EDISON INTERNATIONAL (EIX) Stock Fundamental Analysis
NYSE:EIX - New York Stock Exchange, Inc. - US2810201077 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to EIX. EIX was compared to 46 industry peers in the Electric Utilities industry. While EIX is still in line with the averages on profitability rating, there are concerns on its financial health. EIX has a decent growth rate and is not valued too expensively. 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.
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
With a Return On Assets value of 1.50%, EIX is not doing good in the industry: 69.57% of the companies in the same industry are doing better.
With a Return On Equity value of 8.25%, EIX perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
EIX has a Return On Invested Capital of 3.82%. This is comparable to the rest of the industry: EIX outperforms 56.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EIX is in line with the industry average of 4.69%.
The last Return On Invested Capital (3.82%) for EIX is above the 3 year average (3.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 8.25% | ||
| ROIC | 3.82% |
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
The Profit Margin of EIX (7.30%) is worse than 60.87% of its industry peers.
In the last couple of years the Profit Margin of EIX has declined.
With a Operating Margin value of 21.47%, EIX perfoms like the industry average, outperforming 58.70% of the companies in the same industry.
In the last couple of years the Operating Margin of EIX has grown nicely.
Looking at the Gross Margin, with a value of 70.40%, EIX is in the better half of the industry, outperforming 67.39% of the companies in the same industry.
EIX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.47% | ||
| PM (TTM) | 7.3% | ||
| GM | 70.4% |
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
EIX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
EIX has a worse debt/assets ratio than last year.
2.2 Solvency
EIX has an Altman-Z score of 0.65. This is a bad value and indicates that EIX is not financially healthy and even has some risk of bankruptcy.
EIX's Altman-Z score of 0.65 is in line compared to the rest of the industry. EIX outperforms 45.65% of its industry peers.
A Debt/Equity ratio of 2.22 is on the high side and indicates that EIX has dependencies on debt financing.
With a Debt to Equity ratio value of 2.22, EIX is not doing good in the industry: 76.09% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.65 |
ROIC/WACC0.68
WACC5.6%
2.3 Liquidity
EIX has a Current Ratio of 0.85. This is a bad value and indicates that EIX is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.85, EIX is in the better half of the industry, outperforming 63.04% of the companies in the same industry.
EIX has a Quick Ratio of 0.85. 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 better Quick ratio (0.78) than 71.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.36% 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.
EIX shows a small growth in Revenue. In the last year, the Revenue has grown by 7.70%.
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)3.36%
EPS 3Y2.42%
EPS 5Y0.92%
EPS Q2Q%-17.97%
Revenue 1Y (TTM)7.7%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%7.42%
3.2 Future
EIX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.01% yearly.
Based on estimates for the next years, EIX will show a small growth in Revenue. The Revenue will grow by 3.19% on average per year.
EPS Next Y22.59%
EPS Next 2Y11.95%
EPS Next 3Y10.05%
EPS Next 5Y9.01%
Revenue Next Year6.35%
Revenue Next 2Y5.06%
Revenue Next 3Y4.67%
Revenue Next 5Y3.19%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 11.34.
78.26% of the companies in the same industry are more expensive than EIX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of EIX to the average of the S&P500 Index (28.29), we can say EIX is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.25, the valuation of EIX can be described as very reasonable.
Based on the Price/Forward Earnings ratio, EIX is valued cheaper than 86.96% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EIX to the average of the S&P500 Index (21.32), we can say EIX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.34 | ||
| Fwd PE | 9.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EIX is valued cheaper than 80.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.56 |
4.3 Compensation for Growth
EIX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.5
PEG (5Y)12.34
EPS Next 2Y11.95%
EPS Next 3Y10.05%
5. Dividend
5.1 Amount
EIX has a Yearly Dividend Yield of 5.77%, which is a nice return.
EIX's Dividend Yield is rather good when compared to the industry average which is at 3.47. EIX pays more dividend than 93.48% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, EIX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.77% |
5.2 History
The dividend of EIX is nicely growing with an annual growth rate of 7.28%!
EIX has paid a dividend for at least 10 years, which is a reliable track record.
EIX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.28%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
EIX pays out 100.16% of its income as dividend. This is not a sustainable payout ratio.
EIX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP100.16%
EPS Next 2Y11.95%
EPS Next 3Y10.05%
55.81
-1.58 (-2.75%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.54%
Inst Owner Change0.12%
Ins Owners0.06%
Ins Owner Change15.18%
Market Cap21.49B
Analysts78.18
Price Target72.37 (29.67%)
Short Float %2.22%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.77% |
Yearly Dividend3.35
Dividend Growth(5Y)7.28%
DP100.16%
Div Incr Years18
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.52%
Min EPS beat(2)-5.04%
Max EPS beat(2)8.07%
EPS beat(4)2
Avg EPS beat(4)3.54%
Min EPS beat(4)-5.04%
Max EPS beat(4)13.43%
EPS beat(8)5
Avg EPS beat(8)4.33%
EPS beat(12)8
Avg EPS beat(12)5.76%
EPS beat(16)10
Avg EPS beat(16)4.72%
Revenue beat(2)2
Avg Revenue beat(2)1.63%
Min Revenue beat(2)0.45%
Max Revenue beat(2)2.81%
Revenue beat(4)3
Avg Revenue beat(4)1.15%
Min Revenue beat(4)-2.84%
Max Revenue beat(4)4.16%
Revenue beat(8)3
Avg Revenue beat(8)-5.01%
Revenue beat(12)7
Avg Revenue beat(12)1.94%
Revenue beat(16)8
Avg Revenue beat(16)1.41%
PT rev (1m)-1.65%
PT rev (3m)-21.76%
EPS NQ rev (1m)-10.29%
EPS NQ rev (3m)-4.25%
EPS NY rev (1m)5.08%
EPS NY rev (3m)4.85%
Revenue NQ rev (1m)-0.98%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)1.46%
Revenue NY rev (3m)1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.34 | ||
| Fwd PE | 9.25 | ||
| P/S | 1.22 | ||
| P/FCF | N/A | ||
| P/OCF | 4.29 | ||
| P/B | 1.38 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 8.56 |
EPS(TTM)4.92
EY8.82%
EPS(NY)6.03
Fwd EY10.81%
FCF(TTM)-1.8
FCFYN/A
OCF(TTM)13.02
OCFY23.33%
SpS45.7
BVpS40.43
TBVpS40.43
PEG (NY)0.5
PEG (5Y)12.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 8.25% | ||
| ROCE | 4.9% | ||
| ROIC | 3.82% | ||
| ROICexc | 3.83% | ||
| ROICexgc | 3.83% | ||
| OM | 21.47% | ||
| PM (TTM) | 7.3% | ||
| GM | 70.4% | ||
| 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%
ROICexcg growth 3Y2.82%
ROICexcg 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-Score8
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.14 | ||
| Cap/Depr | 194.18% | ||
| Cap/Sales | 32.43% | ||
| Interest Coverage | 2.38 | ||
| Cash Conversion | 74.65% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 0.65 |
F-Score8
WACC5.6%
ROIC/WACC0.68
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)3.36%
EPS 3Y2.42%
EPS 5Y0.92%
EPS Q2Q%-17.97%
EPS Next Y22.59%
EPS Next 2Y11.95%
EPS Next 3Y10.05%
EPS Next 5Y9.01%
Revenue 1Y (TTM)7.7%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%7.42%
Revenue Next Year6.35%
Revenue Next 2Y5.06%
Revenue Next 3Y4.67%
Revenue Next 5Y3.19%
EBIT growth 1Y7.7%
EBIT growth 3Y7.55%
EBIT growth 5Y9.81%
EBIT Next Year109.02%
EBIT Next 3Y32.04%
EBIT Next 5Y20.93%
FCF growth 1Y66.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y47.43%
OCF growth 3Y669.6%
OCF growth 5YN/A