Edison International
Edison International Fundamental Analysis
Edison International (EIX) shows strong financial fundamentals with a PE ratio of 6.12, profit margin of 24.34%, and ROE of 27.64%. The company generates $19.3B in annual revenue with moderate year-over-year growth of 7.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EIX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentEIX demonstrates superior asset utilization.
Valuation Score
ExcellentEIX trades at attractive valuation levels.
Growth Score
ModerateEIX shows steady but slowing expansion.
Financial Health Score
WeakEIX carries high financial risk with limited liquidity.
Profitability Score
ModerateEIX maintains healthy but balanced margins.
Key Financial Metrics
Is EIX Expensive or Cheap?
P/E Ratio
EIX trades at 6.12 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EIX's PEG of 0.12 indicates potential undervaluation.
Price to Book
The market values Edison International at 1.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.63 times EBITDA. This is generally considered low.
How Well Does EIX Make Money?
Net Profit Margin
For every $100 in sales, Edison International keeps $24.34 as profit after all expenses.
Operating Margin
Core operations generate 27.13 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.64 in profit for every $100 of shareholder equity.
ROA
Edison International generates $18.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Edison International generates strong operating cash flow of $5.80B, reflecting robust business health.
Free Cash Flow
Edison International generates weak or negative free cash flow of $-714.60M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.86 in free cash annually.
FCF Yield
EIX converts -2.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.49
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How EIX Stacks Against Its Sector Peers
| Metric | EIX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.12 | 19.20 | Better (Cheaper) |
| ROE | 27.64% | 1033.00% | Weak |
| Net Margin | 24.34% | 9191.00% | Weak |
| Debt/Equity | 2.42 | 6.63 | Strong (Low Leverage) |
| Current Ratio | 0.28 | 1.68 | Weak Liquidity |
| ROA | 18.97% | -237.00% (disorted) | Strong |
EIX outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Edison International's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.55%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
-3.08%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
1538.59%
Industry Style: Defensive, Dividend, Income
High Growth