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Currency Exchange International
(TSX:CXI)
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Rating:79Outperform
Price Target:
C$35.00
▲(52.57% Upside)
Action:Upgraded
Date:06/11/26
The score is driven primarily by strong financial quality (low leverage, solid TTM profitability, and robust recent cash generation) and an attractive low P/E valuation. Technicals are supportive due to the uptrend, but elevated RSI/Stoch indicate momentum is stretched, adding near-term pullback risk.
Positive Factors
Strong cash generation
Consistent trailing‑twelve‑month operating and free cash flow strengthens liquidity and funds working capital needs for banknote inventory and payments operations. Robust cash conversion grants durable flexibility for reinvestment, dividends or debt reduction without relying on external financing.
Negative Factors
Uneven revenue trend
Cyclicality and an observed revenue decline in 2025 undermine top‑line predictability. For a model tied to transaction volumes, uneven revenue complicates capacity planning, FX inventory funding and margin stability, increasing execution risk for sustaining growth in the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent trailing‑twelve‑month operating and free cash flow strengthens liquidity and funds working capital needs for banknote inventory and payments operations. Robust cash conversion grants durable flexibility for reinvestment, dividends or debt reduction without relying on external financing.
Read all positive factors
Currency Exchange International (CXI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$179.38M
Dividend YieldN/A
Average Volume (3M)3.22K
Price to Earnings (P/E)26.8
Beta (1Y)0.22
Revenue Growth-10.69%
EPS Growth23.60%
CountryCA
Employees336
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.76
Shares Outstanding5,910,223
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.98
Revenue Forecast (FY)C$73.00M
Currency Exchange International Business Overview & Revenue Model
Company Description
Currency Exchange International, Corp., together with its subsidiary, Exchange Bank of Canada, provides foreign exchange technology and processing services in Canada and the United States. The company offers financial institutions, international w...
How the Company Makes Money
CXI primarily generates revenue from (1) foreign currency exchange transactions and (2) fees/charges related to international payment and ancillary services. For foreign exchange, CXI earns a spread between the rate at which it buys foreign curren...
Currency Exchange International Earnings Call Summary
Earnings Call Date:Jan 21, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Sep 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
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 74.94M | 72.38M | 85.24M | 81.95M | 67.50M | 30.57M |
| Gross Profit | 55.22M | 64.11M | 48.11M | 80.94M | 41.13M | 12.87M |
| EBITDA | 23.21M | 23.28M | 13.40M | 19.20M | 18.83M | 3.92M |
| Net Income | 9.07M | 10.31M | 2.47M | 10.19M | 11.78M | -1.13M |
Balance Sheet | ||||||
| Total Assets | 130.58M | 120.98M | 131.16M | 132.05M | 125.53M | 102.98M |
| Cash, Cash Equivalents and Short-Term Investments | 110.02M | 95.47M | 101.88M | 92.72M | 88.56M | 66.53M |
| Total Debt | 6.48M | 10.40M | 11.34M | 17.65M | 10.46M | 8.11M |
| Total Liabilities | 45.19M | 37.52M | 51.77M | 52.82M | 56.22M | 44.97M |
| Stockholders Equity | 85.39M | 84.67M | 79.39M | 79.23M | 69.31M | 58.02M |
Cash Flow | ||||||
| Free Cash Flow | 22.06M | 11.49M | 23.67M | -2.42M | 24.60M | 7.62M |
| Operating Cash Flow | 22.91M | 12.06M | 26.67M | -1.13M | 25.52M | 8.01M |
| Investing Cash Flow | -765.86K | -1.36M | -3.00M | -1.28M | -1.29M | -764.17K |
| Financing Cash Flow | -14.91M | -12.70M | -14.32M | 6.92M | 214.15K | -1.49M |
Currency Exchange International Technical Analysis
Positive
22.94
Price Trends
25.88
Positive
26.05
Positive
24.80
Positive
Market Momentum
1.42
Negative
75.08
Negative
91.02
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CXI, the sentiment is Positive. The current price of 22.94 is below the 20-day moving average (MA) of 27.98, below the 50-day MA of 25.88, and below the 200-day MA of 24.80, indicating a bullish trend. The MACD of 1.42 indicates Negative momentum. The RSI at 75.08 is Negative, neither overbought nor oversold. The STOCH value of 91.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CXI.
Currency Exchange International Peers Comparison
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45.73%
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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.