Edison International (EIX) AI Stock Analysis
EIX AI stock analysis summary
AI ResearchEdison International is an electric power generator and distributor serving millions across Southern, Central, and Coastal California. The company generates $19.42B in trailing twelve-month revenue with a low trailing P/E of 5.8x. However, it carries significant leverage, with net debt standing at $43.30B alongside ongoing negative free cash flow.
- Market cap
- $21.52B
- Revenue (TTM)
- $19.42B
- P/E
- 5.8x fwd 8.2x
- 1Y return
- 4.2% S&P 500 16.8%
- Avg. target
- $63.21 13.0% vs last close
Bull case
- Trailing P/E of 5.8x and EV/EBITDA of 6.3x trade at steep discounts to the S&P 500 Utilities median multiples of 21.0x and 12.2x.
- The stock provides a 6.28% dividend yield backed by a 49.0% payout ratio and 23 consecutive years of dividend payments.
- Operating cash flow reached $5.80B in FY2025, supporting a trailing twelve-month return on equity of 19.7%.
Bear case
- Net debt is elevated at $43.30B, leading to a debt-to-equity ratio of 2.48 and a current ratio of 0.66 as of June 30, 2026.
- Free cash flow has remained negative across all five reported fiscal years, finishing at -$715.0M in FY2025 due to $6.51B in capital expenditures.
- Quarterly revenue fell 4.1% year-over-year in the quarter ended June 30, 2026, and analysts forecast FY2026 EPS to decline 6.5% to $6.12.
What Edison International does
Edison International, through its subsidiaries, operates in the electric power sector focusing on electricity generation and distribution. Headquartered in Rosemead, California, the utility serves residential, commercial, industrial, public authority, and agricultural customers across Southern, Central, and Coastal California. In addition to delivering power, it offers tailored energy solutions for commercial and industrial users. Its infrastructure includes an extensive transmission network with voltages from 55 kV to 500 kV and strategically located substations. The company's distribution system encompasses approximately 39,000 circuit-miles of overhead lines, 31,000 circuit-miles of underground lines, and 800 substations to support reliable service.
Growth and profitability
Edison International delivered a 5-year revenue CAGR of 7.3% from FY2020 to FY2025. Annual revenue grew from $14.90B in FY2021 to $19.32B in FY2025, with net income surging from $925.0M to $4.56B over the same period. In FY2025, operating margin reached 36.7% and gross margin reached 57.8%, driving diluted EPS to $6.55. For the trailing twelve months, revenue reached $19.42B with an operating margin of 26.9% and diluted EPS of $9.70. In the latest quarter ended June 30, 2026, quarterly revenue fell 4.1% year-over-year, while quarterly earnings expanded by 55.1%.
Balance sheet and cash flow
As of June 30, 2026, Edison International held $242.0M in cash and short-term investments against $43.54B in total debt, leading to net debt of $43.30B. The debt-to-equity ratio is 2.48, and the current ratio sits at 0.66 against total assets of $96.17B and shareholders' equity of $17.53B. Operating cash flow reached $5.80B in FY2025. However, capital expenditures of $6.51B resulted in free cash flow of -$715.0M. During FY2025, the company allocated $1.38B to dividends paid and $1.70B to share buybacks.
Valuation and performance
Edison International trades at a trailing P/E of 5.8x and a forward P/E of 8.2x, lower than the median of its S&P 500 Utilities peers at 21.0x and 16.0x, respectively. Its enterprise value of $63.97B reflects an EV/EBITDA multiple of 6.3x, compared to the peer median of 12.2x, while price-to-sales of 1.1x trails the peer median of 2.9x. The stock has gained 4.2% over the past year and 24.1% over five years, trailing the S&P 500's gains of 16.8% and 83.0%, respectively.
EIX dividend
Edison International offers an annualized forward dividend of $3.51 per share, which translates to a dividend yield of 6.28%. The payout ratio stands at 49.0%, with dividends paid quarterly. The company has paid dividends for 23 consecutive years and posted a 5-year annualized dividend growth rate of 5.1%. Its last ex-dividend date was October 7, 2026.
What analysts expect
Wall Street analysts hold mixed opinions on Edison International, comprising 3 Strong Buy, 10 Hold, and 4 Strong Sell recommendations. The mean price target is $63.21, implying an upside of 13.0% over the last close of $55.93. For the fiscal year ending December 31, 2026, consensus estimates point to EPS of $6.12 on revenue of $19.06B. Over the last four quarters, the company delivered 4 EPS beats. The next earnings date is scheduled for October 29, 2026.
Key risks and what to watch
- Significant leverage of $43.54B in total debt against cash and short-term investments of $242.0M limits balance sheet flexibility.
- A current ratio of 0.66 indicates working capital constraints to meet short-term obligations.
- Capital intensity remains high, evidenced by $6.51B in FY2025 capex preventing positive free cash flow generation.
- Wall Street sentiment includes 4 Strong Sell ratings, reflecting ongoing divergence about future performance.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this EIX AI stock analysis
This page is an AI-written research summary of Edison International (EIX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: EIX income statement, EIX balance sheet, EIX key metrics, EIX analyst forecast, EIX chart. See the EIX stock overview for the latest quote and news.
EIX AI stock analysis FAQ
What is Edison International's dividend yield and payout schedule?
Edison International pays an annualized dividend of $3.51 per share, representing a dividend yield of 6.28%. Dividends are distributed quarterly, with a payout ratio of 49.0%.
How much debt does Edison International carry?
As of June 30, 2026, the company held $43.54B in total debt and $242.0M in cash, resulting in net debt of $43.30B. Its debt-to-equity ratio is 2.48.
When does Edison International report earnings next?
The company's next earnings report is scheduled for October 29, 2026. Analysts project full-year FY2026 EPS of $6.12.
How does Edison International's valuation compare to utility peers?
Edison International trades at a trailing P/E of 5.8x and an EV/EBITDA of 6.3x. Both are well below the S&P 500 Utilities peer medians of 21.0x and 12.2x, respectively.
More Utilities AI stock analysis
- KEPKorea Electric Power
- EDNEmpresa Distribuidora y Comercializadora Norte Sociedad Anónima
- CEPUCentral Puerto
- CIG.CEnergy of Minas Gerais Co DRC
- CIGCompanhia Energética de Minas Gerais
- DUKDuke Energy
- SOMNSouthern
- SOSouthern Company
- NEENextEra Energy
- ELPCCompanhia Paranaense de Energia - COPEL
- PCGPG&E
- EXCExelon