EDISON INTERNATIONAL (EIX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EIX - US2810201077 - Common Stock
59.99 USD
-1 (-1.64%)
59.99 USD
0 (0%)
Taking everything into account, EIX scores 5 out of 10 in our fundamental rating. EIX was compared to 46 industry peers in the Electric Utilities industry. EIX scores excellent on profitability, but there are concerns on its financial health. EIX has a correct valuation and a medium growth rate. 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.
Each year in the past 5 years EIX has been profitable.
Each year in the past 5 years EIX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.26%, EIX is in the better half of the industry, outperforming 71.74% of the companies in the same industry.
With an excellent Return On Equity value of 17.20%, EIX belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
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 4.58%.
The 3 year average ROIC (3.67%) for EIX is below the current ROIC(4.19%), indicating increased profibility in the last year.
| 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 better Profit Margin (16.31%) than 84.78% of its industry peers.
EIX's Profit Margin has declined in the last couple of years.
EIX's Operating Margin of 24.34% is fine compared to the rest of the industry. EIX outperforms 63.04% of its industry peers.
EIX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 72.50%, 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 | 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.
The number of shares outstanding for EIX has been increased compared to 1 year ago.
The number of shares outstanding for EIX has been increased compared to 5 years ago.
EIX has a worse debt/assets ratio than last year.
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 Altman-Z score of 0.67. This is in the lower half of the industry: EIX underperforms 67.39% of its industry peers.
EIX has a Debt/Equity ratio of 2.12. This is a high value indicating a heavy dependency on external financing.
EIX has a worse Debt to Equity ratio (2.12) than 91.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.67 |
ROIC/WACC0.74
WACC5.63%
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.
Looking at the Quick ratio, with a value of 0.76, EIX is in the better half of the industry, outperforming 60.87% 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.
The Earnings Per Share has been growing slightly by 0.92% on average over the past years.
EIX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.41%.
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
EIX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.63% yearly.
EIX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.32% yearly.
EPS Next Y24.42%
EPS Next 2Y12.06%
EPS Next 3Y10.24%
EPS Next 5Y7.63%
Revenue Next Year7.07%
Revenue Next 2Y4.75%
Revenue Next 3Y4.32%
Revenue Next 5Y4.32%
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
A Price/Earnings ratio of 10.47 indicates a reasonable valuation of EIX.
76.09% of the companies in the same industry are more expensive than EIX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.25. EIX is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.71, 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 somewhat cheap valuation: EIX is cheaper than 78.26% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.98. EIX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.47 | ||
| Fwd PE | 9.71 |
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 | 7.84 |
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.
The decent profitability rating of EIX may justify a higher PE ratio.
PEG (NY)0.43
PEG (5Y)11.39
EPS Next 2Y12.06%
EPS Next 3Y10.24%
5. Dividend
5.1 Amount
EIX has a Yearly Dividend Yield of 5.89%, which is a nice return.
Compared to an average industry Dividend Yield of 3.46, EIX pays a better dividend. On top of this EIX pays more dividend than 80.43% 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.89% |
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.
The dividend of EIX is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP45.56%
EPS Next 2Y12.06%
EPS Next 3Y10.24%
59.99
-1 (-1.64%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners89.96%
Inst Owner Change0.52%
Ins Owners0.07%
Ins Owner Change4.2%
Market Cap23.08B
Revenue(TTM)18.09B
Net Income(TTM)2.95B
Analysts73.33
Price Target67.24 (12.09%)
Short Float %2.43%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.89% |
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)-0.9%
PT rev (3m)-3.33%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-35.68%
EPS NY rev (1m)0.31%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-13.64%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.47 | ||
| Fwd PE | 9.71 | ||
| P/S | 1.28 | ||
| P/FCF | N/A | ||
| P/OCF | 4.28 | ||
| P/B | 1.35 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 7.84 |
EPS(TTM)5.73
EY9.55%
EPS(NY)6.18
Fwd EY10.3%
FCF(TTM)-1.88
FCFYN/A
OCF(TTM)14.03
OCFY23.38%
SpS47
BVpS44.58
TBVpS44.58
PEG (NY)0.43
PEG (5Y)11.39
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
WACC5.63%
ROIC/WACC0.74
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 Y24.42%
EPS Next 2Y12.06%
EPS Next 3Y10.24%
EPS Next 5Y7.63%
Revenue 1Y (TTM)4.41%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%10.56%
Revenue Next Year7.07%
Revenue Next 2Y4.75%
Revenue Next 3Y4.32%
Revenue Next 5Y4.32%
EBIT growth 1Y14.43%
EBIT growth 3Y7.55%
EBIT growth 5Y9.81%
EBIT Next Year124.31%
EBIT Next 3Y32.55%
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 5 / 10 to EIX.
Can you provide the valuation status for EDISON INTERNATIONAL?
ChartMill assigns a valuation rating of 6 / 10 to EDISON INTERNATIONAL (EIX). This can be considered as Fairly Valued.
How profitable is EDISON INTERNATIONAL (EIX) stock?
EDISON INTERNATIONAL (EIX) has a profitability rating of 7 / 10.
What is the financial health of EDISON INTERNATIONAL (EIX) stock?
The financial health rating of EDISON INTERNATIONAL (EIX) is 1 / 10.
Can you provide the expected EPS growth for EIX stock?
The Earnings per Share (EPS) of EDISON INTERNATIONAL (EIX) is expected to grow by 24.42% in the next year.