📊 EIX Key Takeaways
Is Edison International (EIX) a Good Investment?
Edison International demonstrates strong profitability with 23.1% net margins and exceptional ROE of 25.4%, supported by 9.8% revenue growth. However, negative free cash flow of -$715M, elevated leverage at 2.16x debt-to-equity, and weak liquidity (0.73x current ratio) raise concerns about capital intensity and financial flexibility in a capital-demanding utility business.
Edison International shows strong regulated-utility earnings power, with solid revenue growth, high operating profitability, and adequate interest coverage supporting a stable core business. However, growth quality is mixed because net income was flat despite a sharp EPS jump, while leverage remains high, liquidity is tight, and free cash flow is negative due to heavy capital spending. The fundamentals support resilience, but balance-sheet pressure and capital intensity limit the case for a more aggressive rating.
Why Buy Edison International Stock? EIX Key Strengths
- High net profit margin of 23.1% with strong operating margin of 36.7% indicates efficient operations
- Robust ROE of 25.4% demonstrates excellent returns on shareholder capital
- Solid revenue growth of 9.8% YoY reflects growing demand and business expansion
- Operating cash flow of $5.8B provides substantial cash generation despite negative FCF
- Revenue grew 9.8% year over year with net income holding steady, indicating durable operating demand
- Operating margin of 36.7% and ROE of 25.4% reflect strong profitability for a regulated utility
- Operating cash flow of $5.80B and interest coverage of 5.1x provide meaningful support for debt servicing
EIX Stock Risks: Edison International Investment Risks
- Negative free cash flow of -$715M indicates capital expenditures exceed operational cash generation, limiting dividend sustainability
- High leverage ratio of 2.16x debt-to-equity with $38B long-term debt creates refinancing and interest rate risk
- Weak liquidity position with current ratio of 0.73x and only $158M cash may constrain operational flexibility
- Capital-intensive business model requiring $6.5B annual capex limits financial maneuverability
- Free cash flow was negative at -$715M, showing the business is not currently self-funding its capital program
- Leverage is elevated, with $38.00B of long-term debt and debt-to-equity of 2.16x
- Liquidity is weak, with a 0.73x current ratio and only $158M in cash against a very large balance sheet
Key Metrics to Watch
- Free cash flow trend and trajectory toward positive FCF to support shareholder returns
- Debt-to-equity ratio and interest coverage ratio (currently 5.1x) as debt markets tighten
- Operating cash flow sustainability and capex requirements for grid modernization investments
- Current ratio improvement and working capital management to strengthen liquidity position
- Free cash flow improvement relative to capital expenditures
- Debt levels and liquidity ratios, especially current ratio and cash balance
Edison International (EIX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
EIX Profit Margin, ROE & Profitability Analysis
EIX vs Utilities Sector: How Edison International Compares
How Edison International compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Edison International Stock Overvalued? EIX Valuation Analysis 2026
Based on fundamental analysis, Edison International has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Edison International Balance Sheet: EIX Debt, Cash & Liquidity
EIX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Edison International's revenue has grown significantly by 30% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.11 reflects profitable operations.
EIX Revenue Growth, EPS Growth & YoY Performance
EIX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $5.2B | $516.0M | $1.32 |
| Q2 2025 | $4.3B | $343.0M | $0.89 |
| Q1 2025 | $3.8B | -$11.0M | $-0.03 |
| Q3 2024 | $4.7B | N/A | $0.40 |
| Q2 2024 | $4.0B | N/A | $0.92 |
| Q1 2024 | $4.0B | N/A | $-0.03 |
| Q3 2023 | $4.7B | N/A | $-0.33 |
| Q2 2023 | $4.0B | N/A | $0.63 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Edison International Dividends, Buybacks & Capital Allocation
EIX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Edison International (CIK: 0000827052)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 14, 2026 | 4 | xslF345X06/form4-04142026_080456.xml | View → |
| Mar 13, 2026 | DEF 14A | eix-20260423xdef14a.htm | View → |
| Mar 4, 2026 | 4 | xslF345X05/form4-03042026_100311.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/form4-03042026_100337.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/form4-03042026_100357.xml | View → |
❓ Frequently Asked Questions about EIX
What is the AI rating for EIX?
Edison International (EIX) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EIX's key strengths?
Claude: High net profit margin of 23.1% with strong operating margin of 36.7% indicates efficient operations. Robust ROE of 25.4% demonstrates excellent returns on shareholder capital. ChatGPT: Revenue grew 9.8% year over year with net income holding steady, indicating durable operating demand. Operating margin of 36.7% and ROE of 25.4% reflect strong profitability for a regulated utility.
What are the risks of investing in EIX?
Claude: Negative free cash flow of -$715M indicates capital expenditures exceed operational cash generation, limiting dividend sustainability. High leverage ratio of 2.16x debt-to-equity with $38B long-term debt creates refinancing and interest rate risk. ChatGPT: Free cash flow was negative at -$715M, showing the business is not currently self-funding its capital program. Leverage is elevated, with $38.00B of long-term debt and debt-to-equity of 2.16x.
What is EIX's revenue and growth?
Edison International reported revenue of $19.3B.
Does EIX pay dividends?
Edison International pays dividends, with $1,274.0M distributed to shareholders in the trailing twelve months.
Where can I find EIX SEC filings?
Official SEC filings for Edison International (CIK: 0000827052) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EIX's EPS?
Edison International has a diluted EPS of $11.55.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is EIX a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Edison International has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is EIX stock overvalued or undervalued?
Valuation metrics for EIX: ROE of 25.4% (sector avg: 10%), net margin of 23.1% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy EIX stock in 2026?
Our dual AI analysis gives Edison International a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is EIX's free cash flow?
Edison International's operating cash flow is $5.8B, with capital expenditures of $6.5B. FCF margin is -3.7%.
How does EIX compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 23.1% (avg: 12%), ROE 25.4% (avg: 10%), current ratio 0.73 (avg: 0.8).
Is Edison International carrying too much debt?
EIX has a debt-to-equity ratio of 2.16x, which is above the Utilities sector average of 1.4x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.
Why is EIX's return on equity (ROE) so high?
Edison International has a return on equity of 25.4%, significantly above the Utilities sector average of 10%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 23.1% net margin.