Edison International (EIX)
Utilities · $23.1B market cap · SEC CIK 0000827052
ahead of 85% of the S&P 500 · #3 of 31 in Utilities
Next reports on Feb 16, 2027, after the close, with analysts expecting $1.35 in earnings per share.
52-week range $51.10 to $81.62. 26% below its 52-week high and 18% above its low.
The case for EIX
- Cheap for its growth: 6.1× earnings, where 8%+ a year of growth plus a 4.5% dividend would justify about 27×.
- 21% of revenue drops through to net profit.
- Pays a 4.5% dividend while you wait.
- Trades at 1.16× book value, close to what the balance sheet says it owns.
- Return on equity of 22%.
- Moves less than the market (beta 0.56).
The case against
- Burned $715M of free cash in FY2025.
- Long-term debt of $36.1B would take 6 years of operating cash flow to repay.
- Current liabilities exceed current assets (ratio 0.77).
- The price trend is weak (37/100): +5.4% over a year, −11.3% over three months, 26% below its 52-week high.
- Revenue grew only 2.6%, roughly the pace of inflation.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Utilities companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 87 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 73 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 65 |
| Momentumhow the price has behaved lately | 37 |
| Stabilityhow violently it moves, what it owes and what it pays you | 62 |
- Each factor except momentum is half fixed thresholds, half rank among the 31 Utilities companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +2.6% |
|---|---|
| Over 5 years | +7.3% a year |
| FY2025 revenue | $19.3B (+10%) |
Free cash flow
Is it generating real cash? No, it is burning cash
| FY2025 free cash flow | −$715M |
|---|---|
| Of revenue | −4% |
| Of profit | −16% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 39% |
|---|---|
| Operating margin | 32% |
| Net margin, FY24 → FY25 → now | 7.3% → 23.1% → 20.5% |
Debt vs. cash
Is the balance sheet healthy? Stretched
| Cash | $158M |
|---|---|
| Long-term debt | $36.1B |
| Net debt | $35.9B |
| Years to repay | 6.2 yrs |
Valuation
Is the stock price reasonable? Yes, it looks cheap
| P/E | 6.1× |
|---|---|
| Fair P/E for its growth | 27× |
| Forward P/E | 9.1× |
| EV / EBITDA | 7.0× |
At 6.1× earnings it trades well below the 27× that 8%+ a year of growth plus a 4.5% dividend would justify. As a utility it is judged on earnings alone: it borrows to build, so its free cash flow says little about its price.
The financials, five years deep
Pulled from Edison International's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $19.3B | $17.6B | $16.3B | $17.2B | $14.9B |
| Change on the year | +10% | +8% | −5% | +16% | — |
| Free cash flow | |||||
| Free cash flow | −$715M | −$693M | −$2.0B | −$2.6B | −$5.5B |
| Of revenue | −4% | −4% | −13% | −15% | −37% |
| Profit margins | |||||
| Operating margin | 36.7% | 16.6% | 16.1% | 8.6% | 9.9% |
| Net margin | 23.1% | 7.3% | 7.3% | 4.8% | 6.2% |
| Debt vs. cash | |||||
| Cash | $158M | $193M | $345M | $914M | $390M |
| Long-term debt | $36.1B | $33.5B | $30.3B | $27.0B | $24.2B |
| Net cash (debt) | −$35.9B | −$33.3B | −$30.0B | −$26.1B | −$23.8B |
Filings
The text of this 10-K could not be read automatically. The original is linked below.