Edison International (EIX) AI Stock Analysis

• Market Cap: $22.44B
• Dividend Yield: 5.51%
• Average Volume (3M): 2.83M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.40
• 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: 2,315,743
• 30 Day Avg. Volume: 2,828,825
• PEG Ratio: 0.07
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -33.73
• Enterprise Value/Market Cap: 2.73
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 9.38
• Enterprise Value/Ebitda: 2.17
• 1Y Price Target: $67.88
• Price Target Upside: 19.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 71 Outperform
• Price Target: $62.00 ▲( 8.89% Upside)

Edison International shows a stable financial position with strong growth potential, underpinned by solid revenue growth and a robust dividend yield. While technical analysis suggests a cautious outlook, recent corporate events and earnings call insights reflect strategic initiatives and regulatory progress. Challenges remain in managing capital expenditures and regulatory uncertainties.

Positive Factors

Liability Protections

Confidence in AB 1054 providing EIX liability protections if it did cause the fire and maintain a Buy rating.

Valuation

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

Negative Factors

Fire Investigation

Management was unable to provide a timeline on when the cause of the Eaton fire could be determined, adding uncertainty for investors.

Wildfire Fund Impact

The potential for a sizable draw-down on the wildfire fund will negatively impact the other California utilities too.

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 makes money primarily through its regulated utility operations under Southern California Edison (SCE), which serves as the main revenue driver. The company earns revenue by selling electricity to residential, commercial, industrial, and agricultural customers. SCE's revenue is derived from rates approved by the California Public Utilities Commission, which are designed to cover the costs of providing service and to allow a reasonable return on investment. Additionally, Edison International invests in clean energy projects and technologies that can also contribute to its earnings. The company's revenue is influenced by factors such as electricity demand, regulatory decisions, and investments in infrastructure and renewable energy development.

Edison International Financial Statement Overview

Summary

Edison International displays solid revenue growth and profitability, supported by a strong net profit margin. The balance sheet shows a stable financial position with moderate leverage, although there is a slight increase in liabilities. Cash flow analysis indicates strong operational cash generation, but persistent negative free cash flow suggests the company is heavily investing in its infrastructure.

Income Statement

Edison International's revenue growth rate from 2023 to 2024 was approximately 7.7%, indicating a healthy upward trend. The company exhibits strong gross profit margins consistently at 100% due to the nature of its industry. The net profit margin improved to 8.8% in 2024, an increase from 8.6% in 2023, reflecting better profitability. However, EBIT and EBITDA margins have seen some fluctuations, with an EBIT margin of 16.6% in 2024 compared to 16.1% in 2023. Overall, the income statement shows stability with positive growth trends, though there is room for improvement in operating efficiency.

Balance Sheet

The debt-to-equity ratio stood at 0.30 in 2024, indicating a manageable level of leverage for a utility company. However, the equity ratio decreased from 18.96% in 2023 to 17.61% in 2024, suggesting a slight increase in leverage. Return on Equity improved to 9.93% in 2024 from 9.07% in 2023, signifying better utilization of equity to generate profits. Despite the high debt levels, the company maintains a stable equity base, although the increasing liabilities pose a potential risk.

Cash Flow

Edison's free cash flow remains negative; however, the free cash flow improved from -$2.05 billion in 2023 to -$693 million in 2024. The operating cash flow to net income ratio increased to 3.24 in 2024, demonstrating strong cash generation relative to net income. Nonetheless, the continuous negative free cash flow highlights ongoing capital expenditure needs. The cash flow statement indicates a robust operating performance but also highlights the pressures of heavy capital investments.

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
0.00	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: Neutral
• Last Price: 56.94
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EIX, the sentiment is Neutral. The current price of 56.94 is above the 20-day moving average (MA) of 56.63, above the 50-day MA of 56.63, and below the 200-day MA of 69.57, indicating a neutral trend. The MACD of 0.36 indicates Negative momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 76.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EIX.

Edison International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPL	74 Outperform	$25.79B	26.05	7.00%	3.00%	5.62%	30.02%
EIX	71 Outperform	$22.44B	8.27	17.93%	5.51%	5.36%	209.92%
CMS	71 Outperform	$21.53B	21.30	12.53%	2.90%	5.87%	3.59%
ES	71 Outperform	$24.08B	28.30	5.63%	4.53%	10.82%	―
FE	70 Neutral	$24.66B	22.73	8.69%	3.98%	7.92%	1.54%
CNP	67 Neutral	$24.45B	25.18	9.22%	2.21%	4.76%	4.08%
Sector *	63 Neutral	$8.63B	10.24	4.67%	4.35%	3.78%	-12.74%

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.

Edison International Focuses on Grid Modernization

In a February 2025 business update, Edison International outlined its strategic focus on grid modernization and clean energy transition, emphasizing the importance of investment in infrastructure to meet California’s aggressive climate goals. The company highlighted its efforts in wildfire mitigation and the impact of regulatory mechanisms that provide revenue certainty, despite potential risks and challenges such as cybersecurity, regulatory changes, and extreme weather events.

Edison International Revises 2025 EPS Guidance Amid Challenges

Edison International reported its fourth-quarter and full-year 2024 financial results, with a fourth-quarter net income of $340 million and full-year net income of $1,284 million. The company has revised its 2025 Core EPS guidance to $5.94-$6.34, reflecting the impact of the TKM settlement, which authorizes $1.6 billion of cost recovery for pre-AB 1054 wildfire. Despite challenges such as higher operation and maintenance expenses, Edison International remains committed to grid resiliency and wildfire mitigation efforts. The company continues to engage with stakeholders to enhance the regulatory framework and ensure safety and reliability in its operations.