NYSE:EIX

Stock Analysis Report

Executive Summary

Edison International, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in the United States.

Snowflake

Fundamentals

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has Edison International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EIX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

EIX

-2.1%

US Electric Utilities

0.5%

US Market


1 Year Return

20.3%

EIX

11.0%

US Electric Utilities

12.8%

US Market

Return vs Industry: EIX exceeded the US Electric Utilities industry which returned 11% over the past year.

Return vs Market: EIX exceeded the US Market which returned 12.8% over the past year.


Shareholder returns

EIXIndustryMarket
7 Day1.1%-2.1%0.5%
30 Day-6.3%-4.1%4.3%
90 Day-6.9%1.0%8.0%
1 Year25.0%20.3%14.8%11.0%15.3%12.8%
3 Year6.8%-3.7%43.4%29.2%48.3%38.7%
5 Year24.9%6.6%60.2%33.4%62.6%44.5%

Price Volatility Vs. Market

How volatile is Edison International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Edison International undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EIX ($66.84) is trading below our estimate of fair value ($355.35)

Significantly Below Fair Value: EIX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EIX is unprofitable, so we can't compare its PE Ratio to the Electric Utilities industry average.

PE vs Market: EIX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EIX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EIX is good value based on its PB Ratio (1.8x) compared to the US Electric Utilities industry average (2.1x).


Next Steps

Future Growth

How is Edison International forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EIX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: EIX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: EIX's is expected to become profitable in the next 3 years.

Revenue vs Market: EIX's revenue (4.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: EIX's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EIX's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has Edison International performed over the past 5 years?

-39.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EIX has large one-off items impacting its financial results.

Growing Profit Margin: EIX's current net profit margins (-2.6%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: EIX is unprofitable, and losses have increased over the past 5 years at a rate of -39.6% per year.

Accelerating Growth: Unable to compare EIX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EIX is unprofitable, making it difficult to compare its past year earnings growth to the Electric Utilities industry (2%).


Return on Equity

High ROE: EIX has a negative Return on Equity (-2.1%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Edison International's financial position?


Financial Position Analysis

Short Term Liabilities: EIX's short term assets ($4.7B) do not cover its short term liabilities ($6.0B)

Long Term Liabilities: EIX's short term assets (4.7B) do not cover its long term liabilities (42.9B)


Debt to Equity History and Analysis

Debt Level: EIX's debt to equity ratio (120.8%) is considered high

Reducing Debt: EIX's debt to equity ratio has increased from 93% to 120.8% over the past 5 years.

Debt Coverage: EIX's debt is not well covered by operating cash flow (0.5%).

Interest Coverage: EIX is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: EIX has a high level of physical assets or inventory.

Debt Coverage by Assets: EIX's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Edison International's current dividend yield, its reliability and sustainability?

3.67%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.3%forecastin3Years3.8%

Current dividend yield vs market & industry

Notable Dividend: EIX's dividend (3.67%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: EIX's dividend (3.67%) is low compared to the top 25% of dividend payers in the US market (3.67%).


Stability and Growth of Payments

Stable Dividend: EIX's dividends per share have been stable in the past 10 years.

Growing Dividend: EIX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: EIX is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: EIX's dividends in 3 years are forecast to be covered by earnings (54.6% payout ratio).


Next Steps

Management

What is the CEO of Edison International's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Pedro Pizarro (53yo)

3.2yrs

Tenure

US$9,777,523

Compensation

Mr. Pedro J. Pizarro has been the Chief Executive Officer of Edison International since September 30, 2016 and has been its President since June 01 2016. He joined Edison International in 1999. Mr. Pizarro ...


CEO Compensation Analysis

Compensation vs Market: Pedro's total compensation ($USD9.78M) is about average for companies of similar size in the US market ($USD11.04M).

Compensation vs Earnings: Pedro's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.2yrs

Average Tenure

56.5yo

Average Age

Experienced Management: EIX's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

3.4yrs

Average Tenure

60yo

Average Age

Experienced Board: EIX's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Janet Clayton (64yo)

    Senior Vice President of Corporate Communications

    • Tenure: 8.6yrs
  • Pedro Pizarro (53yo)

    President

    • Tenure: 3.2yrs
    • Compensation: US$9.78m
  • Sam Ramraj

    Vice President of Investor Relations

    • Tenure: 2.4yrs
  • Drew Murphy (58yo)

    Senior Vice President of Strategy & Corporate Development

    • Tenure: 1.8yrs
    • Compensation: US$1.65m
  • Adam Umanoff (59yo)

    Executive VP & General Counsel

    • Tenure: 4.8yrs
    • Compensation: US$2.00m
  • Maria Rigatti (55yo)

    Executive VP & CFO

    • Tenure: 3.2yrs
    • Compensation: US$2.97m
  • Michael Montoya

    VP and Chief Ethics & Compliance Officer

    • Tenure: 0yrs
  • Kevin Payne (58yo)

    Chief Executive Officer of Southern California Edison

    • Tenure: 3.4yrs
    • Compensation: US$3.09m
  • Jacqueline Trapp (51yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 3.4yrs
  • Caroline Choi (50yo)

    Senior Vice President of Corporate Affairs

    • Tenure: 0.8yrs

Board Members

  • Bill Sullivan (69yo)

    Independent Non-Executive Chair of the Board

    • Tenure: 3.2yrs
    • Compensation: US$399.01k
  • Linda Stuntz (65yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$288.99k
  • Vanessa C. Chang (66yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$312.32k
  • Peter Taylor (60yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$282.65k
  • Tim O’Toole (63yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$266.11k
  • Pedro Pizarro (53yo)

    President

    • Tenure: 3.2yrs
    • Compensation: US$9.78m
  • Jim Morris (59yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$263.61k
  • Michael Camuñez (50yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$264.90k
  • Brian Trent (60yo)

    Independent Director

    • Tenure: 1.1yrs
  • Jeanne Beliveau-Dunn (59yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

Edison International's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Edison International
  • Ticker: EIX
  • Exchange: NYSE
  • Founded: 1886
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: US$23.969b
  • Shares outstanding: 358.60m
  • Website: https://www.edison.com

Number of Employees


Location

  • Edison International
  • 2244 Walnut Grove Avenue
  • PO Box 976
  • Rosemead
  • California
  • 91770
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EIXNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
0IFJLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
EIXDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
EIX1 *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968

Biography

Edison International, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in the United States. It generates electricity through hydroelectric, diesel/liquid  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 23:35
End of Day Share Price2019/11/12 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.