EDISON INTERNATIONAL (EIX) Stock Fundamental Analysis
USA - NYSE:EIX - US2810201077 - Common Stock
55.64 USD
+0.06 (+0.11%)
55.64 USD
0 (0%)
Taking everything into account, EIX scores 4 out of 10 in our fundamental rating. EIX was compared to 48 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 has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally 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.
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
Looking at the Return On Assets, with a value of 2.97%, EIX is in line with its industry, outperforming 58.33% of the companies in the same industry.
EIX has a better Return On Equity (15.79%) than 87.50% of its industry peers.
EIX has a Return On Invested Capital of 3.52%. This is in the lower half of the industry: EIX underperforms 72.92% 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 5.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 15.79% | ||
| ROIC | 3.52% |
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 15.02% is fine compared to the rest of the industry. EIX outperforms 60.42% of its industry peers.
In the last couple of years the Profit Margin of EIX has declined.
Looking at the Operating Margin, with a value of 20.70%, EIX is in line with its industry, outperforming 54.17% of the companies in the same industry.
In the last couple of years the Operating Margin of EIX has grown nicely.
The Gross Margin of EIX (70.51%) is better than 68.75% of its industry peers.
In the last couple of years the Gross Margin of EIX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.7% | ||
| PM (TTM) | 15.02% | ||
| GM | 70.51% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EIX is destroying value.
EIX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for EIX has been increased compared to 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 0.63. 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 0.63. This is in the lower half of the industry: EIX underperforms 72.92% of its industry peers.
EIX has a Debt/Equity ratio of 2.14. This is a high value indicating a heavy dependency on external financing.
EIX's Debt to Equity ratio of 2.14 is on the low side compared to the rest of the industry. EIX is outperformed by 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.63 |
ROIC/WACC0.64
WACC5.51%
2.3 Liquidity
A Current Ratio of 0.87 indicates that EIX may have some problems paying its short term obligations.
The Current ratio of EIX (0.87) is comparable to the rest of the industry.
A Quick Ratio of 0.81 indicates that EIX may have some problems paying its short term obligations.
EIX's Quick ratio of 0.81 is in line compared to the rest of the industry. EIX outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
EIX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.39%.
EIX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.92% yearly.
Looking at the last year, EIX shows a small growth in Revenue. The Revenue has grown by 4.24% 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)-2.39%
EPS 3Y2.42%
EPS 5Y0.92%
EPS Q2Q%-21.14%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%4.77%
3.2 Future
The Earnings Per Share is expected to grow by 6.60% on average over the next years.
EIX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.42% yearly.
EPS Next Y24.63%
EPS Next 2Y12.13%
EPS Next 3Y10.01%
EPS Next 5Y6.6%
Revenue Next Year7.09%
Revenue Next 2Y4.89%
Revenue Next 3Y4.37%
Revenue Next 5Y5.42%
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
The Price/Earnings ratio is 11.36, which indicates a very decent valuation of EIX.
68.75% 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 27.38. EIX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.99, the valuation of EIX can be described as reasonable.
83.33% of the companies in the same industry are more expensive than EIX, based on the Price/Forward Earnings ratio.
EIX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 8.99 |
4.2 Price Multiples
EIX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EIX is cheaper than 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.82 |
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)0.46
PEG (5Y)12.35
EPS Next 2Y12.13%
EPS Next 3Y10.01%
5. Dividend
5.1 Amount
EIX has a Yearly Dividend Yield of 5.89%, 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 93.75% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, EIX pays a better dividend.
| 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 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
50.38% 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, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.38%
EPS Next 2Y12.13%
EPS Next 3Y10.01%
55.64
+0.06 (+0.11%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.5%
Inst Owner Change1.42%
Ins Owners0.07%
Ins Owner Change-1.05%
Market Cap21.41B
Analysts75.24
Price Target68.6 (23.29%)
Short Float %2.16%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.89% |
Yearly Dividend3.35
Dividend Growth(5Y)7.28%
DP50.38%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.85%
Min EPS beat(2)4.98%
Max EPS beat(2)12.72%
EPS beat(4)3
Avg EPS beat(4)5.18%
Min EPS beat(4)-5.04%
Max EPS beat(4)12.72%
EPS beat(8)5
Avg EPS beat(8)4.34%
EPS beat(12)8
Avg EPS beat(12)4.34%
EPS beat(16)11
Avg EPS beat(16)5.78%
Revenue beat(2)1
Avg Revenue beat(2)-2.18%
Min Revenue beat(2)-11.43%
Max Revenue beat(2)7.07%
Revenue beat(4)3
Avg Revenue beat(4)-0.28%
Min Revenue beat(4)-11.43%
Max Revenue beat(4)7.07%
Revenue beat(8)4
Avg Revenue beat(8)-3.57%
Revenue beat(12)6
Avg Revenue beat(12)-1.03%
Revenue beat(16)9
Avg Revenue beat(16)1.69%
PT rev (1m)1.21%
PT rev (3m)-2.01%
EPS NQ rev (1m)-1.19%
EPS NQ rev (3m)-12.99%
EPS NY rev (1m)0.18%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)-1%
Revenue NY rev (3m)-0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 8.99 | ||
| P/S | 1.22 | ||
| P/FCF | N/A | ||
| P/OCF | 3.73 | ||
| P/B | 1.28 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 8.82 |
EPS(TTM)4.9
EY8.81%
EPS(NY)6.19
Fwd EY11.12%
FCF(TTM)-0.98
FCFYN/A
OCF(TTM)14.94
OCFY26.84%
SpS45.57
BVpS43.36
TBVpS43.36
PEG (NY)0.46
PEG (5Y)12.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 15.79% | ||
| ROCE | 4.49% | ||
| ROIC | 3.52% | ||
| ROICexc | 3.52% | ||
| ROICexgc | 3.52% | ||
| OM | 20.7% | ||
| PM (TTM) | 15.02% | ||
| GM | 70.51% | ||
| 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-Score6
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.34 | ||
| Cap/Depr | 200.69% | ||
| Cap/Sales | 34.94% | ||
| Interest Coverage | 2.22 | ||
| Cash Conversion | 86.01% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 0.63 |
F-Score6
WACC5.51%
ROIC/WACC0.64
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)-2.39%
EPS 3Y2.42%
EPS 5Y0.92%
EPS Q2Q%-21.14%
EPS Next Y24.63%
EPS Next 2Y12.13%
EPS Next 3Y10.01%
EPS Next 5Y6.6%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%4.77%
Revenue Next Year7.09%
Revenue Next 2Y4.89%
Revenue Next 3Y4.37%
Revenue Next 5Y5.42%
EBIT growth 1Y-4.37%
EBIT growth 3Y7.55%
EBIT growth 5Y9.81%
EBIT Next Year115.37%
EBIT Next 3Y32.4%
EBIT Next 5Y20.82%
FCF growth 1Y87.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y113.68%
OCF growth 3Y669.6%
OCF growth 5YN/A