State of Alaska Department of Revenue Reduces Stake in Edison International by 1.3% in Q1

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Edison International ($NYSE:EIX) is one of the leading companies in the energy industry, providing electricity to millions of customers in Southern California. In the first quarter of 2021, the State of Alaska Department of Revenue reduced its ownership in shares of Edison International by 1.3%. This decision was made after careful consideration and consultation with financial advisors, as the Department of Revenue sought to maximize returns on its investments. Despite this recent run-up, analysts believe that Edison International remains undervalued relative to its peers in the energy sector.

As such, the State of Alaska Department of Revenue may have decided to reduce its stake in order to benefit from potential upside in the company’s stock price. The potential for upside in the company’s stock price makes it an attractive investment option for investors who are looking for a long-term play in the energy sector.

Earnings

In the first quarter of fiscal year 2023 ending March 31 2021, EDISON INTERNATIONAL reported a total revenue of 2960.0M USD and a net income of 290.0M USD. This marked a 25.4% decrease in total revenue compared to the previous year, but a 113.2% increase in net income. Over the last 3 years, EDISON INTERNATIONAL’s total revenue has grown from 2960.0M USD to 3966.0M USD.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Edison International. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Edison International. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Edison International. More…

Key Ratios Snapshot

Some of the financial key ratios for Edison International are shown below. More…

Analysis

GoodWhale has conducted an analysis of EDISON INTERNATIONAL‘s financials and based on our Star Chart, EDISON INTERNATIONAL has an intermediate health score of 4/10 with regard to its cashflows and debt. We believe this suggests that the company might be able to sustain operations in times of crisis. Furthermore, GoodWhale has classified EDISON INTERNATIONAL as a ‘cheetah’ type of company. That is, EDISON INTERNATIONAL has achieved high revenue or earnings growth but is considered less stable due to lower profitability. This type of company may be of interest to investors looking to benefit from medium-term growth potential with some risk. From our analysis, EDISON INTERNATIONAL is strong in dividend, medium in growth, profitability and weak in asset. Therefore, investors looking for a higher dividend return with some potential for growth may find EDISON INTERNATIONAL a good option. More…

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

Edison International is a public power company that serves millions of customers across California. Recent analysis from the State of Alaska Department of Revenue revealed a 1.3% decrease in their stake of Edison International in the first quarter. This could indicate a bearish sentiment from the Department of Revenue on the company’s stock, as well as a potential warning sign to current and prospective investors.

Investors should proceed with caution and do their own research before deciding to invest in Edison International. With stock prices currently on the rise, it may be wise to wait and see if the stock continues to gain strength before investing in the company.