tiprankstipranks
Trending News
More News >
Edison International (EIX)
NYSE:EIX
Advertisement

Edison International (EIX) AI Stock Analysis

Compare
1,124 Followers

Top Page

EIX

Edison International

(NYSE:EIX)

Select Model
Select Model
Select Model
Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
$62.00
▲(11.93% Upside)
Edison International's strong profitability and technical indicators are offset by high leverage and cash flow challenges. The low P/E ratio and high dividend yield enhance its attractiveness, while recent earnings call insights highlight both growth potential and risks related to wildfire liabilities.
Positive Factors
Strong Core EPS Growth
The significant increase in core EPS indicates robust financial performance and effective cost management, supporting long-term profitability and shareholder value.
Legislative Success with SB 254
This legislative achievement provides financial stability and reduces risk related to wildfire liabilities, enhancing the company's ability to invest in growth and safety.
Progress on Wildfire Mitigation
Significant investment in wildfire mitigation improves infrastructure resilience and reliability, reducing operational risks and enhancing customer trust.
Negative Factors
High Debt Levels
High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth and manage economic downturns.
Negative Free Cash Flow Growth
Challenges in generating free cash flow may hinder the company's ability to fund operations and growth initiatives, stressing the need for improved cash management.
Eaton Fire Liability Uncertainty
Ongoing liability uncertainties pose financial risks and could lead to unexpected expenses, affecting the company's financial health and investor confidence.

Edison International (EIX) vs. SPDR S&P 500 ETF (SPY)

Edison International Business Overview & Revenue Model

Company DescriptionEdison 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 MoneyEdison International generates revenue primarily through the sale of electricity to residential, commercial, and industrial customers via its subsidiary Southern California Edison. The company earns money by charging customers for electricity usage, which is regulated by the California Public Utilities Commission (CPUC). Key revenue streams include base electricity rates, which are set through regulatory proceedings, and various riders and surcharges for specific services or programs. Additionally, EIX invests in renewable energy projects, such as solar and wind, which can provide additional revenue through power purchase agreements and renewable energy credits. The company's focus on modernizing its grid and expanding its clean energy portfolio also positions it for future growth, supported by partnerships with various stakeholders in the energy sector, including government agencies and private developers.

Edison International Key Performance Indicators (KPIs)

Any
Any
Revenue From Contracts with Customer
Revenue From Contracts with Customer
Measures income from customer agreements, providing insight into the stability and predictability of cash flows, as well as the company's ability to secure and maintain customer relationships.
Chart InsightsEdison International's commercial revenue surged, while residential revenue dipped slightly. The earnings call highlights confidence in long-term growth despite a short-term EPS decline due to higher expenses and interest rates. Regulatory progress and substantial capital investment in wildfire mitigation are expected to support future stability and growth. However, unresolved investigations and potential legislative impacts pose risks. The company remains committed to its EPS guidance and growth targets through strategic investments and regulatory advancements.
Data provided by:Main Street Data

Edison International Earnings Call Summary

Earnings Call Date:Oct 28, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed outlook for Edison International. While there is confidence in long-term EPS growth and recognition for technological innovation, challenges remain with a year-over-year decline in earnings, ongoing wildfire investigations, and potential regulatory and affordability challenges. The sentiment is balanced between positive long-term goals and immediate hurdles.
Q2-2025 Updates
Positive Updates
Confidence in Long-Term EPS Growth
Despite a decline in year-over-year earnings, Edison International remains confident in meeting its 2025 EPS guidance and delivering a 5% to 7% core EPS CAGR through 2028.
Regulatory Alignment and Capital Investment
The proposed decision in SCE's 2025 general rate case aligns with the range case rate base forecast, authorizing significant capital investments in wildfire mitigation, grid modernization, and infrastructure replacement.
Wildfire Recovery Compensation Program
SCE announced a wildfire recovery compensation program to provide direct payments to eligible individuals and businesses affected by the Eaton Fire, aiming to resolve claims quickly and minimize costs.
Recognition for Technological Innovation
Edison International and SCE received the Edison Award from EEI for the Advanced Waveform Anomaly Recognition Engine, an AI-driven solution enhancing grid safety and reliability.
Negative Updates
Decline in Core EPS
Edison International reported second-quarter core earnings per share of $0.97, down from $1.23 a year ago, primarily due to higher O&M expenses and regulatory decisions.
Ongoing Investigations and Litigation
The investigations into the Eaton Fire by SCE and the LA County Fire Department remain ongoing, with numerous lawsuits already filed against SCE.
Regulatory Challenges and Cost Disallowances
The proposed decision in SCE's 2025 general rate case approved only 93% of SCE's requested revenue requirement, with reductions related to scope, pacing, or cost.
Affordability Concerns
Discussions around affordability legislation in California include securitization provisions that could deteriorate credit quality and ultimately raise customer costs.
Company Guidance
During the Edison International Second Quarter 2025 Financial Teleconference, key guidance metrics were provided. Edison International reported second quarter core earnings per share (EPS) of $0.97, a decrease from $1.23 in the previous year. Despite this drop, the company remains confident in achieving its 2025 EPS guidance and delivering a 5% to 7% core EPS compound annual growth rate (CAGR) through 2028. The proposed decision from the administrative law judge recommends a base revenue of $9.8 billion for 2025, aligning with the company's range case rate base forecast. SCE's wildfire mitigation plan for 2026-2028 includes an anticipated investment of $6.2 billion. Additionally, the company reaffirmed its 2025 core EPS guidance range of $5.94 to $6.34 with long-term EPS growth expectations.

Edison International Financial Statement Overview

Summary
Edison International demonstrates strong profitability with healthy margins and a solid return on equity. However, high debt levels and negative free cash flow growth present potential risks. The company should focus on improving cash flow generation and managing leverage to ensure long-term financial health.
Income Statement
78
Positive
Edison International shows strong profitability with a TTM gross profit margin of 41.25% and a net profit margin of 16.39%, indicating efficient cost management. The revenue growth rate of 1.19% TTM is modest but stable, reflecting steady demand in the regulated electric industry. EBIT and EBITDA margins are healthy at 29.25% and 46.66% respectively, showcasing robust operational performance. However, the growth rate is relatively low compared to previous years, suggesting limited expansion potential.
Balance Sheet
65
Positive
The company has a high debt-to-equity ratio of 2.37 TTM, indicating significant leverage, which could pose financial risks if not managed properly. Return on equity is strong at 17.82%, reflecting effective use of shareholder funds to generate profits. The equity ratio is moderate, suggesting a balanced approach to financing through debt and equity. While the company is profitable, the high leverage could limit financial flexibility.
Cash Flow
55
Neutral
Edison's cash flow performance is mixed, with a negative free cash flow growth rate of -40.72% TTM, indicating challenges in generating free cash flow. The operating cash flow to net income ratio is 0.72, suggesting that operating cash flows are sufficient to cover net income. However, the negative free cash flow to net income ratio highlights potential issues in cash generation after capital expenditures. The company needs to improve cash flow management to enhance financial stability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue18.09B17.60B16.34B17.22B14.90B13.58B
Gross Profit8.20B7.22B6.71B6.12B5.72B5.04B
EBITDA8.74B6.37B5.85B4.46B4.00B3.49B
Net Income3.19B1.55B1.41B824.00M925.00M871.00M
Balance Sheet
Total Assets90.49B85.58B81.76B78.04B74.75B69.37B
Cash, Cash Equivalents and Short-Term Investments456.00M193.00M345.00M914.00M390.00M87.00M
Total Debt39.44B37.76B35.31B33.10B29.53B24.15B
Total Liabilities71.16B67.84B63.81B60.52B56.96B53.42B
Stockholders Equity17.16B15.56B15.50B15.62B15.89B14.05B
Cash Flow
Free Cash Flow-722.00M-693.00M-2.05B-2.56B-5.49B-4.22B
Operating Cash Flow5.40B5.01B3.40B3.22B11.00M1.26B
Investing Cash Flow-5.93B-5.54B-5.23B-5.57B-5.15B-4.97B
Financing Cash Flow788.00M674.00M1.45B2.88B5.45B3.73B

Edison International Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price55.39
Price Trends
50DMA
54.85
Positive
100DMA
52.94
Positive
200DMA
53.32
Positive
Market Momentum
MACD
0.67
Positive
RSI
48.42
Neutral
STOCH
21.59
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 55.39 is below the 20-day moving average (MA) of 55.59, above the 50-day MA of 54.85, and above the 200-day MA of 53.32, indicating a neutral trend. The MACD of 0.67 indicates Positive momentum. The RSI at 48.42 is Neutral, neither overbought nor oversold. The STOCH value of 21.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EIX.

Edison International Risk Analysis

Edison International disclosed 47 risk factors in its most recent earnings report. Edison International reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Edison International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$21.31B7.3419.13%5.98%4.43%123.35%
$26.46B20.0510.54%3.80%7.64%48.61%
$28.83B20.0912.61%3.14%14.35%3.62%
$21.64B21.6712.48%2.85%8.25%4.37%
$34.98B17.878.54%3.49%9.03%7.22%
$17.65B18.105.60%3.62%6.62%11.55%
$27.39B32.235.63%3.97%14.44%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EIX
Edison International
55.39
-23.24
-29.56%
CMS
CMS Energy
72.29
4.27
6.28%
ED
Consolidated Edison
97.00
-2.26
-2.28%
DTE
DTE Energy
138.86
18.78
15.64%
FE
FirstEnergy
45.80
5.35
13.23%
ES
Eversource Energy
73.81
11.39
18.25%

Edison International Corporate Events

Business Operations and StrategyDividends
Edison International Highlights Grid Modernization Focus
Positive
Oct 29, 2025

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.

The most recent analyst rating on (EIX) stock is a Buy with a $68.00 price target. To see the full list of analyst forecasts on Edison International stock, see the EIX Stock Forecast page.

Edison International Reports Strong Q3 2025 Earnings
Oct 29, 2025

Edison International is a major electric utility holding company based in Rosemead, California, providing clean and reliable energy services through its subsidiaries, including Southern California Edison, which serves 15 million people across California.

Financial Disclosures
Edison International Reports Strong Q3 2025 Earnings
Positive
Oct 28, 2025

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.

The most recent analyst rating on (EIX) stock is a Hold with a $59.00 price target. To see the full list of analyst forecasts on Edison International stock, see the EIX Stock Forecast page.

Business Operations and StrategyLegal Proceedings
Edison International Seeks Approval for Woolsey Fire Settlement
Positive
Sep 19, 2025

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.

The most recent analyst rating on (EIX) stock is a Sell with a $61.00 price target. To see the full list of analyst forecasts on Edison International stock, see the EIX Stock Forecast page.

Business Operations and StrategyLegal Proceedings
Edison International’s Senate Bill 254 Approval Impact
Neutral
Sep 15, 2025

On September 13, 2025, the California Legislature approved Senate Bill 254, which is expected to be signed into law by the Governor. This legislation aims to enhance the financial stability of investor-owned utilities (IOUs) and customer affordability by creating a new fund for wildfire-related claims, funded equally by customers and IOUs. Additionally, on September 11, 2025, SCE reached a settlement agreement regarding the Eaton Fire litigation, agreeing to pay a portion of claims to an insurance claimant, while seeking reimbursement from the Wildfire Insurance Fund.

The most recent analyst rating on (EIX) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on Edison International stock, see the EIX Stock Forecast page.

Edison International’s Earnings Call: Balancing Confidence and Challenges
Aug 2, 2025

Edison International’s recent earnings call presented a balanced sentiment, showcasing a firm confidence in their long-term financial guidance and regulatory progress. However, the call also highlighted current challenges, such as the unresolved Eaton Fire investigation and potential legislative impacts that could affect the company’s financial stability.

Business Operations and Strategy
Edison International Updates on Grid Modernization Efforts
Positive
Aug 1, 2025

On July 31, 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 emphasized the importance of addressing wildfire risks, climate adaptation, and infrastructure replacement to ensure reliability and resiliency. With a focus on electrification and clean energy, Edison International aims to achieve strong rate base and dividend growth while navigating regulatory challenges and maintaining revenue certainty.

The most recent analyst rating on (EIX) stock is a Buy with a $94.00 price target. To see the full list of analyst forecasts on Edison International stock, see the EIX Stock Forecast page.

Edison International Reports Q2 2025 Earnings
Aug 1, 2025

Edison International is one of the largest electric utility holding companies in the United States, primarily focused on providing clean and reliable energy through its subsidiaries, including Southern California Edison, which serves millions across California.

Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Edison International Reports Q2 2025 Income Decline
Negative
Jul 31, 2025

Edison International reported a decrease in second-quarter 2025 net income to $343 million, or $0.89 per share, compared to $439 million, or $1.14 per share, in the same quarter last year. The company is actively addressing wildfire risks and regulatory challenges, with ongoing investigations into the Eaton Fire and plans for a Wildfire Recovery Compensation Program. Despite these challenges, Edison International reaffirmed its 2025 Core EPS guidance and expressed confidence in achieving a 5-7% Core EPS growth from 2025 to 2028. The company is also engaged in discussions to enhance California’s AB 1054 regulatory framework, which is crucial for maintaining infrastructure resiliency and mitigating wildfire risks.

The most recent analyst rating on (EIX) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Edison International stock, see the EIX Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 29, 2025