EDISON INTERNATIONAL (EIX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EIX - US2810201077 - Common Stock
57.3 USD
+0.16 (+0.28%)
57.3 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 scores excellent on profitability, 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
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.
In the past 5 years EIX always reported a positive cash flow from operatings.
1.2 Ratios
EIX's Return On Assets of 3.26% is fine compared to the rest of the industry. EIX outperforms 68.75% of its industry peers.
With an excellent Return On Equity value of 17.20%, EIX belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.19%, EIX is in line with its industry, outperforming 50.00% of the companies in the same industry.
EIX had an Average Return On Invested Capital over the past 3 years of 3.67%. This is in line with the industry average of 4.92%.
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
With an excellent Profit Margin value of 16.31%, EIX belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
EIX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 24.34%, EIX is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
EIX's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 72.50%, EIX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Gross Margin of EIX has grown nicely.
| 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.
Compared to 1 year ago, EIX has more shares outstanding
The number of shares outstanding for EIX has been increased compared to 5 years ago.
Compared to 1 year ago, EIX has a worse debt to assets ratio.
2.2 Solvency
EIX has an Altman-Z score of 0.66. 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 0.66 is on the low side compared to the rest of the industry. EIX is outperformed by 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.
The Debt to Equity ratio of EIX (2.12) is worse 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
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.
A Quick Ratio of 0.76 indicates that EIX may have some problems paying its short term obligations.
EIX has a Quick ratio (0.76) which is in line with its industry peers.
| 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.
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.
Looking at the last year, EIX shows a small growth in Revenue. The Revenue has grown by 4.41% in the last year.
The Revenue has been growing slightly by 7.34% on average over the past years.
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.
EIX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.08% yearly.
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.
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
A Price/Earnings ratio of 10.00 indicates a reasonable valuation of EIX.
Based on the Price/Earnings ratio, EIX is valued a bit cheaper than the industry average as 72.92% of the companies are valued more expensively.
EIX is valuated cheaply when we compare the Price/Earnings ratio to 26.37, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.22 indicates a reasonable valuation of EIX.
EIX's Price/Forward Earnings ratio is rather cheap when compared to the industry. EIX is cheaper than 81.25% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.20. EIX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10 | ||
| Fwd PE | 9.22 |
4.2 Price Multiples
EIX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EIX is cheaper than 79.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.65 |
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)10.88
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.
Compared to an average industry Dividend Yield of 3.33, EIX pays a better dividend. On top of this EIX pays more dividend than 91.67% of the companies listed 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 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
EIX pays out 45.56% of its income as dividend. 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 2Y12.38%
EPS Next 3Y10.11%
57.3
+0.16 (+0.28%)
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 Cap22.05B
Revenue(TTM)18.09B
Net Income(TTM)2.95B
Analysts73.64
Price Target67.72 (18.18%)
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 | 10 | ||
| Fwd PE | 9.22 | ||
| P/S | 1.22 | ||
| P/FCF | N/A | ||
| P/OCF | 4.08 | ||
| P/B | 1.29 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 7.65 |
EPS(TTM)5.73
EY10%
EPS(NY)6.21
Fwd EY10.84%
FCF(TTM)-1.88
FCFYN/A
OCF(TTM)14.03
OCFY24.48%
SpS47
BVpS44.58
TBVpS44.58
PEG (NY)0.41
PEG (5Y)10.88
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 10 and the Price/Book (PB) ratio is 1.29.
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%.