EDISON INTERNATIONAL (EIX) Stock Fundamental Analysis
USA - NYSE:EIX - US2810201077 - Common Stock
55.29 USD
+0.8 (+1.47%)
55.35 USD
+0.06 (+0.11%)
Taking everything into account, EIX scores 4 out of 10 in our fundamental rating. EIX was compared to 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 valuation in line with the averages, but on the other hand it scores bad on growth. EIX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EIX was profitable.
EIX had a positive operating cash flow in the past year.
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
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.
The Return On Equity of EIX (15.79%) is better than 87.23% of its industry peers.
EIX has a Return On Invested Capital of 3.52%. This is in the lower half of the industry: EIX underperforms 70.21% 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 4.95%.
| 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
EIX has a Profit Margin (15.02%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of EIX has declined.
Looking at the Operating Margin, with a value of 20.70%, EIX is in line with its industry, outperforming 55.32% of the companies in the same industry.
EIX's Operating Margin has improved in the last couple of years.
EIX's Gross Margin of 70.51% is fine compared to the rest 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 | 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
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
Compared to 1 year ago, EIX has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.63, we must say that EIX is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.63, EIX is not doing good in the industry: 72.34% of the companies in the same industry are doing better.
EIX has a Debt/Equity ratio of 2.14. This is a high value indicating a heavy dependency on external financing.
EIX has a Debt to Equity ratio of 2.14. This is amonst the worse of the industry: EIX underperforms 91.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.63 |
ROIC/WACC0.64
WACC5.51%
2.3 Liquidity
EIX has a Current 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.
EIX has a Current ratio (0.87) which is comparable to the rest of the 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.
EIX has a Quick ratio (0.81) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
EIX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.39%.
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.
Looking at the last year, EIX shows a small growth in Revenue. The Revenue has grown by 4.24% in the last year.
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)-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
Based on estimates for the next years, EIX will show a small growth in Earnings Per Share. The EPS will grow by 7.17% on average per year.
EIX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.42% yearly.
EPS Next Y23.87%
EPS Next 2Y11.88%
EPS Next 3Y9.83%
EPS Next 5Y7.17%
Revenue Next Year7.57%
Revenue Next 2Y5.17%
Revenue Next 3Y4.58%
Revenue Next 5Y5.42%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
EIX is valuated reasonably with a Price/Earnings ratio of 11.28.
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 27.86. EIX is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.98 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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 8.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EIX is valued a bit cheaper than 70.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.8 |
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)12.28
EPS Next 2Y11.88%
EPS Next 3Y9.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.07%, EIX is a good candidate for dividend investing.
EIX's Dividend Yield is rather good when compared to the industry average which is at 3.37. EIX pays more dividend than 97.87% of the companies in the same industry.
EIX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.07% |
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
50.38% of the earnings are spent on dividend by EIX. 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 2Y11.88%
EPS Next 3Y9.83%
55.29
+0.8 (+1.47%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.39%
Inst Owner Change0%
Ins Owners0.07%
Ins Owner Change-1.05%
Market Cap21.28B
Analysts75
Price Target69.56 (25.81%)
Short Float %2.18%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.07% |
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)3.53%
PT rev (3m)-0.91%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)-15.68%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)-0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 8.98 | ||
| P/S | 1.21 | ||
| P/FCF | N/A | ||
| P/OCF | 3.7 | ||
| P/B | 1.28 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 8.8 |
EPS(TTM)4.9
EY8.86%
EPS(NY)6.16
Fwd EY11.14%
FCF(TTM)-0.98
FCFYN/A
OCF(TTM)14.94
OCFY27.01%
SpS45.57
BVpS43.36
TBVpS43.36
PEG (NY)0.47
PEG (5Y)12.28
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 | 0.63 |
F-Score6
WACC5.51%
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 Y23.87%
EPS Next 2Y11.88%
EPS Next 3Y9.83%
EPS Next 5Y7.17%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%4.77%
Revenue Next Year7.57%
Revenue Next 2Y5.17%
Revenue Next 3Y4.58%
Revenue Next 5Y5.42%
EBIT growth 1Y-4.37%
EBIT growth 3Y7.55%
EBIT growth 5Y9.81%
EBIT Next Year114.92%
EBIT Next 3Y32.13%
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