Recommended as Stock of the Week on May 11, 2026

Lights out, monopoly on: Edison International between forest fire load and electricity demand boom

TickerEIX.NYSE
Recommended Price70.45 USD
Current Price 70.45 USD
Edison International – stock chart

Scores at time of recommendation (May 11, 2026)

Leeway Score
59/100
Excellent
Business Rating
45/100
Fair
Market-Fit Rating
67/100
Excellent
Cycle Rating
65/100
Fair

More about our scores in Help

5-year stock timeline

Edison International (EIX) 2020–2026 timeline, with the latest share price at $70.68 as reference.

2020–2021: Wildfire response

Southern California Edison (SCE) began publishing detailed wildfire incident reports from June 2020 onward, part of a broader effort to rebuild regulatory trust and investor confidence. In 2021, higher revenues from the General Rate Case decision and improved core EPS reflected this shift, with management centering its narrative on measurable wildfire risk reduction.

2022–2023: Stabilization and execution

The company demonstrated tangible progress on wildfire mitigation programs, which gradually reset investor perception from existential liability to operational stability. Normalized core results allowed the conversation to move away from shock losses toward the more familiar terrain of regulated utility earnings, even as legal and regulatory pathways remained crucial to valuation.

2024–2026: Settlements, funds, and securitization

Edison established a Wildfire Insurance Fund (~$21 billion) to manage liquidity and large claims exposure through diversified assets and structured reimbursement. The 2025–2026 Eaton wildfire settlement activity brought material shifts in expectations around insurer recoveries, state fund expansion, and potential securitization of claims—all meaningful to cash flow and earnings volatility projections.

Q1 2026 GAAP earnings declined year-over-year partly because Q1 2025 contained roughly $1.35 billion in wildfire recoveries. Core utility results proved more consistent, with the company pointing to expected recoveries from self-insurance, the Wildfire Fund, and FERC rate actions.

Investor narrative

From 2020 onward, the market treated Edison as a wildfire-liability risk—a potential value trap dependent on regulators, rate cases, and mitigation progress to de-risk. By 2025–2026, that shifted to a managed, defensive utility story anchored to CPUC decisions and the practical effectiveness of insurance and fund structures. Investor attention moved toward securitization viability and confirmed recovery mechanisms.

Technical phases

Early 2020 saw sharp COVID-driven selling and recovery. Extended volatility and downside pressure persisted through the peak uncertainty years (2020–2021), followed by a multi-year range where positive regulatory wins sparked rallies while settlement or investigation headlines triggered drawdowns. The largest recent moves corresponded to wildfire settlement announcements and earnings swings, particularly around the Eaton fires and Q1 2026 results. The stock's current posture reflects clearer recovery mechanics—Wildfire Insurance Fund, securitization pathways—that underpin present price formation.

Key Points

From recommendation (May 11, 2026)

  • Regulated monopoly in Southern California - no real competition in the core business
  • P/E ratio of 7.2x well below historical utility averages
  • Analyst consensus price target of USD 75.54 - around 9% above the current price
  • EPS estimates for 2025 and 2026 stable at 6.12 and 6.51 USD
  • Sales growth of 7.7% despite a difficult regulatory environment
  • YTD price decline of around 38% - valuation at multi-year low
  • EBIT margin at 36.7% in 2025 - significant improvement compared to previous years

Investment Thesis

From recommendation (May 11, 2026)

Edison International is a regulated electricity supplier with a quasi-monopoly in Southern California. The share price decline of almost 38% this year has pushed the valuation down to a P/E ratio of 7.2x - an unusually low figure for a stable infrastructure stock. Increasing electrification through e-mobility and heat pumps is structurally supporting the long-term demand for electricity. At the same time, forest fire risks, regulatory hurdles and high investment requirements are weighing on the operating result. If you are looking for normalization and regulatory clarity, you will find a bombed-out infrastructure stock with measurable catch-up potential compared to the analyst consensus.

Key risks and downside factors

Edison International is a regulated electric utility serving Southern California (ISIN US2810201077). Its main public competitors—Sempra Energy, Pacific Gas & Electric, NextEra Energy, and Duke Energy—operate across overlapping segments: generation, grid infrastructure, and renewable supply.

  • Wildfire exposure in California presents a dual risk: the direct liability and insurance costs that can create sudden, significant cash drains, alongside the harder-to-quantify but very real reputational damage that lingers longer than most investors expect.
  • Regulatory risk from California authorities who can reshape allowed returns, adjust rates, and determine how much capital gets recovered on investments.
  • The company faces substantial capital demands for grid hardening, transmission and distribution upgrades, and clean energy integration—pressures that will weigh on both cash flow and credit metrics.
  • Competition from distributed generation, third-party renewable developers, and wholesale suppliers continues to weigh on load growth and margins.

Competitive landscape

Edison International, through Southern California Edison, competes primarily with other large California investor-owned utilities alongside national power producers and renewable developers. The main public competitors—PG&E (PCG.NYSE), Sempra Energy (SRE.NYSE), and NextEra Energy (NEE.NYSE)—overlap on both market presence and project opportunities. The company's risk profile hinges on regulatory rate-setting, substantial grid capital requirements, and mounting pressure from distributed energy resources and independent power producers.

CompanyTicker
PG&E CorporationPCG.NYSE
Sempra EnergySRE.NYSE
NextEra EnergyNEE.NYSE

Private competitors

  • Arcadia

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Catalysts

From recommendation (May 11, 2026)

  • Quarterly figures and guidance update as the next concrete point of information
  • Regulatory decisions of the CPUC on permitted returns on capital and investment plans
  • Legal developments relating to forest fire liability in California
  • Further expansion of e-mobility infrastructure as a demand driver in the supply area
  • Sector rotation into defensive infrastructure stocks as market risk appetite declines

Analysis

From recommendation (May 11, 2026)

Edison International supplies electricity to millions of homes and businesses in Southern California - a service that is simply indispensable in the modern economy. As a regulated monopoly, the company practically does not compete with other providers in the traditional sense The increasing electrification of transport and other sectors is likely to further increase the demand for electricity in the supply area in the medium term - a structural tailwind that Edison can monetize directly. On the cost side, the picture is much less comfortable: the California Public Utilities Commission strictly regulates returns, and investments in forest fire prevention alone amounted to over 1.6 billion dollars in 2022. The regulated business model protects against competition, but at the same time limits the opportunity to freely exploit operating efficiency gains - the equity ratio has remained constant at around 18 to 19% for years. The 63% drop in profits in the last reporting year shows how sensitively the result reacts to extraordinary charges. Anyone who invests here is not buying a growth company, but a regulated infrastructure with a low valuation - and the hope that the regulatory and legal environment surrounding forest fire liability will not escalate further.

Performance Figures of Edison International

in USD

1M High / Low
71.81 / 65.03
52W High / Low
76.22 / 47.73
5Y High / Low
88.77 / 47.73
1M
+0.14%
3M
-1.55%
6M
+23.91%
1Y
+28.42%
3Y
+20.09%
5Y
+53.87%

Relative Performance vs Benchmarks

PeriodEdison International vs DAX vs S&P 500 (SPY)
1M +0.14% -0.10% -3.39%
3M -1.55% +0.72% -9.04%
6M +23.91% +17.92% +11.94%
1Y +28.42% +26.59% +3.24%
3Y +20.09% -30.29% -62.05%
5Y +53.87% -4.68% -35.46%

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Historical valuation trends

How the company’s key valuation ratios (P/E, P/S, P/B and P/CF) have evolved over time compared to today.

PeriodP/E RatioP/S RatioP/B RatioP/CF Ratio
Current7.41.41.64.6
1Y ago7.61.31.44.3
3Y ago25.51.51.711.5
5Y ago24.61.61.421.5

Frequently Asked Questions

From recommendation (May 11, 2026)

Is Edison International a good investment?

Edison International has a Leeway Score of 59/100, which is rated as Excellent. The Leeway Score combines business quality, fundamental evaluation, and valuation cycle into a comprehensive assessment. A higher score indicates stronger investment quality based on AI-powered fundamental analysis.

What does Edison International do?

Edison International is a company characterized by the following investment thesis: Edison International, through its subsidiaries, engages in the generation and distribution of electric power. The company supplies and delivers through its electrical infrastructure to an approximately 50,000 square-mile area of southern, central, and coastal California. It serves residential, commercial, industrial, public authorities, agricultural, street lighting, and other sectors. The company's distribution network consists of approximately 13,000 circuit-miles of lines ranging from 55 kV to 500 kV and approximately 80 transmission substations; and approximately 38,000 circuit-miles of overhead lines, approximately 32,000 circuit-miles of underground lines, and approximately 730 distribution substations. Edison International was founded in 1886 and is based in Rosemead, California. Edison International operates in the Utilities / Utilities - Regulated Electric industry is based in USA employs around 13,725 people. Edison International recently reported revenue of about 19.61B USD, a profit margin of 18.12%, return on equity of 18.86%, a market capitalisation around 26.34B USD, valuation multiples of roughly 7.4x earnings, 1.3x sales, 1.5x book value. Analyst consensus currently expects earnings per share of around 6.51 USD with year‑over‑year growth of 6.45%. Edison International has an ongoing dividend policy and pays around 3.41 USD per share (4.93% yield).

What are the key metrics for EIX.NYSE?

Key metrics for EIX.NYSE include valuation (P/E 7.2, P/S 1.4, P/B 1.5), profitability (profit margin 18.12%, ROE 18.86%), and growth (revenue 7.70%, earnings -63.20%). Market capitalization is 26.68B USD. These metrics give an overview of the company's financial performance and valuation.

How has Edison International's stock price performed?

Edison International's stock has returned — over 1 year, — over 3 years, and — over 5 years. Performance can vary depending on market conditions and company developments.

How is EIX.NYSE valued?

EIX.NYSE has the following valuation metrics: P/E Ratio: 7.2, P/S Ratio: 1.4, P/B Ratio: 1.5. These metrics help assess whether the stock is fairly valued compared to its fundamentals.

What are the growth catalysts for Edison International?

The key growth catalysts for Edison International are:
  • Quarterly figures and guidance update as the next concrete point of information
  • Regulatory decisions of the CPUC on permitted returns on capital and investment plans
  • Legal developments relating to forest fire liability in California
  • Further expansion of e-mobility infrastructure as a demand driver in the supply area
  • Sector rotation into defensive infrastructure stocks as market risk appetite declines
These factors can positively influence the company's future growth and performance.

What are the key risks when investing in EIX.NYSE?

Key risks for EIX.NYSE include: Edison International is a regulated electric utility serving Southern California (ISIN US2810201077). Its main public competitors—Sempra Energy, Pacific Gas & Electric, NextEra Energy, and Duke Energy—operate across overlapping segments: generation, grid infrastructure, and renewable supply.
  • Wildfire exposure in California presents a dual risk: the direct liability and insurance costs that can create sudden, significant cash drains, alongside the harder-to-quantify but very real reputational damage that lingers longer than most investors expect.
  • Regulatory risk from California authorities who can reshape allowed returns, adjust rates, and determine how much capital gets recovered on investments.
  • The company faces substantial capital demands for grid hardening, transmission and distribution upgrades, and clean energy integration—pressures that will weigh on both cash flow and credit metrics.
  • Competition from distributed generation, third-party renewable developers, and wholesale suppliers continues to weigh on load growth and margins.
Investors should consider these risk factors carefully before making an investment decision.

Who are the main competitors of Edison International?

Edison International competes with several listed peers in its sector. Edison International, through Southern California Edison, competes primarily with other large California investor-owned utilities alongside national power producers and renewable developers. The main public competitors—PG&E (PCG.NYSE), Sempra Energy (SRE.NYSE), and NextEra Energy (NEE.NYSE)—overlap on both market presence and project opportunities. The company's risk profile hinges on regulatory rate-setting, substantial grid capital requirements, and mounting pressure from distributed energy resources and independent power producers.
  • PG&E Corporation (PCG.NYSE)
  • Sempra Energy (SRE.NYSE)
  • NextEra Energy (NEE.NYSE)
These competitors influence pricing power, growth opportunities and relative valuation.

Key Metrics

From recommendation (May 11, 2026)

Market Capitalization
26.68B USD
P/E Ratio
7.21
Analyst Target Price
75.54 USD

Valuation Metrics

P/S Ratio
1.36
P/B Ratio
1.54

Profitability Metrics

Profit Margin
18.12%
Operating Margin
27.49%
Return on Equity
18.86%
Return on Assets
3.90%

Growth Metrics

Revenue Growth
7.70%
Earnings Growth
-63.20%

Dividend history

Long-term record of paid dividends (amount per share and dividend yield at the time of payment).

YearDividendYield at paymentAvg. yield
20260.88 USD1.19%1.2%
20260.88 USD1.45%
20250.83 USD1.51%
20250.83 USD1.58%
20250.83 USD1.51%
20250.83 USD1.06%
20240.78 USD0.91%
20240.78 USD1.08%
20240.78 USD1.14%
20230.78 USD1.08%
20230.74 USD1.13%
20230.74 USD1.06%
20230.74 USD1.06%
20220.74 USD1.14%
20220.70 USD1.14%

Earnings history & estimates

Historical earnings performance shows how consistently the company meets or exceeds analyst expectations. Forward estimates provide insight into expected profitability and growth trajectory.

Historical earnings performance

65%
Beat estimate
32.5%
Miss estimate
+34.45%
Avg surprise when beat
-11.7%
Avg surprise when miss

Reports analyzed: 120

Analyst estimates for upcoming periods

Next year
December 31, 2027
Consensus6.51
Range6.46 – 6.57
16 analysts
Est. growth vs prior: 6.45%
Revisions: 7d ↑1 ↓0 · 30d ↑2 ↓4
Next quarter
September 30, 2026
Consensus2.01
Range0.80 – 3.09
8 analysts
Est. growth vs prior: -14.2%
Revisions: 7d ↑3 ↓0 · 30d ↑1 ↓2

Key financial figures

All figures in USD

Selected income statement, balance sheet and cash flow figures. Annual and quarterly, based on reported IFRS/GAAP financials.

20252024202320222021
Revenue19.32B17.60B16.34B17.22B14.90B
Operating income (EBIT)7.09B2.93B2.63B1.74B1.71B
Net income4.56B1.55B1.41B824.00M925.00M
Free cash flow-715.00M-693.00M-2.05B-2.56B-5.49B
Total assets94.03B85.58B81.76B78.04B74.75B
Equity17.58B15.56B15.50B15.62B15.89B
Net debt42.43B37.57B34.97B32.18B29.14B

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