Exchange Income (EIF.TO)

Solid, double-digit EBITDA growth on latest results. Raising dividend soon, 47% payout ratio. Trades below its 5-year average. Raised guidance. Problems are that there are a lot of cheap stocks out there and its balance sheet. Trades at 11x earnings, with 16% EPS growth.

The chart is struggling to consolidate. You don't want to see it fall below the previous low (and currently) of $50. But if it breaks upwards, you buy it.

Diversified industrial company. 
Wellington-Altus a major shareholder.
Strong dividend payout with good share price performance. 
Concern: bought deals during high share price environments. 
Wait to buy when shares fall to $40 range. 

Doesn't own it because it lacks a clear strategy, though they buy profitable businesses well. Can they sustain that? Appears to, based on their track record. He prefers safer investments with strong assets. He continues to watch this, maybe buy on dips.

Likes CEO and management. Accretive acquisitions, to which it brings capital and expertise. Really consistent. Dividend has grown 5% annually for 19 years. Returned just south of 20% annually during that time. Repeatable business model. Recent $172M equity financing. Recent big contracts from BC government and AC. About $1B in liquidity to fund the next opportunity. Yield is 4.88%.

It invests in aviation and pays a good dividend of 4.8%. It is good to hold for the long term. You could buy above $56 since it should go much higher.

In another base. Nothing wrong with the chart. A good stock to hold and collect the dividend. Boring, safe-looking chart. He wants to own safer stuff like this right now.

Does not own shares.
Strong Canadian company within aerospace sector.
Share prices have been excellent over past 5 years.

Executed very well. Recent acquisition looks accretive. Defensive cashflows, nice dividend. Reasonable valuation at 11x 2024 earnings, with 10% growth rate. Still room for upside.

EIF is a grab-bag of companies and it grows by buying companies. he just met with them. They have a great, long track record of buying companies, cash-flowing them, paying rising dividends, and he likes this. Problem is risk lies with a few top managers to buy good companies--how long can this last? Great managers. Good for you if you bought it, but too risky for him, at least for now.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Highly cyclical and have significant debts. Their air business has little to no competition. Fundamentals are looking good here. Valuation is a bit pricey at 16.3x forward earnings and 1.1x forward sales. The industry is recovering and growth is expected to resume. Dividend record is solid. Unlock Premium - Try 5i Free