Edison International (EIX) AI Stock Analysis

• Market Cap: $23.13B
• Dividend Yield: 5.68%
• Average Volume (3M): 3.14M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.34
• Revenue Growth: 4.43%
• EPS Growth: 123.35%
• Country: US
• Employees: 14,013
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 2.34
• Shares Outstanding: 384,787,050
• 10 Day Avg. Volume: 3,758,457
• 30 Day Avg. Volume: 3,139,013
• 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: 2.77
• Enterprise Value/Revenue: 3.55
• Enterprise Value/Gross Profit: 7.82
• Enterprise Value/Ebitda: 7.33
• 1Y Price Target: $63.73
• Price Target Upside: 6.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 6.07
• Revenue Forecast (FY): $18.63B

• Rating: 77 Outperform
• Price Target: $68.00 ▲(13.14% Upside)

Edison International's strong valuation and technical indicators are the most significant factors driving the score. The company's financial performance is solid, though cash flow challenges need attention. Positive corporate events and earnings call insights further support a favorable outlook, despite some risks related to wildfire liabilities.

Positive Factors

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market reach and maintain a robust customer base, ensuring long-term financial stability.

Grid Modernization

Investments in grid modernization and clean energy initiatives position the company to meet future energy demands and regulatory requirements, enhancing sustainability.

Legislative Success

Legislative successes, like SB 254, provide financial stability and support infrastructure investments, reducing risk and enhancing long-term growth prospects.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, particularly in a capital-intensive industry, potentially impacting future investment capacity.

Wildfire Liabilities

Ongoing wildfire liabilities present financial uncertainty and potential costs, which could strain resources and affect profitability over time.

Cash Flow Challenges

Negative free cash flow highlights liquidity concerns, which may hinder the company's ability to finance operations and invest in growth opportunities.

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

Edison International demonstrates strong income statement performance with consistent revenue growth and robust profitability margins. The balance sheet shows a high leverage typical of the industry but maintains a strong return on equity. Cash flow analysis indicates challenges with negative free cash flow, although there is notable improvement. Overall, the company is on a positive growth trajectory but should focus on enhancing cash flow generation to strengthen its financial position.

Income Statement

Edison International shows strong income statement performance with a consistent revenue growth rate of 3.13% in the TTM period. The company maintains solid profitability metrics, with a gross profit margin of 45.33% and a net profit margin of 17.61%, indicating efficient cost management and strong bottom-line performance. EBIT and EBITDA margins are robust at 30.73% and 48.35%, respectively, reflecting operational efficiency. The upward trend in revenue and profitability margins suggests a positive growth trajectory.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 2.30, which is relatively high but typical for the regulated electric industry. The return on equity (ROE) is strong at 19.30%, indicating effective use of equity capital to generate profits. The equity ratio stands at 18.96%, suggesting a moderate level of equity financing. While the company is leveraged, it maintains a healthy ROE, balancing risk and return effectively.

Cash Flow

Cash flow analysis reveals challenges with negative free cash flow, although there is a significant improvement in free cash flow growth at 90.50% in the TTM period. The operating cash flow to net income ratio is 0.57, indicating that operating cash flows cover net income adequately. However, the free cash flow to net income ratio is negative, highlighting potential liquidity concerns. The company needs to focus on improving free cash flow generation to enhance financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.09B	17.60B	16.34B	17.22B	14.90B	13.58B
Gross Profit	8.20B	7.22B	6.71B	6.12B	5.72B	5.04B
EBITDA	8.74B	6.37B	5.85B	4.46B	4.00B	3.49B
Net Income	3.19B	1.55B	1.41B	824.00M	925.00M	871.00M
Balance Sheet
Total Assets	90.49B	85.58B	81.76B	78.04B	74.75B	69.37B
Cash, Cash Equivalents and Short-Term Investments	456.00M	193.00M	345.00M	914.00M	390.00M	87.00M
Total Debt	39.44B	37.76B	35.31B	33.10B	29.53B	24.15B
Total Liabilities	71.16B	67.84B	63.81B	60.52B	56.96B	53.42B
Stockholders Equity	17.16B	15.56B	15.50B	15.62B	15.89B	14.05B
Cash Flow
Free Cash Flow	-722.00M	-693.00M	-2.05B	-2.56B	-5.49B	-4.22B
Operating Cash Flow	5.40B	5.01B	3.40B	3.22B	11.00M	1.26B
Investing Cash Flow	-5.93B	-5.54B	-5.23B	-5.57B	-5.15B	-4.97B
Financing Cash Flow	788.00M	674.00M	1.45B	2.88B	5.45B	3.73B

Edison International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.10
• 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 60.1 is above the 20-day moving average (MA) of 58.30, above the 50-day MA of 57.41, and above the 200-day MA of 54.36, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 61.45 is Neutral, neither overbought nor oversold. The STOCH value of 92.87 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	77 Outperform	$23.13B	7.87	19.13%	5.68%	4.43%	123.35%
CMS	67 Neutral	$21.05B	19.97	12.34%	3.14%	10.96%	-0.77%
FE	67 Neutral	$25.55B	19.21	10.54%	3.94%	7.64%	48.61%
ES	66 Neutral	$25.20B	18.45	8.65%	4.48%	13.12%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
DTE	65 Neutral	$26.51B	19.12	11.64%	3.47%	19.42%	-9.68%
ED	62 Neutral	$35.39B	17.13	8.84%	3.47%	10.35%	7.64%

Edison International Corporate Events

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.

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.

Edison International Highlights Grid Modernization Focus

On October 28, 2025, Edison International provided a business update highlighting its strategic focus on grid modernization and clean energy initiatives. The company is addressing wildfire risks and climate adaptation needs while aiming for strong rate base and dividend growth. The update emphasized the importance of regulatory structures in California and the federal level to support the transition to a clean energy future. Edison International is investing in infrastructure to ensure reliability and resilience, with a target rate base CAGR of 7–8% from 2024 to 2028 and a dividend payout target of 45–55% of SCE core earnings.

Edison International Reports Strong Q3 2025 Earnings

Edison International reported a significant increase in third-quarter 2025 net income to $832 million, or $2.16 per share, compared to $516 million, or $1.33 per share, in the same period last year. The company’s core earnings also rose, driven by higher revenue from the 2025 General Rate Case decision. The passage of Senate Bill 254 and the classification of the Eaton Fire as a ‘covered wildfire’ by the Wildfire Fund administrator are key developments supporting financial stability. Edison International has narrowed its 2025 core EPS guidance and maintains confidence in achieving 5-7% core EPS growth from 2025 to 2028.

Edison International Seeks Approval for Woolsey Fire Settlement

Edison International‘s subsidiary, Southern California Edison (SCE), is involved in the electric utility industry, focusing on power generation and distribution. On September 19, 2025, SCE filed a motion with the California Public Utilities Commission (CPUC) seeking approval of a settlement agreement related to the 2018 Woolsey Fire. The agreement, if approved, would allow SCE to recover 35% of its $5.6 billion losses, amounting to approximately $2 billion. This settlement is a significant step in resolving financial impacts from the 2017/2018 wildfire events, potentially improving SCE’s financial strength and reducing costs for customers.