Edison International (EIX) stock analysis

P/E below its 5-year median

Edison International's P/E of 6.4 is below its own 5-year median of 25.2.

P/E below the industry

Edison International's P/E of 6.4 is below the Electric Services median of 20.9.

EV/EBITDA below its 5-year median

Edison International's EV/EBITDA of 7.0 is below its 5-year median of 11.9.

P/B below the industry

Edison International's price-to-book of 1.29 is below the Electric Services median of 2.02.

Trading below fair value

The share price of $59.92 is below our fair value estimate of $168.30.

Margin of safety over 20%

The price is 64.4% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 3.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 93.3% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 23.2% over the last twelve months, against a 5-year average of 43.3% a year.

Growing slower than the industry

Revenue grew 2.6% over the last twelve months; the Electric Services median is 7.8%.

Guidance lowered

Edison International lowered its 2026 EIX Basic EPS outlook on Oct 29, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity

Needs positive equity and five years of results.

Return on capital under 10%

Return on invested capital was 8.8%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Edison International's return on equity of 20.8% is above the Electric Services median of 8.3%.

Earnings grew over 5 years

Net income grew 43.3% a year on average over the last five fiscal years.

Net margin against its history

Needs five years of revenue and net income.

Net margin above the industry

Edison International's net margin of 19.6% is above the Electric Services median of 8.8%.

High debt

Debt is 233% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 164% five years ago to 233%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 16.7% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 3.2 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.77 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.71; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Edison International paid dividends worth 5.9% of the share price over the last twelve months.

Yield above Treasuries

The 5.9% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Edison International yields 5.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 36.6% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.