IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
Relative valuation derived from Utilities sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 46.5GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
17.4%
Sector: 9.9%
Dividend Analysis audit
INCOME
5.99%
Trailing Yield
$5.99
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
51%SAFE
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
Sign up for free access to institutional-quality research tools.
Based on our 6-factor quantitative model, EDISON INTERNATIONAL (EIX) receives a "Buy" rating with a composite score of 53.0/100, ranked #92 out of 4446 stocks. Key factor scores: Quality 47/100, Value 74/100, Momentum 60/100. This is quantitative analysis only — not investment advice.
EDISON INTERNATIONAL (EIX) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does EDISON INTERNATIONAL Do?
Edison International, through its subsidiaries, generates and distributes electric power. It delivers electricity to 15 million residential, commercial, industrial, public authorities, agricultural, and other customers across Southern, Central, and Coastal California. The company also provides energy solutions to commercial and industrial users. Its transmission facilities consist of lines ranging from 55 kV to 500 kV and substations; and distribution system consists of approximately 39,000 circuit-miles of overhead lines, approximately 31,000 circuit-miles of underground lines, and 800 substations. The company was founded in 1886 and is headquartered in Rosemead, California. EDISON INTERNATIONAL (EIX) is classified as a large-cap stock in the Utilities sector. The company is led by CEO Pedro J. Pizarro and employs approximately 13,000 people, headquartered in ROSEMEAD, California. With a market capitalization of $28.3B, EIX is one of the prominent companies in the Utilities sector.
EDISON INTERNATIONAL (EIX) Stock Rating — Buy (April 2026)
As of April 2026, EDISON INTERNATIONAL receives a Buy rating with a composite score of 53.0/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.EIX ranks #92 out of 4,446 stocks in our coverage universe. Within the Utilities sector, EDISON INTERNATIONAL ranks #4 of 112 stocks, placing it in the top 10% of its Utilities peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
EIX Stock Price and 52-Week Range
EDISON INTERNATIONAL (EIX) currently trades at $75.72. The stock lost $0.10 (0.1%) in the most recent trading session. The 52-week high for EIX is $75.50, which means the stock is currently trading 0.3% from its annual peak. The 52-week low is $47.73, putting the stock 58.6% above its annual trough. Recent trading volume was 1.8M shares, reflecting moderate market activity.
Is EIX Overvalued or Undervalued? — Valuation Analysis
EDISON INTERNATIONAL (EIX) carries a value factor score of 74/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 8.53x, compared to the Utilities sector average of 23.47x — a discount of 64%. The price-to-book ratio stands at 1.49x, versus the sector average of 1.98x. The price-to-sales ratio is 1.48x, compared to 0.82x for the average Utilities stock. On an enterprise value basis, EIX trades at 11.02x EV/EBITDA, versus 4.75x for the sector.
Based on these multiples, EDISON INTERNATIONAL appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
EDISON INTERNATIONAL Profitability — ROE, Margins, and Quality Score
EDISON INTERNATIONAL (EIX) earns a quality factor score of 47/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 17.4%, compared to the Utilities sector average of 9.9%, which is within a healthy range. Return on assets (ROA) comes in at 3.6% versus the sector average of 3.1%.
On a margin basis, EDISON INTERNATIONAL reports gross margins of 50.0%, compared to 53.1% for the sector. The operating margin is 29.3% (sector: 21.5%). Net profit margin stands at 18.6%, versus 12.8% for the average Utilities stock. Revenue growth is running at 32.6% on a trailing basis, compared to 20.1% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
EIX Debt, Balance Sheet, and Financial Health
EDISON INTERNATIONAL has a debt-to-equity ratio of 197.0%, compared to the Utilities sector average of 164.5%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 0.73x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $38.00B. Cash and equivalents stand at $364M.
EIX has a beta of 0.58, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for EDISON INTERNATIONAL is 81/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
EDISON INTERNATIONAL Revenue and Earnings History — Quarterly Trend
In TTM 2026, EDISON INTERNATIONAL reported revenue of $19.30B and earnings per share (EPS) of $11.58. Net income for the quarter was $3.35B. Gross margin was 50.0%. Operating income came in at $5.34B.
In FY 2025, EDISON INTERNATIONAL reported revenue of $19.32B and earnings per share (EPS) of $11.58. Net income for the quarter was $4.70B. Revenue grew 9.8% year-over-year compared to FY 2024. Operating income came in at $7.09B.
In Q3 2025, EDISON INTERNATIONAL reported revenue of $5.75B and earnings per share (EPS) of $2.16. Net income for the quarter was $888M. Revenue grew 10.6% year-over-year compared to Q3 2024. Operating income came in at $1.43B.
In Q2 2025, EDISON INTERNATIONAL reported revenue of $4.54B and earnings per share (EPS) of $0.89. Net income for the quarter was $398M. Revenue grew 4.8% year-over-year compared to Q2 2024. Operating income came in at $775M.
Over the past 8 quarters, EDISON INTERNATIONAL has demonstrated a growth trajectory, with revenue expanding from $4.34B to $19.30B. Investors analyzing EIX stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
EIX Dividend Yield and Income Analysis
EDISON INTERNATIONAL (EIX) currently pays a dividend yield of 6.0%. At this yield, a $10,000 investment in EIX stock would generate approximately $$599.00 in annual dividend income. This compares to the Utilities sector average dividend yield of 2.8%, meaning EIX offers above-average income for its sector. With a net margin of 18.6%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
EIX Momentum and Technical Analysis Profile
EDISON INTERNATIONAL (EIX) has a momentum factor score of 60/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 24/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 23/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
EIX vs Competitors — Utilities Sector Ranking and Peer Comparison
Comparing EIX against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full EIX vs S&P 500 (SPY) comparison to assess how EDISON INTERNATIONAL stacks up against the broader market across all factor dimensions.
EIX Next Earnings Date
No upcoming earnings date has been announced for EDISON INTERNATIONAL (EIX) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy EIX? — Investment Thesis Summary
The bull case for EDISON INTERNATIONAL rests on several quantitative strengths. The value score of 74/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 60/100, suggesting the trend favors buyers. Low volatility (stability score 81/100) reduces downside risk.
In summary, EDISON INTERNATIONAL (EIX) earns a Buy rating with a composite score of 53.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on EIX stock.
We'll email you when stocks you follow change their composite rating.
Institutional Research Dossier
EDISON INTERNATIONAL (EIX) Deep Dive Analysis
Published on March 24, 2026
Action RatingBuy
Sections
Executive Summary
Edison International (EIX) receives a Hold rating, driven by a mixed assessment of its financial performance and future prospects. While the company exhibits strong profitability metrics compared to its sector, particularly in ROE and operating margin, concerns arise from its high debt levels and negative free cash flow. The valuation appears attractive based on P/E and EV/EBITDA multiples, but the sustainability of these metrics is questionable given the company's capital-intensive nature and exposure to regulatory and environmental risks.
The key takeaway is that EIX presents a complex investment case. Its operational efficiency and revenue growth are commendable, but its financial leverage and cash flow challenges warrant caution. Investors should closely monitor the company's ability to manage its debt, navigate regulatory hurdles, and invest in infrastructure upgrades to support future growth.
Business Strategy & Overview
Edison International operates primarily through its subsidiary, Southern California Edison (SCE), which delivers electricity to a vast customer base across Southern, Central, and Coastal California. The company's core business revolves around the generation, transmission, and distribution of electric power. SCE's service territory is densely populated and economically significant, providing a relatively stable demand base. Edison International also engages in energy solutions for commercial and industrial customers, aiming to capitalize on the growing demand for renewable energy and energy efficiency services.
The company's strategic focus is on modernizing its grid infrastructure to enhance reliability, integrate renewable energy sources, and improve energy efficiency. This involves significant investments in upgrading transmission and distribution lines, deploying smart grid technologies, and developing energy storage solutions. Edison International is also actively involved in promoting electric vehicle adoption through infrastructure development and customer incentives. These initiatives are crucial for meeting California's ambitious clean energy goals and adapting to evolving customer preferences.
Edison International's business model is heavily influenced by regulatory oversight. SCE operates under a rate-of-return regulatory framework, which allows it to recover its operating costs and earn a regulated return on its invested capital. The California Public Utilities Commission (CPUC) plays a critical role in setting rates, approving investments, and ensuring service quality. This regulatory environment provides a degree of revenue stability but also exposes the company to regulatory risks, such as unfavorable rate decisions or increased compliance costs.
The company faces increasing pressure to transition to cleaner energy sources. California has mandated aggressive renewable energy targets, requiring utilities to procure a significant portion of their electricity from renewable sources. Edison International is responding by investing in solar, wind, and other renewable energy projects, as well as developing energy storage solutions to address the intermittency of renewable energy. This transition requires substantial capital investments and poses operational challenges, but it also presents opportunities for growth in the renewable energy sector.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
32.6%
Sector: 20.1%
+63% VS SCTR
Economic Moat Analysis
Edison International possesses a Narrow economic moat, primarily derived from its regulated utility operations and the associated barriers to entry. The electric utility industry is characterized by high capital costs, extensive infrastructure requirements, and stringent regulatory oversight, making it difficult for new entrants to compete effectively. SCE's established network of transmission and distribution lines, coupled with its long-standing relationships with regulators and customers, provides a significant competitive advantage.
The regulatory framework in California further reinforces Edison International's moat. The rate-of-return regulation ensures a stable revenue stream and protects the company from direct competition. While the CPUC can influence the company's profitability through rate decisions, it also provides a degree of protection against disruptive market forces. This regulatory moat is not impenetrable, as regulators can impose stricter performance standards or limit rate increases, but it does provide a significant barrier to entry for potential competitors.
However, Edison International's moat is not without its vulnerabilities. The increasing adoption of distributed generation, such as rooftop solar, poses a threat to the traditional utility business model. As more customers generate their own electricity, demand for grid-supplied power may decline, potentially eroding Edison International's revenue base. The company is responding by investing in grid modernization and developing new services to integrate distributed generation, but the long-term impact of this trend remains uncertain.
Furthermore, the company's exposure to wildfire liabilities represents a significant risk to its moat. California's dry climate and dense vegetation make it prone to wildfires, and utilities can be held liable for damages caused by their equipment. Edison International has faced substantial wildfire-related costs in recent years, which have strained its financial resources and damaged its reputation. While the company is taking steps to mitigate wildfire risks, such as vegetation management and equipment upgrades, the potential for future liabilities remains a concern. Therefore, while a narrow moat exists, it is under pressure.
Financial Health & Profitability
Edison International's financial health presents a mixed picture. The company has demonstrated strong revenue growth in recent periods, with a TTM revenue of $19.32 billion, representing a 32.6% increase compared to the sector average of 20.1%. This growth is partly attributable to increased electricity demand and rate adjustments. However, the company's free cash flow is negative, at $-2.66 billion, indicating that it is not generating sufficient cash from its operations to cover its capital expenditures and other obligations.
The company's profitability metrics are generally strong compared to the sector. Its ROE of 17.4% significantly exceeds the sector average of 10.0%, indicating efficient use of equity. Similarly, its operating margin of 29.3% and net margin of 18.6% are well above the sector averages of 21.7% and 12.8%, respectively. These strong profitability metrics suggest that Edison International is operating efficiently and effectively managing its costs.
However, Edison International's balance sheet is highly leveraged. The company has a total debt of $38.00 billion and a debt-to-equity ratio of 197.00, which is higher than the sector average of 165.00. This high level of debt increases the company's financial risk and limits its flexibility to invest in growth opportunities. The company's current ratio of 0.73 indicates that it may face challenges in meeting its short-term obligations.
Analyzing the quarterly financial history reveals a fluctuating pattern of net income and EPS. While FY2025 shows a significant increase in net income and EPS compared to previous years, the quarterly results exhibit volatility. For instance, Q1 FY2025 shows a strong net income of $1.49 billion, while Q2 FY2025 shows a significantly lower net income of $398.00 million. This volatility may be due to seasonal factors, regulatory changes, or other external events. The lack of FCF data in the quarterly history makes it difficult to assess the company's cash flow generation on a quarterly basis.
Valuation Assessment
Edison International's valuation appears attractive based on several key metrics. The company's P/E ratio of 6.0x is significantly lower than the sector average of 22.7x, suggesting that the stock is undervalued relative to its earnings. Similarly, its EV/EBITDA ratio of 2.3x is well below the sector average of 4.8x, indicating that the company is undervalued relative to its enterprise value and operating cash flow. These low multiples may reflect investor concerns about the company's high debt levels, wildfire liabilities, and regulatory risks.
However, it is important to consider the company's growth prospects and financial health when assessing its valuation. While Edison International has demonstrated strong revenue growth in recent periods, its negative free cash flow raises concerns about its ability to sustain this growth. The company's high debt levels also limit its financial flexibility and increase its vulnerability to adverse economic conditions. Therefore, the low valuation multiples may be justified by the company's financial challenges.
A discounted cash flow (DCF) analysis would provide a more comprehensive assessment of Edison International's intrinsic value. However, without detailed projections of future cash flows, it is difficult to determine whether the stock is truly undervalued. Investors should carefully consider the company's growth prospects, financial risks, and regulatory environment when evaluating its valuation.
Compared to its historical valuation, Edison International's current multiples are relatively low. The company's P/E ratio has historically traded at a higher premium to the sector average. This may indicate that the stock is currently undervalued, but it could also reflect a change in investor sentiment due to increased risks and uncertainties. The BCR proprietary quant model assigns a Value score of 74/100, suggesting that the stock is relatively attractive from a value perspective. However, the overall composite score of 52.0/100 and the Hold rating indicate that the stock is not a compelling investment opportunity at its current price.
Risk & Uncertainty
Edison International faces several significant risks that could negatively impact its financial performance and stock price. Wildfire risk is a major concern, particularly in California's dry climate. The company could face substantial liabilities if its equipment is found to have caused or contributed to wildfires. These liabilities could include damages to property, injuries, and fatalities, as well as legal and regulatory penalties. The costs associated with wildfire mitigation, such as vegetation management and equipment upgrades, could also be significant.
Regulatory risk is another key concern. Edison International operates in a highly regulated environment, and changes in regulations or unfavorable rate decisions could adversely affect its profitability. The CPUC has the authority to set rates, approve investments, and impose performance standards. Changes in the composition of the CPUC or shifts in regulatory priorities could lead to less favorable outcomes for the company. The transition to cleaner energy sources also poses regulatory risks, as the company may face challenges in meeting renewable energy mandates and complying with environmental regulations.
High debt levels represent a significant financial risk. Edison International's debt-to-equity ratio is higher than the sector average, increasing its vulnerability to adverse economic conditions. Rising interest rates could increase the company's borrowing costs and reduce its profitability. The company's negative free cash flow also raises concerns about its ability to meet its debt obligations and invest in growth opportunities. A downgrade in the company's credit rating could further increase its borrowing costs and limit its access to capital.
Competition from alternative energy sources, such as distributed generation and energy storage, poses a long-term threat to Edison International's business model. As more customers generate their own electricity and store energy, demand for grid-supplied power may decline. The company faces the challenge of adapting to this changing landscape by investing in grid modernization and developing new services to integrate distributed generation. Failure to adapt effectively could lead to a decline in revenue and market share.
Bulls Say / Bears Say
The Bull Case
BULL VIEWEdison International's strong revenue growth and high ROE demonstrate its operational efficiency and ability to generate profits.
BULL VIEWThe company's low P/E and EV/EBITDA multiples suggest that the stock is undervalued and offers significant upside potential.
BULL VIEWEdison International is well-positioned to benefit from California's ambitious clean energy goals, driving long-term growth and investment opportunities.
The Bear Case
BEAR VIEWEdison International's high debt levels and negative free cash flow raise concerns about its financial stability and ability to fund future growth.
BEAR VIEWThe company's exposure to wildfire liabilities represents a significant risk that could lead to substantial financial losses and reputational damage.
BEAR VIEWIncreasing competition from distributed generation and regulatory uncertainties could erode Edison International's market share and profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score EIX and 4,400+ other equities.
EDISON INTERNATIONAL exhibits a 31% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
3.6%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
50.0%
Sector: 53.1%
Operating Margin
Core business profitability
29.3%
Sector: 21.5%
Net Margin
Bottom-line profitability
18.6%
Sector: 12.8%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.83%
Yield Delta+112%
Income Projection audit
A $10,000 investment would generate approximately $599 annually in dividends at the current trailing rate.
