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Currency Exchange International (TSE:CXI)
:CXI
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Currency Exchange International
(TSX:CXI)
Rating:69Neutral
Price Target:
C$21.50
▲(8.70%Upside)
Currency Exchange International (CXI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$123.30M
Dividend YieldN/A
Average Volume (3M)4.59K
Price to Earnings (P/E)22.8
Beta (1Y)0.25
Revenue Growth-0.24%
EPS Growth-46.22%
CountryCA
Employees397
SectorFinancial
Sector Strength68
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.58
Shares Outstanding6,231,962
10 Day Avg. Volume3,800
30 Day Avg. Volume4,594
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$22.50Price Target Upside13.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Currency Exchange International Business Overview & Revenue Model
Company DescriptionCurrency Exchange International, Corp., together with its subsidiaries, engages in the money service and payment businesses in the United States and Canada. It offers financial institutions, international wire payments, foreign check clearing, foreign bank note exchange, and foreign draft issuance solutions; corporate, hedge and risk management, and international payment solutions; and international traveler's, foreign currency exchange, bitcoin and ether cryptocurrencies, gold bullion coins and bars, multi-currency cash passport, and American Express traveler's cheque solutions. The company serves financial institutions, and money service businesses, as well as travel, technology, payroll, healthcare, and nonprofit sectors. It operates a network of 35 branches. The company was formerly known as Currency Exchange International, Inc. and changed its name to Currency Exchange International, Corp. in October 2007. Currency Exchange International, Corp. was incorporated in 1998 and is headquartered in Orlando, Florida.
How the Company Makes MoneyCurrency Exchange International generates revenue primarily through the exchange of foreign currencies. The company earns money by charging a margin on the exchange rate difference between buying and selling currencies. Additionally, CXI offers international payment services, such as wire transfers, which contribute to its revenue through service fees. The company also partners with financial institutions to provide foreign currency services, earning revenue through these collaborations. Another revenue stream is the sale of foreign banknotes and traveler's cheques, where CXI profits from the markup on these products. Overall, the company's revenue model is based on transaction fees, service charges, and margins on currency conversions.
Currency Exchange International Earnings Call Summary
Earnings Call Date:Jun 11, 2025
(Q2-2025)
| % Change Since: -4.67%|
Next Earnings Date:Sep 10, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment with notable achievements in adjusted net income and operating income, along with growth in the payments segment. However, these are counterbalanced by the challenges in banknotes revenue, net loss from discontinued operations, and anticipated increase in operating costs due to the discontinuance of EBC.Q2-2025 Updates
Positive Updates
Increase in Adjusted Net Income
The group's adjusted net income increased by 18% to $2.3 million compared to $2 million in the prior year, with adjusted diluted earnings per share up 24%.
Improved Operating Income
Operating income increased by 16% to $5.1 million compared to $4.4 million in the previous year, despite a decline in revenues.
Growth in Payments Product Line
Payments revenue increased by 5%, supported by a 13% increase in trading volume activity from existing customers and new customer onboarding.
Successful Expansion in Louisville
The expansion in Louisville has been successful, improving processing times and efficiency through automation and strategic location benefits.
Negative Updates
Revenue Decline in Banknotes
Banknotes revenue decreased by 5% due to a decline in consumer demand for foreign currencies, accounting for 41% of total revenue compared to 42% in the prior period.
Net Loss from Discontinued Operations
The Exchange Bank of Canada, now classified as discontinued operations, reported a net loss of $0.7 million in the second quarter.
Anticipated Increase in Operating Costs
Certain operating expenses and personnel costs currently shared with EBC will be fully borne by CXI, with an estimated annualized cost of approximately $3 million after tax.
Company Guidance
During the Currency Exchange International Q2 2025 financial results conference call, several key metrics and guidance points were discussed. The company reported $2.7 million in net income from continuing operations and a net loss of $0.7 million from discontinued operations related to the Exchange Bank of Canada. Adjusted net income increased by 18% to $2.3 million, while adjusted diluted earnings per share rose by 24% to $0.36. Revenue from continuing operations was approximately $16 million, a 3% decrease from the prior year, attributed to a decline in the Banknotes product line despite a 5% increase in the Payments product line. Operating expenses decreased by 10%, leading to a 16% increase in operating income to $5.1 million. The company highlighted a foreign exchange gain of $780,000 due to a weaker U.S. dollar. Net income, including discontinued operations, was $2 million, up from $506,000 in the prior period. Adjusted EBITDA for the quarter was $5.1 million, a 15% increase. The company anticipates $3 million in additional operating expenses post the Exchange Bank of Canada's exit. These expenses will be absorbed by CXI, with management actively working to reduce them. The call also highlighted strategic focuses on growing the Payments and Banknotes businesses within the U.S. market.Currency Exchange International Financial Statement Overview
Summary
Currency Exchange International has demonstrated strong revenue growth and profitability, supported by robust profit margins and a stable balance sheet with low debt. However, recent liquidity challenges due to negative cash flow warrant attention.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.85
Very Positive
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.78
Positive
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.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 82.80M | 85.24M | 81.95M | 66.28M | 30.26M | 25.01M |
| Gross Profit | 56.82M | 48.11M | 80.94M | 40.87M | 12.57M | 8.15M |
| EBITDA | 15.15M | 13.40M | 19.20M | 18.83M | 3.92M | -5.99M |
| Net Income | 3.91M | 2.47M | 10.19M | 11.78M | -1.13M | -8.52M |
Balance Sheet | ||||||
| Total Assets | 131.00M | 131.16M | 132.05M | 125.53M | 102.53M | 85.76M |
| Cash, Cash Equivalents and Short-Term Investments | 73.93M | 101.88M | 92.72M | 88.56M | 66.53M | 59.31M |
| Total Debt | 6.98M | 11.34M | 17.65M | 10.46M | 8.11M | 8.51M |
| Total Liabilities | 49.85M | 51.77M | 52.82M | 56.22M | 44.51M | 27.53M |
| Stockholders Equity | 81.15M | 79.39M | 79.23M | 69.31M | 58.02M | 58.23M |
Cash Flow | ||||||
| Free Cash Flow | -8.72M | 23.67M | -1.66M | 24.60M | 7.25M | -1.53M |
| Operating Cash Flow | -5.89M | 26.67M | -1.13M | 25.52M | 7.64M | -938.50K |
| Investing Cash Flow | -2.82M | -3.00M | -1.28M | -1.29M | -391.14K | -3.35M |
| Financing Cash Flow | -4.99M | -14.32M | 6.17M | 214.15K | -1.49M | 795.04K |
Currency Exchange International Technical Analysis
Negative
19.78
Price Trends
20.03
Negative
20.24
Negative
21.67
Negative
Market Momentum
-0.04
Negative
48.67
Neutral
54.94
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 19.78 is above the 20-day moving average (MA) of 19.74, below the 50-day MA of 20.03, and below the 200-day MA of 21.67, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 48.67 is Neutral, neither overbought nor oversold. The STOCH value of 54.94 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
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | C$123.30M | 22.84 | 5.85% | ― | -0.24% | -46.22% | |
67 Neutral | $17.01B | 11.59 | 9.50% | 3.95% | 10.65% | 1.31% | |
| ― | C$142.73M | ― | ― | ― | ― | ||
85 Outperform | C$147.19M | 4.72 | 43.85% | ― | 461.24% | 82.98% | |
58 Neutral | C$51.38M | 1.91 | -18.10% | ― | 62.11% | 72.73% | |
56 Neutral | C$15.32M | ― | -66.86% | ― | 13.48% | -43.47% | |
45 Neutral | C$21.15M | ― | ― | 82.06% | 65.45% |
* Financial Sector Average
Performance Comparison
TSE:CXI
Currency Exchange International
19.78
-6.52
-24.79%
TSE:RICH
Raffles Financial Group
2.85
0.00
0.00%
TSE:PNP
Pinetree Capital
15.68
9.40
149.68%
TSE:CBIT
Cathedra Bitcoin Inc
0.06
-0.03
-33.33%
TSE:BTCW
Bitcoin Well Inc
0.14
0.06
75.00%
TSE:FRNT
FRNT Financial, Inc.
0.45
-0.10
-18.18%
Currency Exchange International Corporate Events
Business Operations and StrategyFinancial Disclosures
Currency Exchange International Reports Strong Q2 2025 Results Amid Strategic Restructuring
Positive
Jun 11, 2025
Currency Exchange International reported a significant increase in net income for the second quarter of 2025, with a 291% rise compared to the previous year, despite a 3% decline in total revenue due to reduced consumer demand for foreign currency. The company’s decision to cease operations of its Canadian subsidiary, Exchange Bank of Canada, is part of a strategic restructuring plan that may impact shared operating expenses and personnel costs, but it maintains a strong capital position with robust liquidity.
Financial Disclosures
Currency Exchange International to Announce Q2 2025 Financial Results
Neutral
Jun 4, 2025
Currency Exchange International announced it will release its second quarter 2025 financial results on June 11, 2025, followed by an earnings conference call on June 12, 2025. This announcement is significant as it provides stakeholders with insights into the company’s recent financial and operational performance, potentially impacting its market positioning and investor relations.
Delistings and Listing ChangesBusiness Operations and Strategy
Currency Exchange International Corp. Begins Trading on OTCQX Market
Positive
May 20, 2025
Currency Exchange International Corp. has announced that its common shares will now trade on the OTCQX Best Market under the symbol CURN, upgrading from the Pink market. This move is part of the company’s strategy to expand its U.S. shareholder base and enhance investor engagement, providing greater transparency and exposure to a broader group of institutional and retail investors.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.