87M	12.57M	8.15M
	EBIT
16.41M	15.68M	18.73M	18.72M	1.06M	-7.29M
	EBITDA
14.48M	13.40M	19.20M	18.83M	3.92M	-5.99M
	Net Income Common Stockholders
2.44M	2.47M	10.19M	11.78M	-1.13M	-8.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
92.89M	101.88M	92.72M	88.56M	66.53M	59.31M
	Total Assets
123.12M	131.16M	132.05M	125.53M	102.53M	85.76M
	Total Debt
12.72M	11.34M	17.65M	10.46M	8.11M	8.51M
	Net Debt
-80.17M	-90.54M	-75.07M	-78.10M	-58.42M	-50.80M
	Total Liabilities
43.67M	51.77M	52.82M	56.22M	44.51M	27.53M
	Stockholders Equity
79.45M	79.39M	79.23M	69.31M	58.02M	58.23M
Cash Flow		Free Cash Flow
-7.92M	23.67M	-1.66M	24.60M	7.25M	-1.53M
	Operating Cash Flow
-4.79M	26.67M	-1.13M	25.52M	7.64M	-938.50K
	Investing Cash Flow
-3.14M	-3.00M	-1.28M	-1.29M	-391.14K	-3.35M
	Financing Cash Flow
-3.30M	-14.32M	6.17M	214.15K	-1.49M	795.04K

Currency Exchange International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CXI, the sentiment is Negative. The current price of 20.11 is below the 20-day moving average (MA) of 20.74, below the 50-day MA of 21.38, and below the 200-day MA of 23.77, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 35.96 is Neutral, neither overbought nor oversold. The STOCH value of 31.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CXI.

Currency Exchange International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXI	69 Neutral	C$127.31M	38.73	3.04%	―	6.08%	-73.47%
GOOS	67 Neutral	C$1.06B	14.67	15.82%	―	4.64%	41.68%
Sector *	64 Neutral	$13.44B	9.41	9.19%	4.92%	16.30%	-8.66%
ECN	54 Neutral	C$708.48M	―	3.65%	1.59%	49.43%	99.91%
LB	53 Neutral	$1.11B	―	-0.24%	7.70%	-3.68%	-111.41%
MOGO	44 Neutral	$27.90M	―	-16.02%	―	8.35%	84.36%

Currency Exchange International Corporate Events

Currency Exchange International Partners with Agility Forex Amid Strategic Shift

Currency Exchange International, Corp. announced a referral agreement with Agility Forex, where Exchange Bank of Canada will refer selected employees and corporate payment customers to Agility Forex. This partnership is expected to benefit all parties involved, as CXI focuses on its U.S. operations and discontinues its Canadian business. The agreement reflects CXI’s strategic shift and commitment to minimizing disruption for stakeholders during this transition.

Currency Exchange International Reports AGM Voting Results

Currency Exchange International announced the voting results from its Annual General Meeting, where a significant 65.12% of common shares were represented. All nominees listed in the management information circular were elected as directors, and Doane Grant Thornton LLP was appointed as the company’s auditors. This meeting reinforces the company’s governance structure and may influence its strategic direction, potentially impacting stakeholders by ensuring continuity and stability in its operations.

Currency Exchange International Reports 10% Revenue Growth in Q1 2025

Currency Exchange International announced a 10% increase in revenue for Q1 2025 compared to the previous year, with significant growth in both the United States and Canada. Despite a 4% decline in net income, the company reported strong adjusted results with a 29% increase in adjusted net income and a 31% rise in adjusted diluted EPS. The strategic decision to cease operations of its subsidiary, Exchange Bank of Canada, is expected to positively impact the Group’s overall results, as the company focuses on enhancing operational efficiencies and capital returns. The management remains committed to its strategic plan, aiming to strengthen its position in the banknotes and international payments market.

Currency Exchange International to Discontinue Canadian Subsidiary Operations

Currency Exchange International, Corp. announced its strategic decision to discontinue operations of its subsidiary, Exchange Bank of Canada, due to a challenging business environment in Canada. This move allows the company to concentrate on its U.S. operations, where significant growth potential is identified. The company plans to pursue referral agreements for EBC’s customers and employees with other Canadian financial businesses. Despite incurring one-time costs associated with the closure, CXI expects to remain profitable and maintain a positive long-term outlook by focusing on its fintech businesses in the U.S.

Currency Exchange International Reports Revenue Growth Amidst Challenges

Currency Exchange International reported a 4% increase in revenue for the fiscal year ending October 31, 2024. Despite a significant decline in net income by 76% due to non-recurring charges in Canada, the company’s adjusted net income remained stable compared to the previous year, with a slight increase in adjusted diluted earnings per share. The results demonstrate resilience in CXI’s core operations despite challenges, indicating potential areas for operational improvement in the Canadian segment.

Currency Exchange International to Report Q4 and Fiscal Year 2024 Results

Currency Exchange International will announce its financial results for the Fourth Quarter and Fiscal Year End of 2024 on January 22, 2025, with an earnings conference call scheduled for January 23, 2025. This announcement will provide insights into the company’s recent financial and operational performance, which is crucial for stakeholders to assess its market position and future outlook.