EDISON INTERNATIONAL (EIX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EIX - US2810201077 - Common Stock
58.89 USD
-0.22 (-0.37%)
58.89 USD
0 (0%)
Overall EIX gets a fundamental rating of 4 out of 10. We evaluated EIX against 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
EIX had positive earnings in the past year.
EIX had a positive operating cash flow in the past year.
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
EIX has a Return On Assets of 3.26%. This is in the better half of the industry: EIX outperforms 68.09% of its industry peers.
EIX has a better Return On Equity (17.20%) than 89.36% of its industry peers.
With a Return On Invested Capital value of 4.19%, EIX perfoms like the industry average, outperforming 51.06% of the companies in the same industry.
EIX had an Average Return On Invested Capital over the past 3 years of 3.67%. This is in line with the industry average of 4.92%.
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
With an excellent Profit Margin value of 16.31%, EIX belongs to the best of the industry, outperforming 85.11% of the companies in the same industry.
EIX's Profit Margin has declined in the last couple of years.
EIX has a better Operating Margin (24.34%) than 65.96% of its industry peers.
In the last couple of years the Operating Margin of EIX has grown nicely.
EIX's Gross Margin of 72.50% is fine compared to the rest of the industry. EIX outperforms 68.09% 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.
Compared to 1 year ago, EIX has more shares outstanding
EIX has more shares outstanding than it did 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.
The Altman-Z score of EIX (0.67) is worse than 70.21% of its industry peers.
EIX has a Debt/Equity ratio of 2.12. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.12, EIX is doing worse than 91.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.67 |
ROIC/WACC0.76
WACC5.54%
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.
Looking at the Current ratio, with a value of 0.82, EIX is in line with its industry, outperforming 53.19% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that EIX may have some problems paying its short term obligations.
The Quick ratio of EIX (0.76) is comparable to the rest of the 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.
The Earnings Per Share has been growing slightly by 0.92% on average over the past years.
The Revenue has been growing slightly by 4.41% in the past year.
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
The Earnings Per Share is expected to grow by 7.47% on average over the next years.
EIX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.51% yearly.
EPS Next Y24.39%
EPS Next 2Y12.38%
EPS Next 3Y10.11%
EPS Next 5Y7.47%
Revenue Next Year7.3%
Revenue Next 2Y4.97%
Revenue Next 3Y4.41%
Revenue Next 5Y4.51%
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
EIX is valuated reasonably with a Price/Earnings ratio of 10.28.
72.34% of the companies in the same industry are more expensive than EIX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.31. EIX is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.48, which indicates a very decent valuation of EIX.
80.85% of the companies in the same industry are more expensive than EIX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.59. EIX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.28 | ||
| Fwd PE | 9.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EIX indicates a somewhat cheap valuation: EIX is cheaper than 78.72% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.74 |
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)0.42
PEG (5Y)11.18
EPS Next 2Y12.38%
EPS Next 3Y10.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.60%, EIX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.39, EIX pays a better dividend. On top of this EIX pays more dividend than 91.49% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, EIX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.6% |
5.2 History
The dividend of EIX is nicely growing with an annual growth rate of 7.28%!
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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP45.56%
EPS Next 2Y12.38%
EPS Next 3Y10.11%
58.89
-0.22 (-0.37%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.39%
Inst Owner Change-0.89%
Ins Owners0.07%
Ins Owner Change-1.98%
Market Cap22.66B
Revenue(TTM)18.09B
Net Income(TTM)2.95B
Analysts73.64
Price Target67.72 (14.99%)
Short Float %1.9%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.6% |
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)-2.65%
PT rev (3m)0.79%
EPS NQ rev (1m)-23.4%
EPS NQ rev (3m)-38.71%
EPS NY rev (1m)0.39%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)-8.81%
Revenue NQ rev (3m)-13.72%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.28 | ||
| Fwd PE | 9.48 | ||
| P/S | 1.25 | ||
| P/FCF | N/A | ||
| P/OCF | 4.2 | ||
| P/B | 1.32 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 7.74 |
EPS(TTM)5.73
EY9.73%
EPS(NY)6.21
Fwd EY10.55%
FCF(TTM)-1.88
FCFYN/A
OCF(TTM)14.03
OCFY23.82%
SpS46.99
BVpS44.58
TBVpS44.58
PEG (NY)0.42
PEG (5Y)11.18
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
WACC5.54%
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 Y24.39%
EPS Next 2Y12.38%
EPS Next 3Y10.11%
EPS Next 5Y7.47%
Revenue 1Y (TTM)4.41%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%10.56%
Revenue Next Year7.3%
Revenue Next 2Y4.97%
Revenue Next 3Y4.41%
Revenue Next 5Y4.51%
EBIT growth 1Y14.43%
EBIT growth 3Y7.55%
EBIT growth 5Y9.81%
EBIT Next Year114.92%
EBIT Next 3Y32.13%
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 10.28 and the Price/Book (PB) ratio is 1.32.
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%.