Exchange Income (EIF) AI Stock Analysis

• Market Cap: C$2.49B
• Dividend Yield: 5.29%
• Average Volume (3M): 127.00K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.91
• Revenue Growth: 6.46%
• EPS Growth: -5.54%
• Country: CA
• Employees: 8,000
• Sector: Industrials
• Sector Strength: 73
• Industry: Transportation
• EPS (TTM): 2.54
• Shares Outstanding: 49,923,546
• 10 Day Avg. Volume: 139,572
• 30 Day Avg. Volume: 127,000
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.89
• Price to Cash Flow (P/CF): 4.20
• P/FCF Ratio: 15.20
• 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: C$69.67
• Price Target Upside: 39.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Exchange Income Corporation's overall score reflects strong financial performance and positive sentiment from recent earnings. The company's robust revenue growth and strategic acquisitions are key strengths, while high leverage and negative free cash flow pose risks. Despite bearish technical indicators suggesting short-term pressure, the reasonable valuation and high dividend yield provide attractive long-term investment potential.

Exchange Income Business Overview & Revenue Model

Company Description

Exchange Income Corp is a diversified acquisition-oriented corporation focused on opportunities in two sectors, aerospace, aviation services and equipment, and manufacturing. The business plan of the corporation is to invest in profitable, well-established companies with strong cash flows operating in niche markets. It's Aerospace and Aviation segment recognizes revenue on the provision of flight, flight ancillary services, and the sale or lease of aircraft and aftermarket parts. The Manufacturing segment recognizes revenue on the sales of manufacturing products and services. Geographically, it derives a majority of revenue from Canada and also has a presence in the United States; Europe and Other Countries.

How the Company Makes Money

Exchange Income Corporation generates revenue through its diversified operations in the Aerospace & Aviation and Manufacturing sectors. In the Aerospace & Aviation segment, EIF earns income from passenger and cargo airline services, charter flights, and providing MRO services. The company operates regional airlines serving remote communities, contributing significantly to its revenue. In the Manufacturing segment, EIF produces specialized industrial products, such as precision metal and plastic components, which are supplied to various industries, including telecommunications and defense. The company's growth strategy involves acquiring businesses that complement its existing operations, enhancing its revenue base and market presence. Partnerships with government entities and long-term contracts with key clients also play a crucial role in maintaining steady revenue streams.

Exchange Income Financial Statement Overview

Summary

Exchange Income demonstrates strong revenue growth and profitability metrics, though the decrease in EBIT margin suggests potential efficiency challenges. A high debt-to-equity ratio signals reliance on debt, which poses a risk amidst economic uncertainties. Despite negative free cash flow, robust operating cash flow indicates sound operational cash generation.

Income Statement

The company has shown consistent revenue growth with a notable increase of 6.45% in the TTM (Trailing-Twelve-Months). Gross and net profit margins are solid at 24.73% and 4.56% respectively. However, the decrease in EBIT margin from 11.59% in the previous year to 8.75% in TTM indicates rising operational costs or reduced efficiency.

Balance Sheet

The debt-to-equity ratio is relatively high at 1.65, indicating significant leverage, which could be a risk if interest rates rise or earnings decline. However, the company maintains a reasonable equity ratio of 30.65%, suggesting a balanced approach to financing growth through equity.

Cash Flow

Free cash flow is negative, which can be concerning if it persists, but operating cash flow remains strong at 357 million, showing the company's ability to generate cash from operations. The operating cash flow to net income ratio is favorable, suggesting good cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.66B	2.50B	2.06B	1.41B	1.15B
	Gross Profit
657.74M	594.49M	491.35M	334.45M	273.83M
	EBIT
0.00	289.70M	236.73M	149.50M	101.87M
	EBITDA
616.26M	548.71M	449.60M	332.85M	276.78M
	Net Income Common Stockholders
121.23M	122.31M	109.67M	68.59M	28.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
71.80M	103.56M	139.90M	75.41M	69.86M
	Total Assets
4.60B	4.08B	3.55B	2.59B	2.29B
	Total Debt
2.33B	2.01B	1.78B	1.29B	1.21B
	Net Debt
2.26B	1.90B	1.64B	1.21B	1.14B
	Total Liabilities
3.19B	2.83B	2.53B	1.79B	1.61B
	Stockholders Equity
1.41B	1.25B	1.02B	800.27M	685.95M
Cash Flow		Free Cash Flow
-133.38M	-152.61M	-31.46M	5.62M	113.72M
	Operating Cash Flow
357.01M	353.23M	335.12M	285.05M	259.97M
	Investing Cash Flow
-567.54M	-650.75M	-655.45M	-357.94M	-196.28M
	Financing Cash Flow
176.33M	261.35M	380.97M	79.42M	-15.15M

Exchange Income Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 49.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EIF, the sentiment is Negative. The current price of 49.9 is below the 20-day moving average (MA) of 51.02, below the 50-day MA of 53.34, and below the 200-day MA of 50.55, indicating a bearish trend. The MACD of -1.06 indicates Positive momentum. The RSI at 34.18 is Neutral, neither overbought nor oversold. The STOCH value of 19.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:EIF.

Exchange Income Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTT	72 Outperform	C$5.35B	10.96	19.79%	2.77%	6.45%	2.60%
WSP	71 Outperform	C$31.48B	44.65	9.33%	0.61%	11.98%	22.53%
EIF	69 Neutral	C$2.49B	19.58	9.13%	5.29%	6.46%	-5.54%
GDI	68 Neutral	C$725.79M	22.55	6.73%	―	4.84%	67.68%
Sector *	62 Neutral	$8.17B	12.76	0.49%	3.07%	3.84%	-16.79%
CHR	61 Neutral	C$551.72M	―	-1.28%	―	-12.40%	-529.26%

Exchange Income Corporate Events

Exchange Income Corporation Achieves Record Financial Results in 2024

Exchange Income Corporation reported record financial results for 2024, with revenue reaching $2.7 billion and adjusted EBITDA at $628 million. The company’s diversified business model and strategic acquisitions, such as the recent purchase of Canadian North, have strengthened its market position and resilience, promising further growth and expansion across Canada’s Northern regions.

Exchange Income Corporation to Acquire Canadian North, Expanding Arctic Air Services

Exchange Income Corporation has announced a binding purchase agreement to acquire Canadian North for $205 million, expanding its essential air services business across Canada’s Arctic. This acquisition allows EIC to provide passenger and cargo services to all regions in the far north for the first time, enhancing its service efficiency and infrastructure in a region where air travel is essential due to the lack of road access.

Exchange Income Corporation Declares February 2025 Dividend

Exchange Income Corporation announced the declaration of eligible dividends totaling $0.22 per share for February 2025, payable to shareholders on March 14, 2025. This announcement reflects the corporation’s ongoing commitment to providing shareholder value through its dividend reinvestment plan, potentially enhancing tax benefits for eligible Canadian residents.

Exchange Income Corporation Completes Debenture Redemption

Exchange Income Corporation has completed the redemption of its 7-year 5.75% Convertible Unsecured Subordinated Debentures, initially set to mature on March 31, 2026. The redemption involved a conversion of $78,383,000 worth of Debentures into common shares and a cash redemption of $7,574,000, which potentially strengthens the company’s equity base and could positively impact its financial stability and market position.

Exchange Income Corporation Schedules Q4 Financial Results Conference Call

Exchange Income Corporation announced it will host a conference call on February 27, 2025, to discuss its 2024 fourth quarter financial results, which will be reported the previous day. This announcement is important for stakeholders as it provides insights into the company’s performance and future prospects in its key industry segments.

Exchange Income Corporation Declares January 2025 Dividend

Exchange Income Corporation announced a dividend of $0.22 per share for January 2025, payable on February 14, 2025. This dividend is designated as an eligible dividend, potentially offering tax benefits to Canadian residents. Shareholders can reinvest dividends through the company’s dividend reinvestment plan. This financial move underscores the company’s ongoing commitment to shareholder value and its strategic positioning in the aerospace, aviation, and manufacturing sectors.

Exchange Income Corporation Announces Early Debenture Redemption

Exchange Income Corporation announced the early redemption of its 7-year 5.75% Convertible Unsecured Subordinated Debentures due March 31, 2026. The corporation will redeem all outstanding debentures effective February 13, 2025, encouraging holders to consider converting their debentures into common shares at a discounted rate compared to the current market price. This move aligns with EIC’s strategic financial management, potentially impacting investor decisions and the company’s financial positioning as it addresses its debt obligations ahead of schedule.

Exchange Income Corporation Finalizes Debenture Redemption

Exchange Income Corporation has successfully completed the redemption of its 7-year 5.35% convertible debentures, initially due in 2025. A significant portion of these debentures was converted into common shares before the redemption. This move aligns with the company’s acquisition-oriented strategy in aerospace, aviation, and manufacturing sectors.

Exchange Income Corporation Declares December Dividend

Exchange Income Corporation has declared a dividend of $0.22 per share for December 2024, payable to shareholders on January 15, 2025. This dividend is designated as ‘eligible’, providing Canadian residents with potential tax benefits. The corporation continues its focus on growth in aerospace, aviation, and manufacturing sectors.