EDISON INTERNATIONAL (1EIX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1EIX - US2810201077 - Common Stock
50.74 EUR
+4.02 (+8.6%)
We assign a fundamental rating of 4 out of 10 to 1EIX. 1EIX was compared to 28 industry peers in the Electric Utilities industry. While 1EIX is still in line with the averages on profitability rating, there are concerns on its financial health. 1EIX has a decent growth rate and is not valued too expensively. Finally 1EIX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
1EIX had positive earnings in the past year.
In the past year 1EIX had a positive cash flow from operations.
Each year in the past 5 years 1EIX has been profitable.
1EIX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1EIX has a Return On Assets (3.26%) which is in line with its industry peers.
With a decent Return On Equity value of 17.20%, 1EIX is doing good in the industry, outperforming 65.00% of the companies in the same industry.
1EIX has a Return On Invested Capital of 3.98%. This is in the lower half of the industry: 1EIX underperforms 65.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1EIX is below the industry average of 7.18%.
The 3 year average ROIC (3.49%) for 1EIX is below the current ROIC(3.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 17.2% | ||
| ROIC | 3.98% |
ROA(3y)1.25%
ROA(5y)1.17%
ROE(3y)6.63%
ROE(5y)5.86%
ROIC(3y)3.49%
ROIC(5y)3.43%
1.3 Margins
With a decent Profit Margin value of 16.31%, 1EIX is doing good in the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Profit Margin of 1EIX has declined.
1EIX has a Operating Margin of 24.34%. This is in the better half of the industry: 1EIX outperforms 70.00% of its industry peers.
1EIX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 72.50%, 1EIX belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
In the last couple of years the Gross Margin of 1EIX 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
1EIX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
1EIX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for 1EIX has been increased compared to 5 years ago.
Compared to 1 year ago, 1EIX has a worse debt to assets ratio.
2.2 Solvency
1EIX has an Altman-Z score of 0.66. This is a bad value and indicates that 1EIX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of 1EIX (0.66) is worse than 90.00% of its industry peers.
A Debt/Equity ratio of 2.12 is on the high side and indicates that 1EIX has dependencies on debt financing.
1EIX's Debt to Equity ratio of 2.12 is on the low side compared to the rest of the industry. 1EIX is outperformed by 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.66 |
ROIC/WACC0.76
WACC5.23%
2.3 Liquidity
1EIX has a Current Ratio of 0.82. This is a bad value and indicates that 1EIX 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, 1EIX is in line with its industry, outperforming 45.00% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that 1EIX may have some problems paying its short term obligations.
1EIX has a Quick ratio (0.76) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
1EIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.26%, which is quite good.
Measured over the past 5 years, 1EIX shows a small growth in Earnings Per Share. The EPS has been growing by 0.92% on average per year.
The Revenue has been growing slightly by 4.41% in the past year.
Measured over the past years, 1EIX 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 4.51% on average over the next years.
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
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
A Price/Earnings ratio of 10.21 indicates a reasonable valuation of 1EIX.
90.00% of the companies in the same industry are more expensive than 1EIX, based on the Price/Earnings ratio.
1EIX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
With a Price/Forward Earnings ratio of 9.41, the valuation of 1EIX can be described as very reasonable.
Based on the Price/Forward Earnings ratio, 1EIX is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1EIX to the average of the S&P500 Index (36.59), we can say 1EIX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.21 | ||
| Fwd PE | 9.41 |
4.2 Price Multiples
65.00% of the companies in the same industry are more expensive than 1EIX, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.62 |
4.3 Compensation for Growth
1EIX'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 1EIX may justify a higher PE ratio.
PEG (NY)0.42
PEG (5Y)11.11
EPS Next 2Y12.38%
EPS Next 3Y10.11%
5. Dividend
5.1 Amount
1EIX has a Yearly Dividend Yield of 5.70%, which is a nice return.
1EIX's Dividend Yield is rather good when compared to the industry average which is at 3.67. 1EIX pays more dividend than 90.00% of the companies in the same industry.
1EIX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
5.2 History
The dividend of 1EIX is nicely growing with an annual growth rate of 7.28%!
Dividend Growth(5Y)7.28%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1EIX pays out 45.56% of its income as dividend. This is a bit on the high side, but may be sustainable.
1EIX'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%
BIT:1EIX (11/25/2025, 7:00:00 PM)
50.74
+4.02 (+8.6%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.39%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap19.53B
Revenue(TTM)18.09B
Net Income(TTM)2.95B
Analysts73.64
Price Target58.15 (14.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
Yearly Dividend2.9
Dividend Growth(5Y)7.28%
DP45.56%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)-37.67%
EPS NQ rev (3m)-11.52%
EPS NY rev (1m)0.42%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)-13.72%
Revenue NQ rev (3m)-4.75%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.21 | ||
| Fwd PE | 9.41 | ||
| P/S | 1.24 | ||
| P/FCF | N/A | ||
| P/OCF | 4.17 | ||
| P/B | 1.31 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 7.62 |
EPS(TTM)4.97
EY9.8%
EPS(NY)5.39
Fwd EY10.63%
FCF(TTM)-1.63
FCFYN/A
OCF(TTM)12.18
OCFY24%
SpS40.79
BVpS38.7
TBVpS38.7
PEG (NY)0.42
PEG (5Y)11.11
Graham Number65.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 17.2% | ||
| ROCE | 5.43% | ||
| ROIC | 3.98% | ||
| ROICexc | 4% | ||
| ROICexgc | 4% | ||
| 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)3.49%
ROIC(5y)3.43%
ROICexc(3y)3.51%
ROICexc(5y)3.45%
ROICexgc(3y)3.51%
ROICexgc(5y)3.45%
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 | 0.66 |
F-Score7
WACC5.23%
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 / 1EIX.MI FAQ
Can you provide the ChartMill fundamental rating for EDISON INTERNATIONAL?
ChartMill assigns a fundamental rating of 3 / 10 to 1EIX.MI.
What is the valuation status for 1EIX stock?
ChartMill assigns a valuation rating of 5 / 10 to EDISON INTERNATIONAL (1EIX.MI). This can be considered as Fairly Valued.
How profitable is EDISON INTERNATIONAL (1EIX.MI) stock?
EDISON INTERNATIONAL (1EIX.MI) has a profitability rating of 5 / 10.
What is the expected EPS growth for EDISON INTERNATIONAL (1EIX.MI) stock?
The Earnings per Share (EPS) of EDISON INTERNATIONAL (1EIX.MI) is expected to grow by 24.39% in the next year.
Can you provide the dividend sustainability for 1EIX stock?
The dividend rating of EDISON INTERNATIONAL (1EIX.MI) is 7 / 10 and the dividend payout ratio is 45.56%.