EDISON INTERNATIONAL (EIX) Stock Fundamental Analysis
USA - NYSE:EIX - US2810201077 - Common Stock
55.38 USD
-0.26 (-0.47%)
55.38 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to EIX. EIX was compared to 47 industry peers in the Electric Utilities industry. EIX has an excellent profitability rating, but there are concerns on its financial health. EIX has a decent growth rate and is not valued too expensively. 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.
EIX had positive earnings in each of the past 5 years.
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 70.21% of the companies in the same industry.
EIX's Return On Equity of 17.20% is amongst the best of the industry. EIX outperforms 89.36% of its industry peers.
EIX has a Return On Invested Capital of 4.19%. This is comparable to the rest of the industry: EIX outperforms 53.19% 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 4.90%.
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's Profit Margin of 16.31% is amongst the best of the industry. EIX outperforms 85.11% 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 63.83% of its industry peers.
EIX's Operating Margin has improved in the last couple of years.
EIX has a better Gross Margin (72.50%) than 72.34% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EIX 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
Compared to 1 year ago, EIX has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.65, we must say that EIX is in the distress zone and has some risk of bankruptcy.
EIX has a worse Altman-Z score (0.65) than 72.34% 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 91.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.65 |
ROIC/WACC0.76
WACC5.5%
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 of 0.82. This is comparable to the rest of the industry: EIX outperforms 51.06% of 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
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.
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 4.41% 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)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 7.17% yearly.
EIX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.42% yearly.
EPS Next Y23.9%
EPS Next 2Y12.08%
EPS Next 3Y9.85%
EPS Next 5Y7.17%
Revenue Next Year7.59%
Revenue Next 2Y5.14%
Revenue Next 3Y4.51%
Revenue Next 5Y5.42%
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 9.66, which indicates a very decent valuation of EIX.
76.60% of the companies in the same industry are more expensive than EIX, based on the Price/Earnings ratio.
EIX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.10.
The Price/Forward Earnings ratio is 8.96, which indicates a very decent valuation of EIX.
Based on the Price/Forward Earnings ratio, EIX is valued cheaper than 82.98% of the companies in the same industry.
EIX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
78.72% 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 | 7.57 |
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)0.4
PEG (5Y)10.52
EPS Next 2Y12.08%
EPS Next 3Y9.85%
5. Dividend
5.1 Amount
EIX has a Yearly Dividend Yield of 5.98%, which is a nice return.
EIX's Dividend Yield is rather good when compared to the industry average which is at 3.25. EIX pays more dividend than 100.00% of the companies in the same industry.
EIX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.98% |
5.2 History
On average, the dividend of EIX grows each year by 7.28%, which is quite nice.
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 slower than its dividend. This means the dividend growth is not sustainable.
DP45.56%
EPS Next 2Y12.08%
EPS Next 3Y9.85%
55.38
-0.26 (-0.47%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.39%
Inst Owner Change0.41%
Ins Owners0.07%
Ins Owner Change-1.71%
Market Cap21.31B
Revenue(TTM)18.09B
Net Income(TTM)2.95B
Analysts75
Price Target67.82 (22.46%)
Short Float %2.05%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.98% |
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)5.82%
Min EPS beat(2)4.98%
Max EPS beat(2)6.65%
EPS beat(4)3
Avg EPS beat(4)4.83%
Min EPS beat(4)-5.04%
Max EPS beat(4)12.72%
EPS beat(8)6
Avg EPS beat(8)5.99%
EPS beat(12)9
Avg EPS beat(12)5.21%
EPS beat(16)12
Avg EPS beat(16)6.48%
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)1.39%
PT rev (3m)0.36%
EPS NQ rev (1m)25.69%
EPS NQ rev (3m)15.74%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)5.19%
Revenue NQ rev (3m)3.16%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 8.96 | ||
| P/S | 1.18 | ||
| P/FCF | N/A | ||
| P/OCF | 3.95 | ||
| P/B | 1.24 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 7.57 |
EPS(TTM)5.73
EY10.35%
EPS(NY)6.18
Fwd EY11.16%
FCF(TTM)-1.88
FCFYN/A
OCF(TTM)14.03
OCFY25.33%
SpS46.99
BVpS44.58
TBVpS44.58
PEG (NY)0.4
PEG (5Y)10.52
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 | 0.65 |
F-Score7
WACC5.5%
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 Y23.9%
EPS Next 2Y12.08%
EPS Next 3Y9.85%
EPS Next 5Y7.17%
Revenue 1Y (TTM)4.41%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%10.56%
Revenue Next Year7.59%
Revenue Next 2Y5.14%
Revenue Next 3Y4.51%
Revenue Next 5Y5.42%
EBIT growth 1Y14.43%
EBIT growth 3Y7.55%
EBIT growth 5Y9.81%
EBIT Next Year114.92%
EBIT Next 3Y32.13%
EBIT Next 5Y20.82%
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 9.66 and the Price/Book (PB) ratio is 1.24.
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%.