Edison International Net Income vs. Price To Sales

EIX Stock  USD 87.61  1.13  1.31%   
Taking into consideration Edison International's profitability measurements, Edison International is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in December. Profitability indicators assess Edison International's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1989-06-30
Previous Quarter
460 M
Current Value
577 M
Quarterly Volatility
447 M
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Edison International's EV To Sales is fairly stable compared to the past year. Sales General And Administrative To Revenue is likely to rise to 0.06 in 2024, whereas Price To Sales Ratio is likely to drop 0.96 in 2024. At this time, Edison International's Income Tax Expense is fairly stable compared to the past year. Net Income Applicable To Common Shares is likely to rise to about 759.3 M in 2024, whereas Accumulated Other Comprehensive Income is likely to drop (9.4 M) in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.560.4109
Significantly Up
Pretty Stable
For Edison International profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Edison International to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Edison International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Edison International's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Edison International over time as well as its relative position and ranking within its peers.
  

Edison International's Revenue Breakdown by Earning Segment

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Is Electric Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Edison International. If investors know Edison will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Edison International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
2.3
Dividend Share
3.12
Earnings Share
3.42
Revenue Per Share
44.96
Quarterly Revenue Growth
0.106
The market value of Edison International is measured differently than its book value, which is the value of Edison that is recorded on the company's balance sheet. Investors also form their own opinion of Edison International's value that differs from its market value or its book value, called intrinsic value, which is Edison International's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Edison International's market value can be influenced by many factors that don't directly affect Edison International's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Edison International's value and its price as these two are different measures arrived at by different means. Investors typically determine if Edison International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Edison International's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Edison International Price To Sales vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Edison International's current stock value. Our valuation model uses many indicators to compare Edison International value to that of its competitors to determine the firm's financial worth.
Edison International is rated below average in net income category among its peers. It is rated below average in price to sales category among its peers . The ratio of Net Income to Price To Sales for Edison International is about  727,884,118 . At this time, Edison International's Net Income is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Edison International's earnings, one of the primary drivers of an investment's value.

Edison Price To Sales vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Edison International

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
1.41 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Edison International

P/S

 = 

MV Per Share

Revenue Per Share

 = 
1.93 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Edison Price To Sales Comparison

Edison International is currently under evaluation in price to sales category among its peers.

Edison International Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Edison International, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Edison International will eventually generate negative long term returns. The profitability progress is the general direction of Edison International's change in net profit over the period of time. It can combine multiple indicators of Edison International, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-9 M-9.4 M
Operating Income2.6 B2.3 B
Net Income1.4 B951.6 M
Income Tax Expense108 M113.4 M
Income Before Tax1.5 B861.7 M
Total Other Income Expense Net-1.1 B-1.1 B
Net Income Applicable To Common Shares550.8 M759.3 M
Net Income From Continuing Ops1.4 BB
Non Operating Income Net Other400.2 M420.2 M
Interest Income267 M235.5 M
Net Interest Income-1.3 B-1.4 B
Change To Netincome-348.4 M-331 M
Net Income Per Share 3.13  1.71 
Income Quality 2.42  2.30 
Net Income Per E B T 0.79  0.74 

Edison Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Edison International. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Edison International position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Edison International's important profitability drivers and their relationship over time.

Use Edison International in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Edison International position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Edison International will appreciate offsetting losses from the drop in the long position's value.

Edison International Pair Trading

Edison International Pair Trading Analysis

The ability to find closely correlated positions to Edison International could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Edison International when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Edison International - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Edison International to buy it.
The correlation of Edison International is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Edison International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Edison International moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Edison International can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

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Additional Tools for Edison Stock Analysis

When running Edison International's price analysis, check to measure Edison International's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Edison International is operating at the current time. Most of Edison International's value examination focuses on studying past and present price action to predict the probability of Edison International's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Edison International's price. Additionally, you may evaluate how the addition of Edison International to your portfolios can decrease your overall portfolio volatility.