EDISON INTERNATIONAL (EIX)

US2810201077 - Common Stock

69.4  +1.17 (+1.71%)

After market: 69.4 0 (0%)

Fundamental Rating

3

Taking everything into account, EIX scores 3 out of 10 in our fundamental rating. EIX was compared to 45 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 valuation in line with the averages, but on the other hand it scores bad on growth. Finally EIX also has an excellent dividend rating.



6

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.
EIX had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

With a Return On Assets value of 1.46%, EIX is not doing good in the industry: 82.22% of the companies in the same industry are doing better.
The Return On Equity of EIX (7.72%) is worse than 60.00% of its industry peers.
EIX has a Return On Invested Capital (3.73%) which is comparable to the rest of the industry.
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 (3.73%) for EIX is above the 3 year average (3.57%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.46%
ROE 7.72%
ROIC 3.73%
ROA(3y)1.09%
ROA(5y)1.26%
ROE(3y)5.47%
ROE(5y)5.87%
ROIC(3y)3.57%
ROIC(5y)3.48%

1.3 Margins

EIX has a worse Profit Margin (7.33%) than 73.33% of its industry peers.
In the last couple of years the Profit Margin of EIX has grown nicely.
The Operating Margin of EIX (21.47%) is better than 66.67% of its industry peers.
In the last couple of years the Operating Margin of EIX has grown nicely.
With a decent Gross Margin value of 66.42%, EIX is doing good in the industry, outperforming 62.22% of the companies in the same industry.
EIX's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 21.47%
PM (TTM) 7.33%
GM 66.42%
OM growth 3Y1.78%
OM growth 5Y4.36%
PM growth 3Y10.42%
PM growth 5YN/A
GM growth 3Y1.42%
GM growth 5Y3%

0

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EIX is destroying value.
The number of shares outstanding for EIX has been increased compared to 1 year ago.
Compared to 5 years ago, EIX has more shares outstanding
The debt/assets ratio for EIX is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 0.69, we must say that EIX is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of EIX (0.69) is worse than 66.67% of its industry peers.
A Debt/Equity ratio of 2.03 is on the high side and indicates that EIX has dependencies on debt financing.
EIX has a Debt to Equity ratio of 2.03. This is amonst the worse of the industry: EIX underperforms 88.89% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.03
Debt/FCF N/A
Altman-Z 0.69
ROIC/WACC0.64
WACC5.84%

2.3 Liquidity

A Current Ratio of 0.79 indicates that EIX may have some problems paying its short term obligations.
EIX has a Current ratio (0.79) which is comparable to the rest of the industry.
EIX has a Quick Ratio of 0.79. 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's Quick ratio of 0.73 is in line compared to the rest of the industry. EIX outperforms 51.11% of its industry peers.
Industry RankSector Rank
Current Ratio 0.79
Quick Ratio 0.73

3

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 2.59% over the past year.
EIX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.10% yearly.
The Revenue has decreased by -5.12% in the past year.
EIX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.24% yearly.
EPS 1Y (TTM)2.59%
EPS 3Y1.97%
EPS 5Y2.1%
EPS growth Q2Q11.3%
Revenue 1Y (TTM)-5.12%
Revenue growth 3Y6.36%
Revenue growth 5Y5.24%
Revenue growth Q2Q-7.72%

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 7.61% on average per year.
EIX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.01% yearly.
EPS Next Y5.23%
EPS Next 2Y8.68%
EPS Next 3Y8%
EPS Next 5Y7.61%
Revenue Next Year3.95%
Revenue Next 2Y4.03%
Revenue Next 3Y3.76%
Revenue Next 5Y3.01%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 14.58, the valuation of EIX can be described as correct.
EIX's Price/Earnings ratio is a bit cheaper when compared to the industry. EIX is cheaper than 71.11% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.42, EIX is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.86 indicates a correct valuation of EIX.
EIX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EIX is cheaper than 62.22% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.74. EIX is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 14.58
Fwd PE 13.86

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, EIX is valued a bit cheaper than 71.11% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 9.53

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EIX does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of EIX may justify a higher PE ratio.
PEG (NY)2.79
PEG (5Y)6.94
EPS Next 2Y8.68%
EPS Next 3Y8%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.45%, EIX is a good candidate for dividend investing.
EIX's Dividend Yield is a higher than the industry average which is at 5.26.
EIX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 4.45%

5.2 History

The dividend of EIX has a limited annual growth rate of 5.62%.
EIX has paid a dividend for at least 10 years, which is a reliable track record.
EIX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.62%
Div Incr Years18
Div Non Decr Years18

5.3 Sustainability

EIX pays out 101.92% of its income as dividend. This is not a sustainable payout ratio.
EIX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP101.92%
EPS Next 2Y8.68%
EPS Next 3Y8%

EDISON INTERNATIONAL

NYSE:EIX (3/27/2024, 8:10:10 PM)

After market: 69.4 0 (0%)

69.4

+1.17 (+1.71%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap26.69B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.45%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 14.58
Fwd PE 13.86
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.79
PEG (5Y)6.94
Profitability
Industry RankSector Rank
ROA 1.46%
ROE 7.72%
ROCE
ROIC
ROICexc
ROICexgc
OM 21.47%
PM (TTM) 7.33%
GM 66.42%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
Industry RankSector Rank
Debt/Equity 2.03
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.79
Quick Ratio 0.73
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)2.59%
EPS 3Y1.97%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.12%
Revenue growth 3Y6.36%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y