Edison International (EIX) AI Stock Analysis

• Market Cap: $21.11B
• Dividend Yield: 5.73%
• Average Volume (3M): 5.92M
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.46
• Revenue Growth: 7.72%
• EPS Growth: 6.49%
• Country: US
• Employees: 14,375
• Sector: Utilities
• Sector Strength: 79
• Industry: Regulated Utilities
• EPS (TTM): 3.30
• Shares Outstanding: 385,023,530
• 10 Day Avg. Volume: 5,754,944
• 30 Day Avg. Volume: 5,917,210
• PEG Ratio: 2.55
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.23
• Price to Cash Flow (P/CF): 2.10
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $71.19
• Price Target Upside: 29.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

Edison International's overall stock score reflects its stable financial health and attractive valuation in the regulated utilities industry. The company demonstrates solid revenue growth and a strong dividend yield, which supports investor confidence. However, technical indicators suggest caution due to bearish momentum. The earnings call underscores regulatory success and financial stability despite challenges from wildfire-related uncertainties. Overall, the stock presents a balanced risk-reward profile with growth potential tempered by operational and environmental challenges.

Positive Factors

Financial Performance

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

Valuation

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

Negative Factors

Regulatory and Legal Challenges

The key focus around EIX remains on fallout from the LA fires and any potential legislative/regulatory solution around the liability associated with the damages.

Edison International Business Overview & Revenue Model

Company Description

Founded in 1886 and based in California, Edison International is a renewable energy company, which through its subsidiaries, generates and distributes electric power, and invests in energy services and technologies.

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. Overall, the financial health of Edison International is stable with good growth potential, yet it faces challenges in managing capital expenditures and debt levels.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
17.60B	16.34B	17.22B	14.90B	13.58B
	Gross Profit
17.60B	6.71B	6.12B	5.72B	5.04B
	EBIT
2.93B	2.63B	1.48B	1.48B	1.22B
	EBITDA
6.37B	5.85B	4.46B	4.00B	3.50B
	Net Income Common Stockholders
1.55B	1.41B	824.00M	925.00M	871.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.00M	345.00M	914.00M	390.00M	87.00M
	Total Assets
22.07B	81.76B	78.04B	74.75B	69.37B
	Total Debt
4.71B	35.31B	33.10B	29.53B	24.15B
	Net Debt
4.71B	34.97B	32.18B	29.14B	24.06B
	Total Liabilities
6.50B	63.81B	60.52B	56.96B	53.42B
	Stockholders Equity
15.56B	15.50B	15.62B	15.89B	14.05B
Cash Flow		Free Cash Flow
-693.00M	-2.05B	-2.56B	-5.49B	-4.22B
	Operating Cash Flow
5.01B	3.40B	3.22B	11.00M	1.26B
	Investing Cash Flow
-5.54B	-5.23B	-5.57B	-5.15B	-4.97B
	Financing Cash Flow
674.00M	1.45B	2.88B	5.45B	3.73B

Edison International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 54.82
• 50DMA: Negative
• 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 54.82 is above the 20-day moving average (MA) of 52.07, below the 50-day MA of 61.28, and below the 200-day MA of 74.83, indicating a neutral trend. The MACD of -1.70 indicates Negative momentum. The RSI at 48.86 is Neutral, neither overbought nor oversold. The STOCH value of 78.88 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
DUK	77 Outperform	$90.39B	20.48	9.03%	3.50%	4.46%	54.09%
AEP	73 Outperform	$56.12B	18.85	73.81%	3.36%	2.76%	31.53%
EIX	70 Outperform	$21.11B	16.55	8.83%	5.73%	7.72%	6.49%
NEE	67 Neutral	$145.74B	21.00	9.07%	2.95%	26.91%	-6.43%
Sector *	65 Neutral	$12.05B	15.92	6.71%	4.32%	8.04%	3.76%
PCG	64 Neutral	$35.40B	14.00	8.33%	0.33%	-0.04%	6.80%
SRE	64 Neutral	$46.01B	15.99	13.80%	3.47%	-18.00%	-7.54%

Edison International Corporate Events

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.

Edison International Appoints Granholm to Board of Directors

On February 20, 2025, Edison International announced the appointment of Jennifer Granholm to its Board of Directors, effective April 1, 2025, expanding the board from 11 to 12 members. Granholm, who has previously served as the U.S. Secretary of Energy and Governor of Michigan, brings vast expertise in clean energy solutions, cybersecurity, and energy infrastructure resilience. Her appointment is expected to strengthen Edison International’s efforts in advancing sustainable energy technologies and enhancing the resilience of the power grid, which could have positive implications for the company’s operations and positioning within the industry.

Edison International Announces Leadership Transition Plans

On February 7, 2025, Adam S. Umanoff, Executive Vice President, General Counsel and Corporate Secretary of Edison International, announced his decision to retire effective July 4, 2025. The Board of Directors has appointed Chonda J. Nwamu as the new Executive Vice President and General Counsel, effective April 9, 2025, with Umanoff continuing his role until his retirement.