Q: What is the impetus behind the rise of EIF from about $46 (April 2025) to $82 or so today (December 2025)?
Should I add more at this price level. Thanks.
Should I add more at this price level. Thanks.
5i Research Answer:
The could be multiple reasons here: 1) Interest rates are moving lower in Canada, boosting both valuations and the attractiveness of its dividend. 2) Earnings have been exceeding expectations. 3) Estimates have been rising recently with strong growth in several of its divisions. 4) It has been getting brokerage upgrades. 5) Growth: EPS is going from $2.67 last year to an estimated $4.19 next year. 6) EIF raised its dividend in November and has a good history of increases there. 7) It has simplified its capital structure with the elimination of its convertible debentures. 8) Investors appreciate its infrastructure and defense exposure potential.
We would still consider it Buyable today at 23X earnings and a 3.3% yield.