📊 EIX Key Takeaways
Is Edison International (EIX) a Good Investment?
Edison International demonstrates strong operational performance with 9.8% revenue growth and 26.2% operating margins, but faces critical financial sustainability issues. An interest coverage ratio of 0.8x indicates the company cannot cover interest payments from operating income, combined with negative free cash flow of -$112M and liquidity ratios below 1.0, signaling financial distress that outweighs growth benefits.
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
- Strong operating margin of 26.2% reflecting pricing power and operational efficiency
- Solid revenue growth of 9.8% year-over-year, outpacing typical utility sector growth
- Positive operating cash flow of $1.4B providing base for dividend and debt service
- 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
- Interest coverage of 0.8x - operating income insufficient to cover interest expense, indicating unsustainable debt burden
- Negative free cash flow of -$112M despite positive operating cash flow reveals capex exceeds sustainable levels relative to operations
- Liquidity crisis signals with current ratio of 0.74x and quick ratio of 0.68x below 1.0, indicating potential near-term payment stress
- Excessive leverage with 2.33x debt-to-equity ratio and $40.3B long-term debt with weak capital efficiency (ROE 3.1%, ROA 0.6%)
- Dependence on capital markets or non-operating income to service debt due to interest coverage below 1.0x
- 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
- Interest coverage ratio - must improve above 1.0x to indicate operational sustainability
- Free cash flow trend - critical to monitor if negative FCF reverses to positive territory
- Current ratio and cash position - need improvement above 1.0x to resolve liquidity concerns
- 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 shows some fundamental concerns 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 |
|---|---|---|---|
| Q1 2026 | $3.8B | $531.0M | $1.37 |
| 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 |
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
❓ Frequently Asked Questions about EIX
What is the AI rating for EIX?
Edison International (EIX) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EIX's key strengths?
Claude: Strong operating margin of 26.2% reflecting pricing power and operational efficiency. Solid revenue growth of 9.8% year-over-year, outpacing typical utility sector growth. 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: Interest coverage of 0.8x - operating income insufficient to cover interest expense, indicating unsustainable debt burden. Negative free cash flow of -$112M despite positive operating cash flow reveals capex exceeds sustainable levels relative to operations. 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 $4.1B.
Does EIX pay dividends?
Edison International pays dividends, with $338.0M 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 $1.37.
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 May 2026, Edison International has a SELL rating with 78% 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 3.1% (sector avg: 10%), net margin of 12.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy EIX stock in 2026?
Our dual AI analysis gives Edison International a combined SELL 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 $1.4B, with capital expenditures of $1.5B. FCF margin is -2.7%.
How does EIX compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 12.9% (avg: 12%), ROE 3.1% (avg: 10%), current ratio 0.74 (avg: 0.8).
Is Edison International carrying too much debt?
EIX has a debt-to-equity ratio of 2.33x, 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.