EIX
Edison International$70.73
Buy
Target $93.81
Report: Mar 10, 2026Utilities • Regulated Electric • Asset-Based OperatorSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$70.73+32.6%
Rec: BuyConviction: High
Entry Target
$70.73
(0% above current)
Fair Value
$93.81
(33% above current)
Stop Loss
$49.51
(30% below current)
Position Size
Full
Time Horizon
Strategic
Key Metrics
Live Snapshot
Market Data
52 Week High$75.50
52 Week Low$47.73
Avg. 3 Month Volume3.43M
Efficiency
LTM Gross Margin48.1%
LTM EBITDA Margin55.7%
LTM EBIT Margin39.0%
LTM Operating Margin36.7%
LTM ROA4.9%
LTM ROE26.2%
LTM ROIC6.2%
LTM ROCE9.3%
Capital Structure
Market Cap (MM)$28.2B
Enterprise Value (MM)$69.6B
Shares Outstanding385.00M
Total Debt (MM)$41.55B
Cash & Equivalents (MM)$158.00M
LTM Net Debt (MM)$41.39B
LTM Net Debt/EBITDA3.8x
Growth
TTM Rev. Growth9.8%
Last 3-Yr Rev. CAGR3.9%
Last 3-Yr EBITDA CAGR34.1%
Last 3-Yr EPS CAGR93.0%
Valuation
Street Target Price$68.33
LTM EV/Revenue3.6x
LTM EV/Gross Profit7.5x
LTM EV/EBIT9.2x
LTM EV/EBITDA6.5x
LTM P/E6.3x
LTM EV/FCF-97.3x
LTM P/FCF-39.4x
LTM P/TB0.3x
LTM P/B1.6x
Dividend Yield4.6%
Payout Ratio29.1%
Executive SummarySituation: Current price is $70.73 versus fair value $93.81 (32.6% expected return), and valuation confidence is stable. Debate: Bull case depends on Securitization of TKM and Woolsey Settlements This will unlock $3.6B in liquidity, strengthening credit metrics and validating the regulatory recovery framework. Bear case centers on Wildfire Liability Exceeding Fund Capacity The mechanism of 'inverse condemnation' could hold the utility liable for damages if the Eaton Fire investigation reveals equipment involvement beyond the $22B fund's protection. Conclusion: Recommendation is Buy with Full sizing and Strategic horizon.
Bull Case
Regulated rate-base growth of 7-8% CAGR driven by $38B-$41B capital plan; SB 254 provides a liability cap and securitization options that de-risk the equity; 5-7% core EPS growth target is supported by high-quality load growth from EV adoption.
Bear Case
Eaton Fire liabilities could exceed the Wildfire Fund capacity if participation in the claims process is low; high leverage (4.25x Debt/Equity) leaves little room for operational errors; persistent negative free cash flow (-$715M) requires continued debt issuance.
Key Catalysts
Near-Term (0-6 months)Impact: High
Securitization of TKM and Woolsey Settlements This will unlock $3.6B in liquidity, strengthening credit metrics and validating the regulator...
Near-Term (0-6 months)Impact: Critical
Final 2025 GRC Decision Implementation Full implementation of the GRC will provide revenue certainty and authorize higher rate recovery for...
Long-Term (18+ months)Impact: Moderate
Edison is at a critical juncture as it transitions from a period of litigation-driven uncertainty to a growth phase backed by SB 254 and a m...
Primary Risks
Concern: Medium
Wildfire Liability Exceeding Fund Capacity The mechanism of 'inverse condemnation' could hold the utility liable for damages if the Eaton Fi...
Concern: Low
Regulatory Pushback on Affordability Rising rates to fund CapEx could lead to political or regulatory pressure to cap rate increases, impair...
Concern: Medium
Stewardship is strong, characterized by a board with deep expertise in crisis management (Timothy O'Toole) and financial oversight (Jeanne B...
Recent Activity
2025-04-30SEC Filing (8-K)
-8.89%Edison International reports Q1 2025 GAAP EPS of $3.73; Core EPS of $1.37; reaffirms 2025 Core EPS guidance of $5.94-$6.34
2025-02-28SEC Filing (8-K)
+6.04%Edison International reports Q4 2024 GAAP EPS of $0.88; Core EPS of $1.05; full-year 2024 GAAP EPS of $3.33; Core EPS of $4.93
2023-11-14Market Movement
+5.56%Market/Sector Move +5.56%
2022-11-10Market Movement
+5.20%Market/Sector Move +5.20%
2022-02-25SEC Filing (8-K)
+5.39%Edison International reports Q4 2021 GAAP EPS of $1.38; Core EPS of $1.16; full-year 2021 GAAP EPS of $2.00; Core EPS of $4.59
Valuation Table
9.8/10Decision Grade
Scenario Range
$22
Bear
$144
Bull
$71