Exchange Income (EIF) AI Stock Analysis

• Market Cap: C$4.20B
• Dividend Yield: 3.51%
• Average Volume (3M): 140.62K
• Price to Earnings (P/E): 28.9
• Beta (1Y): 1.05
• 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: 54,288,185
• 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$84.05
• Price Target Upside: 8.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: C$81.00 ▲(4.65% Upside)

Exchange Income's strong technical momentum and positive earnings call outlook are the primary drivers of its score. While financial performance shows growth, high leverage and cash flow issues are concerns. The stock's valuation is relatively high, but the dividend yield offers some compensation.

Positive Factors

Strategic Acquisition

The acquisition of Canadian North strengthens Exchange Income's market position in the aviation sector, enhancing its service offerings and expanding its geographic reach, which is likely to drive long-term revenue growth and competitive advantage.

Revenue Growth

Record-breaking revenue indicates strong demand and effective business operations, suggesting that the company is well-positioned to capitalize on market opportunities and sustain growth over the coming months.

Long-term Contracts

The long-term contract with the government of Nunavut provides stable and recurring revenue, enhancing the company's financial stability and reinforcing its position as a key service provider in the region.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, as it can strain cash flow and limit the company's ability to invest in growth opportunities or weather economic downturns, potentially impacting long-term sustainability.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, which could hinder the company's ability to fund operations, pay down debt, or invest in future growth, posing a risk to financial health.

Impact of Aluminum Tariffs

Aluminum tariffs impact profitability in the manufacturing segment, potentially reducing margins and competitiveness, which could affect the company's ability to maintain its market position and profitability over time.

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, including negative free cash flow, suggest a need for better cash management and debt reduction.

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	2.79B	2.66B	2.50B	2.06B	1.41B	1.15B
Gross Profit	705.00M	657.74M	594.49M	491.35M	334.45M	273.83M
EBITDA	652.68M	616.26M	548.71M	449.60M	332.85M	276.78M
Net Income	131.28M	121.23M	122.31M	109.67M	68.59M	28.05M
Balance Sheet
Total Assets	4.77B	4.60B	4.08B	3.55B	2.59B	2.29B
Cash, Cash Equivalents and Short-Term Investments	230.79M	71.80M	103.56M	139.90M	75.41M	69.86M
Total Debt	2.46B	2.33B	2.01B	1.78B	1.29B	1.21B
Total Liabilities	3.33B	3.19B	2.83B	2.53B	1.79B	1.61B
Stockholders Equity	1.45B	1.41B	1.25B	1.02B	800.27M	685.95M
Cash Flow
Free Cash Flow	-60.06M	-133.38M	-152.61M	-31.46M	5.62M	113.72M
Operating Cash Flow	447.63M	357.01M	353.23M	335.12M	285.05M	259.97M
Investing Cash Flow	-562.40M	-567.54M	-650.75M	-655.45M	-357.94M	-196.28M
Financing Cash Flow	300.29M	176.33M	261.35M	380.97M	79.42M	-15.15M

Exchange Income Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 77.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 77.4 is above the 20-day moving average (MA) of 77.04, above the 50-day MA of 73.97, and above the 200-day MA of 60.70, indicating a bullish trend. The MACD of 0.79 indicates Positive momentum. The RSI at 58.30 is Neutral, neither overbought nor oversold. The STOCH value of 54.92 is Neutral, 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	74 Outperform	C$4.20B	28.91	9.88%	3.51%	15.47%	9.40%
MDA	71 Outperform	C$3.28B	27.54	9.64%	―	57.21%	136.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AC	61 Neutral	C$5.52B	―	-10.66%	―	-0.09%	-109.21%
CHR	59 Neutral	C$596.93M	-17.93	2.09%	0.34%	-12.42%	69.23%
BBU.UN	48 Neutral	$4.27B	-216.08	-6.18%	0.73%	-34.52%	-122.74%
JET	45 Neutral	$69.11M	-12.57	―	―	16.18%	87.47%

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.