Exchange Income (EIF) AI Stock Analysis

• Market Cap: C$4.61B
• Dividend Yield: 3.12%
• Average Volume (3M): 140.62K
• Price to Earnings (P/E): 29.9
• Beta (1Y): 0.99
• Revenue Growth: 15.47%
• EPS Growth: 9.40%
• Country: CA
• Employees: 3,934
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 1.46
• Shares Outstanding: 54,370,580
• 10 Day Avg. Volume: 116,976
• 30 Day Avg. Volume: 140,616
• PEG Ratio: -1.60
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 1.05
• P/FCF Ratio: -20.99
• 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$88.80
• Price Target Upside: 5.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: C$92.00 ▲(8.84% Upside)

Exchange Income Corporation's strong financial performance, particularly in revenue growth and strategic acquisitions, significantly boosts its stock score. The technical indicators show bullish momentum, further supporting a positive outlook. However, high leverage and a high P/E ratio present potential risks that temper the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand across segments, enhancing market position and supporting long-term financial health.

Strategic Acquisition

Acquiring Canadian North strengthens EIC's Northern Aviation capabilities, expected to boost profitability and cash flow by late 2026.

Dividend Increase

A dividend increase reflects confidence in future earnings growth and provides value to shareholders, indicating strong financial health.

Negative Factors

High Leverage

High leverage can pose risks to financial stability, limiting flexibility and increasing vulnerability to economic downturns.

Negative Free Cash Flow

Negative free cash flow highlights potential liquidity concerns, impacting the company's ability to invest in growth and manage debt.

Challenges in Multi-Storey Window Business

Ongoing challenges in this segment may affect overall profitability and require strategic adjustments to mitigate impact.

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 generates revenue through multiple streams. In its aviation segment, the company earns income from passenger flights, freight services, and charter operations, serving remote and regional markets that require reliable transportation solutions. The manufacturing division contributes to revenue through the sale of specialized equipment and components, often under long-term contracts with clients in sectors such as industrial, aerospace, and healthcare. Additionally, EIF benefits from strategic partnerships with other companies in its sectors, which can enhance its service offerings and expand its market reach. The company's diversified portfolio allows it to mitigate risks and capitalize on growth opportunities across different industries.

Exchange Income Financial Statement Overview

Summary

Exchange Income shows strong revenue growth and operational efficiency with stable margins. However, high leverage and cash flow challenges, particularly negative free cash flow, indicate risks that need addressing.

Income Statement

Exchange Income has shown consistent revenue growth over the years, with a TTM revenue growth rate of 2.18%. The gross profit margin has remained stable, currently at 25.31% for TTM, indicating efficient cost management. However, the net profit margin is relatively low at 4.71%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are healthy, reflecting strong operational performance.

Balance Sheet

The company's debt-to-equity ratio is high at 1.70, indicating significant leverage, which could pose a risk if not managed properly. Return on equity is moderate at 9.39%, showing decent profitability relative to shareholder equity. The equity ratio stands at 30.32%, suggesting a balanced capital structure but with a reliance on debt financing.

Cash Flow

The cash flow statement reveals challenges, with a negative free cash flow growth rate of -52.02% in the TTM period. The operating cash flow to net income ratio is 0.68, indicating that operating cash flows are not fully covering net income. The free cash flow to net income ratio is negative, highlighting potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.04B	2.66B	2.50B	2.06B	1.41B	1.15B
Gross Profit	756.60M	657.74M	594.49M	491.35M	334.45M	273.83M
EBITDA	689.57M	616.26M	548.71M	449.60M	332.85M	276.78M
Net Income	144.13M	121.23M	122.31M	109.67M	68.59M	28.05M
Balance Sheet
Total Assets	5.23B	4.60B	4.08B	3.55B	2.59B	2.29B
Cash, Cash Equivalents and Short-Term Investments	81.82M	71.80M	103.56M	139.90M	75.41M	69.86M
Total Debt	2.51B	2.33B	2.01B	1.78B	1.29B	1.21B
Total Liabilities	3.58B	3.19B	2.83B	2.53B	1.79B	1.61B
Stockholders Equity	1.64B	1.41B	1.25B	1.02B	800.27M	685.95M
Cash Flow
Free Cash Flow	-58.26M	-133.38M	-152.61M	-31.46M	5.62M	113.72M
Operating Cash Flow	508.08M	357.01M	353.23M	335.12M	285.05M	259.97M
Investing Cash Flow	-782.50M	-567.54M	-650.75M	-655.45M	-357.94M	-196.28M
Financing Cash Flow	305.91M	176.33M	261.35M	380.97M	79.42M	-15.15M

Exchange Income Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 84.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 84.53 is above the 20-day moving average (MA) of 81.96, above the 50-day MA of 78.75, and above the 200-day MA of 65.13, indicating a bullish trend. The MACD of 1.82 indicates Negative momentum. The RSI at 68.37 is Neutral, neither overbought nor oversold. The STOCH value of 91.09 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
EIF	75 Outperform	C$4.61B	29.94	9.88%	3.12%	15.47%	9.40%
MAL	72 Outperform	C$1.05B	23.93	5.64%	0.93%	8.84%	131.58%
CJT	67 Neutral	C$1.26B	10.58	16.75%	1.67%	7.71%	3170.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CHR	56 Neutral	C$496.41M	-13.01	2.09%	0.76%	-12.42%	69.23%
AC	47 Neutral	C$5.87B	-29.80	-10.66%	―	-0.09%	-109.21%
JET	39 Underperform	C$69.11M	-33.66	―	―	16.18%	87.47%

Exchange Income Corporate Events

Exchange Income Corporation Declares November 2025 Dividend

Exchange Income Corporation announced a dividend of $0.23 per share for November 2025, payable on December 15, 2025, to shareholders of record as of November 28, 2025. This move underscores the company’s commitment to providing shareholder value and reflects its stable financial performance, potentially enhancing its attractiveness to investors seeking dividend income.

Exchange Income Corporation Achieves Record Q3 Results and Increases Dividend

Exchange Income Corporation reported record financial results for the third quarter, driven by its diversified business model. Key metrics such as revenue, net earnings, and free cash flow reached all-time highs. The company also announced a dividend increase, reflecting its strong financial performance and commitment to providing stable and growing returns to shareholders. The redemption of convertible debentures has simplified the company’s capital structure, enhancing its financial stability and equity position.

Exchange Income Corporation Announces Early Debenture Redemption

Exchange Income Corporation announced the early redemption of its 7-year 5.25% Convertible Unsecured Subordinated Debentures due January 15, 2029. The decision to redeem these debentures is driven by the current market price of EIC’s common shares exceeding 125% of the conversion price, allowing the corporation to proceed with the redemption. This move signifies a strategic financial decision by EIC, potentially impacting its capital structure and offering debenture holders the option to convert their holdings into common shares at a favorable rate before the redemption date.

Exchange Income Corporation Declares October 2025 Dividend

Exchange Income Corporation has announced a dividend of $0.22 per share for October 2025, payable on November 14, 2025, to shareholders of record as of October 31, 2025. This dividend is classified as an ‘eligible’ dividend under Canadian tax laws, potentially offering enhanced tax credits for Canadian residents. The announcement underscores the company’s commitment to providing shareholder value and reflects its stable financial performance in its core sectors.

Exchange Income Corporation to Discuss Q3 Financial Results in Upcoming Conference Call

Exchange Income Corporation announced it will host a conference call to discuss its third quarter financial results on November 7, 2025. The call will provide insights into the company’s financial performance and strategic direction, potentially impacting its operations and industry positioning. This announcement is significant for stakeholders interested in the company’s ongoing growth and market strategies.

Exchange Income Corporation Completes Debenture Redemption

Exchange Income Corporation has completed the redemption of its 7-year 5.25% Convertible Unsecured Subordinated Debentures due July 31, 2028. This strategic move saw a significant portion of the debentures converted into common shares, reflecting investor confidence and potentially strengthening the company’s financial position and market standing.

Exchange Income Corporation Expands Indigenous Pilot Training Program

Exchange Income Corporation (EIC) has successfully completed the fourth season of its Atik Mason Indigenous Pilot Pathway, a program designed to train Indigenous pilots, in Thompson, Manitoba. The program, supported by Manitoba Keewatinowi Okimakank Inc. and the Government of Nunavut, has expanded its operations to Rankin Inlet, Nunavut, and has celebrated its first graduate from this base. EIC has offered employment to several graduates, including the first Nunavut graduate, Nujaliah Iyerak, who will work with EIC subsidiary Keewatin Air. The initiative aims to increase Indigenous representation among pilots and invest in Inuit communities, aligning with the Truth and Reconciliation Commission of Canada’s Calls to Action.

Exchange Income Corporation Declares September 2025 Dividend

Exchange Income Corporation has announced a dividend of $0.22 per share for September 2025, payable on October 15, 2025. This move reflects the company’s ongoing commitment to providing shareholder value and its strategic focus on stable financial performance, which may enhance its market positioning and appeal to investors seeking reliable dividend income.