Exchange Income (EIF) AI Stock Analysis

• Market Cap: C$3.76B
• Dividend Yield: 3.73%
• Average Volume (3M): 127.50K
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.97
• Revenue Growth: 6.87%
• EPS Growth: 8.42%
• Country: CA
• Employees: 3,934
• Sector: Industrials
• Sector Strength: 75
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.92
• Shares Outstanding: 51,618,790
• 10 Day Avg. Volume: 147,937
• 30 Day Avg. Volume: 127,502
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• 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: C$80.54
• Price Target Upside: 10.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 71 Outperform
• Price Target: C$81.00 ▲(11.16% Upside)

Exchange Income Corporation's strong financial performance and strategic growth initiatives are major positives. However, high leverage and overbought technical indicators present risks. The company's optimistic earnings outlook and strategic acquisitions support a favorable long-term view.

Positive Factors

Dividend Growth

Dividend compounding has historically driven above market returns, with EIC's dividend growing at 4-5% CAGR and yielding around 4%.

EBITDA Guidance

The Canadian North acquisition has led to a 5% increase in EBITDA guidance, reflecting potential in northern Canada and Aerospace/ISR momentum.

Revenue and Margin Visibility

EIC has signed a 10-year agreement with the Government of Nunavut, bringing better revenue and margin visibility to its work.

Negative Factors

Economic Value Creation

There is a limited spread between ROIC and WACC, affecting per share economic value creation.

Market Valuation Risk

The risk is that valuation pulls back with EIC currently trading approximately 5x above its pre-COVID average relative to the TSX.

Valuation Concerns

There is caution on valuation with shares trading at record P/E levels when considering the cost of financing.

Exchange Income Business Overview & Revenue Model

Company Description

Exchange Income Corporation engages in aerospace and aviation services and equipment, and manufacturing businesses worldwide. It operates in two segments, Aerospace & Aviation, and Manufacturing. The Aerospace & Aviation segment offers scheduled airline, cargo, charter, and emergency medical services to communities located in Manitoba, Ontario, Nunavut, British Columbia, and Alberta, as well as Newfoundland and Labrador, Québec, New Brunswick, and Nova Scotia. It also provides after-market aircraft, engines, and component parts to regional airline operators; designs, modifies, maintains, and operates custom sensor-equipped aircraft; and offers maritime surveillance and support services in Canada, the Caribbean, and the Middle East. In addition, this segment provides pilot flight training services. The Manufacturing segment manufactures window wall systems primarily used in high-rise multi-family residential projects; stainless steel tanks, vessels, and processing equipment; heavy-duty pressure washing and steam systems, commercial water recycling systems, and custom tanks for the transportation of various products, primarily oil, gasoline, and water products; precision parts and components primarily used in the aerospace, defense, healthcare, and security sectors; electrical and control systems integrator focused on the agricultural material handling; and precision sheet metal and tubular products. This segment also focuses on the engineering, design, manufacture, and construction of communication infrastructure, as well as wireless and wireline construction and maintenance services; and provision of technical services. Exchange Income Corporation is headquartered in Winnipeg, Canada.

How the Company Makes Money

Exchange Income Corporation generates revenue primarily through its two main business segments: Aviation and Manufacturing. In the Aviation segment, income is derived from passenger and cargo air transportation services, including scheduled flights, charters, and medevac services. This segment also benefits from government contracts and partnerships with indigenous communities in Canada, providing essential air services to remote areas. The Manufacturing segment contributes to revenue through the production and sale of precision manufacturing products, including metal fabrication, industrial components, and communication systems. The company’s diversified business model, strategic acquisitions, and focus on essential services in niche markets play a significant role in its ability to generate consistent revenue.

Exchange Income Financial Statement Overview

Summary

Exchange Income has shown strong revenue growth and operational efficiency, with stable gross profit margins. However, high leverage and negative free cash flow pose financial risks. Improvement in net profit margins and debt reduction could strengthen financial stability.

Income Statement

The company has demonstrated solid revenue growth with a significant increase from $1.14 billion in 2020 to $2.73 billion in TTM, indicating robust demand in the airline industry. Gross profit margins have remained stable around 25%, suggesting effective cost management. However, net profit margin is relatively low at 4.5% for TTM, highlighting potential areas for efficiency improvements. EBIT and EBITDA margins are healthy, reflecting strong operational performance.

Balance Sheet

The balance sheet portrays a mixed picture with a substantial debt-to-equity ratio of 1.56 in TTM, indicating high leverage which could pose risks during economic downturns. Nevertheless, the return on equity (ROE) is commendable at 8.47%, demonstrating effective use of equity capital. The equity ratio is moderate at 31.77%, suggesting a balanced asset financing strategy.

Cash Flow

The cash flow statement reveals challenges with consistent negative free cash flow in recent periods, highlighting high capital expenditures. Despite this, operating cash flow remains strong, with a favorable operating cash flow to net income ratio of 3.19 in TTM, indicating healthy operational efficiency. However, the free cash flow to net income ratio is negative, pointing to potential cash strain.

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
EBITDA	616.26M	548.71M	449.60M	332.85M	276.78M
Net Income	121.23M	122.31M	109.67M	68.59M	28.05M
Balance Sheet
Total Assets	4.60B	4.08B	3.55B	2.59B	2.29B
Cash, Cash Equivalents and Short-Term Investments	71.80M	103.56M	139.90M	75.41M	69.86M
Total Debt	2.33B	2.01B	1.78B	1.29B	1.21B
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: Positive
• Last Price: 72.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EIF, the sentiment is Positive. The current price of 72.87 is above the 20-day moving average (MA) of 67.71, above the 50-day MA of 63.80, and above the 200-day MA of 55.43, indicating a bullish trend. The MACD of 2.49 indicates Negative momentum. The RSI at 73.92 is Negative, neither overbought nor oversold. The STOCH value of 86.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EIF.

Exchange Income Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDA	78 Outperform	C$5.36B	47.86	9.64%	―	57.21%	136.79%
EIF	71 Outperform	C$3.76B	27.23	9.71%	3.73%	6.87%	8.42%
Sector *	63 Neutral	$10.80B	16.70	6.58%	2.07%	2.48%	-16.85%
BBU.UN	63 Neutral	$3.08B	2.83	-0.29%	1.00%	-36.55%	-102.52%
AC	61 Neutral	$5.82B	4.78	101.32%	―	0.33%	-15.99%
CHR	59 Neutral	C$530.76M	―	2.81%	0.39%	-16.92%	77.04%
JET	48 Neutral	C$69.11M	―		―	34.32%	77.15%

Exchange Income Corporate Events

Exchange Income Corporation Declares August 2025 Dividend

Exchange Income Corporation announced a dividend of $0.22 per share for August 2025, payable on September 15, 2025, to shareholders of record as of August 29, 2025. This announcement reflects the company’s ongoing commitment to providing shareholder value and may enhance investor confidence through the eligibility for enhanced dividend tax credits under Canadian law.

The most recent analyst rating on (TSE:EIF) stock is a Buy with a C$85.00 price target. To see the full list of analyst forecasts on Exchange Income stock, see the TSE:EIF Stock Forecast page.

Exchange Income Corporation Achieves Record Q2 Results and Expands Northern Operations

Exchange Income Corporation reported record financial results for the second quarter of 2025, with revenue reaching $720 million, a 9% increase from the previous year. The company also announced the completion of its acquisition of Canadian North and a significant ten-year Air Services Agreement with the Government of Nunavut, highlighting its strategic expansion in Northern Canada. This acquisition and agreement are expected to bolster EIC’s capabilities in the region, aligning with Canadian government strategies for economic development and sovereignty in the Arctic.

The most recent analyst rating on (TSE:EIF) stock is a Buy with a C$72.00 price target. To see the full list of analyst forecasts on Exchange Income stock, see the TSE:EIF Stock Forecast page.

Exchange Income Corporation Declares July 2025 Dividend

Exchange Income Corporation has announced a dividend of $0.22 per share for July 2025, payable on August 15, 2025, to shareholders of record as of July 31, 2025. This dividend is designated as an ‘eligible’ dividend under Canadian tax legislation, potentially offering enhanced tax credits to Canadian residents. This announcement reflects the company’s ongoing commitment to providing shareholder value and maintaining its financial health, which is crucial for its strategic positioning in the aerospace, aviation, and manufacturing sectors.

The most recent analyst rating on (TSE:EIF) stock is a Hold with a C$59.00 price target. To see the full list of analyst forecasts on Exchange Income stock, see the TSE:EIF Stock Forecast page.

Exchange Income Corporation Secures Long-Term Air Service Agreement with Nunavut

Exchange Income Corporation has entered into a long-term air service agreement with the Government of Nunavut through its subsidiaries Calm Air International and Canadian North. This agreement, which spans 10 years with an option to extend for an additional 5 years, aims to provide medical travel, family services travel, duty travel, and air freight services across Nunavut. The agreement signifies a strong partnership between EIC and the Government of Nunavut, with EIC granting the government an option to purchase a significant minority stake in Canadian North. This collaboration is expected to bring stability to EIC’s operations in the region, allowing continued investment in community infrastructure and initiatives.

The most recent analyst rating on (TSE:EIF) stock is a Hold with a C$59.00 price target. To see the full list of analyst forecasts on Exchange Income stock, see the TSE:EIF Stock Forecast page.

Exchange Income Corporation Schedules Q2 2025 Results Conference Call

Exchange Income Corporation announced it will host a conference call on August 12, 2025, to discuss its second quarter financial results, which are expected to be released on August 11, 2025. This announcement underscores the company’s commitment to transparency and engagement with stakeholders, potentially impacting its market position and investor relations.

The most recent analyst rating on (TSE:EIF) stock is a Buy with a C$72.00 price target. To see the full list of analyst forecasts on Exchange Income stock, see the TSE:EIF Stock Forecast page.

Exchange Income Corporation Expands Indigenous Pilot Program in Nunavut

Exchange Income Corporation has announced its commitment to double the capacity of the Atik Mason Indigenous Pilot Pathway in Nunavut for 2026. This expansion follows the acquisition of Canadian North and aims to remove barriers to flight training for Indigenous students, while investing in the communities and future pilots in the region.

The most recent analyst rating on (TSE:EIF) stock is a Buy with a C$72.00 price target. To see the full list of analyst forecasts on Exchange Income stock, see the TSE:EIF Stock Forecast page.

Exchange Income Corporation Expands Northern Reach with Canadian North Acquisition

Exchange Income Corporation has completed the acquisition of Canadian North, a Northern airline operating in the Canadian Arctic, for $205 million. This acquisition allows EIC to expand its aviation services to all regions in the far north, enhancing its market presence and providing stable and efficient service to remote communities. The acquisition is expected to improve EIC’s operational scope and efficiency, with targeted returns on capital anticipated by the end of the second year.

The most recent analyst rating on (TSE:EIF) stock is a Buy with a C$72.00 price target. To see the full list of analyst forecasts on Exchange Income stock, see the TSE:EIF Stock Forecast page.

Exchange Income Corporation Declares June 2025 Dividend

Exchange Income Corporation announced a dividend of $0.22 per share for June 2025, payable on July 15, 2025, to shareholders of record as of June 30, 2025. This dividend is designated as an ‘eligible’ dividend under Canadian tax law, potentially offering enhanced tax credits to Canadian residents. The announcement underscores the company’s commitment to providing shareholder value and reflects its stable financial performance in its niche markets.

The most recent analyst rating on (TSE:EIF) stock is a Buy with a C$72.00 price target. To see the full list of analyst forecasts on Exchange Income stock, see the TSE:EIF Stock Forecast page.

Exchange Income Corporation Declares May 2025 Dividend

Exchange Income Corporation announced a dividend of $0.22 per share for May 2025, payable on June 13, 2025, to shareholders of record as of May 30, 2025. This announcement reflects the company’s ongoing commitment to providing shareholder value and reinforces its stable financial position in the aerospace, aviation, and manufacturing sectors.

The most recent analyst rating on (TSE:EIF) stock is a Buy with a C$72.00 price target. To see the full list of analyst forecasts on Exchange Income stock, see the TSE:EIF Stock Forecast page.

Exchange Income Corporation Reports 2025 AGM Voting Results

Exchange Income Corporation announced the results of its 2025 Annual General Meeting, where shareholders approved all items of business, including the election of directors and the reappointment of PricewaterhouseCoopers LLP as the auditor. The corporation’s approach to executive compensation was also endorsed. This outcome reflects strong shareholder support and is likely to reinforce the company’s stability and strategic direction in its core sectors.

The most recent analyst rating on (TSE:EIF) stock is a Buy with a C$72.00 price target. To see the full list of analyst forecasts on Exchange Income stock, see the TSE:EIF Stock Forecast page.