EIX Edison International
too hard · 34
Owner-earnings value$84.01
Price$55.68
Margin of safety
+50.9%
Quality gate · 34/100
⚠ sub-hurdle returns (median roic 5% < 9%) · over-levered (net debt/EBITDA 4.1x > 4x)
Median ROIC5.2%
Gross margin51.3%
Net debt / EBITDA4.1x
FCF conversion-71%
Share count / yr+0.2%
Profitable years4/4
Moat & management
Owner-earnings inputs
| Owner earnings (TTM) | 3.94B |
| Owner-earnings yield | 18.4% |
| Free-cash-flow yield | -1.8% |
| Growth used (normalized) | -14.0% |
| Market-implied growth (reverse DCF) | -20.0% |
| Terminal growth | 3.0% |
| Discount rate (hurdle) | 9.0% |
Projected owner earnings
| Yr | Owner earnings | Growth | PV |
|---|---|---|---|
| 1 | 3.39B | -14.0% | 3.11B |
| 2 | 2.98B | -12.1% | 2.51B |
| 3 | 2.67B | -10.2% | 2.07B |
| 4 | 2.45B | -8.3% | 1.74B |
| 5 | 2.29B | -6.4% | 1.49B |
| 6 | 2.19B | -4.6% | 1.31B |
| 7 | 2.13B | -2.7% | 1.17B |
| 8 | 2.11B | -0.8% | 1.06B |
| 9 | 2.14B | 1.1% | 984.42M |
| 10 | 2.20B | 3.0% | 930.23M |
⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Price pays for ~-20%/yr owner-earnings growth over 10y (reverse DCF); model credits -14%. Capped at market + 6pts.