Professional
Added to YB: 2026-03-11
Pitch date: 2026-03-09
EIF.TO [bearish]
Exchange Income Corporation
+0.78%
current return
Author Info
Glasshouse Research is a team of forensic accountants/analysts on the look out for fraudulent companies. Visit the website.
Company Info
Exchange Income Corporation, together with its subsidiaries, engages in aerospace and aviation, and manufacturing markets worldwide.
Market Cap
CAD 5.7B
Pitch Price
CAD 99.69
Price Target
N/A
Dividend
2.73%
EV/EBITDA
10.59
P/E
32.39
EV/Sales
2.43
Sector
Passenger Airlines
Category
dividend
EXCHANGE INCOME CORPORATION: ENGINEERING THE PAYOUT
EIF.TO (short): Marketed as defensive Canadian dividend compounder, but ~50%+ of Regional One's leasing customers are medium-to-high-risk counterparties (Nepal, Nigeria, Venezuela, etc); multiple bankruptcies (CityJet, Elite Airways, Mesa). ~30-50 aircraft (33% fleet) parked in Arizona storage since COVID, depreciating invisibly below EBITDA before part-out creates inflated margins above it. R1 uses price-driven inventory costing vs peers' historical cost method. Mgmt changed 'Maintenance CapEx' definition 3x in 6yrs to stabilize dividend coverage optics. Reported FCF $541M (2025) vs conventional FCF only $23M; 9 of last 10yrs averaged -$128M internal cash deficit. ROIC ~7% (below cost of capital) despite asset base expansion. Dividend funded by external capital (just priced $600M bond) not internal cash generation.
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