EDISON INTERNATIONAL (EIX) Stock Fundamental Analysis
NYSE:EIX - New York Stock Exchange, Inc. - US2810201077 - Common Stock - Currency: USD
Taking everything into account, EIX scores 4 out of 10 in our fundamental rating. EIX was compared to 46 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 is not valued too expensively and it also shows a decent growth rate. 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.
Each year in the past 5 years EIX had a positive operating cash flow.
1.2 Ratios
EIX has a Return On Assets of 1.50%. This is in the lower half of the industry: EIX underperforms 69.57% of its industry peers.
EIX has a Return On Equity of 8.25%. This is comparable to the rest of the industry: EIX outperforms 45.65% of its industry peers.
EIX's Return On Invested Capital of 3.82% is in line compared to the rest of the industry. EIX outperforms 58.70% 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 4.68%.
The last Return On Invested Capital (3.82%) for EIX is above the 3 year average (3.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 8.25% | ||
| ROIC | 3.82% |
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
The Profit Margin of EIX (7.30%) is worse than 60.87% of its industry peers.
In the last couple of years the Profit Margin of EIX has declined.
EIX has a Operating Margin of 21.47%. This is comparable to the rest of the industry: EIX outperforms 58.70% of its industry peers.
EIX's Operating Margin has improved in the last couple of years.
EIX has a better Gross Margin (70.40%) than 67.39% of its industry peers.
EIX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.47% | ||
| PM (TTM) | 7.3% | ||
| GM | 70.4% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EIX is destroying value.
The number of shares outstanding for EIX has been increased compared to 1 year ago.
Compared to 5 years ago, EIX has more shares outstanding
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.
EIX has a Altman-Z score (0.63) which is comparable to the rest of the industry.
EIX has a Debt/Equity ratio of 2.22. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of EIX (2.22) is worse than 76.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.63 |
ROIC/WACC0.7
WACC5.49%
2.3 Liquidity
EIX has a Current Ratio of 0.85. 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's Current ratio of 0.85 is fine compared to the rest of the industry. EIX outperforms 63.04% of its industry peers.
EIX has a Quick Ratio of 0.85. 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 of 0.78. This is in the better half of the industry: EIX outperforms 71.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.78 |
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%.
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 7.70%.
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)7.7%
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 9.01% on average per year.
Based on estimates for the next years, EIX will show a small growth in Revenue. The Revenue will grow by 3.19% on average per year.
EPS Next Y22.59%
EPS Next 2Y11.95%
EPS Next 3Y10.05%
EPS Next 5Y9.01%
Revenue Next Year6.45%
Revenue Next 2Y5.11%
Revenue Next 3Y4.65%
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.
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
The Price/Earnings ratio is 10.37, which indicates a very decent valuation of EIX.
Based on the Price/Earnings ratio, EIX is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
EIX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.88.
A Price/Forward Earnings ratio of 8.68 indicates a reasonable valuation of EIX.
Based on the Price/Forward Earnings ratio, EIX is valued cheaper than 86.96% of the companies in the same industry.
EIX is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.37 | ||
| Fwd PE | 8.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EIX is valued cheaper than 80.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.34 |
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.
PEG (NY)0.46
PEG (5Y)11.28
EPS Next 2Y11.95%
EPS Next 3Y10.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.64%, 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.
EIX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.64% |
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.
EIX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.28%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
100.16% of the earnings are spent on dividend by EIX. This is not a sustainable payout ratio.
The dividend of EIX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP100.16%
EPS Next 2Y11.95%
EPS Next 3Y10.05%
53.51
-5.22 (-8.89%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.54%
Inst Owner Change0.05%
Ins Owners0.06%
Ins Owner Change15.18%
Market Cap20.60B
Analysts78.18
Price Target69.98 (30.78%)
Short Float %2.08%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.64% |
Yearly Dividend3.35
Dividend Growth(5Y)7.28%
DP100.16%
Div Incr Years18
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.52%
Min EPS beat(2)-5.04%
Max EPS beat(2)8.07%
EPS beat(4)2
Avg EPS beat(4)3.54%
Min EPS beat(4)-5.04%
Max EPS beat(4)13.43%
EPS beat(8)5
Avg EPS beat(8)4.33%
EPS beat(12)8
Avg EPS beat(12)5.76%
EPS beat(16)10
Avg EPS beat(16)4.72%
Revenue beat(2)2
Avg Revenue beat(2)1.63%
Min Revenue beat(2)0.45%
Max Revenue beat(2)2.81%
Revenue beat(4)3
Avg Revenue beat(4)1.15%
Min Revenue beat(4)-2.84%
Max Revenue beat(4)4.16%
Revenue beat(8)3
Avg Revenue beat(8)-5.01%
Revenue beat(12)7
Avg Revenue beat(12)1.94%
Revenue beat(16)8
Avg Revenue beat(16)1.41%
PT rev (1m)-4.88%
PT rev (3m)-24.33%
EPS NQ rev (1m)-10.38%
EPS NQ rev (3m)-4.25%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)4.85%
Revenue NQ rev (1m)-1.03%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)1.56%
Revenue NY rev (3m)1.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.37 | ||
| Fwd PE | 8.68 | ||
| P/S | 1.17 | ||
| P/FCF | N/A | ||
| P/OCF | 4.11 | ||
| P/B | 1.32 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 8.34 |
EPS(TTM)5.16
EY9.64%
EPS(NY)6.17
Fwd EY11.52%
FCF(TTM)-1.8
FCFYN/A
OCF(TTM)13.02
OCFY24.34%
SpS45.7
BVpS40.43
TBVpS40.43
PEG (NY)0.46
PEG (5Y)11.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 8.25% | ||
| ROCE | 4.9% | ||
| ROIC | 3.82% | ||
| ROICexc | 3.83% | ||
| ROICexgc | 3.83% | ||
| OM | 21.47% | ||
| PM (TTM) | 7.3% | ||
| GM | 70.4% | ||
| 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-Score8
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.14 | ||
| Cap/Depr | 194.18% | ||
| Cap/Sales | 32.43% | ||
| Interest Coverage | 2.38 | ||
| Cash Conversion | 74.65% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 0.63 |
F-Score8
WACC5.49%
ROIC/WACC0.7
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 Y22.59%
EPS Next 2Y11.95%
EPS Next 3Y10.05%
EPS Next 5Y9.01%
Revenue 1Y (TTM)7.7%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%-6.55%
Revenue Next Year6.45%
Revenue Next 2Y5.11%
Revenue Next 3Y4.65%
Revenue Next 5Y3.19%
EBIT growth 1Y7.7%
EBIT growth 3Y7.55%
EBIT growth 5Y9.81%
EBIT Next Year109.02%
EBIT Next 3Y32.04%
EBIT Next 5Y20.93%
FCF growth 1Y66.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y47.43%
OCF growth 3Y669.6%
OCF growth 5YN/A