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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Edison International (XNYS:EIX) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
EIX
Name:
EDISON INTERNATIONAL (XNYS:EIX)
Sector:
- 415000.00K
Industry:
Utilities�Regulated Electric
CEO:
Mr. Pedro Pizarro
Total Employees:
13,003
Our Technological Advancement Rating
Our Rating:
B
Technological advancement compared to industry is -8.08% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF EDISON INTERNATIONAL(EIX) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND UTILITIES�REGULATED ELECTRIC INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
67.96
One Month Price Target:
$68.22
Six Month Price Target :
$69.51
Likely Price in One Year's Time:
Ticker:
$71.06
Likely Trading Range Today Under (Normal Volatility)
$67.73
Price Upper limit ($) :
$68.2
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$65.12
This week:
$61.61
This month :
$55.26
Other Primary facts
Market Cap:
25.12B
Market Cap Classification:
Large Cap
Number of Shares
IPO Date:
381.43M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
13.29%
-13.33%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$81.14
$75.13
$54.78
$60.79
Medium risk (<10%) entry points
Buy Call
Sell Call
$73.17
Buy Put:
Sell Put:
$71.89
$62.73
$64.03
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
EIX
Sharpe Ratio:
0.23%
Comparison:
EIX, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -80.72% lower than the industry
& is -90.09% lower than the market/S&P 500 average
Average Returns/Yield of
EIX
Daily returns:
0.01%
Weekly returns:
0.07%
Monthly returns:
0.27%
Yearly returns:
7.85%
Comparison of returns:
Average annual returns/yield (last 3 years) is -58.85% below industry average
Classification:
EIX, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.74
Statistical test of Returns:
EIX has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.04%
Weekly Volatility:
4.56%
Monthly Volatility:
9.13%
Yearly Volatility:
31.61%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.00%
Volatility in last five trading days has been -50.85% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.18%
Weekly VaR:
-9.34%
Monthly VaR:
-18.68%
How Much Can the price of
EIX
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-16%
Worst case (decline):
-64.71%
This translates to price declining to:
$56.84
This translates to price declining to:
$23.98
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
EIX is a 31.85% riskier investment compared to the market/S&P 500 & is 12.96% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 0.56% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
EIX
Beta in relation to market/S&P 500--0.68
Expected beta in 1 year's time:
0.73
Expected beta in 3 year's time:
1.032
Unlevered (debt free) Beta:
0.22
Beta in relation to Nasdaq (XNAS):
0.54
Beta in relation to all global stocks::
0.756
Beta Comparison & Analysis
Beta of competitors/peers::
0.447
Beta is 51.62% higher than peers
Average Industry Beta:
0.5
Beta is 35.75% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
-
-
Alpha provided | Alpha Analysis
Alpha provided:
-0.046
Alpha is -458.07% below industry average alpha yield
Alpha is -291% below the market average
Analysis of Cost of Capital of
EIX
Equity cost of capital:
0.078
Equity cost of capital is 18.61% above industry mean WACC
Unlevered (without debt) cost of capital:
2.53%
Before-tax cost of debt:
3.18%
After-tax cost of debt:
2.51%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.51%
WACC is 8.10% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$41.72
Revenue growth rate per share of (3Y):
1.47
Annual revenue growth rate is -185.08% below industry average
EPS:
$1.54
Expected Annual growth rate of EPS (3Y):
-19.12%
Expected future EPS growth rate is 209.15% higher than the Utilities�Regulated Electric industry
Free cash flow (FCF) per share:
-
Balance sheet equity growth per share: 17.69%
Equity growth rate per share is 201.43% higher than the industry
Debt per share
$68.75
EBITDA per share
$10.31
Valuation Analysis Today of
EIX
P/E Ratio:
51.04
P/E Ratio of Competitors/Peers:
39.25
P/E ratio is 30.03% higher than main peers & is 84.34% higher than the industry
Stock price/value with industry average P/E ratio: $42.64
EIX is 59.38% overvalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $56.32
Present value of the expected future dividends only: $40.90
P/S (Price to Sales ratio):
1.63
Price to sales ratio is -43.89% below the industry mean
P/B (Price to book value ratio):
1.47
-
-
Net income growth rate (3Y):
-362.77%
Net income growth rate is 12215.85% higher than the average industry net income growth rate
Dividend Analysis
Dividend payout rate: 39.95%
Dividend yeild: 4.01%
Previous Dividend: $0.70
Previous adjusted dividend: $0.70
Previous Dividend: $2.73
Expected next dividend best case: $0.72
Expected next dividend worst case: $0.68
Average dividend payment (long-term): $0.66
Average dividend increase/decrease (growth rate) % per period: 1.06%
Expected next dividend payment date: 29/07/2022
Expected next dividend record date: 29/06/2022
Expected next dividend declaration date: 25/05/2022
Previous dividend payment date: 30/04/2022
Previous dividend record date: 31/03/2022
Previous dividend declaration date: 24/02/2022
Dividend History:
2022-03-30--$0.70
2021-09-29--$0.66
2021-03-30--$0.66
2021-12-30--$0.70
2021-07-02--$0.66
2020-12-30--$0.66
Dividend growth rate is -206.00% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
166.69%
Net debt to equity ratio:
189.12%
Debt to assets ratio:
35.09%
Net debt to assets ratio:
39.82%
Debt-to-asset ratio is -44.16% below industry average
Ability to repay debt:
Interest coverage ratio:
4.12
Interest coverage ratio is 60.08% more than industry average
Looking forward:
Debt growth rate:
22.31%
Annual debt growth is -51% lower than industry average debt growth rate
Debt repayment rate in last quarter: 4.34%
Analysis of Key Statistics
Correlation of price movement with the market:
0.64
Statistical significance of correlation:
EIX has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.597
Stock price is 7.20% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.597
Correlation of price movement with Nasdaq (^IXIC):
0.057
Covariance of price movement with the market:
0.068
Kurtosis
9.198
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.256
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
EIX
Gross Profit Margin Ratio:
153%
Operating Profit Margin Ratio:
8.40%
Operating profit margin is -27.78% lower than the industry
Net Profit Margin Ratio:
153%
Effective Tax Rate:
-25.16%
Effective tax rate is -224.96% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
4.90%
Return on equity (ROE) is -46.08% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
1.03%
Return on assets (ROA) is -55.38% lower than the industry
Financial Leverage:
1.5x
Current Ratio:
0.63
Current ratio is -73.59% below industry average
Cash Conversion Cycle (days):
-21.7
Cash conversion cycle is -123.01% below industry average
The remaining useful life of property plant & equipment is: 3.7 years
Stock based compensation to net income ratio:
-
In-depth Efficiency Analysis
Revenue generated per employee:
1.2M
Each employee generates -55% less revenue than industry average revenue per employee
EBITDA generated per employee:
302.4K
Each employee generates -74% less EBITDA than industry average revenue per employee
Profit generated per employee:
59.3K
Each employee generates -85% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 31.9K
Each employee generates -3% less free cash flow than industry average revenue per employee
Assets/Capital per employee
5.3M
Each employee generates -3% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
EIX
FIRSTENERGY CORP. (XNYS:FE)
DTE
AMEREN CORPORATION (XNYS:AEE)
ENTERGY CORPORATION (XNYS:ETR)
Fortis Inc. (XNYS:FTS)
PG&E CORPORATION (XNYS:PCG)
Avangrid, Inc. (XNYS:AGR)
CONSOLIDATED EDISON, INC. (XNYS:ED)
CMS ENERGY CORPORATION (XNYS:CMS)
Current Analyst Ratings
Strong buy�17%
Buy�17%
Hold�29%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
15.91B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
9.86B
6.06B
-
1.91B
1.91B
-
2.74B
4.65B
6.00M
954.00M
2.36B
3.93B
1.34B
771.00M
616.00M
- 155000.00K
771.00M
Statement of Cash Flow
Date:
Period:
624.00M
Differed Income Tax :
- 55000.00K
Stock Based Compensation :
-
Change in Working Capital :
87.00M
Accounts Receivables:
130.00M
Other Working Capital:
347.00M
Other Non-Cash Items:
-
Net Cash Provided by Operating Activities:
792.00M
Investments in PP&E:
-
Net Acquisitions:
-
Purchases of Investments:
- 833000.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
231.00M
-
231.00M
2.06B
434.00M
2.55B
5.27B
52.85B
-
-
4.58B
-
12.02B
69.45B
-
74.72B
1.97B
3.76B
-
190.00M
2.42B
8.34B
26.22B
16.74B
48.75B
-
57.09B
6.09B
7.72B
- 52000.0K
-
March 31, 2022 at 6:00:00 AM
14.51B
15.73B
72.82B
-
29.98B
29.8B
867.00M
- 1191000.00K
- 1157000.00K
- 1189000.00K
4.00M
-
- 308000.00K
1.70B
205.00M
-
- 160000.00K
234.00M
394.00M
792.00M
- 1207000.00K
- 415000.00K
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
EIX
2023
2024
2025
2026
2027
$72.53
$75.83
$79.29
$82.90
$86.68