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Exchange Income Corp (TSE:EIF)
TSX:EIF

Exchange Income (EIF) AI Stock Analysis

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Exchange Income

(TSX:EIF)

70Outperform
Exchange Income Corporation exhibits strong revenue growth and operational performance with strategic acquisitions supporting future expansion. While positive earnings call results and a high dividend yield bolster its investment appeal, high leverage, negative free cash flow, and overbought technical indicators suggest potential risks. The balanced investment case reflects these mixed elements.

Exchange Income (EIF) vs. S&P 500 (SPY)

Exchange Income Business Overview & Revenue Model

Company DescriptionExchange Income Corporation (EIF) is a diversified, acquisition-oriented company focused on opportunities in aviation and manufacturing sectors. The company acquires and grows businesses in these industries, leveraging its expertise to enhance their operations and profitability. Key segments include regional aviation services, aerospace products, and manufacturing operations across various sectors.
How the Company Makes MoneyExchange Income Corporation generates revenue through its diverse portfolio of subsidiary businesses. In the aviation sector, it earns money from passenger and cargo transportation services, aircraft leasing, and maintenance operations. The manufacturing segment contributes through the production and sale of specialized products, including precision parts and innovative solutions for various industries. The company's growth strategy involves acquiring businesses with strong cash flows and potential for operational improvements, which are then integrated into its existing operations to achieve synergies and enhanced profitability. Strategic partnerships and long-term contracts with clients also play a crucial role in ensuring stable and recurring revenue streams.

Exchange Income Financial Statement Overview

Summary
Exchange Income has shown solid revenue growth with stable gross profit margins. However, high leverage and negative free cash flow pose potential risks, indicating a need for improved cash management and debt reduction.
Income Statement
78
Positive
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
72
Positive
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
65
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.73B2.66B2.50B2.06B1.41B1.15B
Gross Profit
681.19M657.74M594.49M491.35M334.45M273.83M
EBIT
323.99M317.65M289.70M236.73M149.50M101.87M
EBITDA
633.98M616.26M548.71M449.60M332.85M276.78M
Net Income Common Stockholders
123.91M121.23M122.31M109.67M68.59M28.05M
Balance SheetCash, Cash Equivalents and Short-Term Investments
50.38M71.80M103.56M139.90M75.41M69.86M
Total Assets
4.05B4.60B4.08B3.55B2.59B2.29B
Total Debt
2.04B2.33B2.01B1.78B1.29B1.21B
Net Debt
1.99B2.26B1.90B1.64B1.21B1.14B
Total Liabilities
2.81B3.19B2.83B2.53B1.79B1.61B
Stockholders Equity
1.24B1.41B1.25B1.02B800.27M685.95M
Cash FlowFree Cash Flow
-125.18M-133.38M-152.61M-31.46M5.62M113.72M
Operating Cash Flow
395.41M357.01M353.23M335.12M285.05M259.97M
Investing Cash Flow
-591.75M-567.54M-650.75M-655.45M-357.94M-196.28M
Financing Cash Flow
198.78M176.33M261.35M380.97M79.42M-15.15M

Exchange Income Technical Analysis

Technical Analysis Sentiment
Positive
Last Price58.18
Price Trends
50DMA
50.69
Positive
100DMA
52.19
Positive
200DMA
51.71
Positive
Market Momentum
MACD
2.07
Negative
RSI
80.70
Negative
STOCH
92.92
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 58.18 is above the 20-day moving average (MA) of 52.81, above the 50-day MA of 50.69, and above the 200-day MA of 51.71, indicating a bullish trend. The MACD of 2.07 indicates Negative momentum. The RSI at 80.70 is Negative, neither overbought nor oversold. The STOCH value of 92.92 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSAC
73
Outperform
$6.60B3.98132.28%0.24%-23.10%
TSMDA
72
Outperform
C$3.19B32.128.54%49.98%108.76%
TSEIF
70
Outperform
C$2.99B22.499.16%4.54%5.95%-1.42%
64
Neutral
$4.44B11.995.16%249.23%4.01%-11.87%
61
Neutral
$3.22B2.83-1.19%0.98%-20.99%-108.53%
TSCHR
52
Neutral
C$538.52M-0.09%-17.58%-703.93%
TSJET
48
Neutral
$69.11M
34.32%77.15%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:EIF
Exchange Income
58.18
13.90
31.39%
TSE:BBU.UN
Brookfield Business Partners
36.00
9.70
36.89%
TSE:JET
Global Crossing Airlines
1.36
0.00
0.00%
TSE:AC
Air Canada
18.73
0.25
1.35%
TSE:CHR
Chorus Aviation
19.99
4.45
28.64%
TSE:MDA
MDA Ltd
26.11
13.60
108.71%

Exchange Income Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q1-2025)
|
% Change Since: 4.15%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with record-breaking performance and strategic achievements such as the expanded credit facility. However, challenges were acknowledged in the Aerospace business line and foreign exchange uncertainties. The company remains confident in its guidance and growth prospects.
Q1-2025 Updates
Positive Updates
Record-Breaking First Quarter Metrics
First quarter high watermarks were set for revenue at $668 million, adjusted EBITDA at $130 million, free cash flow at $81 million, and free cash flow less maintenance CapEx at $26 million.
Strong Performance in Aerospace & Aviation
Revenue in the Aerospace & Aviation segment increased by $14 million or 4% to $382 million, with adjusted EBITDA increasing by $8 million or 8% to $102 million, driven by Essential Air Services and Aircraft Sales and Leasing business lines.
Manufacturing Segment Growth
Revenue in the Manufacturing segment rose by $53 million or 23% to $286 million, with adjusted EBITDA increasing by $14 million or 50% to $41 million, primarily driven by the acquisition of Spartan and increased demand for composite mats.
Amendment to Credit Facility
The credit facility was increased to $3 billion from $2.2 billion, with maturity extended to April 30, 2029, providing over $1 billion in available liquidity for future acquisitions or growth capital expenditures.
Negative Updates
Challenges in Aerospace Business Line
Revenues and adjusted EBITDA within the Aerospace business line were lower due to the planned wind down of certain training programs and changes in contract agreements, resulting in more variability.
Decline in Multi-Story Window Solutions
The Multi-Story Window Solutions business line experienced decreased revenue and adjusted EBITDA due to project delays and gaps in production, impacted by tariffs and rationalized manufacturing footprint.
Foreign Exchange and Tariff Uncertainties
The company faced foreign exchange volatility and uncertainty due to changing trade policies with the U.S., affecting business sentiment and conversion of inquiries to orders.
Company Guidance
During the conference call for Exchange Income Corporation's first quarter of fiscal year 2025, the company reaffirmed its fiscal year adjusted EBITDA guidance of $690 million to $730 million, excluding Canadian North's financial results. The call highlighted record first-quarter performance across several key metrics: revenue reached $668 million, adjusted EBITDA was $130 million, free cash flow stood at $81 million, and free cash flow less maintenance CapEx was $26 million. The company announced an increase in its credit facility to $3 billion, extending the maturity to 2029, enhancing liquidity for strategic acquisitions and growth investments. Manufacturing segment revenue rose by 23% to $286 million, with adjusted EBITDA increasing by 50% to $41 million, driven by strong demand in the Environmental Access Solutions business line. Despite uncertainty in trade policy and geopolitical risks, EIC maintained its resilience and stability, attributing its confidence to the essential nature of its subsidiaries' goods and services.

Exchange Income Corporate Events

Dividends
Exchange Income Corporation Declares May 2025 Dividend
Positive
May 16, 2025

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.

Spark’s Take on TSE:EIF Stock

According to Spark, TipRanks’ AI Analyst, TSE:EIF is a Outperform.

Exchange Income Corporation shows strong financial performance with solid revenue growth and profitability, despite efficiency challenges and high leverage. The technical indicators present a mixed picture, while valuation remains attractive with a strong dividend yield. The positive earnings call highlights record metrics and strategic acquisitions, reinforcing a favorable outlook. These factors create a balanced investment case with a moderately strong score.

To see Spark’s full report on TSE:EIF stock, click here.

Shareholder MeetingsBusiness Operations and Strategy
Exchange Income Corporation Reports 2025 AGM Voting Results
Positive
May 15, 2025

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.

Spark’s Take on TSE:EIF Stock

According to Spark, TipRanks’ AI Analyst, TSE:EIF is a Outperform.

Exchange Income Corporation shows strong financial performance with solid revenue growth and profitability, despite efficiency challenges and high leverage. The technical indicators present a mixed picture, while valuation remains attractive with a strong dividend yield. The positive earnings call highlights record metrics and strategic acquisitions, reinforcing a favorable outlook. These factors create a balanced investment case with a moderately strong score.

To see Spark’s full report on TSE:EIF stock, click here.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Exchange Income Corporation Achieves Record Q1 Results and Expands Portfolio
Positive
May 12, 2025

Exchange Income Corporation reported record financial results for the first quarter of 2025, with significant increases in revenue, adjusted EBITDA, and free cash flow. The company continues to demonstrate resilience and growth despite economic uncertainties, driven by strategic investments and acquisitions, including the binding purchase agreement for Canadian North. These developments are expected to enhance the company’s market position and profitability, particularly in the Aerospace & Aviation segment.

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.

Spark’s Take on TSE:EIF Stock

According to Spark, TipRanks’ AI Analyst, TSE:EIF is a Outperform.

Exchange Income Corporation shows strong financial performance with solid revenue growth and profitability, despite efficiency challenges and high leverage. The technical indicators present a mixed picture, while valuation remains attractive with a strong dividend yield. The positive earnings call highlights record metrics and strategic acquisitions, reinforcing a favorable outlook. Overall, these factors contribute to a balanced investment case.

To see Spark’s full report on TSE:EIF stock, click here.

Private Placements and FinancingBusiness Operations and Strategy
Exchange Income Corporation Expands Credit Facility to $3 Billion, Extending Maturity to 2029
Positive
Apr 29, 2025

Exchange Income Corporation announced an increase and extension of its credit facility to $3.0 billion, maturing in 2029, which includes a significant allocation to its Canadian Head Office and a social loan tranche. This financial enhancement, achieved with consistent pricing and terms, strengthens the company’s liquidity, enabling it to pursue strategic growth investments and acquisitions, while maintaining its conservative approach to debt and leverage.

Spark’s Take on TSE:EIF Stock

According to Spark, TipRanks’ AI Analyst, TSE:EIF is a Outperform.

Exchange Income Corporation’s strong financial performance, strategic acquisitions, and record earnings contribute positively to its stock score. However, challenges such as high leverage, negative free cash flow, and mixed technical signals temper the outlook. The attractive dividend yield and reasonable valuation provide additional support, resulting in a balanced investment case.

To see Spark’s full report on TSE:EIF stock, click here.

DividendsBusiness Operations and Strategy
Exchange Income Corporation Declares April 2025 Dividend
Positive
Apr 17, 2025

Exchange Income Corporation announced a dividend of $0.22 per share for April 2025, payable on May 15, 2025, with shareholders having the option to reinvest through the company’s dividend reinvestment plan. This announcement reflects the company’s ongoing commitment to providing shareholder value and leveraging its diversified business model in aerospace, aviation, and manufacturing sectors.

Spark’s Take on TSE:EIF Stock

According to Spark, TipRanks’ AI Analyst, TSE:EIF is a Outperform.

Exchange Income Corporation’s strong revenue growth, strategic acquisitions, and robust earnings call results support a favorable outlook. However, financial risks from high leverage and negative free cash flow, along with weak technical indicators, present potential challenges. The attractive dividend yield and fair P/E ratio provide some valuation support, resulting in a balanced investment case.

To see Spark’s full report on TSE:EIF stock, click here.

Financial Disclosures
Exchange Income Corporation Schedules Q1 2025 Financial Results Call
Positive
Apr 8, 2025

Exchange Income Corporation announced it will host a conference call on May 13, 2025, to discuss its first quarter financial results, which will be released on May 12, 2025. This announcement highlights the company’s commitment to transparency and stakeholder engagement, potentially impacting its market position positively by keeping investors informed.

Spark’s Take on TSE:EIF Stock

According to Spark, TipRanks’ AI Analyst, TSE:EIF is a Neutral.

Exchange Income Corporation’s strong revenue growth and strategic acquisitions support a positive outlook, reflected in a high earnings call score. However, financial risks from high leverage, negative free cash flow, and technical indicators point to potential weaknesses. The attractive dividend yield helps offset some valuation concerns, providing a balanced investment case.

To see Spark’s full report on TSE:EIF stock, click here.

Dividends
Exchange Income Corporation Declares March 2025 Dividend
Positive
Mar 17, 2025

Exchange Income Corporation announced a dividend of $0.22 per share for March 2025, payable on April 15, 2025. This dividend is classified as ‘eligible’ under Canadian tax law, potentially offering enhanced tax credits for Canadian residents. The announcement reflects the company’s ongoing commitment to providing shareholder value and may positively impact its market position by reinforcing investor confidence.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Exchange Income Corporation Achieves Record Financial Results in 2024
Positive
Feb 26, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Exchange Income Corporation to Acquire Canadian North, Expanding Arctic Air Services
Positive
Feb 24, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.