Edison International
EIX
$71.59
-4.11%
Edison International is the parent company of Southern California Edison (SCE), a regulated electric utility serving approximately 5 million customers across a 50,000-square-mile territory in Southern California, excluding Los Angeles. The company also operates Edison Energy, which provides energy-related products and services to nonutility customers, though the utility segment dominates revenue and earnings. As one of the largest investor-owned electric utilities in the U.S., Edison International is a key player in the transition to clean energy, with SCE's grid modernization and wildfire mitigation efforts central to its investment narrative. The stock has recently drawn attention due to its strong one-year performance, driven by robust rate base growth and California's supportive regulatory environment, but it faces ongoing scrutiny over wildfire liabilities and the pace of its capital expenditure program.…
EIX
Edison International
$71.59
Investment Opinion: Should I buy EIX Today?
We rate EIX as a Hold. The stock offers a compelling dividend yield and a discounted valuation, but the risks from wildfire liabilities and high leverage temper the upside. The analyst consensus is 'Hold' with an average target of $76.04, implying modest upside of ~6.5% from the current price of $71.41.
Sign up to view all
EIX 12-Month Price Forecast
The AI assessment is neutral, reflecting a balanced risk/reward. The stock's valuation is attractive, but financial risks are elevated. If the company can demonstrate improved cash flow and wildfire risk management, the stance would upgrade to bullish. Conversely, a major wildfire event or deteriorating financials would shift to bearish.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Edison International's 12-month outlook, with a consensus price target around $76.04 and implied upside of +6.2% versus the current price.
Average Target
$76.04
0 analysts
Implied Upside
+6.2%
vs. current price
Analyst Count
—
covering this stock
Price Range
$62 - $86
Analyst target range
The target price range spans from a low of $62.00 to a high of $86.00, a spread of $24, which is about 33.6% of the average target, indicating moderate uncertainty. The high target of $86 assumes continued rate base growth, successful wildfire mitigation, and favorable regulatory outcomes, potentially driving earnings above consensus. The low target of $62 likely prices in wildfire liability risks, higher interest costs, or regulatory setbacks. The recent downgrade by Seaport Global and the presence of an Underweight from Morgan Stanley suggest some analysts are cautious, but the overall consensus remains neutral, with the average target slightly above the current price, implying modest upside potential.
Bulls vs Bears: EIX Investment Factors
Edison International presents a balanced risk/reward profile. The bull case is anchored by a discounted forward PE, robust dividend yield, and steady revenue growth, while the bear case centers on wildfire liabilities, high leverage, and negative free cash flow. Currently, the bearish factors appear slightly more compelling due to the tangible financial risks, but the stock's defensive characteristics and regulatory support provide a floor. The most critical tension is whether SCE's wildfire mitigation investments will successfully contain liabilities—if they do, the stock could re-rate higher; if not, downside to the low target is plausible.
Bullish
- Strong 1-Year Performance: EIX returned +27.47% over the past year, outperforming the S&P 500's +20.37%. This reflects investor confidence in its rate base growth and California's supportive regulatory environment.
- Attractive Forward Valuation: With a forward PE of 10.97x, EIX trades at a discount to the typical regulated utility range of 15-20x. This suggests the market is pricing in lower growth or higher risk, but also offers potential upside if risks are managed.
- Solid Revenue Growth: Q1 2026 revenue grew 7.66% YoY to $4.103 billion, driven by utility demand and rate base expansion. This growth is supported by California's clean energy transition and SCE's capital investment plan.
- High Dividend Yield: EIX offers a dividend yield of 5.96%, well above the S&P 500 average. This provides a substantial income component and signals management's confidence in cash flow stability.
Bearish
- Wildfire Liability Overhang: SCE faces ongoing legal and financial risks from wildfires, which could lead to significant liabilities. The low analyst target of $62 reflects this risk, implying a potential 13% downside from the current price.
- High Debt Levels: EIX's debt-to-equity ratio is 2.42, indicating substantial leverage. This increases financial risk, especially if interest rates remain elevated or cash flows are disrupted.
- Negative Free Cash Flow: TTM free cash flow is -$643 million, reflecting heavy capital expenditures for grid modernization and wildfire mitigation. This could pressure the balance sheet and limit financial flexibility.
- Earnings Volatility: Quarterly EPS has been highly volatile, ranging from $0.89 to $4.80 in recent quarters, partly due to one-time items. This makes earnings predictability challenging and may deter some investors.
EIX Technical Analysis
Edison International's stock has been in a clear uptrend over the past year, with a 1-year price change of +27.47%, significantly outperforming the S&P 500's +20.37% over the same period. The current price of $71.41 sits at approximately 87.5% of its 52-week range (between $52.00 low and $81.62 high), indicating the stock is trading closer to its highs but has pulled back from the peak. This positioning suggests the market remains constructive on the stock, though the recent decline from the July high of $80.38 may signal profit-taking or a consolidation phase after a strong run.
Beta
0.65
0.65x market volatility
Max Drawdown
-16.4%
Largest decline past year
52-Week Range
$52-$82
Price range past year
Annual Return
+33.0%
Cumulative gain past year
| Period | EIX Return | S&P 500 |
|---|---|---|
| 1m | -10.9% | +2.5% |
| 3m | +0.6% | +2.7% |
| 6m | -2.9% | +11.1% |
| 1y | +33.0% | +20.5% |
| ytd | +17.5% | +12.3% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
EIX Fundamental Analysis
Edison International's revenue has shown a mixed but generally positive trajectory. In Q1 2026, revenue was $4.103 billion, up 7.66% year-over-year, reflecting solid utility demand and rate base growth. However, the quarterly revenue trend has been volatile: Q4 2025 revenue was $5.213 billion, Q3 2025 was $5.750 billion, and Q2 2025 was $4.543 billion, indicating seasonality and potentially lumpy non-utility contributions. The company's revenue segments show Electric Utility dominating at $3.731 billion in the most recent quarter, with Competitive Power Generation contributing $340 million, highlighting the utility's central role. The growth trajectory is supported by California's clean energy transition and SCE's capital investment plan, but the pace of growth is moderate, typical for a regulated utility.
Quarterly Revenue
$4.1B
2026-03
Revenue YoY Growth
+7.7%
YoY Comparison
Gross Margin
76.4%
Latest Quarter
Free Cash Flow
$-643000000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
Open an Account, get $2 TSLA now!
Valuation Analysis: Is EIX Overvalued?
Given that Edison International has positive net income, the PE ratio is the primary valuation metric. The trailing PE is 5.18x, while the forward PE is 10.97x, a significant gap that implies the market expects earnings to normalize lower from the recent elevated levels (which included one-time gains). The trailing PE is artificially low due to a $1.845 billion net income in Q4 2025, which included a large one-time gain, so the forward PE is more indicative of ongoing earnings power. Compared to the industry average PE of approximately 15-20x for regulated utilities, EIX's forward PE of 10.97x appears at a discount, suggesting the market is pricing in lower growth or higher risk. The PEG ratio of 0.02 is misleadingly low due to the distorted trailing earnings, but the forward PE still implies a reasonable valuation relative to peers.
PE
5.2x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 3x~25x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
7.9x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks are significant for EIX. The debt-to-equity ratio of 2.42 indicates heavy leverage, which amplifies exposure to interest rate fluctuations. Interest expense in Q1 2026 was $524 million, a substantial drag on earnings. Moreover, the company's free cash flow is negative at -$643 million TTM, reflecting a heavy capital expenditure program that may require additional debt or equity issuance. The current ratio of 0.73 suggests potential liquidity constraints, though utility cash flows are relatively stable. Earnings volatility is also a concern, with quarterly EPS swinging from $0.89 to $4.80 due to one-time items, making projections uncertain.