Exchange Income (EIF) AI Stock Analysis

• Market Cap: C$3.33B
• Dividend Yield: 4.05%
• Average Volume (3M): 92.65K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 1.00
• Revenue Growth: 5.95%
• EPS Growth: -1.42%
• Country: CA
• Employees: 3,934
• Sector: Industrials
• Sector Strength: 86
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.28
• Shares Outstanding: 51,417,460
• 10 Day Avg. Volume: 112,142
• 30 Day Avg. Volume: 92,653
• PEG Ratio: 0.47
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -79.15
• 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$72.25
• Price Target Upside: 10.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 68 Neutral
• Price Target: C$70.00 ▲(7.33%Upside)

The overall score reflects strong financial performance and positive earnings call highlights, with record results and strategic expansions. However, high leverage and negative cash flow warrant caution. Technical indicators suggest potential overbought conditions, and valuation is moderate.

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 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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.73B	2.66B	2.50B	2.06B	1.41B	1.15B
Gross Profit	681.19M	657.74M	594.49M	491.35M	334.45M	273.83M
EBITDA	633.98M	616.26M	548.71M	449.60M	332.85M	276.78M
Net Income	123.91M	121.23M	122.31M	109.67M	68.59M	28.05M
Balance Sheet
Total Assets	4.61B	4.60B	4.08B	3.55B	2.59B	2.29B
Cash, Cash Equivalents and Short-Term Investments	54.17M	71.80M	103.56M	139.90M	75.41M	69.86M
Total Debt	2.28B	2.33B	2.01B	1.78B	1.29B	1.21B
Total Liabilities	3.15B	3.19B	2.83B	2.53B	1.79B	1.61B
Stockholders Equity	1.46B	1.41B	1.25B	1.02B	800.27M	685.95M
Cash Flow
Free Cash Flow	-125.18M	-133.38M	-152.61M	-31.46M	5.62M	113.72M
Operating Cash Flow	395.41M	357.01M	353.23M	335.12M	285.05M	259.97M
Investing Cash Flow	-591.75M	-567.54M	-650.75M	-655.45M	-357.94M	-196.28M
Financing Cash Flow	198.78M	176.33M	261.35M	380.97M	79.42M	-15.15M

Exchange Income Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 65.22
• 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 65.22 is above the 20-day moving average (MA) of 59.43, above the 50-day MA of 56.60, and above the 200-day MA of 53.28, indicating a bullish trend. The MACD of 2.17 indicates Negative momentum. The RSI at 87.38 is Negative, neither overbought nor oversold. The STOCH value of 98.22 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
Sector *	71 Outperform	¥254.55B	13.00	8.49%	3.09%	6.31%	12.77%
EIF	68 Neutral	C$3.33B	25.02	9.16%	4.05%	5.95%	-1.42%
JETMF		$50.78M	―		―	―	―
ACDVF		$5.20B	4.62	132.28%	―	―	―
CHR	59 Neutral	C$577.71M	―	-0.09%	―	-17.58%	-703.93%
BBU		$2.39B	2.67	-1.19%	0.92%	―	―
MDA	70 Outperform	C$4.58B	45.73	8.54%	―	49.98%	108.76%

Exchange Income Corporate Events

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.

Exchange Income Corporation Achieves Record Q1 Results and Expands Portfolio

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.

Exchange Income Corporation Expands Credit Facility to $3 Billion, Extending Maturity to 2029

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.

Exchange Income Corporation Declares April 2025 Dividend

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.

Exchange Income Corporation Schedules Q1 2025 Financial Results Call

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.