EDISON INTERNATIONAL (EIX) Stock Fundamental Analysis
NYSE:EIX - New York Stock Exchange, Inc. - US2810201077 - Common Stock - Currency: USD
EIX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. While EIX has a great profitability rating, there are quite some concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on EIX. 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.
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
With a decent Return On Assets value of 3.09%, EIX is doing good in the industry, outperforming 65.22% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.42%, EIX belongs to the top of the industry, outperforming 89.13% of the companies in the same industry.
With a Return On Invested Capital value of 3.68%, EIX perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
EIX had an Average Return On Invested Capital over the past 3 years of 3.67%. This is significantly below the industry average of 45.26%.
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
With a decent Profit Margin value of 15.75%, EIX is doing good in the industry, outperforming 73.91% of the companies in the same industry.
In the last couple of years the Profit Margin of EIX has declined.
EIX has a Operating Margin (21.67%) which is in line with its industry peers.
In the last couple of years the Operating Margin of EIX has grown nicely.
The Gross Margin of EIX (69.72%) is better than 65.22% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EIX is destroying value.
The number of shares outstanding for EIX has been increased compared to 1 year ago.
The number of shares outstanding for EIX has been increased compared to 5 years ago.
EIX has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.65, we must say that EIX is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of EIX (0.65) is comparable to the rest of the 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 worse Debt to Equity ratio (2.13) than 76.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.65 |
ROIC/WACC0.65
WACC5.68%
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.
Looking at the Current ratio, with a value of 0.96, EIX is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
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 better Quick ratio (0.89) than 69.57% of its industry peers.
| 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%.
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.
EIX shows a small growth in Revenue. In the last year, the Revenue has grown by 5.34%.
Measured over the past years, EIX shows a small growth in Revenue. The Revenue has been growing by 7.34% on average per year.
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 9.01% on average over the next years. This is quite good.
EIX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.19% yearly.
EPS Next Y23.84%
EPS Next 2Y11.94%
EPS Next 3Y10.34%
EPS Next 5Y9.01%
Revenue Next Year8.94%
Revenue Next 2Y6.37%
Revenue Next 3Y6.04%
Revenue Next 5Y3.19%
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
A Price/Earnings ratio of 10.90 indicates a reasonable valuation of EIX.
80.43% of the companies in the same industry are more expensive than EIX, based on the Price/Earnings ratio.
EIX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.03.
Based on the Price/Forward Earnings ratio of 9.12, the valuation of EIX can be described as reasonable.
Based on the Price/Forward Earnings ratio, EIX is valued cheaper than 86.96% 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 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 9.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EIX is valued cheaply inside the industry as 80.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.76 |
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)0.46
PEG (5Y)11.85
EPS Next 2Y11.94%
EPS Next 3Y10.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.75%, EIX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.45, EIX pays a better dividend. On top of this EIX pays more dividend than 93.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, EIX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.75% |
5.2 History
On average, the dividend of EIX grows each year by 7.28%, which is quite nice.
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)7.28%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
47.99% of the earnings are spent on dividend by EIX. This is a bit on the high side, but may be sustainable.
The dividend of EIX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP47.99%
EPS Next 2Y11.94%
EPS Next 3Y10.34%
56.22
-0.72 (-1.26%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.54%
Inst Owner Change-1.94%
Ins Owners0.06%
Ins Owner Change15.91%
Market Cap21.63B
Analysts78.26
Price Target69.35 (23.35%)
Short Float %2.24%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.75% |
Yearly Dividend3.35
Dividend Growth(5Y)7.28%
DP47.99%
Div Incr Years18
Div Non Decr Years18
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)-4.17%
PT rev (3m)-17.46%
EPS NQ rev (1m)2.53%
EPS NQ rev (3m)11.22%
EPS NY rev (1m)1.01%
EPS NY rev (3m)6.17%
Revenue NQ rev (1m)3.02%
Revenue NQ rev (3m)5.6%
Revenue NY rev (1m)2.44%
Revenue NY rev (3m)4.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 9.12 | ||
| P/S | 1.25 | ||
| P/FCF | N/A | ||
| P/OCF | 4.16 | ||
| P/B | 1.3 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 8.76 |
EPS(TTM)5.16
EY9.18%
EPS(NY)6.16
Fwd EY10.96%
FCF(TTM)-1.67
FCFYN/A
OCF(TTM)13.5
OCFY24.02%
SpS45.04
BVpS43.2
TBVpS43.2
PEG (NY)0.46
PEG (5Y)11.85
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 | 0.65 |
F-Score6
WACC5.68%
ROIC/WACC0.65
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 5Y9.01%
Revenue 1Y (TTM)5.34%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%-6.55%
Revenue Next Year8.94%
Revenue Next 2Y6.37%
Revenue Next 3Y6.04%
Revenue Next 5Y3.19%
EBIT growth 1Y3.27%
EBIT growth 3Y7.55%
EBIT growth 5Y9.81%
EBIT Next Year109.02%
EBIT Next 3Y32.04%
EBIT Next 5Y20.93%
FCF growth 1Y82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y122.58%
OCF growth 3Y669.6%
OCF growth 5YN/A