Shares of Edison International (NYSE:EIX) recorded -0.06% loss during trading session on October 18th, 2018. The script traded as low as $69.11 and last traded at $69.54. 1.16 million shares changed exchanged hands during trading, an increase of 43.34% from the 30-day average session volume of 2.05M shares. The firm had previously closed at $69.58. The company has $326.00M outstanding shares, a price-to-earnings ratio of 25.75, price-to-earnings-growth ratio of 1.85 and a beta of 0.05. The company has a RSI of 55.97, ATR of 1.07 and a volatility of 1.31% this week. EIX has a 52 week low price of $57.63 and a 52 week high price of $83.38.
Investors have identified the tech company Edison International as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 22.67B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Edison International (EIX) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For EIX, the company has in raw cash 100 million on their books with 779 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 52.82 billion total, with 38.85 billion as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
EIX were able to record -664 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by -42 million. In cash movements, the company had a total of 358 million as operating cash flow.
Potential earnings growth for Edison International (EIX)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Edison International recorded a total of 2.82 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -0.05 coming in sequential stages and their sales for the third quarter increasing by 0.10.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 2.29 billion trying to sell their products during the last quarter, with the result yielding a gross income of 521 million. This allows shareholders to hold on to 327 million with the revenue now reading 0.84 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (1.17 cents a share).
Is the stock of EIX attractive?
Having a look at the company’s valuation, the company is expected to record 4.54 total earnings per share during the next fiscal year. Taking a look at the median price to earnings ratio, this means their stock price will be in the region of 15.21 per share. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on EIX sounds very interesting.
In related news, Pres. Edison Energy Group, Inc Litzinger Ronald L sold 224,718 shares of the company’s stock in a transaction that recorded on November 15th, 2018. The sale was performed at an average price of 82.00, for a total value of 18,427,634. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.05%.
4 out of 17 analysts covering the stock have rated it a Buy, while 10 have maintained a Hold recommendation on Edison International stock. 0 analysts has assigned a Sell rating on the EIX stock. The 12-month mean consensus price target for the company’s shares has been set at $71.63.