EDISON INTERNATIONAL (EIX) Stock Fundamental Analysis
NYSE:EIX - New York Stock Exchange, Inc. - US2810201077 - Common Stock - Currency: USD
EIX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. There are concerns on the financial health of EIX while its profitability can be described as average. EIX has a decent growth rate and is not valued too expensively. 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.
EIX had positive earnings in each of the past 5 years.
In the past 5 years EIX always reported a positive cash flow from operatings.
1.2 Ratios
EIX has a Return On Assets (3.09%) which is comparable to the rest of the industry.
The Return On Equity of EIX (16.42%) is better than 85.11% of its industry peers.
EIX has a Return On Invested Capital of 3.68%. This is in the lower half of the industry: EIX underperforms 74.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EIX 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
EIX has a Profit Margin of 15.75%. This is in the better half of the industry: EIX outperforms 68.09% of its industry peers.
EIX's Profit Margin has declined in the last couple of years.
The Operating Margin of EIX (21.67%) is comparable to the rest of the industry.
EIX's Operating Margin has improved in the last couple of years.
The Gross Margin of EIX (69.72%) is better than 68.09% of its industry peers.
In the last couple of years the Gross Margin of EIX has grown nicely.
| 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.
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.
EIX has a worse debt/assets ratio than last year.
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.
The Altman-Z score of EIX (0.63) is worse than 70.21% of its industry peers.
A Debt/Equity ratio of 2.13 is on the high side and indicates that EIX has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.13, EIX is doing worse than 91.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.63 |
ROIC/WACC0.67
WACC5.5%
2.3 Liquidity
EIX has a Current Ratio of 0.96. 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 0.96. This is comparable to the rest of the industry: EIX outperforms 57.45% of its industry peers.
EIX has a Quick Ratio of 0.96. 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 (0.89) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.50% over the past year.
The Earnings Per Share has been growing slightly by 0.92% on average over the past years.
EIX shows a small growth in Revenue. In the last year, the Revenue has grown by 5.34%.
The Revenue has been growing slightly by 7.34% on average over the past years.
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
EIX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.22% yearly.
Based on estimates for the next years, EIX will show a small growth in Revenue. The Revenue will grow by 4.71% on average per year.
EPS Next Y23.84%
EPS Next 2Y11.94%
EPS Next 3Y10.34%
EPS Next 5Y8.22%
Revenue Next Year7.9%
Revenue Next 2Y5.78%
Revenue Next 3Y5.42%
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.
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
With a Price/Earnings ratio of 9.76, the valuation of EIX can be described as very reasonable.
74.47% of the companies in the same industry are more expensive than EIX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.60. EIX is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.17, the valuation of EIX can be described as very reasonable.
EIX's Price/Forward Earnings ratio is rather cheap when compared to the industry. EIX is cheaper than 80.85% of the companies in the same industry.
EIX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 8.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EIX is valued a bit cheaper than the industry average as 72.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.35 |
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)0.41
PEG (5Y)10.62
EPS Next 2Y11.94%
EPS Next 3Y10.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.17%, EIX is a good candidate for dividend investing.
EIX's Dividend Yield is rather good when compared to the industry average which is at 3.54. EIX pays more dividend than 95.74% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, EIX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.17% |
5.2 History
The dividend of EIX is nicely growing with an annual growth rate of 7.28%!
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 2Y11.94%
EPS Next 3Y10.34%
50.37
+0.76 (+1.53%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.54%
Inst Owner Change-2.02%
Ins Owners0.06%
Ins Owner Change15.91%
Market Cap19.38B
Analysts77.39
Price Target70.01 (38.99%)
Short Float %1.91%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.17% |
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)0.96%
PT rev (3m)-4.85%
EPS NQ rev (1m)2.71%
EPS NQ rev (3m)9.04%
EPS NY rev (1m)1.01%
EPS NY rev (3m)6.14%
Revenue NQ rev (1m)1.69%
Revenue NQ rev (3m)4.08%
Revenue NY rev (1m)-0.96%
Revenue NY rev (3m)2.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 8.17 | ||
| P/S | 1.12 | ||
| P/FCF | N/A | ||
| P/OCF | 3.73 | ||
| P/B | 1.17 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 8.35 |
EPS(TTM)5.16
EY10.24%
EPS(NY)6.16
Fwd EY12.24%
FCF(TTM)-1.67
FCFYN/A
OCF(TTM)13.5
OCFY26.81%
SpS45.04
BVpS43.2
TBVpS43.2
PEG (NY)0.41
PEG (5Y)10.62
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
WACC5.5%
ROIC/WACC0.67
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 Y23.84%
EPS Next 2Y11.94%
EPS Next 3Y10.34%
EPS Next 5Y8.22%
Revenue 1Y (TTM)5.34%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%-6.55%
Revenue Next Year7.9%
Revenue Next 2Y5.78%
Revenue Next 3Y5.42%
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