EDISON INTERNATIONAL (EIX) Stock Fundamental Analysis
NYSE:EIX - New York Stock Exchange, Inc. - US2810201077 - Common Stock - Currency: USD
Taking everything into account, EIX scores 4 out of 10 in our fundamental rating. EIX was compared to 47 industry peers in the Electric Utilities industry. While EIX is still in line with the averages on profitability rating, there are concerns on its financial health. EIX has a correct valuation and a medium growth rate. Finally 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
The Return On Assets of EIX (3.09%) is comparable to the rest of the industry.
EIX's Return On Equity of 16.42% is amongst the best of the industry. EIX outperforms 85.11% of its industry peers.
The Return On Invested Capital of EIX (3.68%) is worse than 74.47% of its industry peers.
EIX had an Average Return On Invested Capital over the past 3 years of 3.67%. This is significantly below the industry average of 38.54%.
The last Return On Invested Capital (3.68%) for EIX is above the 3 year average (3.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.09% | ||
| ROE | 16.42% | ||
| ROIC | 3.68% |
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
Looking at the Profit Margin, with a value of 15.75%, EIX is in the better half of the industry, outperforming 68.09% of the companies in the same industry.
EIX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 21.67%, EIX is in line with its industry, outperforming 53.19% of the companies in the same industry.
In the last couple of years the Operating Margin of EIX has grown nicely.
The Gross Margin of EIX (69.72%) is better than 68.09% of its industry peers.
EIX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.67% | ||
| PM (TTM) | 15.75% | ||
| GM | 69.72% |
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.
EIX has more shares outstanding than it did 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 0.63. This is a bad value and indicates that EIX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.63, EIX is doing worse than 70.21% of the companies in the same industry.
A Debt/Equity ratio of 2.13 is on the high side and indicates that EIX has dependencies on debt financing.
EIX has a Debt to Equity ratio of 2.13. This is amonst the worse of the industry: EIX underperforms 91.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.63 |
ROIC/WACC0.46
WACC7.95%
2.3 Liquidity
A Current Ratio of 0.96 indicates that EIX may have some problems paying its short term obligations.
EIX's Current ratio of 0.96 is in line compared to the rest of the industry. EIX outperforms 57.45% of its industry peers.
A Quick Ratio of 0.89 indicates that EIX may have some problems paying its short term obligations.
With a Quick ratio value of 0.89, EIX perfoms like the industry average, outperforming 57.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
EIX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.50%.
The Earnings Per Share has been growing slightly by 0.92% on average over the past years.
Looking at the last year, EIX shows a small growth in Revenue. The Revenue has grown by 5.34% in the last 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)7.5%
EPS 3Y2.42%
EPS 5Y0.92%
EPS Q2Q%21.24%
Revenue 1Y (TTM)5.34%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%-6.55%
3.2 Future
The Earnings Per Share is expected to grow by 8.23% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.71% on average over the next years.
EPS Next Y24.18%
EPS Next 2Y12.09%
EPS Next 3Y10.25%
EPS Next 5Y8.23%
Revenue Next Year8.61%
Revenue Next 2Y6.11%
Revenue Next 3Y5.36%
Revenue Next 5Y4.71%
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
EIX is valuated reasonably with a Price/Earnings ratio of 10.25.
Based on the Price/Earnings ratio, EIX is valued a bit cheaper than the industry average as 72.34% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of EIX to the average of the S&P500 Index (27.21), we can say EIX is valued rather cheaply.
EIX is valuated reasonably with a Price/Forward Earnings ratio of 8.55.
Based on the Price/Forward Earnings ratio, EIX is valued cheaply inside the industry as 82.98% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, EIX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 8.55 |
4.2 Price Multiples
EIX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EIX is cheaper than 70.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.46 |
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)11.15
EPS Next 2Y12.09%
EPS Next 3Y10.25%
5. Dividend
5.1 Amount
EIX has a Yearly Dividend Yield of 6.51%, which is a nice return.
EIX's Dividend Yield is rather good when compared to the industry average which is at 3.67. EIX pays more dividend than 97.87% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, EIX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.51% |
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 47.99% 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.
DP47.99%
EPS Next 2Y12.09%
EPS Next 3Y10.25%
52.88
+1.28 (+2.48%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners89.48%
Inst Owner Change-2.02%
Ins Owners0.07%
Ins Owner Change15.91%
Market Cap20.35B
Analysts77.39
Price Target70.2 (32.75%)
Short Float %2.32%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.51% |
Yearly Dividend3.35
Dividend Growth(5Y)7.28%
DP47.99%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.84%
Min EPS beat(2)-5.04%
Max EPS beat(2)12.72%
EPS beat(4)3
Avg EPS beat(4)7.29%
Min EPS beat(4)-5.04%
Max EPS beat(4)13.43%
EPS beat(8)5
Avg EPS beat(8)4.3%
EPS beat(12)8
Avg EPS beat(12)4%
EPS beat(16)10
Avg EPS beat(16)4.94%
Revenue beat(2)1
Avg Revenue beat(2)-5.49%
Min Revenue beat(2)-11.43%
Max Revenue beat(2)0.45%
Revenue beat(4)3
Avg Revenue beat(4)-1%
Min Revenue beat(4)-11.43%
Max Revenue beat(4)4.16%
Revenue beat(8)3
Avg Revenue beat(8)-5.49%
Revenue beat(12)6
Avg Revenue beat(12)-0.64%
Revenue beat(16)8
Avg Revenue beat(16)1.23%
PT rev (1m)1.23%
PT rev (3m)-2.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.26%
EPS NY rev (1m)0.28%
EPS NY rev (3m)1.26%
Revenue NQ rev (1m)-1.44%
Revenue NQ rev (3m)1.87%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)3.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 8.55 | ||
| P/S | 1.17 | ||
| P/FCF | N/A | ||
| P/OCF | 3.92 | ||
| P/B | 1.22 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 8.46 |
EPS(TTM)5.16
EY9.76%
EPS(NY)6.18
Fwd EY11.69%
FCF(TTM)-1.67
FCFYN/A
OCF(TTM)13.5
OCFY25.53%
SpS45.04
BVpS43.2
TBVpS43.2
PEG (NY)0.42
PEG (5Y)11.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.09% | ||
| ROE | 16.42% | ||
| ROCE | 4.66% | ||
| ROIC | 3.68% | ||
| ROICexc | 3.74% | ||
| ROICexgc | 3.74% | ||
| OM | 21.67% | ||
| PM (TTM) | 15.75% | ||
| GM | 69.72% | ||
| 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%
ROICexcg growth 3Y2.82%
ROICexcg 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-Score6
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.26 | ||
| Cap/Depr | 196.23% | ||
| Cap/Sales | 33.68% | ||
| Interest Coverage | 2.33 | ||
| Cash Conversion | 77.2% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 0.63 |
F-Score6
WACC7.95%
ROIC/WACC0.46
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)7.5%
EPS 3Y2.42%
EPS 5Y0.92%
EPS Q2Q%21.24%
EPS Next Y24.18%
EPS Next 2Y12.09%
EPS Next 3Y10.25%
EPS Next 5Y8.23%
Revenue 1Y (TTM)5.34%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%-6.55%
Revenue Next Year8.61%
Revenue Next 2Y6.11%
Revenue Next 3Y5.36%
Revenue Next 5Y4.71%
EBIT growth 1Y3.27%
EBIT growth 3Y7.55%
EBIT growth 5Y9.81%
EBIT Next Year114.86%
EBIT Next 3Y32.68%
EBIT Next 5Y22.27%
FCF growth 1Y82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y122.58%
OCF growth 3Y669.6%
OCF growth 5YN/A