EDISON INTERNATIONAL (EIX)
US2810201077 - Common Stock
We assign a fundamental rating of 3 out of 10 to EIX. 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. While showing a medium growth rate, EIX is valued expensive at the moment.
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 worse Return On Assets (1.56%) than 84.44% of its industry peers.
The Return On Equity of EIX (8.44%) is worse than 64.44% of its industry peers.
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 last Return On Invested Capital (3.91%) for EIX is above the 3 year average (3.57%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 7.63%, EIX is not doing good in the industry: 75.56% of the companies in the same industry are doing better.
EIX's Profit Margin has improved in the last couple of years.
The Operating Margin of EIX (21.94%) is better than 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
EIX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
EIX has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.75, we must say that EIX is in the distress zone and has some risk of bankruptcy.
EIX has a Altman-Z score of 0.75. This is in the lower half of the industry: EIX underperforms 60.00% of its industry peers.
A Debt/Equity ratio of 2.10 is on the high side and indicates that EIX has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.10, EIX is doing worse than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC0.63
WACC6.22%
2.3 Liquidity
EIX has a Current Ratio of 0.88. 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 0.88. This is in the lower half of the industry: EIX underperforms 62.22% of its industry peers.
EIX has a Quick Ratio of 0.88. This is a bad value and indicates that EIX is not financially healthy enough and could expect problems in meeting 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
EIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.23%, which is quite good.
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.
Measured over the past years, EIX shows a small growth in Revenue. The Revenue has been growing by 5.24% on average per year.
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
Based on estimates for the next years, EIX will show a small growth in Earnings Per Share. The EPS will grow by 7.38% on average per year.
The Revenue is expected to grow by 1.99% on average over the next years.
EPS Next Y4.87%
EPS Next 2Y9.97%
EPS Next 3Y8.77%
EPS Next 5Y7.38%
Revenue Next Year1.64%
Revenue Next 2Y3.33%
Revenue Next 3Y3.67%
Revenue Next 5Y1.99%
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
Based on the Price/Earnings ratio of 16.80, the valuation of EIX can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as EIX.
EIX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.65.
With a Price/Forward Earnings ratio of 15.03, EIX is valued correctly.
EIX's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, EIX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.8 | ||
| Fwd PE | 15.03 |
4.2 Price Multiples
62.22% 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 | 10.19 |
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)3.45
PEG (5Y)7.99
EPS Next 2Y9.97%
EPS Next 3Y8.77%
5. Dividend
5.1 Amount
EIX has a Yearly Dividend Yield of 3.80%. Purely for dividend investing, there may be better candidates out there.
EIX's Dividend Yield is a higher than the industry average which is at 3.44.
Compared to an average S&P500 Dividend Yield of 2.23, EIX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.67%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
95.76% of the earnings are spent on dividend by EIX. This is not a sustainable payout ratio.
The dividend of EIX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP95.76%
EPS Next 2Y9.97%
EPS Next 3Y8.77%
EDISON INTERNATIONAL
NYSE:EIX (11/21/2024, 1:47:07 PM)
86.5
+0.38 (+0.44%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap33.49B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.8 | ||
| Fwd PE | 15.03 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.45
PEG (5Y)7.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.56% | ||
| ROE | 8.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.94% | ||
| PM (TTM) | 7.63% | ||
| GM | 70.13% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)11.23%
EPS 3Y1.97%
EPS 5Y
EPS Q2Q%
EPS Next Y4.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.04%
Revenue growth 3Y6.36%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y