📊 EIX Key Takeaways
Is EIX a Good Investment? Thesis Analysis
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.
Why Buy 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
EIX Investment Risks to Consider
- 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
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
EIX Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
EIX Profitability Ratios
EIX vs Default Sector
How EDISON INTERNATIONAL compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is EIX Overvalued or Undervalued?
Based on fundamental analysis, EDISON INTERNATIONAL has mixed fundamental signals relative to the Default 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.
EIX Balance Sheet & Liquidity
EIX 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
EIX Quarterly 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.
EIX Capital Allocation
EIX SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for EDISON INTERNATIONAL (CIK: 0000827052)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| 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 → |
| Mar 4, 2026 | 4 | xslF345X05/form4-03042026_100355.xml | View → |
❓ Frequently Asked Questions about EIX
What is the AI rating for EIX?
EDISON INTERNATIONAL (EIX) has an AI rating of HOLD with 62% 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.
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.
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 March 2026, EDISON INTERNATIONAL has a HOLD rating with 62% 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: 15%), 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 Default stocks?
Vs Default sector averages: Net margin 23.1% (avg: 12%), ROE 25.4% (avg: 15%), current ratio 0.73 (avg: 1.8).