EDISON INTERNATIONAL (EIX) Stock Fundamental Analysis
NYSE:EIX - US2810201077 - Common Stock
55.6 USD
+1.79 (+3.33%)
55.5705 USD
-0.03 (-0.05%)
EIX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 valuation in line with the averages, but on the other hand it scores bad on growth. EIX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EIX was profitable.
In the past year EIX had a positive cash flow from operations.
Each year in the past 5 years EIX has been profitable.
EIX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EIX has a Return On Assets of 2.97%. This is comparable to the rest of the industry: EIX outperforms 59.57% of its industry peers.
EIX has a Return On Equity of 15.79%. This is amongst the best in the industry. EIX outperforms 85.11% of its industry peers.
EIX has a worse Return On Invested Capital (3.52%) than 72.34% of its industry peers.
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 5.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 15.79% | ||
| ROIC | 3.52% |
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
EIX has a Profit Margin (15.02%) which is comparable to the rest of the industry.
EIX's Profit Margin has declined in the last couple of years.
EIX has a Operating Margin of 20.70%. This is comparable to the rest of the industry: EIX outperforms 53.19% of its industry peers.
EIX's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 70.51%, EIX is doing good in the industry, outperforming 68.09% of the companies in the same industry.
In the last couple of years the Gross Margin of EIX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.7% | ||
| PM (TTM) | 15.02% | ||
| GM | 70.51% |
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.
The number of shares outstanding for EIX has been increased compared to 1 year ago.
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 0.63. This is a bad value and indicates that EIX is not financially healthy and even has some risk of bankruptcy.
EIX's Altman-Z score of 0.63 is on the low side compared to the rest of the industry. EIX is outperformed by 70.21% of its industry peers.
EIX has a Debt/Equity ratio of 2.14. This is a high value indicating a heavy dependency on external financing.
EIX's Debt to Equity ratio of 2.14 is on the low side compared to the rest of the industry. EIX is outperformed by 91.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.63 |
ROIC/WACC0.63
WACC5.57%
2.3 Liquidity
A Current Ratio of 0.87 indicates that EIX may have some problems paying its short term obligations.
EIX has a Current ratio (0.87) which is in line with its industry peers.
EIX has a Quick Ratio of 0.87. 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 Quick ratio (0.81) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for EIX have decreased by -2.39% in the last year.
Measured over the past 5 years, EIX 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 4.24% in the past year.
The Revenue has been growing slightly by 7.34% on average over the past years.
EPS 1Y (TTM)-2.39%
EPS 3Y2.42%
EPS 5Y0.92%
EPS Q2Q%-21.14%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%4.77%
3.2 Future
The Earnings Per Share is expected to grow by 7.43% 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 5.50% yearly.
EPS Next Y24.63%
EPS Next 2Y12.13%
EPS Next 3Y10.01%
EPS Next 5Y7.43%
Revenue Next Year7.32%
Revenue Next 2Y5.04%
Revenue Next 3Y4.51%
Revenue Next 5Y5.5%
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 11.35.
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.
The average S&P500 Price/Earnings ratio is at 27.24. EIX is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.99 indicates a reasonable valuation of EIX.
Based on the Price/Forward Earnings ratio, EIX is valued cheaply inside the industry as 85.11% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.81, EIX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 8.99 |
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 72.34% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.82 |
4.3 Compensation for Growth
The 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)0.46
PEG (5Y)12.35
EPS Next 2Y12.13%
EPS Next 3Y10.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.15%, EIX is a good candidate for dividend investing.
EIX's Dividend Yield is rather good when compared to the industry average which is at 3.53. EIX pays more dividend than 95.74% of the companies in the same industry.
EIX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.15% |
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 50.38% 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.
DP50.38%
EPS Next 2Y12.13%
EPS Next 3Y10.01%
55.6
+1.79 (+3.33%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.5%
Inst Owner Change1.42%
Ins Owners0.07%
Ins Owner Change13.79%
Market Cap21.40B
Analysts76.36
Price Target67.19 (20.85%)
Short Float %2.1%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.15% |
Yearly Dividend3.35
Dividend Growth(5Y)7.28%
DP50.38%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.85%
Min EPS beat(2)4.98%
Max EPS beat(2)12.72%
EPS beat(4)3
Avg EPS beat(4)5.18%
Min EPS beat(4)-5.04%
Max EPS beat(4)12.72%
EPS beat(8)5
Avg EPS beat(8)4.34%
EPS beat(12)8
Avg EPS beat(12)4.34%
EPS beat(16)11
Avg EPS beat(16)5.78%
Revenue beat(2)1
Avg Revenue beat(2)-2.18%
Min Revenue beat(2)-11.43%
Max Revenue beat(2)7.07%
Revenue beat(4)3
Avg Revenue beat(4)-0.28%
Min Revenue beat(4)-11.43%
Max Revenue beat(4)7.07%
Revenue beat(8)4
Avg Revenue beat(8)-3.57%
Revenue beat(12)6
Avg Revenue beat(12)-1.03%
Revenue beat(16)9
Avg Revenue beat(16)1.69%
PT rev (1m)-3.06%
PT rev (3m)-3.11%
EPS NQ rev (1m)-9.25%
EPS NQ rev (3m)-12.07%
EPS NY rev (1m)0.18%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)-1.94%
Revenue NQ rev (3m)-2.11%
Revenue NY rev (1m)-0.88%
Revenue NY rev (3m)-1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 8.99 | ||
| P/S | 1.22 | ||
| P/FCF | N/A | ||
| P/OCF | 3.72 | ||
| P/B | 1.28 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 8.82 |
EPS(TTM)4.9
EY8.81%
EPS(NY)6.19
Fwd EY11.13%
FCF(TTM)-0.98
FCFYN/A
OCF(TTM)14.94
OCFY26.86%
SpS45.57
BVpS43.36
TBVpS43.36
PEG (NY)0.46
PEG (5Y)12.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 15.79% | ||
| ROCE | 4.49% | ||
| ROIC | 3.52% | ||
| ROICexc | 3.52% | ||
| ROICexgc | 3.52% | ||
| OM | 20.7% | ||
| PM (TTM) | 15.02% | ||
| GM | 70.51% | ||
| 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 | 2.14 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.34 | ||
| Cap/Depr | 200.69% | ||
| Cap/Sales | 34.94% | ||
| Interest Coverage | 2.22 | ||
| Cash Conversion | 86.01% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 0.63 |
F-Score6
WACC5.57%
ROIC/WACC0.63
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)-2.39%
EPS 3Y2.42%
EPS 5Y0.92%
EPS Q2Q%-21.14%
EPS Next Y24.63%
EPS Next 2Y12.13%
EPS Next 3Y10.01%
EPS Next 5Y7.43%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%4.77%
Revenue Next Year7.32%
Revenue Next 2Y5.04%
Revenue Next 3Y4.51%
Revenue Next 5Y5.5%
EBIT growth 1Y-4.37%
EBIT growth 3Y7.55%
EBIT growth 5Y9.81%
EBIT Next Year115.37%
EBIT Next 3Y32.4%
EBIT Next 5Y23.56%
FCF growth 1Y87.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y113.68%
OCF growth 3Y669.6%
OCF growth 5YN/A