EDISON INTERNATIONAL (EIX) Stock Fundamental Analysis
NYSE:EIX - New York Stock Exchange, Inc. - US2810201077 - Common Stock
EIX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. EIX has a medium profitability rating, but doesn't score so well on its financial health evaluation. EIX is not valued too expensively and it also shows a decent growth rate. Finally EIX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EIX was profitable.
In the past year EIX had a positive cash flow from operations.
In the past 5 years EIX has always been profitable.
Of the past 5 years EIX 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of EIX (1.56%) is worse than 83.78% of its industry peers.
EIX has a worse Return On Equity (8.44%) than 70.27% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.91%, EIX is in line with its industry, outperforming 59.46% of the companies in the same industry.
EIX had an Average Return On Invested Capital over the past 3 years of 3.57%. This is in line with the industry average of 4.61%.
The 3 year average ROIC (3.57%) for EIX is below the current ROIC(3.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.56% | ||
| ROE | 8.44% | ||
| ROIC | 3.91% |
ROA(3y)1.09%
ROA(5y)1.26%
ROE(3y)5.47%
ROE(5y)5.87%
ROIC(3y)3.57%
ROIC(5y)3.48%
1.3 Margins
EIX has a Profit Margin of 7.63%. This is in the lower half of the industry: EIX underperforms 75.68% of its industry peers.
In the last couple of years the Profit Margin of EIX has grown nicely.
EIX has a better Operating Margin (21.94%) than 62.16% of its industry peers.
In the last couple of years the Operating Margin of EIX has grown nicely.
The Gross Margin of EIX (70.13%) is better than 62.16% of its industry peers.
In the last couple of years the Gross Margin of EIX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.94% | ||
| PM (TTM) | 7.63% | ||
| GM | 70.13% |
OM growth 3Y1.78%
OM growth 5Y4.36%
PM growth 3Y10.42%
PM growth 5YN/A
GM growth 3Y1.42%
GM growth 5Y3%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EIX is destroying value.
The number of shares outstanding for EIX has been increased compared to 1 year ago.
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.
Looking at the Altman-Z score, with a value of 0.67, EIX is doing worse than 64.86% of the companies in the same industry.
A Debt/Equity ratio of 2.10 is on the high side and indicates that EIX has dependencies on debt financing.
EIX's Debt to Equity ratio of 2.10 is on the low side compared to the rest of the industry. EIX is outperformed by 86.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.67 |
ROIC/WACC0.67
WACC5.85%
2.3 Liquidity
A Current Ratio of 0.88 indicates that EIX may have some problems paying its short term obligations.
EIX has a Current ratio of 0.88. This is comparable to the rest of the industry: EIX outperforms 43.24% of its industry peers.
A Quick Ratio of 0.81 indicates that EIX may have some problems paying its short term obligations.
EIX has a Quick ratio (0.81) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.23% 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 2.10% on average per year.
EIX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.04%.
Measured over the past years, EIX shows a small growth in Revenue. The Revenue has been growing by 5.24% on average per year.
EPS 1Y (TTM)11.23%
EPS 3Y1.97%
EPS 5Y2.1%
EPS Q2Q%9.42%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y6.36%
Revenue growth 5Y5.24%
Sales Q2Q%10.61%
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 7.89% on average per year.
Based on estimates for the next years, EIX will show a small growth in Revenue. The Revenue will grow by 3.06% on average per year.
EPS Next Y4.79%
EPS Next 2Y9.93%
EPS Next 3Y8.76%
EPS Next 5Y7.89%
Revenue Next Year0.86%
Revenue Next 2Y2.59%
Revenue Next 3Y3.15%
Revenue Next 5Y3.06%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.08, EIX is valued correctly.
Based on the Price/Earnings ratio, EIX is valued a bit cheaper than the industry average as 64.86% of the companies are valued more expensively.
EIX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 10.82 indicates a reasonable valuation of EIX.
Based on the Price/Forward Earnings ratio, EIX is valued cheaply inside the industry as 83.78% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of EIX to the average of the S&P500 Index (24.44), we can say EIX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 10.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EIX indicates a somewhat cheap valuation: EIX is cheaper than 75.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
EIX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.52
PEG (5Y)5.75
EPS Next 2Y9.93%
EPS Next 3Y8.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.41%, EIX is a good candidate for dividend investing.
The stock price of EIX dropped by -25.84% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
EIX's Dividend Yield is rather good when compared to the industry average which is at 3.61. EIX pays more dividend than 97.30% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, EIX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.41% |
5.2 History
The dividend of EIX has a limited annual growth rate of 5.67%.
EIX has been paying a dividend for at least 10 years, so it has a reliable track record.
EIX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.67%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
EIX pays out 95.76% of its income as dividend. This is not a sustainable payout ratio.
The dividend of EIX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP95.76%
EPS Next 2Y9.93%
EPS Next 3Y8.76%
EDISON INTERNATIONAL
NYSE:EIX (1/21/2025, 8:04:00 PM)
After market: 62.87 +0.64 (+1.03%)62.23
-0.47 (-0.75%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners92.11%
Inst Owner Change-0.12%
Ins Owners0.07%
Ins Owner Change0.67%
Market Cap24.09B
Analysts76
Price Target92.49 (48.63%)
Short Float %1.54%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.41% |
Yearly Dividend3.18
Dividend Growth(5Y)5.67%
DP95.76%
Div Incr Years18
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.75%
Min EPS beat(2)8.07%
Max EPS beat(2)13.43%
EPS beat(4)3
Avg EPS beat(4)7.15%
Min EPS beat(4)-2.29%
Max EPS beat(4)13.43%
EPS beat(8)6
Avg EPS beat(8)5.4%
EPS beat(12)9
Avg EPS beat(12)7.03%
EPS beat(16)10
Avg EPS beat(16)4.94%
Revenue beat(2)2
Avg Revenue beat(2)3.48%
Min Revenue beat(2)2.81%
Max Revenue beat(2)4.16%
Revenue beat(4)2
Avg Revenue beat(4)-1.56%
Min Revenue beat(4)-10.37%
Max Revenue beat(4)4.16%
Revenue beat(8)3
Avg Revenue beat(8)-1.44%
Revenue beat(12)6
Avg Revenue beat(12)1.82%
Revenue beat(16)7
Avg Revenue beat(16)0.94%
PT rev (1m)-0.06%
PT rev (3m)2.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.3%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 10.82 | ||
| P/S | 1.39 | ||
| P/FCF | N/A | ||
| P/OCF | 5.13 | ||
| P/B | 1.54 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 8.83 |
EPS(TTM)5.15
EY8.28%
EPS(NY)5.75
Fwd EY9.24%
FCF(TTM)-2.5
FCFYN/A
OCF(TTM)12.14
OCFY19.5%
SpS44.74
BVpS40.46
TBVpS40.46
PEG (NY)2.52
PEG (5Y)5.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.56% | ||
| ROE | 8.44% | ||
| ROCE | 4.98% | ||
| ROIC | 3.91% | ||
| ROICexc | 3.92% | ||
| ROICexgc | 3.92% | ||
| OM | 21.94% | ||
| PM (TTM) | 7.63% | ||
| GM | 70.13% | ||
| FCFM | N/A |
ROA(3y)1.09%
ROA(5y)1.26%
ROE(3y)5.47%
ROE(5y)5.87%
ROIC(3y)3.57%
ROIC(5y)3.48%
ROICexc(3y)3.6%
ROICexc(5y)3.5%
ROICexgc(3y)3.6%
ROICexgc(5y)3.5%
ROCE(3y)4.64%
ROCE(5y)4.52%
ROICexcg growth 3Y1.78%
ROICexcg growth 5Y2.34%
ROICexc growth 3Y1.78%
ROICexc growth 5Y2.34%
OM growth 3Y1.78%
OM growth 5Y4.36%
PM growth 3Y10.42%
PM growth 5YN/A
GM growth 3Y1.42%
GM growth 5Y3%
F-Score6
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.1 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.93 | ||
| Cap/Depr | 197.49% | ||
| Cap/Sales | 32.72% | ||
| Interest Coverage | 2.5 | ||
| Cash Conversion | 70.45% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 0.67 |
F-Score6
WACC5.85%
ROIC/WACC0.67
Cap/Depr(3y)220.09%
Cap/Depr(5y)240.21%
Cap/Sales(3y)34.61%
Cap/Sales(5y)36.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.23%
EPS 3Y1.97%
EPS 5Y2.1%
EPS Q2Q%9.42%
EPS Next Y4.79%
EPS Next 2Y9.93%
EPS Next 3Y8.76%
EPS Next 5Y7.89%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y6.36%
Revenue growth 5Y5.24%
Sales Q2Q%10.61%
Revenue Next Year0.86%
Revenue Next 2Y2.59%
Revenue Next 3Y3.15%
Revenue Next 5Y3.06%
EBIT growth 1Y12.53%
EBIT growth 3Y8.26%
EBIT growth 5Y9.83%
EBIT Next Year100.44%
EBIT Next 3Y32.84%
EBIT Next 5Y21.5%
FCF growth 1Y69.94%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y85.07%
OCF growth 3Y39.12%
OCF growth 5Y1.37%