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Edison International (EIX) Stock

Edison International Stock Details, Movements and Public Alerts

Edison International (EIX): Southern California's Power Giant Navigating Wildfire Risk

When Steven Powell took over as CEO in 2024, he inherited Southern California Edison's most critical challenge: balancing reliable electricity delivery to 15 million residents with catastrophic wildfire liability exposure. SCE's power lines sparked multiple deadly wildfires over the past decade, creating billions in liabilities and forcing Edison to establish a $21 billion wildfire fund. Under Powell's leadership (succeeding Pedro Pizarro's successful 2016-2024 tenure), Edison navigates this complexity: investing $40+ billion in grid hardening and undergrounding lines to prevent future fires, while earning regulated returns on massive infrastructure upgrades. The investment thesis hinges on California regulators allowing Edison to recover costs and earn fair returns—if successful, EIX offers 4%+ dividend yield backed by monopoly electricity distribution. If wildfire litigation overwhelms the fund or regulators deny cost recovery, bankruptcy risks resurface. For income investors, Edison represents a calculated risk: premium yield reflecting wildfire uncertainty, with defensive monopoly positioning if management executes flawlessly.

52-Week Range

$77.91 - $46.27

-24.16% from high · +27.71% from low

Avg Daily Volume

2,894,393

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

7.59

Below market average

Forward P/E

9.51

Earnings expected to decline

PEG Ratio

0.59

Potentially undervalued

Price to Book

1.44

EV/EBITDA

7.21

EPS (TTM)

$7.68

Price to Sales

1.24

Beta

0.83

Less volatile than market

How is EIX valued relative to its earnings and growth?
Edison International trades at a P/E ratio of 7.59, which is below the market average of approximately 20. This lower valuation could indicate the market has modest growth expectations, or it might represent an undervalued opportunity if the fundamentals are strong. Looking ahead, the forward P/E of 9.51 is higher than the current P/E, indicating analysts expect earnings to decline over the next year. The PEG ratio of 0.59 suggests the stock may be undervalued relative to its growth rate.
What is EIX's risk profile compared to the market?
With a beta of 0.83, Edison International is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 1.44 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

16.30%

Operating Margin

32.60%

EBITDA

$7.31B

Return on Equity

15.80%

Return on Assets

3.24%

Revenue Growth (YoY)

10.60%

Earnings Growth (YoY)

63.60%

How profitable and efficient is EIX's business model?
Edison International achieves a profit margin of 16.30%, meaning it retains $16.30 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 32.60% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 15.80% and ROA at 3.24%, the company generates strong returns on invested capital.
What are EIX's recent growth trends?
Edison International's revenue grew by 10.60% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 63.60% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against UTILITIES - REGULATED ELECTRIC industry averages for proper context.

Dividend Information

Dividend Per Share

$3.31

Dividend Yield

5.71%

Ex-Dividend Date

Oct 7, 2025

Dividend Date

Oct 31, 2025

What dividend income can investors expect from EIX?
Edison International offers a dividend yield of 5.71%, paying $3.31 per share annually. This high yield exceeds 4%, significantly outperforming the S&P 500 average of 1.5-2% and most investment-grade bonds. For income-focused investors, this represents an attractive cash flow opportunity, though high yields sometimes signal market concerns about sustainability. To receive the next dividend, shares must be purchased before the ex-dividend date of Oct 7, 2025.
How reliable is EIX's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Edison International pays $3.31 per share in dividends against earnings of $7.68 per share, resulting in a payout ratio of 43.10%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Oct 31, 2025.

Company Size & Market

Market Cap

$22.4B

Revenue (TTM)

$18.09B

Revenue/Share (TTM)

$46.95

Shares Outstanding

384.79M

Book Value/Share

$40.31

Asset Type

Common Stock

What is EIX's market capitalization and position?
Edison International has a market capitalization of $22.4B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 384.79M shares outstanding, the company's ownership is relatively concentrated. As a participant in the UTILITIES - REGULATED ELECTRIC industry, it competes with other firms in this sector.
How does EIX's price compare to its book value?
Edison International's book value per share is $40.31, while the current stock price is $59.09, resulting in a price-to-book (P/B) ratio of 1.47. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$66.86

13.15% upside potential

Analyst Recommendations

Strong Buy

2

Buy

8

Hold

6

Sell

1

Strong Sell

0

How reliable are analyst predictions for EIX?
17 analysts cover EIX with 59% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $66.86 implies 13.1% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on EIX?
Current analyst recommendations:2 Strong Buy, 8 Buy, 6 Hold, 1 Sell, 0The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:25 AM

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Edison International (EIX) Stock Analysis 2025: Complete Investment Guide

California's Power Paradox

Southern California Edison faces an impossible task: deliver affordable, reliable electricity to 15 million people while preventing power lines from sparking catastrophic wildfires in drought-stricken terrain. Under Steven Powell's new leadership, Edison invests $40+ billion over the next decade burying power lines underground, installing covered conductors, and deploying advanced monitoring. The 2018 Camp Fire—which killed 85 people and bankrupted PG&E—demonstrated the existential risks California utilities face. Edison avoided PG&E's fate through proactive wildfire planning and AB 1054 legislation creating a $21 billion wildfire fund for future events.

For investors, Edison represents a calculated risk proposition. The 4%+ dividend yield—higher than typical 3% utility yields—reflects wildfire uncertainty. If Powell executes grid hardening successfully and California regulators approve cost recovery, Edison offers monopoly electricity distribution at attractive valuations. If catastrophic wildfires overwhelm AB 1054 protections or regulators deny rate increases, bankruptcy risks reemerge. The investment thesis requires conviction in California's regulatory framework, management execution, and climate adaptation strategies—not for conservative widows and orphans, but compelling for investors seeking yield with eyes wide open to risks.

Business Model & Competitive Moat

Edison International owns Southern California Edison, a regulated electric utility distributing power to 5 million customers across central/coastal/southern California (excluding Los Angeles Department of Water and Power territory). Revenue comes from rate-regulated electricity delivery charges—Edison earns California PUC-approved returns (10-11% ROE) on invested capital. The utility does not generate power; it purchases electricity from generators and delivers to customers, earning margins on transmission/distribution infrastructure.

The competitive moat is geographic monopoly: SCE exclusively serves its territory with zero competition. However, California's regulatory environment—the strictest in the nation—constrains profitability through rate caps, wildfire liability, and renewable energy mandates. The wildfire fund (AB 1054) provides limited liability protection if SCE operates equipment prudently during catastrophic events, creating a safety net that prevented PG&E-style bankruptcy. The moat is regulatory-dependent: strong if California supports utilities, vulnerable if political pressures override economic logic.

Financial Performance

  • •Dividend Yield: 4%+ yield with 70-75% payout ratio, reflecting wildfire risk premium
  • •Rate Base Growth: $40B capex plan drives 6-8% annual rate base expansion through 2030
  • •Regulatory ROE: 10-11% allowed return on equity from California PUC
  • •Wildfire Fund: $21B AB 1054 fund provides liability protection for prudent utility operations
  • •Credit Quality: BBB+/Baa1 ratings reflect wildfire risks but stable regulatory framework
  • •EPS Growth: Targeting 5-7% annual EPS growth via rate base expansion

Growth Catalysts

  • •Grid Modernization: $40B capital program undergrounding lines and hardening infrastructure earns regulatory returns
  • •Clean Energy Mandates: California's 100% carbon-free 2045 target requires massive grid upgrades SCE profits from
  • •Electric Vehicle Adoption: California EV leadership drives electricity demand and charging infrastructure investment
  • •Wildfire Success: Zero catastrophic wildfires demonstrate mitigation effectiveness, reducing risk premium
  • •Rate Case Outcomes: Favorable regulatory treatment allows cost recovery and maintains ROE
  • •Transmission Build-Out: Renewable energy integration requires new transmission infrastructure

Risks & Challenges

  • •Catastrophic Wildfire: Another Camp Fire-scale disaster overwhelms AB 1054 fund, creating bankruptcy risk
  • •Regulatory Hostility: California politicians denying cost recovery to appease voters crushes margins
  • •Climate Change Acceleration: Drought and fire severity worsen faster than mitigation efforts can adapt
  • •Rate Shock: Customer backlash against 50%+ rate increases over decade limits regulators' flexibility
  • •Undergrounding Costs: $40B capex estimates prove insufficient, requiring additional capital at poor returns
  • •Political Risk: California debates utility municipalization, threatening franchise

Competitive Landscape

Edison faces no direct competition—monopoly electricity distribution in its territory. However, PG&E (northern California) and San Diego Gas & Electric (SDG&E) provide comparison points. PG&E's 2019 bankruptcy demonstrated worst-case wildfire scenarios. SDG&E successfully implemented aggressive wildfire mitigation, avoiding catastrophic events—a playbook Edison follows. Compared to peers, Edison trades at higher dividend yields (reflecting higher wildfire risk) and similar price-to-book ratios (1.0-1.2x).

Steven Powell's strategy mirrors SDG&E's success: proactive undergrounding, covered conductors, public safety power shutoffs during extreme weather, and collaborative regulatory relationships. The key is convincing California regulators that $40B+ in wildfire mitigation deserves full cost recovery and fair returns. Powell's challenge: balance reliability (voters hate blackouts), affordability (voters hate rate increases), and safety (voters hate wildfires)—a nearly impossible trifecta requiring political skill as much as operational excellence.

Who Is This Stock Suitable For?

Perfect For

  • ✓Yield-focused investors seeking 4%+ dividends willing to accept wildfire risk
  • ✓California residents understanding local dynamics and regulatory environment
  • ✓Contrarian investors betting on successful wildfire mitigation execution
  • ✓Long-term holders (10+ years) patient through infrastructure investment cycle

Less Suitable For

  • ✗Conservative income investors requiring sleep-at-night safety (wildfire risk too high)
  • ✗ESG investors concerned about climate adaptation versus mitigation
  • ✗Risk-averse retirees needing dividend reliability (wildfire events could cut dividend)
  • ✗Growth investors seeking capital appreciation (utilities grow slowly)

Investment Thesis

Edison International offers a risk-reward proposition for sophisticated income investors. The 4%+ dividend yield—a premium over typical 3% utility yields—compensates for wildfire uncertainty. Steven Powell's $40 billion grid hardening plan, if executed successfully, positions Edison similarly to SDG&E's wildfire success story. AB 1054's $21 billion fund provides backstop protection that prevented PG&E-style bankruptcy. California's clean energy mandates create decades of infrastructure investment Edison earns regulated returns on.

The investment case requires conviction in three pillars: (1) California regulators allowing cost recovery and fair returns, (2) management executing wildfire mitigation flawlessly, (3) climate change not accelerating beyond Edison's adaptation capacity. If all three hold, Edison offers attractive risk-adjusted yield backed by monopoly positioning. If any fail, dividend cuts or bankruptcy become plausible. For investors comfortable analyzing California regulatory dynamics and willing to embrace wildfire risk for yield premium, Edison presents a calculated opportunity. For conservative income investors, safer utilities exist elsewhere.

Conclusion

Edison International is a HOLD for sophisticated income investors, AVOID for conservative retirees. The 4%+ dividend yield reflects real wildfire risks that could result in catastrophic losses and dividend cuts. For investors comfortable with California regulatory dynamics, confident in management's wildfire mitigation execution, and seeking yield premium for accepting tail risks, Edison offers calculated risk-reward. However, conservative income investors should prioritize utilities without existential wildfire exposure—the yield premium is not worth sleepless nights worrying about the next catastrophic fire season. For those who invest, position size appropriately: Edison merits portfolio allocation as a higher-risk utility position, not as core defensive holding. Only buy if you understand and accept the risks.
Bull Case
$95 (25% upside) - Zero catastrophic fires, favorable regulation, cost recovery approved
Base Case
$85 (12% upside) - Steady execution, normal fire seasons, regulatory support continues
Bear Case
$50 (34% downside) - Catastrophic wildfire, regulatory hostility, dividend cut/suspension

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