10Y annualized return is
negative
at -0.4% per year
EIX has met or exceeded earnings expectations in
all
recent quarters (2/2)
Attractive Price-to-Earnings Ratio
Reasonable Price-to-Sales Ratio
Strong Gross Profit Margin
Decent Return on Equity
Low Debt Levels
Strong Interest Coverage
🏗️ Strong Regulatory Framework
🔒 Safety and Risk Management
📈 Consistent Financial Performance
🌱 Growth in Wildfire Mitigation Investments
🔍 Focus on Innovative Solutions
Negative Price-to-Free-Cash-Flow Ratio
Low Net Profit Margin
Weak Liquidity Ratios
🔥 Wildfire Liability Risks
⚖️ Regulatory Uncertainty
⏳ Delays in Legislative Solutions
⚠️ Impact of Climate Change
Edison International demonstrates a solid business model underpinned by a strong regulatory framework and a commitment to safety and financial performance. However, ongoing wildfire risks and regulatory uncertainties present challenges. Looking ahead, growth prospects are bolstered by continued investments in infrastructure and innovation, despite the looming impacts of climate change and legislative delays.
Analysis Date: February 27, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Edison International is a company that provides electricity to millions of homes and businesses in California. They generate power and deliver it through a large network of power lines and substations. This means when you flip a switch at home or in a store, Edison International helps make sure the lights turn on. They also offer energy solutions to help businesses use power more efficiently.
Streams of revenue
Geographic Distribution
Estimations for reference only
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$149.12
Current Market Price: $54.54
IV/P Ratio: 2.73x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
63.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for EIX
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (14.14)
P/B ratio ≤ 1.5 (1.36)
Current ratio ≥ 2.0 (0.85x)
Long-term debt < Net current assets (-1.64x)
Margin of safety (63.0%)
EIX does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
16.57%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
36.89%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
8.51%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
EIX's gross profit margin of 36.89% indicates efficient management of costs relative to sales, allowing for a healthy buffer for profitability.
With a return on equity of 9.69%, EIX demonstrates an ability to generate profits from shareholders' investments, which is a positive indicator of financial performance.
The net profit margin of 8.51% indicates that the company retains a relatively small portion of revenue as profit, which could raise concerns about overall profitability.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.12x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.85x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
EIX maintains a low debt-to-equity ratio of 0.13, indicating strong financial leverage and reduced risk associated with debt financing.
An interest coverage ratio of 1.57 suggests EIX can comfortably meet its interest obligations from operating income, indicating sound financial health.
The current ratio of 0.85 and quick ratio of 0.78 suggest potential liquidity issues, as the company may struggle to meet short-term obligations.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Edison International benefits from a robust regulatory framework established by AB 1054, which provides a presumption of prudency and a cap on liabilities related to wildfire claims. This framework supports financial stability and investor confidence.
The company's commitment to safety is evident through its extensive wildfire mitigation strategies, including installing over 6,400 miles of covered conductor and hardening nearly 90% of its distribution lines in high fire risk areas.
Edison has a long track record of meeting or exceeding EPS guidance, with a reported core EPS of $4.93 for 2024, highlighting its operational efficiency and financial stability.
The ongoing investigation into the Eaton fire and its potential link to Edison’s equipment poses a risk to the company's reputation and financial stability, with potential liabilities still undetermined.
Despite the strong framework, there remains uncertainty regarding the outcomes of ongoing investigations and regulatory proceedings, which could impact future operations and cost recovery.
Edison plans to continue investing in grid resilience and wildfire mitigation, which aligns with the growing demand for safe and reliable energy solutions in California.
The company is exploring new initiatives such as the next-gen ERP program and advanced metering infrastructure, which could enhance operational efficiency and customer service.
The need for legislative solutions to enhance the regulatory framework is pressing, but the timeline for these solutions remains uncertain, which could hinder future operational plans.
Ongoing climate risks and the potential for more severe weather events pose a challenge for future operational stability and cost management.