Edison International (EIX) Stock

Edison International trades at a P/E ratio of 8.08, 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 9.03 is higher than the current P/E, indicating analysts expect earnings to decline over the next year. The PEG ratio of 0.65 suggests the stock may be undervalued relative to its growth rate.

With a beta of 0.81, 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 1.41 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Edison International achieves a profit margin of 15.00%, meaning it retains $15.00 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 18.30% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 14.30% and ROA at 2.67%, the company achieves moderate returns on invested capital.

Edison International's revenue grew by 4.80% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 21.50% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against UTILITIES - REGULATED ELECTRIC industry averages for proper context.

Edison International offers a dividend yield of 5.91%, paying $3.26 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.

The dividend sustainability can be assessed through the payout ratio - Edison International pays $3.26 per share in dividends against earnings of $6.84 per share, resulting in a payout ratio of 47.70%. 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.

Edison International has a market capitalization of $21.3B, 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 384.83M 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.

Edison International's book value per share is $39.09, while the current stock price is $55.60, resulting in a price-to-book (P/B) ratio of 1.42. 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.

16 analysts cover EIX with 69% 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 $67.17 implies 20.8% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:1 Strong Buy, 10 Buy, 4 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.