Edison International (EIX)
Utilities · NYSE · US
Fundamentals
Valuation and ratings
Edison International trades at $78.05, close to the $78.20 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 66 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 8.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Edison International
Edison International, through its subsidiaries, engages in the generation and distribution of electric power. The company supplies and delivers through its electrical infrastructure to an approximately 50,000 square-mile area of southern, central, and coastal California. It serves residential, commercial, industrial, public authorities, agricultural, street lighting, and other sectors. The company's distribution network consists of approximately 13,000 circuit-miles of lines ranging from 55 kV to 500 kV and approximately 80 transmission substations; and approximately 38,000 circuit-miles of overhead lines, approximately 32,000 circuit-miles of underground lines, and approximately 730 distribution substations. Edison International was founded in 1886 and is based in Rosemead, California.
EIX passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
5 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$1.51B · 0.7% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$166.47M · 0.1% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$107.44M · 0.1% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$79.23M · 0.1% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$21.69M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Edison International (EIX) undervalued?
Against our discounted cash flow estimate of $78.20, EIX at $78.05 is 0% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own EIX?
5 of the institutions we track reported a position in EIX in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is EIX's P/E ratio?
EIX trades at 8.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.