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%)
EIX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 46 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. Finally EIX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- EIX had positive earnings in the past year.
- 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
- EIX has a better Return On Assets (3.26%) than 71.74% of its industry peers.
- EIX has a Return On Equity of 17.20%. This is amongst the best in the industry. EIX outperforms 86.96% of its industry peers.
- EIX has a Return On Invested Capital (4.19%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- The Profit Margin of EIX (16.31%) is better than 84.78% of its industry peers.
- EIX's Profit Margin has declined in the last couple of years.
- The Operating Margin of EIX (24.34%) is better than 63.04% of its industry peers.
- EIX's Operating Margin has improved in the last couple of years.
- EIX's Gross Margin of 72.50% is fine compared to the rest of the industry. EIX outperforms 67.39% 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EIX is destroying value.
- EIX has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for EIX has been increased compared to 5 years ago.
- Compared to 1 year ago, EIX has a worse debt to assets ratio.
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.
- 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.
- Looking at the Debt to Equity ratio, with a value of 2.12, EIX is doing worse than 91.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.67 |
ROIC/WACC0.74
WACC5.68%
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.
- EIX has a Current ratio of 0.82. This is comparable to the rest of the industry: EIX outperforms 56.52% of its industry peers.
- EIX has a Quick 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.
- 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
- 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.
- Looking at the last year, EIX shows a small growth in Revenue. The Revenue has grown by 4.41% in the last year.
- 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
- Based on estimates for the next years, EIX will show a small growth in Earnings Per Share. The EPS will grow by 7.63% on average per year.
- The Revenue is expected to grow by 4.32% on average over the next years.
EPS Next Y24.42%
EPS Next 2Y12.06%
EPS Next 3Y10.24%
EPS Next 5Y7.63%
Revenue Next Year7.07%
Revenue Next 2Y4.75%
Revenue Next 3Y4.32%
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
- The Price/Earnings ratio is 10.61, which indicates a very decent valuation of EIX.
- Based on the Price/Earnings ratio, EIX is valued a bit cheaper than 73.91% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.30. EIX is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 9.84, the valuation of EIX can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, EIX is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. EIX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.61 | ||
| Fwd PE | 9.84 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EIX is valued cheaper than 80.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.83 |
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.
- The decent profitability rating of EIX may justify a higher PE ratio.
PEG (NY)0.43
PEG (5Y)11.54
EPS Next 2Y12.06%
EPS Next 3Y10.24%
5. Dividend
5.1 Amount
- EIX has a Yearly Dividend Yield of 5.71%, which is a nice return.
- EIX's Dividend Yield is rather good when compared to the industry average which is at 2.93. EIX pays more dividend than 95.65% of the companies in the same industry.
- EIX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.71% |
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
- 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 2Y12.06%
EPS Next 3Y10.24%
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.