EDISON INTERNATIONAL (EIX) Stock Fundamental Analysis
USA - NYSE:EIX - US2810201077 - Common Stock
58.71 USD
-0.37 (-0.63%)
58.71 USD
0 (0%)
Overall EIX gets a fundamental rating of 4 out of 10. We evaluated EIX against 47 industry peers in the Electric Utilities industry. While EIX has a great profitability rating, there are quite some concerns on its financial health. EIX is not valued too expensively and it also shows a decent growth rate. EIX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
EIX had positive earnings in the past year.
In the past year EIX had a positive cash flow from operations.
EIX had positive earnings in each of the past 5 years.
EIX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EIX has a better Return On Assets (3.26%) than 68.09% of its industry peers.
EIX has a Return On Equity of 17.20%. This is amongst the best in the industry. EIX outperforms 89.36% of its industry peers.
The Return On Invested Capital of EIX (4.19%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for EIX is in line with the industry average of 5.02%.
The last Return On Invested Capital (4.19%) for EIX is above the 3 year average (3.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 17.2% | ||
| ROIC | 4.19% |
ROA(3y)1.25%
ROA(5y)1.17%
ROE(3y)6.63%
ROE(5y)5.86%
ROIC(3y)3.67%
ROIC(5y)3.61%
1.3 Margins
EIX has a Profit Margin of 16.31%. This is amongst the best in the industry. EIX outperforms 85.11% of its industry peers.
EIX's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 24.34%, EIX is doing good in the industry, outperforming 63.83% of the companies in the same industry.
In the last couple of years the Operating Margin of EIX has grown nicely.
EIX has a better Gross Margin (72.50%) than 70.21% of its industry peers.
In the last couple of years the Gross Margin of EIX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.34% | ||
| PM (TTM) | 16.31% | ||
| GM | 72.5% |
OM growth 3Y1.76%
OM growth 5Y2.3%
PM growth 3Y12.74%
PM growth 5Y-6.84%
GM growth 3Y3.86%
GM growth 5Y2.97%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EIX is destroying value.
Compared to 1 year ago, EIX has more shares outstanding
EIX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EIX is higher compared to a year ago.
2.2 Solvency
EIX has an Altman-Z score of 0.67. This is a bad value and indicates that EIX is not financially healthy and even has some risk of bankruptcy.
EIX has a worse Altman-Z score (0.67) than 72.34% of its industry peers.
A Debt/Equity ratio of 2.12 is on the high side and indicates that EIX has dependencies on debt financing.
With a Debt to Equity ratio value of 2.12, EIX is not doing good in the industry: 91.49% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.67 |
ROIC/WACC0.75
WACC5.58%
2.3 Liquidity
EIX has a Current Ratio of 0.82. This is a bad value and indicates that EIX is not financially healthy enough and could expect problems in meeting its short term obligations.
EIX has a Current ratio (0.82) which is in line with its industry peers.
EIX has a Quick Ratio of 0.82. This is a bad value and indicates that EIX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.76, EIX perfoms like the industry average, outperforming 55.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.26% over the past year.
Measured over the past 5 years, EIX shows a small growth in Earnings Per Share. The EPS has been growing by 0.92% on average per year.
Looking at the last year, EIX shows a small growth in Revenue. The Revenue has grown by 4.41% in the last year.
Measured over the past years, EIX shows a small growth in Revenue. The Revenue has been growing by 7.34% on average per year.
EPS 1Y (TTM)11.26%
EPS 3Y2.42%
EPS 5Y0.92%
EPS Q2Q%54.97%
Revenue 1Y (TTM)4.41%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%10.56%
3.2 Future
Based on estimates for the next years, EIX will show a small growth in Earnings Per Share. The EPS will grow by 7.47% on average per year.
The Revenue is expected to grow by 4.51% on average over the next years.
EPS Next Y24.39%
EPS Next 2Y12.38%
EPS Next 3Y10.11%
EPS Next 5Y7.47%
Revenue Next Year7.3%
Revenue Next 2Y4.97%
Revenue Next 3Y4.41%
Revenue Next 5Y4.51%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EIX is valuated reasonably with a Price/Earnings ratio of 10.25.
74.47% of the companies in the same industry are more expensive than EIX, based on the Price/Earnings ratio.
EIX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
With a Price/Forward Earnings ratio of 9.45, the valuation of EIX can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EIX indicates a rather cheap valuation: EIX is cheaper than 82.98% of the companies listed in the same industry.
EIX is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 9.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EIX is valued a bit cheaper than the industry average as 78.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.74 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of EIX may justify a higher PE ratio.
PEG (NY)0.42
PEG (5Y)11.15
EPS Next 2Y12.38%
EPS Next 3Y10.11%
5. Dividend
5.1 Amount
EIX has a Yearly Dividend Yield of 5.85%, which is a nice return.
Compared to an average industry Dividend Yield of 3.22, EIX pays a better dividend. On top of this EIX pays more dividend than 95.74% of the companies listed in the same industry.
EIX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.85% |
5.2 History
On average, the dividend of EIX grows each year by 7.28%, which is quite nice.
EIX has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.28%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
45.56% of the earnings are spent on dividend by EIX. This is a bit on the high side, but may be sustainable.
EIX's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP45.56%
EPS Next 2Y12.38%
EPS Next 3Y10.11%
58.71
-0.37 (-0.63%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.39%
Inst Owner Change-0.12%
Ins Owners0.07%
Ins Owner Change-1.98%
Market Cap22.59B
Revenue(TTM)18.09B
Net Income(TTM)2.95B
Analysts73.64
Price Target67.82 (15.52%)
Short Float %2.05%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.85% |
Yearly Dividend3.35
Dividend Growth(5Y)7.28%
DP45.56%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.74%
Min EPS beat(2)4.98%
Max EPS beat(2)6.5%
EPS beat(4)3
Avg EPS beat(4)4.79%
Min EPS beat(4)-5.04%
Max EPS beat(4)12.72%
EPS beat(8)6
Avg EPS beat(8)5.97%
EPS beat(12)9
Avg EPS beat(12)5.2%
EPS beat(16)12
Avg EPS beat(16)6.47%
Revenue beat(2)2
Avg Revenue beat(2)4.41%
Min Revenue beat(2)1.75%
Max Revenue beat(2)7.07%
Revenue beat(4)3
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-11.43%
Max Revenue beat(4)7.07%
Revenue beat(8)5
Avg Revenue beat(8)-1.05%
Revenue beat(12)6
Avg Revenue beat(12)-1.14%
Revenue beat(16)9
Avg Revenue beat(16)1.23%
PT rev (1m)-2.5%
PT rev (3m)0.06%
EPS NQ rev (1m)-37.67%
EPS NQ rev (3m)-34.67%
EPS NY rev (1m)0.42%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)-13.72%
Revenue NQ rev (3m)-12.12%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 9.45 | ||
| P/S | 1.25 | ||
| P/FCF | N/A | ||
| P/OCF | 4.19 | ||
| P/B | 1.32 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 7.74 |
EPS(TTM)5.73
EY9.76%
EPS(NY)6.21
Fwd EY10.58%
FCF(TTM)-1.88
FCFYN/A
OCF(TTM)14.03
OCFY23.89%
SpS46.99
BVpS44.58
TBVpS44.58
PEG (NY)0.42
PEG (5Y)11.15
Graham Number75.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 17.2% | ||
| ROCE | 5.43% | ||
| ROIC | 4.19% | ||
| ROICexc | 4.21% | ||
| ROICexgc | 4.21% | ||
| OM | 24.34% | ||
| PM (TTM) | 16.31% | ||
| GM | 72.5% | ||
| FCFM | N/A |
ROA(3y)1.25%
ROA(5y)1.17%
ROE(3y)6.63%
ROE(5y)5.86%
ROIC(3y)3.67%
ROIC(5y)3.61%
ROICexc(3y)3.7%
ROICexc(5y)3.63%
ROICexgc(3y)3.7%
ROICexgc(5y)3.63%
ROCE(3y)4.74%
ROCE(5y)4.7%
ROICexgc growth 3Y2.82%
ROICexgc growth 5Y3.98%
ROICexc growth 3Y2.82%
ROICexc growth 5Y3.98%
OM growth 3Y1.76%
OM growth 5Y2.3%
PM growth 3Y12.74%
PM growth 5Y-6.84%
GM growth 3Y3.86%
GM growth 5Y2.97%
F-Score7
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.79 | ||
| Cap/Depr | 192.09% | ||
| Cap/Sales | 33.84% | ||
| Interest Coverage | 2.54 | ||
| Cash Conversion | 71.14% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 0.67 |
F-Score7
WACC5.58%
ROIC/WACC0.75
Cap/Depr(3y)204.62%
Cap/Depr(5y)224.95%
Cap/Sales(3y)33.11%
Cap/Sales(5y)35.33%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.26%
EPS 3Y2.42%
EPS 5Y0.92%
EPS Q2Q%54.97%
EPS Next Y24.39%
EPS Next 2Y12.38%
EPS Next 3Y10.11%
EPS Next 5Y7.47%
Revenue 1Y (TTM)4.41%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%10.56%
Revenue Next Year7.3%
Revenue Next 2Y4.97%
Revenue Next 3Y4.41%
Revenue Next 5Y4.51%
EBIT growth 1Y14.43%
EBIT growth 3Y7.55%
EBIT growth 5Y9.81%
EBIT Next Year114.92%
EBIT Next 3Y32.13%
EBIT Next 5Y20.74%
FCF growth 1Y62.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y47.89%
OCF growth 3Y669.6%
OCF growth 5YN/A
EDISON INTERNATIONAL / EIX FAQ
Can you provide the ChartMill fundamental rating for EDISON INTERNATIONAL?
ChartMill assigns a fundamental rating of 4 / 10 to EIX.
What is the valuation status for EIX stock?
ChartMill assigns a valuation rating of 6 / 10 to EDISON INTERNATIONAL (EIX). This can be considered as Fairly Valued.
Can you provide the profitability details for EDISON INTERNATIONAL?
EDISON INTERNATIONAL (EIX) has a profitability rating of 7 / 10.
What is the valuation of EDISON INTERNATIONAL based on its PE and PB ratios?
The Price/Earnings (PE) ratio for EDISON INTERNATIONAL (EIX) is 10.25 and the Price/Book (PB) ratio is 1.32.
Can you provide the dividend sustainability for EIX stock?
The dividend rating of EDISON INTERNATIONAL (EIX) is 7 / 10 and the dividend payout ratio is 45.56%.