Edison International Intrinsic Value Calculation – RiverFront Investment Group LLC Increases Stake in Edison International by 24.3% in 2nd Quarter
October 3, 2024
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EDISON INTERNATIONAL ($NYSE:EIX) is a leading electric utility company in the United States, providing clean and reliable energy to millions of customers in Southern California. The company operates through its two main subsidiaries, Southern California Edison (SCE) and Edison Energy, serving residential, commercial, and industrial customers. Recently, the company made headlines as it was revealed that RiverFront Investment Group LLC, a global investment management firm, has significantly increased its stake in EDISON INTERNATIONAL. According to the company’s statement, RiverFront Investment Group LLC now owns 24.3% more shares of EDISON INTERNATIONAL compared to the previous quarter. This increase in ownership highlights the confidence of RiverFront Investment Group LLC in EDISON INTERNATIONAL’s long-term growth potential and financial stability. The move also signals a positive outlook for the company’s future performance and solidifies its position as an attractive investment opportunity in the energy sector. EDISON INTERNATIONAL has been making steady progress in its efforts to transition towards cleaner and more sustainable energy sources. In line with the state’s clean energy goals, the company has been investing heavily in renewable energy projects such as solar and wind.
This shift towards renewable energy is not only environmentally friendly but also aligns with the growing consumer demand for clean energy options. Furthermore, EDISON INTERNATIONAL has also been actively involved in modernizing its grid infrastructure to improve reliability and efficiency. The company’s investments in smart grid technologies and advanced metering systems have enabled better management of energy resources and enhanced customer experience. In its recent quarterly earnings report, the company beat analysts’ expectations, reporting strong earnings growth and revenue increases. This further reinforces investor confidence in the company’s stability and growth potential. It not only reflects the company’s financial strength and potential but also showcases its commitment to sustainable energy solutions. As the energy landscape continues to evolve, EDISON INTERNATIONAL remains well-positioned to navigate these changes and provide value to its stakeholders.
Analysis – Edison International Intrinsic Value Calculation
After a thorough analysis of EDISON INTERNATIONAL‘s financial statements, I have determined that the company’s current fair value is approximately $65.4 per share. This valuation was calculated using our proprietary Valuation Line, taking into account various financial metrics such as earnings, cash flow, and growth potential. However, despite our calculated fair value, the current market price for EDISON INTERNATIONAL stock is at $87.09 per share. This means that the stock is currently overvalued by 33.1%, indicating that there may be some potential risks for investors at this price. It is important for investors to carefully consider the financials of a company before making any investment decisions. In the case of EDISON INTERNATIONAL, while the company may currently be overvalued, it is also worth noting that the stock has been steadily increasing in value over the past few years. Ultimately, it is up to individual investors to weigh the potential risks and rewards of investing in EDISON INTERNATIONAL at its current market price. Our analysis serves as a guide to help investors make informed decisions based on the company’s financials and potential for growth. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Edison International. More…
| Total Revenues | Net Income | Net Margin |
| 16.34k | 1.2k | 7.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Edison International. More…
| Operations | Investing | Financing |
| 3.4k | -5.23k | 1.45k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Edison International. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 81.76k | 63.81k | 40.38 |
Key Ratios Snapshot
Some of the financial key ratios for Edison International are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.4% | 33.6% | 19.1% |
| FCF Margin | ROE | ROA |
| -12.5% | 12.5% | 2.4% |
Peers
Edison International is one of the largest investor-owned electric utilities in the United States and is one of the largest electric utility companies in the world. Its subsidiaries include Southern California Edison and Edison Mission Energy. It is headquartered in Rosemead, California. Its competitors include CMS Energy Corp, Genie Energy Ltd, OGE Energy Corp.
– CMS Energy Corp ($NYSE:CMS)
CMS Energy Corporation is an energy company operating primarily in the state of Michigan. The company has two main subsidiaries: Consumers Energy, an electric and gas utility company; and CMS Enterprises, an energy marketing and trading company. CMS Energy is headquartered in Jackson, Michigan.
As of 2022, CMS Energy Corporation had a market capitalization of 16.14 billion dollars and a return on equity of 12.15%. The company’s main business is providing energy through its two subsidiaries, Consumers Energy and CMS Enterprises. Consumers Energy is an electric and gas utility company, providing service to over 6 million customers in the state of Michigan. CMS Enterprises is an energy marketing and trading company, providing energy services to customers in the United States and Canada.
– Genie Energy Ltd ($NYSE:GNE)
Genie Energy Ltd. engages in the provision of electricity and natural gas, as well as oil and gas exploration and production. The company operates through the following segments: Retail Energy, Oil and Gas, and Other. The Retail Energy segment provides electricity and natural gas to residential, commercial, and industrial customers in the United States. The Oil and Gas segment focuses on the exploration and production of oil and gas. The Other segment includes corporate overhead and other investments. Genie Energy was founded on March 28, 2001 and is headquartered in Newark, NJ.
– OGE Energy Corp ($NYSE:OGE)
DOE Energy Corp is an energy company that focuses on the development and production of natural gas and oil. The company operates in two segments: Exploration and Production, and Marketing and Trading. The Exploration and Production segment engages in the exploration, development, and production of natural gas and oil properties. The Marketing and Trading segment engages in the marketing and trading of natural gas and oil.
Summary
RiverFront Investment Group LLC has increased its investment in Edison International by 24.3%, according to recent reports. This move indicates a positive outlook on the company’s performance and potential for growth. It also suggests that the investment group has confidence in the company’s ability to generate returns and deliver value to its shareholders. This increase in stake may also indicate that the investment group sees potential in the energy sector and believes Edison International is well-positioned for success.
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