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Currency Exch Intl J (TSE:CXI)
TSX:CXI
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Currency Exchange International
(TSX:CXI)
65Neutral
Currency Exchange International (CXI) vs. S&P 500 (SPY)
Market Cap
C$134.17M
Dividend YieldN/A
Average Volume (3M)5.62K
Price to Earnings (P/E)41.1
Beta (1Y)0.37
Revenue Growth4.85%
EPS Growth-75.60%
CountryCA
Employees390
SectorFinancial
Sector Strength77
IndustryCapital Markets
Share Statistics
EPS (TTM)0.52
Shares Outstanding6,287,204
10 Day Avg. Volume5,480
30 Day Avg. Volume5,617
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.52
Price to Cash Flow (P/CF)-1.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Currency Exchange International Business Overview & Revenue Model
Company DescriptionCurrency Exchange International (CXI) is a leading provider of foreign currency exchange services in North America. The company operates in the financial services sector, offering a range of products including the exchange of more than 90 currencies, international wire transfers, and foreign check clearing services. CXI serves individual consumers, businesses, and financial institutions through a network of retail branches and strategic partnerships.
How the Company Makes MoneyCurrency Exchange International (CXI) generates revenue primarily through the spread between the buy and sell rates of foreign currencies. By offering competitive exchange rates and charging a small margin on each transaction, the company profits from the volume of exchanges it handles. Additionally, CXI earns fees from ancillary services such as international wire transfers and foreign check clearing. The company also benefits from partnerships with banks and financial institutions, which expand its customer base and service offerings. These partnerships, along with CXI's retail locations, are significant contributors to its earnings by increasing the volume of transactions processed.
Currency Exchange International Financial Statement Overview
Summary
Currency Exchange International exhibits a strong financial position with solid revenue growth and effective cost management. While profitability metrics have shown some volatility, the company's financial stability and cash flow management remain robust. The balance sheet indicates low leverage, though the decrease in return on equity suggests areas for improvement in utilizing equity capital efficiently.Income Statement
Currency Exchange International has shown a consistent increase in total revenue over the years, with a notable revenue growth rate of approximately 5.9% from 2023 to 2024. The gross profit margin is strong, indicating effective cost management, though there is a significant decline in net income from 2023 to 2024, affecting the net profit margin adversely. The company's EBITDA and EBIT margins remain relatively stable, suggesting operational efficiency.70
Positive
Balance Sheet
The balance sheet is solid with a healthy equity ratio of around 60.5% in 2024, indicating strong financial stability and low leverage risk. The debt-to-equity ratio is low, reflecting prudent debt management. Return on equity decreased significantly, indicating a potential inefficiency in using shareholder funds to generate profits in the latest year.75
Positive
Cash Flow
The cash flow statements reflect strong recovery in operating cash flow, with a substantial turnaround from negative to positive free cash flow from 2023 to 2024. The free cash flow to net income ratio is robust, underscoring effective cash management. However, the fluctuations in operating cash flow across years suggest potential volatility in operational cash generation.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 85.24M | 81.95M | 66.28M | 30.26M | 25.01M | Gross Profit |
| 48.11M | 80.94M | 40.87M | 12.57M | 8.15M | EBIT |
| 15.68M | 18.73M | 18.72M | 1.06M | -7.29M | EBITDA |
| 13.40M | 19.20M | 18.83M | 3.92M | -5.99M | Net Income Common Stockholders |
| 2.47M | 10.19M | 11.78M | -1.13M | -8.52M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 101.88M | 92.72M | 88.56M | 66.53M | 59.31M | Total Assets |
| 131.16M | 132.05M | 125.53M | 102.53M | 85.76M | Total Debt |
| 11.34M | 17.65M | 10.46M | 8.11M | 8.51M | Net Debt |
| -90.54M | -75.07M | -78.10M | -58.42M | -50.80M | Total Liabilities |
| 51.77M | 52.82M | 56.22M | 44.51M | 27.53M | Stockholders Equity |
| 79.39M | 79.23M | 69.31M | 58.02M | 58.23M |
| Cash Flow | Free Cash Flow | |||
| 23.67M | -1.66M | 24.60M | 7.25M | -1.53M | Operating Cash Flow |
| 26.67M | -1.13M | 25.52M | 7.64M | -938.50K | Investing Cash Flow |
| -3.00M | -1.28M | -1.29M | -391.14K | -3.35M | Financing Cash Flow |
| -14.32M | 6.17M | 214.15K | -1.49M | 795.04K |
Currency Exchange International Technical Analysis
Negative
21.34
Price Trends
22.25
Negative
23.09
Negative
24.37
Negative
Market Momentum
-0.23
Positive
38.74
Neutral
17.32
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CXI, the sentiment is Negative. The current price of 21.34 is below the 20-day moving average (MA) of 21.71, below the 50-day MA of 22.25, and below the 200-day MA of 24.37, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 38.74 is Neutral, neither overbought nor oversold. The STOCH value of 17.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CXI.
Currency Exchange International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.28B | 17.65 | 15.82% | ― | 4.64% | 41.68% | |
65 Neutral | C$134.17M | 41.05 | 3.06% | ― | 4.85% | -75.60% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
55 Neutral | C$806.88M | ― | 3.65% | 1.35% | 49.43% | 99.91% | |
53 Neutral | $1.16B | ― | -0.24% | 7.40% | -3.68% | -111.41% | |
44 Neutral | $31.81M | ― | -19.77% | ― | 8.35% | 84.36% |
* Financial Sector Average
Performance Comparison
TSE:CXI
Currency Exchange International
21.34
-3.26
-13.25%
TSE:MOGO
Mogo Finance Technology
1.30
-1.29
-49.81%
TSE:LB
Laurentian Bank
26.30
-1.00
-3.66%
TSE:GOOS
Canada Goose Holdings
13.22
-4.54
-25.56%
TSE:ECN
ECN Capital
2.87
0.41
16.67%
Currency Exchange International Earnings Call Summary
Earnings Call Date: Jan 22, 2025 | % Change Since: -6.81% | Next Earnings Date: Mar 12, 2025
Earnings Call Sentiment Neutral
The earnings call revealed mixed results with notable growth in the payments sector and expansion in direct-to-consumer services. However, these were offset by significant financial challenges, including a net loss influenced by nonrecurring costs in Canada, a decline in wholesale banknotes, and increased operating expenses. The strategic review of Canadian operations indicates ongoing challenges in this market.Highlights
Growth in Payments Product Line
Revenue from the payments product line increased by $704,000 or 20% for the 3-month period ended October 31, 2024, driven by volume growth and increased activity in the United States and net gains from settlement timing differences in Canada.
Expansion in Direct-to-Consumer Business
Direct-to-consumer banknotes revenue increased by $220,000 or 3%, with the online FX platform now serving 44 states, including the District of Columbia, contributing to the growth despite two hurricanes affecting operations in Florida.
New Branch Openings
Two new locations opened in Massachusetts and Georgia, expanding the total number of company-owned branches to 40 across the U.S.
Strategic Focus on Payments and Integration
CXI's payment business is progressing with integrations such as FedNow, allowing for domestic payment processing without moving money directly, enhancing software-as-a-service income.
Lowlights
Net Loss in Current Quarter
Reported a net loss of $2.8 million for the current quarter compared to a net income of $2.3 million for the same period last year, due to several nonrecurring items in Canada.
Decline in Wholesale Banknotes Revenue
Wholesale banknotes revenue decreased by $660,000 or 6%, with trading volumes dropping from $2.06 billion to $1.88 billion, particularly due to reduced volumes from key U.S. customers.
Increased Operating Expenses
Operating expenses increased by $3.2 million or 19%, influenced by nonrecurring items in Canada.
Strategic Review of Canadian Operations
Several nonrecurring items, including regulatory penalties and tax adjustments, impacted the Canadian subsidiary, leading to a strategic review.
Company Guidance
During the CXI.TO Q4 2024 earnings call, management provided guidance that highlighted several key financial metrics and strategic initiatives. The company reported a net loss of $2.8 million for the quarter, contrasting with a net income of $2.3 million in the same period last year, largely due to nonrecurring items in Canada. Adjusted net income, however, grew by 21% to $2.78 million, with $3.35 million from the U.S. and a loss of $570,000 in Canada. Revenue increased slightly to $23 million, with growth in the payments and direct-to-consumer banknotes lines, though offset by a decline in wholesale banknotes. Operating expenses rose by 19%, influenced by several nonrecurring Canadian items, and the adjusted EBITDA margin remained flat at 26%. The company also discussed strategic investments in technology, such as the Kyriba Treasury Management System and Alessa's AML compliance software, which support operational efficiency and future growth. The call further detailed a focus on expanding retail and agent locations, enhancing the online FX platform, and pursuing strategic reviews for the Exchange Bank of Canada, aiming to maximize long-term shareholder value.Currency Exchange International Corporate Events
Business Operations and Strategy
Currency Exchange International to Discontinue Canadian Subsidiary Operations
Neutral
Mar 9, 2025
Currency Exchange International, Corp. announced its strategic decision to discontinue operations of its subsidiary, Exchange Bank of Canada, due to a challenging business environment in Canada. This move allows the company to concentrate on its U.S. operations, where significant growth potential is identified. The company plans to pursue referral agreements for EBC’s customers and employees with other Canadian financial businesses. Despite incurring one-time costs associated with the closure, CXI expects to remain profitable and maintain a positive long-term outlook by focusing on its fintech businesses in the U.S.
Business Operations and StrategyFinancial Disclosures
Currency Exchange International Reports Revenue Growth Amidst Challenges
Neutral
Jan 22, 2025
Currency Exchange International reported a 4% increase in revenue for the fiscal year ending October 31, 2024. Despite a significant decline in net income by 76% due to non-recurring charges in Canada, the company’s adjusted net income remained stable compared to the previous year, with a slight increase in adjusted diluted earnings per share. The results demonstrate resilience in CXI’s core operations despite challenges, indicating potential areas for operational improvement in the Canadian segment.
Currency Exchange International to Report Q4 and Fiscal Year 2024 Results
Jan 15, 2025
Currency Exchange International will announce its financial results for the Fourth Quarter and Fiscal Year End of 2024 on January 22, 2025, with an earnings conference call scheduled for January 23, 2025. This announcement will provide insights into the company’s recent financial and operational performance, which is crucial for stakeholders to assess its market position and future outlook.
CXI Announces Strategic Review of Exchange Bank of Canada
Jan 8, 2025
Currency Exchange International, Corp. has announced a strategic review of its wholly-owned subsidiary, Exchange Bank of Canada, to explore options for maximizing long-term shareholder value and focusing resources on profitable U.S. operations. The company has retained INFOR Financial Inc. as a strategic advisor, emphasizing that there is no guarantee of a specific transaction resulting from the review, and aims to ensure minimal disruption to stakeholders during this process.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.