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EIX:NYSEEdison International Analysis

Data as of 2026-03-10 - not real-time

$71.08

Latest Price

4/10Risk

Risk Level: Medium

Executive Summary

Edison International is trading at $71.08, comfortably above its 20‑day (≈$72.09) and 50‑day (≈$65.58) moving averages, indicating a short‑term bullish bias despite a bearish MACD histogram. The stock’s beta under 0.6 and a modest 30‑day volatility of ~28% point to a relatively defensive profile, while the trailing P/E of 6.2 is dramatically lower than the industry average of 20.7, suggesting a sizable valuation discount. Dividend yield near 5% with a payout ratio under 30% and a stable operating cash flow of $5.8 bn further reinforce cash‑generating strength. Revenue growth of 30.8% and healthy operating margins (≈36%) add a growth tilt to the otherwise value‑oriented utility franchise.
However, the balance sheet is heavily leveraged – total debt exceeds $41 bn and the debt‑to‑equity ratio tops 200, while free cash flow is negative, flagging capital‑intensive pressures. The recent UBS downgrade to Neutral and a modest analyst consensus target median of $78 temper enthusiasm, but the declared dividend of $0.8775 per share signals continued shareholder commitment. Overall, the stock sits at a crossroads between attractive valuation and structural debt risk, making a nuanced, multi‑horizon approach advisable.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Recent UBS downgrade to Neutral
  • Bearish MACD histogram indicating near‑term downside pressure
  • High dividend yield providing downside cushion

Medium Term

1–3 years
Positive
Model confidence: 7/10

Key Factors

  • Significant valuation gap (P/E 6.2 vs industry 20.7)
  • Strong revenue growth and operating margins
  • Stable dividend with low payout ratio

Long Term

> 3 years
Positive
Model confidence: 8/10

Key Factors

  • Regulated utility business delivering predictable cash flows
  • Long‑term dividend sustainability
  • Defensive sector positioning with low beta

Key Metrics & Analysis

Financial Health

Revenue Growth30.80%
Profit Margin23.08%
P/E Ratio6.2
ROE24.10%
ROA3.81%
Debt/Equity215.74
P/B Ratio1.6
Op. Cash Flow$5.8B
Free Cash Flow$-649500032
Industry P/E20.7

Technical Analysis

TrendBullish
RSI54.8
Support$63.90
Resistance$75.50
MA 20$72.09
MA 50$65.58
MA 200$57.63
MACDBearish
VolumeStable
Fear & Greed Index76.48

Valuation

Fair Value$295.46
Target Price$73.23
Upside/Downside3.03%
GradeUndervalued
TypeBlend
Dividend Yield4.96%

Risk Assessment

Beta0.58
Volatility28.48%
Sector RiskLow
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.