EDISON INTERNATIONAL (EIX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EIX - US2810201077 - Common Stock
60.77 USD
+0.03 (+0.05%)
60.77 USD
0 (0%)
Overall EIX gets a fundamental rating of 5 out of 10. We evaluated EIX against 46 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 is not valued too expensively and it also shows a decent growth rate. Finally 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.
- In the past 5 years EIX always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 3.26%, EIX is doing good in the industry, outperforming 71.74% of the companies in the same industry.
- The Return On Equity of EIX (17.20%) is better than 86.96% of its industry peers.
- EIX's Return On Invested Capital of 4.19% is in line compared to the rest of the industry. EIX outperforms 50.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EIX is in line with the industry average of 4.58%.
- The last Return On Invested Capital (4.19%) for EIX is above the 3 year average (3.67%), which is a sign of increasing profitability.
| 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 84.78% of its industry peers.
- EIX's Profit Margin has declined in the last couple of years.
- EIX has a better Operating Margin (24.34%) than 63.04% of its industry peers.
- In the last couple of years the Operating Margin of EIX has grown nicely.
- The Gross Margin of EIX (72.50%) is better than 67.39% of its industry peers.
- In the last couple of years the Gross Margin of EIX has grown nicely.
| 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
- 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.
- 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
- EIX has an Altman-Z score of 0.67. 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 0.67, EIX is not doing good in the industry: 69.57% of the companies in the same industry are doing better.
- EIX has a Debt/Equity ratio of 2.12. This is a high value indicating a heavy dependency on external financing.
- EIX's Debt to Equity ratio of 2.12 is on the low side compared to the rest of the industry. EIX is outperformed by 91.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.67 |
ROIC/WACC0.74
WACC5.67%
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 decent Quick ratio value of 0.76, EIX is doing good in the industry, outperforming 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 11.26% over the past year.
- The Earnings Per Share has been growing slightly by 0.92% on average over the past years.
- EIX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.41%.
- EIX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.34% yearly.
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 7.63% yearly.
- The Revenue is expected to grow by 4.32% on average over the next years.
EPS Next Y24.42%
EPS Next 2Y11.97%
EPS Next 3Y10.19%
EPS Next 5Y7.63%
Revenue Next Year6.97%
Revenue Next 2Y4.69%
Revenue Next 3Y4.26%
Revenue Next 5Y4.32%
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 10.61, the valuation of EIX can be described as reasonable.
- Based on the Price/Earnings ratio, EIX is valued a bit cheaper than 73.91% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, EIX is valued rather cheaply.
- The Price/Forward Earnings ratio is 9.85, which indicates a very decent valuation of EIX.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EIX indicates a somewhat cheap valuation: EIX is cheaper than 78.26% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, EIX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.61 | ||
| Fwd PE | 9.85 |
4.2 Price Multiples
- 80.43% 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 | 7.83 |
4.3 Compensation for Growth
- The 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)0.43
PEG (5Y)11.54
EPS Next 2Y11.97%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.78%, EIX is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.90, EIX pays a better dividend. On top of this EIX pays more dividend than 95.65% of the companies listed in the same industry.
- EIX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.78% |
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
- 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 2Y11.97%
EPS Next 3Y10.19%
EDISON INTERNATIONAL / EIX FAQ
Can you provide the ChartMill fundamental rating for EDISON INTERNATIONAL?
ChartMill assigns a fundamental rating of 5 / 10 to EIX.
Can you provide the valuation status for EDISON INTERNATIONAL?
ChartMill assigns a valuation rating of 6 / 10 to EDISON INTERNATIONAL (EIX). This can be considered as Fairly Valued.
How profitable is EDISON INTERNATIONAL (EIX) stock?
EDISON INTERNATIONAL (EIX) has a profitability rating of 7 / 10.
What is the financial health of EDISON INTERNATIONAL (EIX) stock?
The financial health rating of EDISON INTERNATIONAL (EIX) is 1 / 10.
Can you provide the expected EPS growth for EIX stock?
The Earnings per Share (EPS) of EDISON INTERNATIONAL (EIX) is expected to grow by 24.42% in the next year.