Exchange Income Corp. (EIF) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Air Canada

Chorus Aviation, Inc.

Exchange Income Corp.

Global Crossing Airlines Group, Inc.

ACE Aviation Holdings, Inc.

Canada Jetlines Operations Ltd.

Why is Exchange Income Corp. ?

The company is Net-Debt Free

The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 7.64% signifying low profitability per unit of shareholders funds

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CAD 691.14 MM
ROCE(HY) Highest at 11.6%
NET PROFIT(Q) At CAD 22.59 MM has Grown at 154.08%

With ROE of 10.55%, it has a expensive valuation with a 4.07 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 130.06%, its profits have risen by 41.5% ; the PEG ratio of the company is 1.5

Majority shareholders : Non Institution

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Market Beating performance in long term as well as near term

Along with generating 130.06% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Exchange Income Corp. should be less than 10%
Overall Portfolio exposure to Airline should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Airline)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Exchange Income Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Exchange Income Corp.

130.06%

13.69

25.98%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.90%

EBIT Growth (5y)

57.51%

EBIT to Interest (avg)

2.14

Debt to EBITDA (avg)

3.68

Net Debt to Equity (avg)

1.43

Sales to Capital Employed (avg)

0.79

Tax Ratio

27.98%

Dividend Payout Ratio

83.00%

Pledged Shares

Institutional Holding

0.09%

ROCE (avg)

7.44%

ROE (avg)

7.64%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.07

EV to EBIT

24.75

EV to EBITDA

11.97

EV to Capital Employed

2.38

EV to Sales

2.72

PEG Ratio

1.51

Dividend Yield

ROCE (Latest)

9.61%

ROE (Latest)

10.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 691.14 MM

ROCE(HY)

Highest at 11.6%

NET PROFIT(Q)

At CAD 22.59 MM has Grown at 154.08%

CASH AND EQV(HY)

Highest at CAD 266.99 MM

DEBT-EQUITY RATIO (HY)

Lowest at 134.24 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4.91 times

DIVIDEND PER SHARE(HY)

Highest at CAD 5.18

PRE-TAX PROFIT(Q)

At CAD 28.98 MM has Grown at 105.31%

-4What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 139.14%

OPERATING PROFIT MARGIN(Q)

Lowest at 19.17 %

Here's what is working for Exchange Income Corp.

Net Profit

At CAD 22.59 MM has Grown at 154.08%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Operating Cash Flow

Highest at CAD 691.14 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Pre-Tax Profit

At CAD 28.98 MM has Grown at 105.31%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Cash and Eqv

Highest at CAD 266.99 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 134.24 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 4.91 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at CAD 5.18

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Here's what is not working for Exchange Income Corp.

Operating Profit Margin

Lowest at 19.17 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Dividend Payout Ratio

Lowest at 139.14%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)