Edison International (EIX) AI Stock Analysis

• Market Cap: $26.82B
• Dividend Yield: 5.68%
• Average Volume (3M): 3.08M
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.32
• Revenue Growth: 4.43%
• EPS Growth: 123.35%
• Country: US
• Employees: 14,013
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 1.86
• Shares Outstanding: 384,787,050
• 10 Day Avg. Volume: 3,538,892
• 30 Day Avg. Volume: 3,077,193
• PEG Ratio: 0.02
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 1.20
• P/FCF Ratio: -32.32
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 1.65
• Enterprise Value/Gross Profit: 5.26
• Enterprise Value/Ebitda: 3.75
• 1Y Price Target: $70.90
• Price Target Upside: -3.85% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $76.00 ▲(3.06% Upside)
• Action: Downgraded Date: 02/19/26
• Date: Action: Downgraded 02/19/26

The score is driven most by mixed financial quality—strong recent earnings/revenue trends but consistently negative free cash flow and leverage uncertainty—paired with supportive technical uptrend signals. Valuation is a clear positive with a low P/E and strong dividend yield, while earnings-call risks (notably wildfire liability uncertainty and near-term EPS headwinds) keep the overall score in the upper-middle range.

Positive Factors

Regulated rate base growth & capital plan

A large, multi‑year $38–41B capital program and projected ~7% rate base CAGR (2025–2030) creates durable, regulated revenue growth and predictable cost recovery. That scale supports long‑term utility economics, steady returns on invested capital and alignment with electrification trends.

Clear financing framework & no equity plan

Management’s commitment to no equity issuance through 2030 and a defined 15–17% FFO/debt target provides durable financing visibility, limits shareholder dilution, and signals a prioritized capital structure. Use of securitization and targeted metrics supports predictable funding for the capital plan.

Dividend & multi‑year EPS targets

A ~5% dividend coupled with a 5–7% long‑term core EPS growth target provides a sustainable shareholder return profile anchored by regulated cash flows. The combination of yield and predictable EPS guidance supports long‑term income investors and reflects operational stability in a regulated business.

Negative Factors

Persistent negative free cash flow

Consistent negative free cash flow indicates the business repeatedly requires external funding to finance investments and obligations. Over time this raises refinancing needs, increases leverage or financing costs, and constrains discretionary capital allocation despite regulated revenues and approved rate base recoveries.

High leverage & inconsistent balance sheet metrics

Historically elevated debt ratios and large year‑to‑year swings in reported leverage reduce balance‑sheet predictability. For a capital‑intensive utility, inconsistent leverage raises refinancing and rating risk, complicates long‑term financing assumptions and could increase the cost of capital if adverse trends reappear.

Wildfire liability & regulatory uncertainty

Ongoing investigations and indeterminate wildfire liabilities create structural legal and regulatory risk. Potential large claims, subrogation variability and evolving prudency standards can materially affect cash flows, cost recovery timing, capital plans, and insurer/creditor treatment over multiple years.

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 generates revenue primarily through the sale of electricity to its customers via Southern California Edison. The company's revenue model is largely based on regulated rates set by the California Public Utilities Commission (CPUC), which allows SCE to recover its costs and earn a regulated return on its investments in infrastructure. Key revenue streams include residential and commercial electricity sales, transmission and distribution services, and ancillary services such as demand response programs. Additionally, EIX earns income from investments in renewable energy projects and partnerships aimed at increasing energy efficiency and sustainability, including incentives for electric vehicle adoption and solar power initiatives. The company also benefits from federal and state incentives for clean energy development, contributing to its earnings through reduced operating costs and enhanced revenue from green energy sales.

Edison International Financial Statement Overview

Summary

Income statement strength (revenue growth to $19.3B and a sharp 2025 earnings step-up) is tempered by persistent negative free cash flow across all years shown and historically high leverage, with additional uncertainty from large year-to-year balance-sheet metric shifts.

Income Statement

Revenue has grown steadily overall (from $13.6B in 2020 to $19.3B in 2025), with 2025 showing a strong ~6.8% increase. Profitability improved meaningfully: net margin rose from ~8.8% (2024) to ~24.3% (2025) and earnings jumped to $4.7B. The main weakness is year-to-year volatility (notably a revenue decline in 2023) and some inconsistency in reported operating profitability details across periods (e.g., 2025 gross profit and certain margin fields).

Balance Sheet

The balance sheet shows high leverage in most years, with debt-to-equity around ~1.7–2.4x from 2020–2024, which is a key risk factor even for a regulated utility. A positive is that equity has been relatively stable and 2025 shows sharply lower reported debt and much lower debt-to-equity (~0.20x) alongside a higher return on equity (~26.7%). However, the magnitude of the 2025 debt/asset shift versus prior years introduces uncertainty and suggests balance-sheet metrics are less consistent year to year.

Cash Flow

Operating cash flow improved versus the weak 2021 level and reached ~$5.0–$5.8B in 2024–2025, which supports earnings quality in recent years. However, free cash flow is negative every year shown (including -$0.7B in both 2024 and 2025 and much larger deficits in 2021–2023), meaning the business has consistently required external funding for investment and/or other uses. Free cash flow relative to net income remains negative, highlighting ongoing cash reinvestment pressure.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.32B	17.60B	16.34B	17.22B	14.90B
Gross Profit	6.05B	7.22B	6.71B	6.12B	5.72B
EBITDA	8.48B	6.37B	5.85B	4.46B	4.00B
Net Income	4.70B	1.55B	1.41B	824.00M	925.00M
Balance Sheet
Total Assets	24.78B	85.58B	81.76B	78.04B	74.75B
Cash, Cash Equivalents and Short-Term Investments	1.00M	193.00M	345.00M	914.00M	390.00M
Total Debt	42.59B	37.76B	35.31B	33.10B	29.53B
Total Liabilities	7.20B	67.84B	63.81B	60.52B	56.96B
Stockholders Equity	17.58B	15.56B	15.50B	15.62B	15.89B
Cash Flow
Free Cash Flow	-715.00M	-693.00M	-2.05B	-2.56B	-5.49B
Operating Cash Flow	5.80B	5.01B	3.40B	3.22B	11.00M
Investing Cash Flow	-6.33B	-5.54B	-5.23B	-5.57B	-5.15B
Financing Cash Flow	571.00M	674.00M	1.45B	2.88B	5.45B

Edison International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 73.74 is above the 20-day moving average (MA) of 65.48, above the 50-day MA of 61.80, and above the 200-day MA of 55.36, indicating a bullish trend. The MACD of 3.12 indicates Negative momentum. The RSI at 78.26 is Negative, neither overbought nor oversold. The STOCH value of 87.56 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
EIX	69 Neutral	$26.82B	6.03	27.88%	5.68%	4.43%	123.35%
ED	67 Neutral	$40.28B	19.50	8.76%	3.44%	10.35%	7.64%
CMS	66 Neutral	$23.02B	21.31	12.33%	3.10%	10.96%	-0.77%
ES	66 Neutral	$26.93B	15.72	10.84%	4.54%	13.12%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
FE	64 Neutral	$28.27B	27.73	8.17%	3.94%	7.64%	48.61%
DTE	62 Neutral	$29.64B	20.23	12.16%	3.45%	19.42%	-9.68%

Edison International Corporate Events

Edison International Details Grid Investment Plan and Strategy

On February 18, 2026, Edison International management presented a business update to institutional investors and analysts outlining its strategy as a wires-focused utility driving California’s clean energy transition. The company highlighted a projected $38 billion to $41 billion electric infrastructure investment opportunity from 2026 through 2030, aimed at strengthening and modernizing the grid, enhancing reliability and resiliency, and supporting widespread electrification.

The update emphasized that growth will be underpinned by constructive California and federal regulatory frameworks, including decoupling of sales and forward-looking ratemaking, and by a wildfire prudency standard designed to support cost recovery where appropriate. Edison International projected a roughly 7% compound annual growth rate in rate base from 2025 to 2030 and reiterated its target dividend payout range, while also detailing extensive wildfire risk mitigation, climate adaptation efforts, and operational plans that are central to its long-term financial and strategic positioning.

The most recent analyst rating on (EIX) stock is a Buy with a $77.00 price target. To see the full list of analyst forecasts on Edison International stock, see the EIX Stock Forecast page.

Edison International posts strong Q4 results, raises guidance

Edison International reported sharply higher results for the fourth quarter and full year 2025 on Feb. 18, 2026, with Q4 GAAP EPS rising to $4.80 and core EPS to $1.87, and full-year GAAP EPS climbing to $11.58 and core EPS to $6.55. The improvement was driven mainly by Southern California Edison, which benefited from revenue recognition tied to the 2025 general rate case decision and lower interest expense from wildfire-related settlement cost recoveries, while parent-level results were pressured by higher interest costs and a loss on preferred stock redemption.

Management underscored that SCE has installed more than 7,000 miles of covered conductor in high fire risk areas, completing over 90% of its planned grid hardening program, and highlighted recent rate cuts of 2.3% for residential customers and 5.3% for small and medium-sized businesses, while still maintaining the lowest system average rate among California’s major investor-owned utilities. The company unveiled 2026 and 2027 core EPS guidance of $5.90–6.20 and $6.25–6.65 respectively, signaled confidence in sustaining 5–7% core EPS growth through 2030, and announced a quarterly common dividend of $0.8775 per share payable April 30, 2026, reinforcing its message of earnings visibility and continued shareholder returns in a heavily regulated, wildfire-exposed market.

The most recent analyst rating on (EIX) stock is a Hold with a $78.00 price target. To see the full list of analyst forecasts on Edison International stock, see the EIX Stock Forecast page.

Edison International Secures $900 Million Term Loan Facility

On December 23, 2025, Edison International entered into a $900 million term loan credit agreement with a syndicate of lenders led by Wells Fargo Bank, maturing on December 22, 2026, with interest based on adjusted term SOFR plus 1.25% or a base rate plus 0.25%, and the flexibility to prepay without penalty. The company plans to use the proceeds for general corporate and working capital purposes, including potential debt repayment, while committing to maintain a consolidated total recourse indebtedness-to-capital ratio not exceeding 0.70 to 1.0, reinforcing liquidity alongside its existing $1.5 billion corporate and $3.35 billion Southern California Edison revolving credit facilities, and underscoring ongoing relationships with key banking partners.

The most recent analyst rating on (EIX) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Edison International stock, see the EIX Stock Forecast page.

Edison International Reaffirms Long-Term Earnings and Growth Outlook

On December 18, 2025, the California Public Utilities Commission approved Southern California Edison’s authorized cost of capital for 2026, extending the existing cost of capital mechanism and maintaining a capital structure of 52% common equity, 5% preferred equity, and 43% long-term debt, with an overall rate of return of 7.59% for 2026 compared with 7.66% for 2025. Following this decision, Edison International reaffirmed its long-term financial guidance, including a 2025–2028 core earnings per share compound annual growth rate of 5–7%, projected 2028 core EPS of $6.74–$7.14, 2024–2028 rate base growth of 7–8%, a $28–29 billion capital plan for 2025–2028 with no expected equity issuance, and reiterated its 2025 basic EPS guidance of $8.05–$8.30 and core EPS guidance of $5.95–$6.20, underscoring management’s confidence in the company’s regulated business model, capital investment program, and potential for attractive total shareholder returns.

The most recent analyst rating on (EIX) stock is a Sell with a $57.00 price target. To see the full list of analyst forecasts on Edison International stock, see the EIX Stock Forecast page.

Edison International Announces Tender Offers for Preferred Stock

On November 20, 2025, Edison International announced the commencement of tender offers to purchase for cash any and all of its outstanding Series B and Series A Fixed-Rate Reset Cumulative Perpetual Preferred Stock. The tender offers are set to expire on December 19, 2025, unless extended or terminated earlier. The company plans to fund these purchases with cash on hand, and the offers are subject to specific terms and conditions outlined in the Offer Materials. This move could impact the company’s financial structure and market positioning by potentially reducing its outstanding preferred stock liabilities.

The most recent analyst rating on (EIX) stock is a Hold with a $56.00 price target. To see the full list of analyst forecasts on Edison International stock, see the EIX Stock Forecast page.