EDISON INTERNATIONAL (EIX) Stock Fundamental Analysis
USA - NYSE:EIX - US2810201077 - Common Stock
56.2 USD
-0.02 (-0.04%)
56.6 USD
+0.4 (+0.71%)
We assign a fundamental rating of 4 out of 10 to EIX. EIX was compared to 47 industry peers in the Electric Utilities industry. EIX has a medium profitability rating, but doesn't score so well on its financial health evaluation. EIX is valued correctly, but it does not seem to be growing. 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.
Each year in the past 5 years EIX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.97%, EIX is in line with its industry, outperforming 59.57% of the companies in the same industry.
EIX has a Return On Equity of 15.79%. This is amongst the best in the industry. EIX outperforms 87.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.52%, EIX is doing worse than 72.34% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EIX is in line with the industry average of 5.06%.
| 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
Looking at the Profit Margin, with a value of 15.02%, EIX is in line with its industry, outperforming 59.57% of the companies in the same 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.
Looking at the Gross Margin, with a value of 70.51%, EIX is in the better half of 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EIX is destroying value.
EIX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, EIX has more shares outstanding
Compared to 1 year ago, EIX has a worse debt to assets ratio.
2.2 Solvency
EIX has an Altman-Z score of 0.64. 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 0.64 is on the low side compared to the rest of the industry. EIX is outperformed by 72.34% of its industry peers.
A Debt/Equity ratio of 2.14 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 2.14, EIX is doing worse than 91.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.64 |
ROIC/WACC0.64
WACC5.5%
2.3 Liquidity
A Current Ratio of 0.87 indicates that EIX may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.87, EIX is in line with its industry, outperforming 51.06% of the companies in the same industry.
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.
The Quick ratio of EIX (0.81) is comparable to the rest of the industry.
| 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.
The Earnings Per Share has been growing slightly by 0.92% on average over the past years.
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
EIX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.60% yearly.
The Revenue is expected to grow by 5.42% on average over the next years.
EPS Next Y24.63%
EPS Next 2Y12.13%
EPS Next 3Y10.01%
EPS Next 5Y6.6%
Revenue Next Year7.09%
Revenue Next 2Y4.89%
Revenue Next 3Y4.37%
Revenue Next 5Y5.42%
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 11.47, the valuation of EIX can be described as very reasonable.
Based on the Price/Earnings ratio, EIX is valued a bit cheaper than the industry average as 70.21% of the companies are valued more expensively.
EIX is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.08 indicates a reasonable valuation of EIX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EIX indicates a rather cheap valuation: EIX is cheaper than 82.98% of the companies listed in the same industry.
EIX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 9.08 |
4.2 Price Multiples
72.34% of the companies in the same industry are more expensive than EIX, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.85 |
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)0.47
PEG (5Y)12.48
EPS Next 2Y12.13%
EPS Next 3Y10.01%
5. Dividend
5.1 Amount
EIX has a Yearly Dividend Yield of 5.89%, which is a nice return.
Compared to an average industry Dividend Yield of 3.56, EIX pays a better dividend. On top of this EIX pays more dividend than 93.62% of the companies listed in the same industry.
EIX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.89% |
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.
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.
EIX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.38%
EPS Next 2Y12.13%
EPS Next 3Y10.01%
56.2
-0.02 (-0.04%)
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 Change-1.05%
Market Cap21.63B
Analysts75.24
Price Target68.6 (22.06%)
Short Float %2.14%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.89% |
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)1.21%
PT rev (3m)-2.01%
EPS NQ rev (1m)-1.19%
EPS NQ rev (3m)-12.99%
EPS NY rev (1m)0.18%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)-1%
Revenue NY rev (3m)-0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 9.08 | ||
| P/S | 1.23 | ||
| P/FCF | N/A | ||
| P/OCF | 3.76 | ||
| P/B | 1.3 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 8.85 |
EPS(TTM)4.9
EY8.72%
EPS(NY)6.19
Fwd EY11.01%
FCF(TTM)-0.98
FCFYN/A
OCF(TTM)14.94
OCFY26.58%
SpS45.57
BVpS43.36
TBVpS43.36
PEG (NY)0.47
PEG (5Y)12.48
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 | 0.64 |
F-Score6
WACC5.5%
ROIC/WACC0.64
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 5Y6.6%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%4.77%
Revenue Next Year7.09%
Revenue Next 2Y4.89%
Revenue Next 3Y4.37%
Revenue Next 5Y5.42%
EBIT growth 1Y-4.37%
EBIT growth 3Y7.55%
EBIT growth 5Y9.81%
EBIT Next Year115.37%
EBIT Next 3Y32.4%
EBIT Next 5Y20.82%
FCF growth 1Y87.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y113.68%
OCF growth 3Y669.6%
OCF growth 5YN/A