Edison International (EIX) AI Stock Analysis

• Market Cap: $18.59B
• Dividend Yield: 6.85%
• Average Volume (3M): 3.26M
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.43
• Revenue Growth: 5.36%
• EPS Growth: 209.92%
• Country: US
• Employees: 14,013
• Sector: Utilities
• Sector Strength: 83
• Industry: Regulated Electric
• EPS (TTM): 1.37
• Shares Outstanding: 384,763,670
• 10 Day Avg. Volume: 5,035,198
• 30 Day Avg. Volume: 3,258,080
• PEG Ratio: -1.51
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.46
• Enterprise Value/Market Cap: 3.03
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 8.65
• Enterprise Value/Ebitda: 2.00
• 1Y Price Target: $68.57
• Price Target Upside: 41.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 67 Neutral
• Price Target: $54.00 ▲(11.75%Upside)

Edison International's overall score is influenced by solid valuation metrics and strong earnings call outcomes, despite bearish technical indicators. High leverage and negative free cash flow are key concerns, but the company's strategic initiatives and regulatory successes provide a positive outlook.

Positive Factors

Guidance Update

Management raised 2025 guidance as a result of the TKM Settlement, increasing the range to $5.94-$6.34.

Legislative Support

Legislative & Commission support: AB 1054 established a liability cap at 20% of the electric T&D equity rate base and a ~$21Bn claim paying fund for wildfires with reimbursement based on prudency.

Stock Valuation

EIX shares currently trade at a very wide P/E discount to the broader group, suggesting potential value for investors.

Negative Factors

Litigation Risk

EIX’s updated Eaton disclosure preliminarily suggests that SCE’s transmission equipment likely caused the fire’s ignition.

Market Perception

EIX currently trades at levels that would imply the market believes EIX started the fire.

Uncertainty in Legislative Clarity

Timing remains uncertain for when the CA legislature can provide clarity on a replenishment mechanism and liability cap extension.

Edison International Business Overview & Revenue Model

Company Description

Edison International, through its subsidiaries, generates and distributes electric power. It delivers electricity to 15 million residential, commercial, industrial, public authorities, agricultural, and other customers across Southern, Central, and Coastal California. The company also provides energy solutions to commercial and industrial users. Its transmission facilities consist of lines ranging from 55 kV to 500 kV and substations; and distribution system consists of approximately 39,000 circuit-miles of overhead lines, approximately 31,000 circuit-miles of underground lines, and 800 substations. The company was founded in 1886 and is headquartered in Rosemead, California.

How the Company Makes Money

Edison International primarily generates revenue through its subsidiary, Southern California Edison (SCE), which provides electricity to residential, commercial, and industrial customers. The company earns money by charging customers for the electricity they consume, with rates regulated by the California Public Utilities Commission. Revenue is also derived from investments in infrastructure, such as the development and maintenance of transmission and distribution networks. Additionally, Edison International benefits from its involvement in renewable energy projects and energy efficiency programs, which contribute to its earnings by diversifying its energy portfolio and enhancing operational efficiencies. Key partnerships with government entities and technology providers help facilitate these initiatives and support the company's financial performance.

Edison International Financial Statement Overview

Summary

Edison International shows strong operational profitability and effective shareholder capital utilization, with healthy margins and ROE. However, high leverage and negative free cash flow pose risks, particularly with fluctuating revenues. Focus on revenue growth and improved free cash flow could enhance financial stability.

Income Statement

The income statement unveils a moderate financial performance. The TTM Gross Profit Margin stands at approximately 37.62%, reflecting strong profitability in core operations. However, the TTM Net Profit Margin is 16.94%, which, while positive, indicates that a significant portion of revenue is absorbed by non-operational costs. The TTM EBIT Margin is robust at 27.80%, and the EBITDA Margin is 47.45%, showcasing effective cost management. Notably, the revenue has fluctuated, with a recent decline from $17.60 billion to $17.33 billion, warranting attention to growth strategies.

Balance Sheet

The balance sheet reflects a stable yet leveraged position. The Debt-to-Equity Ratio is approximately 2.38, indicating significant reliance on debt financing, which introduces potential risk if interest rates rise or revenues decline. Return on Equity (ROE) for the TTM is strong at 17.67%, signifying effective use of shareholder capital. The Equity Ratio is 18.81%, suggesting a moderate cushion against liabilities but emphasizing the need for careful financial maneuvering.

Cash Flow

The cash flow statement indicates challenges in liquidity management. While Operating Cash Flow is positive at $5.20 billion for TTM, Free Cash Flow remains negative, at -$641 million, highlighting issues with capital expenditure investments. The Operating Cash Flow to Net Income Ratio is 1.77, suggesting efficient cash generation from operational activities. However, the negative Free Cash Flow to Net Income Ratio and declining Free Cash Flow Growth Rate underscore potential constraints in funding growth or debt reduction without raising additional capital.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
17.33B	17.60B	16.34B	17.22B	14.90B	13.58B
	Gross Profit
6.52B	7.22B	6.71B	6.12B	5.72B	5.04B
	EBIT
4.82B	2.93B	2.63B	1.48B	1.48B	1.22B
	EBITDA
8.22B	6.37B	5.85B	4.46B	4.00B	3.50B
	Net Income Common Stockholders
2.94B	1.55B	1.41B	824.00M	925.00M	871.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.32B	193.00M	345.00M	914.00M	390.00M	87.00M
	Total Assets
88.42B	85.58B	81.76B	78.04B	74.75B	69.37B
	Total Debt
39.56B	37.76B	35.31B	33.10B	29.53B	24.15B
	Net Debt
38.24B	37.57B	34.97B	32.18B	29.14B	24.06B
	Total Liabilities
69.62B	67.84B	63.81B	60.52B	56.96B	53.42B
	Stockholders Equity
16.62B	15.56B	15.50B	15.62B	15.89B	14.05B
Cash Flow		Free Cash Flow
-641.00M	-693.00M	-2.05B	-2.56B	-5.49B	-4.22B
	Operating Cash Flow
5.20B	5.01B	3.40B	3.22B	11.00M	1.26B
	Investing Cash Flow
-5.63B	-5.54B	-5.23B	-5.57B	-5.15B	-4.97B
	Financing Cash Flow
1.06B	674.00M	1.45B	2.88B	5.45B	3.73B

Edison International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EIX, the sentiment is Negative. The current price of 48.32 is below the 20-day moving average (MA) of 54.49, below the 50-day MA of 55.51, and below the 200-day MA of 67.44, indicating a bearish trend. The MACD of -1.82 indicates Positive momentum. The RSI at 29.44 is Positive, neither overbought nor oversold. The STOCH value of 15.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EIX.

Edison International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMS	72 Outperform	$21.10B	20.87	12.53%	3.08%	5.87%	3.59%
FE	72 Outperform	$23.28B	21.46	8.69%	4.41%	7.92%	1.54%
ES	71 Outperform	$23.96B	28.15	5.63%	4.62%	10.82%	―
PPL	71 Outperform	$25.05B	25.30	7.00%	3.22%	5.62%	30.02%
EIX	67 Neutral	$18.59B	6.86	17.93%	6.85%	5.36%	209.92%
CNP	67 Neutral	$23.74B	24.45	9.22%	2.42%	4.76%	4.08%
Sector *	64 Neutral	$8.58B	10.36	4.24%	4.64%	4.07%	-13.04%

Edison International Corporate Events

Edison International Highlights Grid Modernization Efforts

On April 29, 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 is focused on addressing wildfire risks, enhancing grid reliability, and supporting California’s climate goals. The update emphasized the importance of regulatory mechanisms that provide revenue certainty and promote energy efficiency, as well as the company’s commitment to maintaining a strong rate base and dividend growth.

Edison International Reports Strong Q1 Turnaround

On April 29, 2025, Edison International reported a significant turnaround in its first-quarter financial results, with a net income of $1,436 million compared to a net loss in the same period last year. The company highlighted strong regulatory progress and ongoing efforts to enhance the safety and reliability of its electrical infrastructure, particularly in wildfire-impacted areas. Edison International reaffirmed its core earnings guidance for 2025 and expressed confidence in achieving 5-7% core EPS growth from 2025 to 2028, underscoring its commitment to supporting California’s economic development and community safety.