Edison International (EIX) AI Stock Analysis

• Market Cap: $21.84B
• Dividend Yield: 5.84%
• Average Volume (3M): 3.56M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.41
• Revenue Growth: 4.26%
• EPS Growth: 173.18%
• Country: US
• Employees: 14,013
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.97
• Shares Outstanding: 384,834,000
• 10 Day Avg. Volume: 3,786,259
• 30 Day Avg. Volume: 3,562,479
• PEG Ratio: 3.12
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 1.75
• P/FCF Ratio: -44.47
• Enterprise Value/Market Cap: 2.89
• Enterprise Value/Revenue: 3.60
• Enterprise Value/Gross Profit: 8.72
• Enterprise Value/Ebitda: 7.71
• 1Y Price Target: $65.13
• Price Target Upside: 14.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 72 Outperform
• Price Target: $60.00 ▲(5.78% Upside)

Edison International's strong valuation and positive technical indicators are significant strengths, suggesting potential undervaluation and bullish momentum. However, financial performance is hindered by high leverage and negative cash flow growth, posing risks. The mixed sentiment from the earnings call highlights both long-term growth confidence and short-term challenges.

Positive Factors

Long-Term EPS Growth

Edison's commitment to long-term EPS growth reflects strategic planning and operational efficiency, supporting sustained shareholder value.

Regulatory Alignment

Regulatory alignment ensures stable revenue streams and supports infrastructure investments, crucial for long-term operational resilience.

Technological Innovation

Recognition for technological innovation enhances Edison's competitive edge in grid safety and reliability, fostering future growth opportunities.

Negative Factors

High Debt Levels

High leverage can limit financial flexibility and increase risk, potentially impacting Edison's ability to invest in growth initiatives.

Negative Cash Flow Growth

Challenges in cash flow generation can strain financial resources, affecting Edison's capacity to fund operations and strategic projects.

Wildfire Liabilities

Increased wildfire liabilities pose significant financial and operational risks, potentially leading to higher costs and regulatory scrutiny.

Edison International Business Overview & Revenue Model

Company Description

Edison International (EIX) is a leading energy company based in the United States, primarily focused on the generation, transmission, and distribution of electricity. The company operates through its main subsidiary, Southern California Edison (SCE), which serves millions of customers in Southern California. EIX is also involved in renewable energy projects and initiatives aimed at reducing greenhouse gas emissions, aligning with the growing demand for sustainable energy solutions.

How the Company Makes Money

Edison International generates revenue primarily through the sale of electricity to residential, commercial, and industrial customers via its subsidiary Southern California Edison. The company earns money by charging customers for electricity usage, which is regulated by the California Public Utilities Commission (CPUC). Key revenue streams include base electricity rates, which are set through regulatory proceedings, and various riders and surcharges for specific services or programs. Additionally, EIX invests in renewable energy projects, such as solar and wind, which can provide additional revenue through power purchase agreements and renewable energy credits. The company's focus on modernizing its grid and expanding its clean energy portfolio also positions it for future growth, supported by partnerships with various stakeholders in the energy sector, including government agencies and private developers.

Edison International Financial Statement Overview

Summary

Edison International demonstrates strong profitability and operational efficiency with healthy margins and a solid return on equity. However, high debt levels and negative free cash flow growth present potential risks. The company should focus on improving cash flow generation and managing leverage to ensure long-term financial health.

Income Statement

Edison International shows strong profitability with a TTM gross profit margin of 41.25% and a net profit margin of 16.39%, indicating efficient cost management. The revenue growth rate of 1.19% TTM is modest but stable, reflecting steady demand in the regulated electric industry. EBIT and EBITDA margins are healthy at 29.25% and 46.66% respectively, showcasing robust operational performance. However, the growth rate is relatively low compared to previous years, suggesting limited expansion potential.

Balance Sheet

The company has a high debt-to-equity ratio of 2.37 TTM, indicating significant leverage, which could pose financial risks if not managed properly. Return on equity is strong at 17.82%, reflecting effective use of shareholder funds to generate profits. The equity ratio is moderate, suggesting a balanced approach to financing through debt and equity. While the company is profitable, the high leverage could limit financial flexibility.

Cash Flow

Edison's cash flow performance is mixed, with a negative free cash flow growth rate of -40.72% TTM, indicating challenges in generating free cash flow. The operating cash flow to net income ratio is 0.72, suggesting that operating cash flows are sufficient to cover net income. However, the negative free cash flow to net income ratio highlights potential issues in cash generation after capital expenditures. The company needs to improve cash flow management to enhance financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.54B	17.60B	16.34B	17.22B	14.90B	13.58B
Gross Profit	7.24B	7.22B	6.71B	6.12B	5.72B	5.04B
EBITDA	8.18B	6.37B	5.85B	4.46B	4.00B	3.49B
Net Income	2.88B	1.55B	1.41B	824.00M	925.00M	871.00M
Balance Sheet
Total Assets	88.81B	85.58B	81.76B	78.04B	74.75B	69.37B
Cash, Cash Equivalents and Short-Term Investments	140.00M	193.00M	345.00M	914.00M	390.00M	87.00M
Total Debt	39.53B	37.76B	35.31B	33.10B	29.53B	24.15B
Total Liabilities	69.95B	67.84B	63.81B	60.52B	56.96B	53.42B
Stockholders Equity	16.69B	15.56B	15.50B	15.62B	15.89B	14.05B
Cash Flow
Free Cash Flow	-379.00M	-693.00M	-2.05B	-2.56B	-5.49B	-4.22B
Operating Cash Flow	5.75B	5.01B	3.40B	3.22B	11.00M	1.26B
Investing Cash Flow	-5.87B	-5.54B	-5.23B	-5.57B	-5.15B	-4.97B
Financing Cash Flow	100.00M	674.00M	1.45B	2.88B	5.45B	3.73B

Edison International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 56.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EIX, the sentiment is Positive. The current price of 56.72 is above the 20-day moving average (MA) of 54.31, above the 50-day MA of 54.41, and above the 200-day MA of 53.92, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 61.59 is Neutral, neither overbought nor oversold. The STOCH value of 88.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EIX.

Edison International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FE	73 Outperform	$27.54B	21.05	10.33%	3.72%	6.44%	49.07%
EIX	72 Outperform	$21.84B	8.34	17.37%	5.84%	4.26%	173.18%
DTE	70 Neutral	$29.37B	20.36	12.61%	3.08%	14.35%	3.62%
CMS	69 Neutral	$22.38B	22.06	12.48%	2.87%	8.25%	4.37%
ED	66 Neutral	$36.89B	18.55	8.54%	3.34%	9.03%	7.22%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ES	62 Neutral	$26.81B	31.09	5.63%	4.17%	14.44%	―

Edison International Corporate Events

Edison International Updates on Grid Modernization Efforts

On July 31, 2025, Edison International provided a business update highlighting its ongoing efforts to transform the electric power industry through significant investments in grid modernization and clean energy initiatives. The company emphasized the importance of addressing wildfire risks, climate adaptation, and infrastructure replacement to ensure reliability and resiliency. With a focus on electrification and clean energy, Edison International aims to achieve strong rate base and dividend growth while navigating regulatory challenges and maintaining revenue certainty.

The most recent analyst rating on (EIX) stock is a Buy with a $94.00 price target. To see the full list of analyst forecasts on Edison International stock, see the EIX Stock Forecast page.

Edison International Reports Q2 2025 Income Decline

Edison International reported a decrease in second-quarter 2025 net income to $343 million, or $0.89 per share, compared to $439 million, or $1.14 per share, in the same quarter last year. The company is actively addressing wildfire risks and regulatory challenges, with ongoing investigations into the Eaton Fire and plans for a Wildfire Recovery Compensation Program. Despite these challenges, Edison International reaffirmed its 2025 Core EPS guidance and expressed confidence in achieving a 5-7% Core EPS growth from 2025 to 2028. The company is also engaged in discussions to enhance California’s AB 1054 regulatory framework, which is crucial for maintaining infrastructure resiliency and mitigating wildfire risks.

The most recent analyst rating on (EIX) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Edison International stock, see the EIX Stock Forecast page.