Currency Exch Intl J (TSE:CXI)
TSX:CXI
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Currency Exchange International
(TSX:CXI)
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Rating:74Outperform
Price Target:
C$30.00
▲(30.78% Upside)
Action:ReiteratedDate:03/13/26
The score is driven primarily by solid financial performance (strong margins, cash generation, and low leverage) and a generally positive earnings call emphasizing payments momentum, strong liquidity, and ongoing buybacks. These strengths are moderated by only neutral technical momentum and business variability, including soft recent revenue trends and residual uncertainty/costs tied to the EBC wind-down.
Positive Factors
Conservative balance sheet and liquidity
Very low leverage and large cash reserves provide durable financial flexibility. With debt-to-equity near 0.07 and >$95M cash, CXI can absorb shocks, fund buybacks or selective M&A, and weather travel cycles without stressing capital structure, supporting multi‑quarter stability.
Negative Factors
Top-line softness
Declining or flat revenue indicates dependence on margin improvement rather than organic growth. If travel or wholesale banknote demand stays weak, sustaining profitability gains will be harder; long-term value creation requires consistent top‑line expansion beyond cyclical recoveries.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet and liquidity
Very low leverage and large cash reserves provide durable financial flexibility. With debt-to-equity near 0.07 and >$95M cash, CXI can absorb shocks, fund buybacks or selective M&A, and weather travel cycles without stressing capital structure, supporting multi‑quarter stability.
Read all positive factors
Currency Exchange International (CXI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$148.59M
Dividend YieldN/A
Average Volume (3M)3.22K
Price to Earnings (P/E)18.4
Beta (1Y)0.17
Revenue Growth-4.76%
EPS Growth-40.05%
CountryCA
Employees397
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.44
Shares Outstanding5,943,423
10 Day Avg. Volume2,883
30 Day Avg. Volume3,220
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)1.24
Price to Sales (P/S)1.45
P/FCF Ratio9.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$32.00Price Target Upside39.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)2.09
Revenue Forecast (FY)C$74.70M
Currency Exchange International Business Overview & Revenue Model
Company Description
Currency 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, for...
How the Company Makes Money
CXI primarily makes money by charging fees and/or earning a spread on foreign currency transactions—buying and selling currencies at different rates (the difference between the rate it pays and the rate it charges). Key revenue streams include: (1...
Currency Exchange International Earnings Call Summary
Earnings Call Date:Jan 21, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 16, 2026
Earnings Call Sentiment Positive
The call presented a generally positive operational and financial picture: revenue, adjusted net income, adjusted EBITDA, payments volume and DTC channel all showed solid growth. The company has a strong balance sheet with significant cash, active share buybacks, and progress on the EBC discontinuance which materially reduced past losses. Key challenges include remaining stranded costs from the EBC exit, nonrecurring restructuring charges, flat wholesale banknotes due to travel headwinds, and higher variable processing costs tied to growth in payments. Management highlighted strategic focus on payments growth, online FX expansion, and prudent capital allocation (buybacks and selective M&A). Overall, positives (profitability improvement, payments momentum, liquidity) materially outweigh the remaining lowlights.Positive Updates
Significant Yearly Net Income Improvement
Reported group net income of $10.3M for fiscal 2025, up $7.8M (317%) vs prior year; continuing operations net income $14M. Adjusted group net income $10.8M, up 6% year-over-year; adjusted net income from continuing operations $14.5M, up 10%.
Negative Updates
Ongoing Costs from EBC Exit (Stranded Costs)
Estimated annualized stranded costs initially ~$3M after tax; management now expects actuals to be ~90% of that estimate (≈$2.7M) once a full 12-month period is completed.
Read all updates
Q4-2025 Updates
Positive
Negative
Significant Yearly Net Income Improvement
Reported group net income of $10.3M for fiscal 2025, up $7.8M (317%) vs prior year; continuing operations net income $14M. Adjusted group net income $10.8M, up 6% year-over-year; adjusted net income from continuing operations $14.5M, up 10%.
Read all positive updates
Company Guidance
Management guided that final regulatory approval to discontinue Exchange Bank of Canada is expected in Q2 FY2026, after which EBC’s remaining net assets (~US$5M) will be liquidated and distributed to CXI; stranded costs originally estimated at ~US$3M (after tax) are now expected to be ~90% of that annualized amount. Management reiterated a focus on growing payments and banknotes—payments now represent ~17% of revenue and drove Q4 payments revenue +31% (Q4 volume +40% to ~US$2.1B; FY volume +31% to ~US$6.7B, payments FY growth +19 or ~US$2M)—with sustainable momentum from core integrations (Jack Henry, Fiserv), SaaS Fed Direct use, and stablecoin testing. Capital allocation priorities remain accretive M&A only, continued NCIB buybacks (past year 312,300 shares for US$4.75M; new NCIB max 360,000; ~170,000 repurchased so far), and consideration of special distributions; liquidity is strong with cash US$95.5M (+~US$5M in EBC, total >US$100M), US$25M in AAA money markets, US$53.2M banknote inventory (target range US$50–70M), US$42.2M cash-in-banks, net working capital US$73M, unused credit US$40M, total equity US$85M and trailing ROE ~13%. Near-term financial context cited: Q4 revenue US$19.8M (+8%), Q4 operating expenses ~US$13M (+6%), reported EBITDA US$6.4M (+4%) and adjusted EBITDA US$6.8M (+10%), adjusted Q4 net income US$3.3M (+19%); FY revenue US$72.5M (+5%), FY expenses US$48.5M (+3%), continuing ops net income US$14M (+6%), adjusted group net income US$10.8M (+6%) and adjusted diluted EPS US$1.77 (+14%); one‑time items include ~US$400k Miami vault closure, ~US$270k branch impairments, and a US$1M recovery reducing EBC’s penalty; effective tax rate ~18% (stock option benefit ~9%).Currency Exchange International Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
84
Very Positive
Cash Flow
71
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 72.66M | 72.38M | 85.24M | 81.95M | 67.50M | 30.57M |
| Gross Profit | 48.30M | 64.11M | 48.11M | 80.94M | 41.13M | 12.87M |
| EBITDA | 23.55M | 23.28M | 13.40M | 19.20M | 18.83M | 3.92M |
| Net Income | 11.06M | 10.31M | 2.47M | 10.19M | 11.78M | -1.13M |
Balance Sheet | ||||||
| Total Assets | 118.39M | 120.98M | 131.16M | 132.05M | 125.53M | 102.98M |
| Cash, Cash Equivalents and Short-Term Investments | 95.28M | 95.47M | 101.88M | 92.72M | 88.56M | 66.53M |
| Total Debt | 6.15M | 10.40M | 11.34M | 17.65M | 10.46M | 8.11M |
| Total Liabilities | 35.13M | 37.52M | 51.77M | 52.82M | 56.22M | 44.97M |
| Stockholders Equity | 83.96M | 84.67M | 79.39M | 79.23M | 69.31M | 58.02M |
Cash Flow | ||||||
| Free Cash Flow | 21.17M | 11.49M | 23.67M | -2.42M | 24.60M | 7.62M |
| Operating Cash Flow | 22.08M | 12.06M | 26.67M | -1.13M | 25.52M | 8.01M |
| Investing Cash Flow | -1.08M | -1.36M | -3.00M | -1.28M | -1.29M | -764.17K |
| Financing Cash Flow | -15.01M | -12.70M | -14.32M | 6.92M | 214.15K | -1.49M |
Currency Exchange International Technical Analysis
Neutral
22.94
Price Trends
26.57
Negative
24.59
Positive
23.26
Positive
Market Momentum
-0.55
Positive
46.10
Neutral
29.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CXI, the sentiment is Neutral. The current price of 22.94 is below the 20-day moving average (MA) of 25.32, below the 50-day MA of 26.57, and below the 200-day MA of 23.26, indicating a neutral trend. The MACD of -0.55 indicates Positive momentum. The RSI at 46.10 is Neutral, neither overbought nor oversold. The STOCH value of 29.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CXI.
Currency Exchange International Peers Comparison
UnderperformOutperform
Sector (68)
TSE:CXI
Currency Exchange International
25.00
4.70
23.15%
TSE:RICH
Raffles Financial Group
2.85
0.00
0.00%
TSE:PNP
Pinetree Capital
8.90
-6.47
-42.09%
TSE:XAU
GoldMoney
17.18
9.34
119.13%
Currency Exchange International Corporate Events
Financial DisclosuresShareholder Meetings
Currency Exchange International Sets Dates for Q1 2026 Results and Annual Meeting
Neutral
Mar 5, 2026
Currency Exchange International will release its financial results for the first quarter of 2026, ended January 31, after markets close on March 11, 2026, followed by an earnings conference call with management the next morning on March 12 at 8:30...
Business Operations and StrategyFinancial Disclosures
Currency Exchange International Lifts 2025 Profit as It Exits Canadian Banking Unit
Positive
Jan 22, 2026
Currency Exchange International reported a 5% increase in revenue and a sharp rise in net income to $10.3 million for fiscal 2025, driven by continued growth in both its Payments and Banknotes businesses. Payments revenue rose 19% on a 31% jump in...
Financial Disclosures
Currency Exchange International Sets January Dates for Q4 and Fiscal 2025 Results and Earnings Call
Neutral
Jan 15, 2026
Currency Exchange International Corp. will release its financial results for the fourth quarter and fiscal year ended October 31, 2025, after markets close on January 21, 2026. The company will follow this with an earnings conference call on Janua...
Financial Disclosures
Currency Exchange International Sets January Dates for Q4 and Fiscal 2025 Results
Neutral
Jan 15, 2026
Currency Exchange International will release its financial results for the fourth quarter and fiscal year ended October 31, 2025, after markets close on January 21, 2026, and will follow with an earnings conference call on January 22, 2026, to rev...
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.