EDISON INTERNATIONAL (EIX) Stock Fundamental Analysis
NYSE:EIX - New York Stock Exchange, Inc. - US2810201077 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to EIX. EIX was compared to 46 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 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.
Each year in the past 5 years EIX has 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 83.78% of its industry peers.
Looking at the Return On Equity, with a value of 8.44%, EIX is doing worse than 64.86% of the companies in the same industry.
EIX has a Return On Invested Capital of 3.91%. This is comparable to the rest of the industry: EIX outperforms 59.46% of its industry peers.
EIX had an Average Return On Invested Capital over the past 3 years of 3.57%. This is in line with the industry average of 4.62%.
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
EIX has a worse Profit Margin (7.63%) than 75.68% of its industry peers.
EIX's Profit Margin has improved in the last couple of years.
EIX has a Operating Margin (21.94%) which is in line with its industry peers.
In the last couple of years the Operating Margin of EIX has grown nicely.
EIX has a Gross Margin of 70.13%. This is in the better half of the industry: EIX outperforms 62.16% of its industry peers.
In the last couple of years the Gross Margin of EIX has grown nicely.
| 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.
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
EIX has an Altman-Z score of 0.64. This is a bad value and indicates that EIX is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.64, EIX is not doing good in the industry: 70.27% of the companies in the same industry are doing better.
EIX has a Debt/Equity ratio of 2.10. This is a high value indicating a heavy dependency on external financing.
EIX has a Debt to Equity ratio of 2.10. This is amonst the worse of the industry: EIX underperforms 89.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.64 |
ROIC/WACC0.7
WACC5.56%
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 (0.88) which 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 has a Quick ratio of 0.81. This is in the better half of the industry: EIX outperforms 62.16% of its industry peers.
| 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.
Measured over the past 5 years, EIX shows a small growth in Earnings Per Share. The EPS has been growing by 2.10% on average per year.
Looking at the last year, EIX shows a small growth in Revenue. The Revenue has grown by 4.04% in the last year.
The Revenue has been growing slightly by 5.24% on average over the past years.
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 7.83% on average per year.
The Revenue is expected to grow by 3.09% on average over the next years.
EPS Next Y5.09%
EPS Next 2Y9.8%
EPS Next 3Y8.7%
EPS Next 5Y7.83%
Revenue Next Year0.76%
Revenue Next 2Y2.43%
Revenue Next 3Y2.95%
Revenue Next 5Y3.09%
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.
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
Based on the Price/Earnings ratio of 10.13, the valuation of EIX can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of EIX indicates a somewhat cheap valuation: EIX is cheaper than 78.38% of the companies listed in the same industry.
EIX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
EIX is valuated reasonably with a Price/Forward Earnings ratio of 9.09.
EIX's Price/Forward Earnings ratio is rather cheap when compared to the industry. EIX is cheaper than 86.49% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, EIX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 9.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EIX is valued cheaply inside the industry as 83.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.99
PEG (5Y)4.82
EPS Next 2Y9.8%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
EIX has a Yearly Dividend Yield of 6.42%, which is a nice return.
In the last 3 months the price of EIX has falen by -39.67%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.53, EIX pays a better dividend. On top of this EIX pays more dividend than 97.30% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, EIX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.42% |
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.
The dividend of EIX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP95.76%
EPS Next 2Y9.8%
EPS Next 3Y8.7%
52.17
+0.27 (+0.52%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners92.11%
Inst Owner Change-0.5%
Ins Owners0.07%
Ins Owner Change0.58%
Market Cap20.20B
Analysts77.39
Price Target84.01 (61.03%)
Short Float %2.3%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.42% |
Yearly Dividend3.18
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)-9.17%
PT rev (3m)-7.82%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)1.14%
EPS NY rev (1m)0.28%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)2.09%
Revenue NQ rev (3m)2.09%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 9.09 | ||
| P/S | 1.17 | ||
| P/FCF | N/A | ||
| P/OCF | 4.3 | ||
| P/B | 1.29 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 8.21 |
EPS(TTM)5.15
EY9.87%
EPS(NY)5.74
Fwd EY11%
FCF(TTM)-2.5
FCFYN/A
OCF(TTM)12.14
OCFY23.27%
SpS44.74
BVpS40.46
TBVpS40.46
PEG (NY)1.99
PEG (5Y)4.82
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 | 0.64 |
F-Score6
WACC5.56%
ROIC/WACC0.7
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 Y5.09%
EPS Next 2Y9.8%
EPS Next 3Y8.7%
EPS Next 5Y7.83%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y6.36%
Revenue growth 5Y5.24%
Sales Q2Q%10.61%
Revenue Next Year0.76%
Revenue Next 2Y2.43%
Revenue Next 3Y2.95%
Revenue Next 5Y3.09%
EBIT growth 1Y12.53%
EBIT growth 3Y8.26%
EBIT growth 5Y9.83%
EBIT Next Year98.28%
EBIT Next 3Y32.39%
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%