EDISON INTERNATIONAL (EIX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EIX - US2810201077 - Common Stock
57.14 USD
-0.99 (-1.7%)
57.14 USD
0 (0%)
EIX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 48 industry peers in the Electric Utilities industry. EIX has an excellent profitability rating, but there are 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.
EIX had a positive operating cash flow in the past year.
In the past 5 years EIX has always been profitable.
In the past 5 years EIX always reported a positive cash flow from operatings.
1.2 Ratios
EIX has a Return On Assets of 3.26%. This is in the better half of the industry: EIX outperforms 68.75% of its industry peers.
EIX's Return On Equity of 17.20% is amongst the best of the industry. EIX outperforms 89.58% of its industry peers.
EIX's Return On Invested Capital of 4.19% is in line compared to the rest of the industry. EIX outperforms 50.00% 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 4.92%.
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's Profit Margin of 16.31% is amongst the best of the industry. EIX outperforms 85.42% of its industry peers.
EIX's Profit Margin has declined in the last couple of years.
The Operating Margin of EIX (24.34%) is better than 64.58% of its industry peers.
EIX's Operating Margin has improved in the last couple of years.
EIX has a Gross Margin of 72.50%. This is in the better half of the industry: EIX outperforms 66.67% of its industry peers.
EIX's Gross Margin has improved in the last couple of years.
| 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
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.
Compared to 5 years ago, EIX has more shares outstanding
EIX has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.66, we must say that EIX is in the distress zone and has some risk of bankruptcy.
EIX has a worse Altman-Z score (0.66) than 70.83% 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.
EIX has a worse Debt to Equity ratio (2.12) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.66 |
ROIC/WACC0.76
WACC5.54%
2.3 Liquidity
A Current Ratio of 0.82 indicates that EIX may have some problems paying its short term obligations.
EIX has a Current ratio (0.82) which is comparable to the rest of the industry.
A Quick Ratio of 0.76 indicates that EIX may have some problems paying its short term obligations.
EIX's Quick ratio of 0.76 is in line compared to the rest of the industry. EIX outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
EIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.26%, which is quite good.
The Earnings Per Share has been growing slightly by 0.92% on average over the past years.
The Revenue has been growing slightly by 4.41% in the past year.
EIX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.34% yearly.
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.
Based on estimates for the next years, EIX will show a small growth in Revenue. The Revenue will grow by 4.08% on average per year.
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 5Y4.08%
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
With a Price/Earnings ratio of 9.97, the valuation of EIX can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of EIX indicates a somewhat cheap valuation: EIX is cheaper than 72.92% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.11. EIX is valued rather cheaply when compared to this.
EIX is valuated reasonably with a Price/Forward Earnings ratio of 9.20.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EIX indicates a rather cheap valuation: EIX is cheaper than 81.25% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.21. EIX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.97 | ||
| Fwd PE | 9.2 |
4.2 Price Multiples
79.17% of the companies in the same industry are more expensive than EIX, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.69 |
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.
EIX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.41
PEG (5Y)10.85
EPS Next 2Y12.38%
EPS Next 3Y10.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.60%, EIX is a good candidate for dividend investing.
EIX's Dividend Yield is rather good when compared to the industry average which is at 3.33. EIX pays more dividend than 91.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, EIX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.6% |
5.2 History
The dividend of EIX is nicely growing with an annual growth rate of 7.28%!
EIX has been paying a dividend for at least 10 years, so it has 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%
57.14
-0.99 (-1.7%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.39%
Inst Owner Change-0.89%
Ins Owners0.07%
Ins Owner Change-1.98%
Market Cap21.99B
Revenue(TTM)18.09B
Net Income(TTM)2.95B
Analysts73.64
Price Target67.72 (18.52%)
Short Float %2.21%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.6% |
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)-0.15%
PT rev (3m)0.79%
EPS NQ rev (1m)-9.07%
EPS NQ rev (3m)-36.36%
EPS NY rev (1m)0.39%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)-8.81%
Revenue NQ rev (3m)-13.72%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.97 | ||
| Fwd PE | 9.2 | ||
| P/S | 1.22 | ||
| P/FCF | N/A | ||
| P/OCF | 4.07 | ||
| P/B | 1.28 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 7.69 |
EPS(TTM)5.73
EY10.03%
EPS(NY)6.21
Fwd EY10.87%
FCF(TTM)-1.88
FCFYN/A
OCF(TTM)14.03
OCFY24.55%
SpS47
BVpS44.58
TBVpS44.58
PEG (NY)0.41
PEG (5Y)10.85
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 | 0.66 |
F-Score7
WACC5.54%
ROIC/WACC0.76
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 5Y4.08%
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 9.97 and the Price/Book (PB) ratio is 1.28.
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%.