Edison International (NYSE:EIX) - Share price, News & Analysis

Q: What is the Fair Price of EIX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

EIX ($63.75) is trading above our estimate of [[fair value]] ($49.01)

EIX fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	1/6
Past Performance	0/6
Financial Health	1/6
Dividends	4/6

EIX Stock Overview

Edison International, through its subsidiaries, generates and distributes electric power.

Rewards

Earnings are forecast to grow 12.27% per year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 4.39% is not well covered by earnings or forecast to be in the next 3 years

Large one-off items impacting financial results

Profit margins (3.7%) are lower than last year (5.9%)

Edison International Competitors

Entergy

NYSE:ETR

US$23.4b

PG&E

NYSE:PCG

US$20.4b

Eversource Energy

NYSE:ES

US$30.1b

FirstEnergy

NYSE:FE

US$22.5b

Price History & Performance

Summary of all time highs, changes and price drops for Edison International
Historical stock prices
Current Share Price	US$63.75
52 Week High	US$73.32
52 Week Low	US$54.14
Beta	0.66
1 Month Change	-9.40%
3 Month Change	-10.26%
1 Year Change	11.74%
3 Year Change	-5.11%
5 Year Change	-17.03%
Change since IPO	216.77%

Recent News & Updates

May 24

Edison International (NYSE:EIX) Seems To Be Using A Lot Of Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

May 15

Edison International: Reasonable Performance But Too Expensive Given Risks

Edison International's operating income and net income both declined YOY, which is the exact opposite of what we typically expect from a utility company. This was largely due to a one-off non-cash charge and does not accurately reflect the performance of the company's underlying operations. Edison International plans to aggressively continue its growth trajectory by making significant capital investments between now and the end of 2025. The company has been devoting a great deal of effort towards reducing the risk that it could cause a wildfire, which is a very good idea. The company is somewhat riskier than its peers in other states, yet the stock trades at a premium. It might make sense to wait for it to drop down a bit.

May 10

Edison International (NYSE:EIX) Has More To Do To Multiply In Value Going Forward

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Ideally, a business will...

Shareholder Returns

	EIX	US Electric Utilities	US Market
7D	1.5%	4.0%	-2.5%
1Y	11.7%	8.1%	-21.2%

Return vs Industry: EIX exceeded the US Electric Utilities industry which returned 8.1% over the past year.

Return vs Market: EIX exceeded the US Market which returned -21.2% over the past year.

Price Volatility

Is EIX's price volatile compared to industry and market?
EIX volatility
EIX Average Weekly Movement	4.1%
Electric Utilities Industry Average Movement	3.4%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.3%

Stable Share Price: EIX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: EIX's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1886	13,003	Pedro Pizarro	https://www.edison.com

Edison International, through its subsidiaries, generates and distributes electric power. It delivers electricity to 15 million residential, commercial, industrial, public authorities, agricultural, and other customers across Southern, Central, and Coastal California. The company also provides energy solutions to commercial and industrial users.

Edison International Fundamentals Summary

How do Edison International's earnings and revenue compare to its market cap?
EIX fundamental statistics
Market Cap	US$24.30b
Earnings (TTM)	US$584.00m
Revenue (TTM)	US$15.91b

41.6x

P/E Ratio

1.5x

P/S Ratio

Is EIX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EIX income statement (TTM)
Revenue	US$15.91b
Cost of Revenue	US$6.87b
Gross Profit	US$9.05b
Other Expenses	US$8.46b
Earnings	US$584.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 28, 2022

Earnings per share (EPS)	1.53
Gross Margin	56.85%
Net Profit Margin	3.67%
Debt/Equity Ratio	159.6%

How did EIX perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

178%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is EIX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EIX?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for EIX. This is calculated by dividing EIX's market cap by their current preferred multiple.
What is EIX's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$24.30b

EIX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.6x
Enterprise Value/EBITDA	10.5x
PEG Ratio	3.4x

Price to Earnings Ratio vs Peers

How does EIX's PE Ratio compare to its peers?

EIX PE Ratio vs Peers

The above table shows the PE ratio for EIX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	36.1x
ETR Entergy	22.1x	9.3%	US$23.4b
PCG PG&E	80.4x	14.8%	US$20.4b
ES Eversource Energy	23.2x	7.9%	US$30.1b
FE FirstEnergy	18.8x	8.2%	US$22.5b
EIX Edison International	41.6x	12.3%	US$24.3b

Forward PE

Price-To-Earnings vs Peers: EIX is expensive based on its Price-To-Earnings Ratio (41.6x) compared to the peer average (36.1x).

Price to Earnings Ratio vs Industry

How does EIX's PE Ratio compare vs other companies in the US Electric Utilities Industry?

Price-To-Earnings vs Industry: EIX is expensive based on its Price-To-Earnings Ratio (41.6x) compared to the US Electric Utilities industry average (22.1x)

Price to Earnings Ratio vs Fair Ratio

What is EIX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EIX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	41.6x
Fair PE Ratio	25x

Price-To-Earnings vs Fair Ratio: EIX is expensive based on its Price-To-Earnings Ratio (41.6x) compared to the estimated Fair Price-To-Earnings Ratio (25x).

Share Price vs Fair Value

What is the Fair Price of EIX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EIX ($63.75) is trading above our estimate of fair value ($49.01)

Significantly Below Fair Value: EIX is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: EIX is poor value based on its PEG Ratio (3.4x)

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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

12.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: EIX's forecast earnings growth (12.3% per year) is above the savings rate (1.9%).

Earnings vs Market: EIX's earnings (12.3% per year) are forecast to grow slower than the US market (13.6% per year).

High Growth Earnings: EIX's earnings are forecast to grow, but not significantly.

Revenue vs Market: EIX's revenue (2.9% per year) is forecast to grow slower than the US market (8.2% per year).

High Growth Revenue: EIX's revenue (2.9% 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 (12.7%).

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Past Performance

How has Edison International performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-2.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EIX has a large one-off loss of $2.0B impacting its March 31 2022 financial results.

Growing Profit Margin: EIX's current net profit margins (3.7%) are lower than last year (5.9%).

Past Earnings Growth Analysis

Earnings Trend: EIX's earnings have declined by 2.8% per year over the past 5 years.

Accelerating Growth: EIX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EIX had negative earnings growth (-28.3%) over the past year, making it difficult to compare to the Electric Utilities industry average (9.5%).

Return on Equity

High ROE: EIX's Return on Equity (3.3%) is considered low.

Discover strong past performing companies

Financial Health

How is Edison International's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: EIX's short term assets ($5.3B) do not cover its short term liabilities ($8.3B).

Long Term Liabilities: EIX's short term assets ($5.3B) do not cover its long term liabilities ($48.7B).

Debt to Equity History and Analysis

Debt Level: EIX's net debt to equity ratio (158.2%) is considered high.

Reducing Debt: EIX's debt to equity ratio has increased from 90.8% to 159.6% over the past 5 years.

Debt Coverage: EIX's debt is not well covered by operating cash flow (2.6%).

Interest Coverage: EIX's interest payments on its debt are well covered by EBIT (3x coverage).

Balance Sheet

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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.39%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EIX's dividend (4.39%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: EIX's dividend (4.39%) is in the top 25% of dividend payers in the US market (4.25%)

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.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (177.5%), EIX's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: EIX is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure

CEO

Pedro Pizarro (56 yo)

6.08yrs

Tenure

US$14,364,340

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 ($USD14.36M) is about average for companies of similar size in the US market ($USD13.43M).

Compensation vs Earnings: Pedro's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: EIX's management team is seasoned and experienced (5.8 years average tenure).

Board Members

Experienced Board: EIX's board of directors are considered experienced (5.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: EIX insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31