EDISON INTERNATIONAL (EIX)
US2810201077 - Common Stock
Taking everything into account, EIX scores 4 out of 10 in our fundamental rating. EIX was compared to 47 industry peers in the Electric Utilities industry. There are concerns on the financial health of EIX while its profitability can be described as average. EIX is valied quite expensively at the moment, while it does show 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.
EIX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
EIX has a Return On Assets of 1.56%. This is amonst the worse of the industry: EIX underperforms 82.22% of its industry peers.
With a Return On Equity value of 8.44%, EIX is not doing good in the industry: 64.44% of the companies in the same industry are doing better.
EIX has a Return On Invested Capital (3.91%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for EIX is in line with the industry average of 4.67%.
The 3 year average ROIC (3.57%) for EIX is below the current ROIC(3.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.56% | ||
| ROE | 8.44% | ||
| ROIC | 3.91% |
ROA(3y)1.09%
ROA(5y)1.26%
ROE(3y)5.47%
ROE(5y)5.87%
ROIC(3y)3.57%
ROIC(5y)3.48%
1.3 Margins
EIX has a Profit Margin of 7.63%. This is in the lower half of the industry: EIX underperforms 75.56% of its industry peers.
In the last couple of years the Profit Margin of EIX has grown nicely.
EIX's Operating Margin of 21.94% is fine compared to the rest of the industry. EIX outperforms 66.67% of its industry peers.
EIX's Operating Margin has improved in the last couple of years.
EIX has a better Gross Margin (70.13%) than 66.67% of its industry peers.
EIX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.94% | ||
| PM (TTM) | 7.63% | ||
| GM | 70.13% |
OM growth 3Y1.78%
OM growth 5Y4.36%
PM growth 3Y10.42%
PM growth 5YN/A
GM growth 3Y1.42%
GM growth 5Y3%
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
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 0.73, we must say that EIX is in the distress zone and has some risk of bankruptcy.
EIX has a Altman-Z score of 0.73. This is in the lower half of the industry: EIX underperforms 60.00% of its industry peers.
EIX has a Debt/Equity ratio of 2.10. This is a high value indicating a heavy dependency on external financing.
EIX has a worse Debt to Equity ratio (2.10) than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.73 |
ROIC/WACC0.63
WACC6.19%
2.3 Liquidity
A Current Ratio of 0.88 indicates that EIX may have some problems paying its short term obligations.
EIX's Current ratio of 0.88 is on the low side compared to the rest of the industry. EIX is outperformed by 62.22% of its industry peers.
A Quick Ratio of 0.81 indicates that EIX may have some problems paying its short term obligations.
With a Quick ratio value of 0.81, EIX perfoms like the industry average, outperforming 48.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.23% over the past year.
The Earnings Per Share has been growing slightly by 2.10% on average over the past years.
Looking at the last year, EIX shows a small growth in Revenue. The Revenue has grown by 4.04% in the last year.
EIX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.24% yearly.
EPS 1Y (TTM)11.23%
EPS 3Y1.97%
EPS 5Y2.1%
EPS Q2Q%9.42%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y6.36%
Revenue growth 5Y5.24%
Sales Q2Q%10.61%
3.2 Future
The Earnings Per Share is expected to grow by 7.89% on average over the next years.
The Revenue is expected to grow by 3.06% on average over the next years.
EPS Next Y4.79%
EPS Next 2Y9.93%
EPS Next 3Y8.76%
EPS Next 5Y7.89%
Revenue Next Year0.69%
Revenue Next 2Y2.5%
Revenue Next 3Y3.09%
Revenue Next 5Y3.06%
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
The Price/Earnings ratio is 15.44, which indicates a correct valuation of EIX.
EIX's Price/Earnings is on the same level as the industry average.
EIX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.82, which indicates a correct valuation of EIX.
EIX's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.83. EIX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 13.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EIX indicates a somewhat cheap valuation: EIX is cheaper than 64.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of EIX may justify a higher PE ratio.
PEG (NY)3.22
PEG (5Y)7.35
EPS Next 2Y9.93%
EPS Next 3Y8.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.25%, EIX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.66, EIX pays a bit more dividend than its industry peers.
EIX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
5.2 History
The dividend of EIX has a limited annual growth rate of 5.67%.
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)5.67%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
EIX pays out 95.76% 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.
DP95.76%
EPS Next 2Y9.93%
EPS Next 3Y8.76%
EDISON INTERNATIONAL
NYSE:EIX (12/20/2024, 8:06:52 PM)
After market: 79.52 0 (0%)79.52
+1.59 (+2.04%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners92.11%
Inst Owner Change0.04%
Ins Owners0.07%
Ins Owner Change0.47%
Market Cap30.79B
Analysts76
Price Target92.55 (16.39%)
Short Float %1.44%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
Dividend Growth(5Y)5.67%
DP95.76%
Div Incr Years18
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.75%
Min EPS beat(2)8.07%
Max EPS beat(2)13.43%
EPS beat(4)3
Avg EPS beat(4)7.15%
Min EPS beat(4)-2.29%
Max EPS beat(4)13.43%
EPS beat(8)6
Avg EPS beat(8)5.4%
EPS beat(12)9
Avg EPS beat(12)7.03%
EPS beat(16)10
Avg EPS beat(16)4.94%
Revenue beat(2)2
Avg Revenue beat(2)3.48%
Min Revenue beat(2)2.81%
Max Revenue beat(2)4.16%
Revenue beat(4)2
Avg Revenue beat(4)-1.56%
Min Revenue beat(4)-10.37%
Max Revenue beat(4)4.16%
Revenue beat(8)3
Avg Revenue beat(8)-1.44%
Revenue beat(12)6
Avg Revenue beat(12)1.82%
Revenue beat(16)7
Avg Revenue beat(16)0.94%
PT rev (1m)1.54%
PT rev (3m)7.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.01%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.3%
Revenue NY rev (1m)-0.93%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 13.82 | ||
| P/S | 1.78 | ||
| P/FCF | N/A | ||
| P/OCF | 6.55 | ||
| P/B | 1.97 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | 9.81 |
EPS(TTM)5.15
EY6.48%
EPS(NY)5.75
Fwd EY7.23%
FCF(TTM)-2.5
FCFYN/A
OCF(TTM)12.14
OCFY15.26%
SpS44.74
BVpS40.46
TBVpS40.46
PEG (NY)3.22
PEG (5Y)7.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.56% | ||
| ROE | 8.44% | ||
| ROCE | 4.98% | ||
| ROIC | 3.91% | ||
| ROICexc | 3.92% | ||
| ROICexgc | 3.92% | ||
| OM | 21.94% | ||
| PM (TTM) | 7.63% | ||
| GM | 70.13% | ||
| FCFM | N/A |
ROA(3y)1.09%
ROA(5y)1.26%
ROE(3y)5.47%
ROE(5y)5.87%
ROIC(3y)3.57%
ROIC(5y)3.48%
ROICexc(3y)3.6%
ROICexc(5y)3.5%
ROICexgc(3y)3.6%
ROICexgc(5y)3.5%
ROCE(3y)4.64%
ROCE(5y)4.52%
ROICexcg growth 3Y1.78%
ROICexcg growth 5Y2.34%
ROICexc growth 3Y1.78%
ROICexc growth 5Y2.34%
OM growth 3Y1.78%
OM growth 5Y4.36%
PM growth 3Y10.42%
PM growth 5YN/A
GM growth 3Y1.42%
GM growth 5Y3%
F-Score6
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.1 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.93 | ||
| Cap/Depr | 197.49% | ||
| Cap/Sales | 32.72% | ||
| Interest Coverage | 2.5 | ||
| Cash Conversion | 70.45% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 0.73 |
F-Score6
WACC6.19%
ROIC/WACC0.63
Cap/Depr(3y)220.09%
Cap/Depr(5y)240.21%
Cap/Sales(3y)34.61%
Cap/Sales(5y)36.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.23%
EPS 3Y1.97%
EPS 5Y2.1%
EPS Q2Q%9.42%
EPS Next Y4.79%
EPS Next 2Y9.93%
EPS Next 3Y8.76%
EPS Next 5Y7.89%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y6.36%
Revenue growth 5Y5.24%
Sales Q2Q%10.61%
Revenue Next Year0.69%
Revenue Next 2Y2.5%
Revenue Next 3Y3.09%
Revenue Next 5Y3.06%
EBIT growth 1Y12.53%
EBIT growth 3Y8.26%
EBIT growth 5Y9.83%
EBIT Next Year98.43%
EBIT Next 3Y31.83%
EBIT Next 5Y21.5%
FCF growth 1Y69.94%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y85.07%
OCF growth 3Y39.12%
OCF growth 5Y1.37%