Exchange Income Corporation
Exchange Income Corporation Fundamental Analysis
Exchange Income Corporation (EIF.TO) shows weak financial fundamentals with a PE ratio of 34.84, profit margin of 5.11%, and ROE of 10.61%. The company generates $3.4B in annual revenue with moderate year-over-year growth of 6.46%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EIF.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakEIF.TO struggles to generate sufficient returns from assets.
Valuation Score
WeakEIF.TO trades at a premium to fair value.
Growth Score
ModerateEIF.TO shows steady but slowing expansion.
Financial Health Score
ModerateEIF.TO shows balanced financial health with some risks.
Profitability Score
WeakEIF.TO struggles to sustain strong margins.
Key Financial Metrics
Is EIF.TO Expensive or Cheap?
P/E Ratio
EIF.TO trades at 34.84 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EIF.TO's PEG of 3.11 indicates potential overvaluation.
Price to Book
The market values Exchange Income Corporation at 3.32 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.66 times EBITDA. This is generally considered low.
How Well Does EIF.TO Make Money?
Net Profit Margin
For every $100 in sales, Exchange Income Corporation keeps $5.11 as profit after all expenses.
Operating Margin
Core operations generate 11.27 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.61 in profit for every $100 of shareholder equity.
ROA
Exchange Income Corporation generates $3.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Exchange Income Corporation produces operating cash flow of $662.97M, showing steady but balanced cash generation.
Free Cash Flow
Exchange Income Corporation generates weak or negative free cash flow of $-83.62M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.49 in free cash annually.
FCF Yield
EIF.TO converts -1.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How EIF.TO Stacks Against Its Sector Peers
| Metric | EIF.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.84 | 25.81 | Worse (Expensive) |
| ROE | 10.61% | 1255.00% | Weak |
| Net Margin | 5.11% | -46754.00% (disorted) | Weak |
| Debt/Equity | 1.50 | 0.78 | Weak (High Leverage) |
| Current Ratio | 1.71 | 10.04 | Neutral |
| ROA | 3.18% | -1492804.00% (disorted) | Weak |
EIF.TO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Exchange Income Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
58.75%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
16.05%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
31.57%
Industry Style: Cyclical, Value, Infrastructure
High Growth