EDISON INTERNATIONAL (EIX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EIX - US2810201077 - Common Stock
60.63 USD
+0.53 (+0.88%)
61 USD
+0.37 (+0.61%)
EIX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. While EIX belongs to the best of the industry regarding profitability, there are concerns on its financial health. EIX has a correct valuation and a medium 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
Looking at the Return On Assets, with a value of 3.26%, EIX is in the better half of the industry, outperforming 68.09% of the companies in the same industry.
With an excellent Return On Equity value of 17.20%, EIX belongs to the best of the industry, outperforming 87.23% of the companies in the same industry.
With a Return On Invested Capital value of 4.19%, EIX perfoms like the industry average, outperforming 46.81% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EIX is in line with the industry average of 5.04%.
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 has a Profit Margin of 16.31%. This is amongst the best in the industry. EIX outperforms 85.11% of its industry peers.
In the last couple of years the Profit Margin of EIX has declined.
EIX's Operating Margin of 24.34% is fine compared to the rest of the industry. EIX outperforms 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 68.09% 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
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.
The number of shares outstanding for EIX has been increased compared to 5 years ago.
The debt/assets ratio for EIX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.67, we must say that EIX is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.67, EIX is doing worse than 70.21% of the companies in the same industry.
EIX has a Debt/Equity ratio of 2.12. This is a high value indicating a heavy dependency on external financing.
EIX has a Debt to Equity ratio of 2.12. This is amonst the worse of the industry: EIX underperforms 93.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.67 |
ROIC/WACC0.74
WACC5.64%
2.3 Liquidity
A Current Ratio of 0.82 indicates that EIX may have some problems paying 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.
With a Quick ratio value of 0.76, EIX perfoms like the industry average, outperforming 57.45% of the companies in the same industry.
| 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.
EIX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.41%.
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
The Earnings Per Share is expected to grow by 7.47% on average over the next years.
The Revenue is expected to grow by 4.08% on average over the next years.
EPS Next Y24.04%
EPS Next 2Y12.02%
EPS Next 3Y10.21%
EPS Next 5Y7.47%
Revenue Next Year7.22%
Revenue Next 2Y4.91%
Revenue Next 3Y4.49%
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
With a Price/Earnings ratio of 10.58, the valuation of EIX can be described as very reasonable.
Based on the Price/Earnings ratio, EIX is valued a bit cheaper than 74.47% of the companies in the same industry.
When comparing the Price/Earnings ratio of EIX to the average of the S&P500 Index (26.61), we can say EIX is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.82, the valuation of EIX can be described as very reasonable.
Based on the Price/Forward Earnings ratio, EIX is valued a bit cheaper than 78.72% of the companies in the same industry.
EIX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 9.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EIX is valued a bit cheaper than 78.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.82 |
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)0.44
PEG (5Y)11.51
EPS Next 2Y12.02%
EPS Next 3Y10.21%
5. Dividend
5.1 Amount
EIX has a Yearly Dividend Yield of 5.83%, which is a nice return.
Compared to an average industry Dividend Yield of 2.95, EIX pays a better dividend. On top of this EIX pays more dividend than 93.62% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, EIX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.83% |
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 2Y12.02%
EPS Next 3Y10.21%
60.63
+0.53 (+0.88%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners89.83%
Inst Owner Change-0.8%
Ins Owners0.07%
Ins Owner Change-1.98%
Market Cap23.33B
Revenue(TTM)18.09B
Net Income(TTM)2.95B
Analysts73.64
Price Target67.85 (11.91%)
Short Float %2.27%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.83% |
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)0.05%
PT rev (3m)-1.09%
EPS NQ rev (1m)3.18%
EPS NQ rev (3m)-35.56%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-13.64%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 9.82 | ||
| P/S | 1.29 | ||
| P/FCF | N/A | ||
| P/OCF | 4.32 | ||
| P/B | 1.36 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 7.82 |
EPS(TTM)5.73
EY9.45%
EPS(NY)6.17
Fwd EY10.18%
FCF(TTM)-1.88
FCFYN/A
OCF(TTM)14.03
OCFY23.14%
SpS47
BVpS44.58
TBVpS44.58
PEG (NY)0.44
PEG (5Y)11.51
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 | 0.67 |
F-Score7
WACC5.64%
ROIC/WACC0.74
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 Y24.04%
EPS Next 2Y12.02%
EPS Next 3Y10.21%
EPS Next 5Y7.47%
Revenue 1Y (TTM)4.41%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%10.56%
Revenue Next Year7.22%
Revenue Next 2Y4.91%
Revenue Next 3Y4.49%
Revenue Next 5Y4.08%
EBIT growth 1Y14.43%
EBIT growth 3Y7.55%
EBIT growth 5Y9.81%
EBIT Next Year122.15%
EBIT Next 3Y32.43%
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 10.58 and the Price/Book (PB) ratio is 1.36.
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%.