EDISON INTERNATIONAL (EIX) Stock Fundamental Analysis
USA - NYSE:EIX - US2810201077 - Common Stock
54.39 USD
-0.99 (-1.79%)
54.3453 USD
-0.04 (-0.08%)
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. While EIX belongs to the best of the industry regarding profitability, there are concerns on its financial health. EIX is not valued too expensively and it also shows a decent growth rate. Finally 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.
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
The Return On Assets of EIX (3.26%) is better than 70.21% of its industry peers.
Looking at the Return On Equity, with a value of 17.20%, EIX belongs to the top of the industry, outperforming 89.36% of the companies in the same industry.
EIX has a Return On Invested Capital (4.19%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EIX is in line with the industry average of 4.91%.
The 3 year average ROIC (3.67%) for EIX is below the current ROIC(4.19%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 17.2% | ||
| ROIC | 4.19% |
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 of 16.31%. This is amongst the best in the industry. EIX outperforms 85.11% of its industry peers.
In the last couple of years the Profit Margin of EIX has declined.
With a decent Operating Margin value of 24.34%, EIX is doing good in the industry, outperforming 63.83% of the companies in the same industry.
In the last couple of years the Operating Margin of EIX has grown nicely.
With a decent Gross Margin value of 72.50%, EIX is doing good in the industry, outperforming 72.34% of the companies in the same industry.
EIX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.34% | ||
| PM (TTM) | 16.31% | ||
| GM | 72.5% |
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.
EIX has more shares outstanding than it did 1 year ago.
EIX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EIX is higher compared to a year ago.
2.2 Solvency
EIX has an Altman-Z score of 0.65. This is a bad value and indicates that EIX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.65, EIX is doing worse than 72.34% of the companies in the same industry.
EIX has a Debt/Equity ratio of 2.12. This is a high value indicating a heavy dependency on external financing.
EIX has a worse Debt to Equity ratio (2.12) than 91.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.65 |
ROIC/WACC0.77
WACC5.48%
2.3 Liquidity
EIX has a Current Ratio of 0.82. 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 (0.82) which is comparable to the rest of the industry.
EIX has a Quick Ratio of 0.82. 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 Quick ratio, with a value of 0.76, EIX is in line with its industry, outperforming 53.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.26% over the past year.
EIX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.92% yearly.
EIX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.41%.
The Revenue has been growing slightly by 7.34% on average over the past years.
EPS 1Y (TTM)11.26%
EPS 3Y2.42%
EPS 5Y0.92%
EPS Q2Q%54.97%
Revenue 1Y (TTM)4.41%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%10.56%
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 Y24.39%
EPS Next 2Y12.38%
EPS Next 3Y10.11%
EPS Next 5Y7.17%
Revenue Next Year7.3%
Revenue Next 2Y4.97%
Revenue Next 3Y4.41%
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
With a Price/Earnings ratio of 9.49, the valuation of EIX can be described as very reasonable.
Based on the Price/Earnings ratio, EIX is valued a bit cheaper than 76.60% of the companies in the same industry.
When comparing the Price/Earnings ratio of EIX to the average of the S&P500 Index (26.51), we can say EIX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.75, the valuation of EIX can be described as reasonable.
Based on the Price/Forward Earnings ratio, EIX is valued cheaper than 82.98% 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 22.53.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.49 | ||
| Fwd PE | 8.75 |
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 78.72% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.55 |
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)0.39
PEG (5Y)10.33
EPS Next 2Y12.38%
EPS Next 3Y10.11%
5. Dividend
5.1 Amount
EIX has a Yearly Dividend Yield of 6.09%, which is a nice return.
EIX's Dividend Yield is rather good when compared to the industry average which is at 3.33. 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.09% |
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
45.56% 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 the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.56%
EPS Next 2Y12.38%
EPS Next 3Y10.11%
54.39
-0.99 (-1.79%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.39%
Inst Owner Change-0.33%
Ins Owners0.07%
Ins Owner Change-1.98%
Market Cap20.93B
Revenue(TTM)18.09B
Net Income(TTM)2.95B
Analysts73.64
Price Target67.82 (24.69%)
Short Float %2.05%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.09% |
Yearly Dividend3.35
Dividend Growth(5Y)7.28%
DP45.56%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.74%
Min EPS beat(2)4.98%
Max EPS beat(2)6.5%
EPS beat(4)3
Avg EPS beat(4)4.79%
Min EPS beat(4)-5.04%
Max EPS beat(4)12.72%
EPS beat(8)6
Avg EPS beat(8)5.97%
EPS beat(12)9
Avg EPS beat(12)5.2%
EPS beat(16)12
Avg EPS beat(16)6.47%
Revenue beat(2)2
Avg Revenue beat(2)4.41%
Min Revenue beat(2)1.75%
Max Revenue beat(2)7.07%
Revenue beat(4)3
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-11.43%
Max Revenue beat(4)7.07%
Revenue beat(8)5
Avg Revenue beat(8)-1.05%
Revenue beat(12)6
Avg Revenue beat(12)-1.14%
Revenue beat(16)9
Avg Revenue beat(16)1.23%
PT rev (1m)-1.14%
PT rev (3m)-2.15%
EPS NQ rev (1m)-28.81%
EPS NQ rev (3m)1.05%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)-5.38%
Revenue NQ rev (3m)4.45%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.49 | ||
| Fwd PE | 8.75 | ||
| P/S | 1.16 | ||
| P/FCF | N/A | ||
| P/OCF | 3.88 | ||
| P/B | 1.22 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 7.55 |
EPS(TTM)5.73
EY10.54%
EPS(NY)6.21
Fwd EY11.42%
FCF(TTM)-1.88
FCFYN/A
OCF(TTM)14.03
OCFY25.79%
SpS46.99
BVpS44.58
TBVpS44.58
PEG (NY)0.39
PEG (5Y)10.33
Graham Number75.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 17.2% | ||
| ROCE | 5.43% | ||
| ROIC | 4.19% | ||
| ROICexc | 4.21% | ||
| ROICexgc | 4.21% | ||
| OM | 24.34% | ||
| PM (TTM) | 16.31% | ||
| GM | 72.5% | ||
| 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%
ROICexgc growth 3Y2.82%
ROICexgc 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-Score7
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.79 | ||
| Cap/Depr | 192.09% | ||
| Cap/Sales | 33.84% | ||
| Interest Coverage | 2.54 | ||
| Cash Conversion | 71.14% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 0.65 |
F-Score7
WACC5.48%
ROIC/WACC0.77
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)11.26%
EPS 3Y2.42%
EPS 5Y0.92%
EPS Q2Q%54.97%
EPS Next Y24.39%
EPS Next 2Y12.38%
EPS Next 3Y10.11%
EPS Next 5Y7.17%
Revenue 1Y (TTM)4.41%
Revenue growth 3Y5.69%
Revenue growth 5Y7.34%
Sales Q2Q%10.56%
Revenue Next Year7.3%
Revenue Next 2Y4.97%
Revenue Next 3Y4.41%
Revenue Next 5Y5.42%
EBIT growth 1Y14.43%
EBIT growth 3Y7.55%
EBIT growth 5Y9.81%
EBIT Next Year114.92%
EBIT Next 3Y32.13%
EBIT Next 5Y20.82%
FCF growth 1Y62.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y47.89%
OCF growth 3Y669.6%
OCF growth 5YN/A
EDISON INTERNATIONAL / EIX FAQ
Can you provide the ChartMill fundamental rating for EDISON INTERNATIONAL?
ChartMill assigns a fundamental rating of 4 / 10 to EIX.
What is the valuation status for EIX stock?
ChartMill assigns a valuation rating of 6 / 10 to EDISON INTERNATIONAL (EIX). This can be considered as Fairly Valued.
Can you provide the profitability details for EDISON INTERNATIONAL?
EDISON INTERNATIONAL (EIX) has a profitability rating of 7 / 10.
What is the valuation of EDISON INTERNATIONAL based on its PE and PB ratios?
The Price/Earnings (PE) ratio for EDISON INTERNATIONAL (EIX) is 9.49 and the Price/Book (PB) ratio is 1.22.
Can you provide the dividend sustainability for EIX stock?
The dividend rating of EDISON INTERNATIONAL (EIX) is 7 / 10 and the dividend payout ratio is 45.56%.