EDISON INTERNATIONAL (EIX) Stock Fundamental Analysis
NYSE:EIX - New York Stock Exchange, Inc. - US2810201077 - Common Stock - Currency: USD
Overall EIX gets a fundamental rating of 4 out of 10. We evaluated EIX 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
EIX had positive earnings in the past year.
In the past year EIX had a positive cash flow from operations.
In the past 5 years EIX has always been profitable.
Each year in the past 5 years EIX had a positive operating cash flow.
1.2 Ratios
EIX has a Return On Assets (3.09%) which is in line with its industry peers.
EIX has a better Return On Equity (16.42%) than 85.11% of its industry peers.
EIX has a worse Return On Invested Capital (3.68%) than 74.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EIX is significantly below the industry average of 38.54%.
The 3 year average ROIC (3.67%) for EIX is below the current ROIC(3.68%), indicating increased profibility in the last year.
| 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 68.09% of the companies in the same industry.
In the last couple of years the Profit Margin of EIX has declined.
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.
EIX has a Gross Margin of 69.72%. This is in the better half of the industry: EIX outperforms 68.09% 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
EIX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, EIX has more shares outstanding
EIX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, EIX has a worse debt to assets ratio.
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 has a Altman-Z score of 0.63. This is in the lower half of the industry: EIX underperforms 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.
The Debt to Equity ratio of EIX (2.13) is worse than 91.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.63 |
ROIC/WACC0.67
WACC5.52%
2.3 Liquidity
A Current Ratio of 0.96 indicates that EIX may have some problems paying its short term obligations.
The Current ratio of EIX (0.96) is comparable to the rest of the 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 Quick ratio (0.89) which is comparable to the rest of the industry.
| 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.
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
Based on estimates for the next years, EIX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.23% on average per year.
EIX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.71% yearly.
EPS Next Y24.18%
EPS Next 2Y12.09%
EPS Next 3Y10.25%
EPS Next 5Y8.23%
Revenue Next Year8.61%
Revenue Next 2Y6.11%
Revenue Next 3Y5.36%
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.
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
EIX is valuated reasonably with a Price/Earnings ratio of 9.90.
EIX's Price/Earnings ratio is a bit cheaper when compared to the industry. EIX is cheaper than 72.34% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, EIX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.26, the valuation of EIX can be described as reasonable.
Based on the Price/Forward Earnings ratio, EIX is valued cheaper than 80.85% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. EIX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 8.26 |
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 | 8.44 |
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.
EIX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.41
PEG (5Y)10.77
EPS Next 2Y12.09%
EPS Next 3Y10.25%
5. Dividend
5.1 Amount
EIX has a Yearly Dividend Yield of 6.30%, which is a nice return.
Compared to an average industry Dividend Yield of 3.63, EIX pays a better dividend. On top of this EIX pays more dividend than 97.87% 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.3% |
5.2 History
The dividend of EIX is nicely growing with an annual growth rate of 7.28%!
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 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 2Y12.09%
EPS Next 3Y10.25%
51.06
-0.23 (-0.45%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners89.48%
Inst Owner Change0.02%
Ins Owners0.07%
Ins Owner Change15.71%
Market Cap19.65B
Analysts76.36
Price Target70.2 (37.49%)
Short Float %2.32%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.3% |
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)1.23%
PT rev (3m)-3%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)0.87%
EPS NY rev (1m)0.28%
EPS NY rev (3m)1.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.87%
Revenue NY rev (1m)0.66%
Revenue NY rev (3m)2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 8.26 | ||
| P/S | 1.13 | ||
| P/FCF | N/A | ||
| P/OCF | 3.78 | ||
| P/B | 1.18 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 8.44 |
EPS(TTM)5.16
EY10.11%
EPS(NY)6.18
Fwd EY12.11%
FCF(TTM)-1.67
FCFYN/A
OCF(TTM)13.5
OCFY26.44%
SpS45.04
BVpS43.2
TBVpS43.2
PEG (NY)0.41
PEG (5Y)10.77
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
WACC5.52%
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 Y24.18%
EPS Next 2Y12.09%
EPS Next 3Y10.25%
EPS Next 5Y8.23%
Revenue 1Y (TTM)5.34%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%-6.55%
Revenue Next Year8.61%
Revenue Next 2Y6.11%
Revenue Next 3Y5.36%
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