Thesis pillars
- Geographic Regulatory Concentration Risk↓Deteriorating
- Perfect Four Quarter Earnings Streak↓Deteriorating
- Negative Free Cash Flow Quality Risk→Stable
- +1 more pillar — see the Why tab for full reasoning
Edison International (EIX) Stock Analysis
Utilities · Utilities - Regulated Electric
Sell if holding. At $56.21, A.R:R 0.5:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: southern California; Concentration risk — Regulatory: CPUC.
Edison International is the parent holding company of Southern California Edison (SCE), an investor-owned electric utility serving approximately 5 million customers across a 50,000 square-mile service territory in southern California, with CPUC-authorized revenues of $9.7... Read more
Sell if holding. At $56.21, A.R:R 0.5:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: southern California; Concentration risk — Regulatory: CPUC. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.5/10, moderate confidence.
Passes 4/7 gates (clean insider activity, earnings proximity 53d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.
About Edison International
About Edison International
Southern California Edison, the principal subsidiary of Edison International, served approximately 5 million customers in a 50,000 square-mile service territory in southern California at December 31, 2025, with CPUC-authorized revenues of $9.7 billion for 2025, stepping to $10.2 billion in 2026, $10.7 billion in 2027, and $11.2 billion in 2028 under the 2025 General Rate Case. Edison International also owns Trio, a global energy advisory firm serving commercial and industrial clients. The company employed 13,725 people at year-end 2025, including 13,235 SCE employees, with approximately 4,600 represented by the IBEW under agreements expiring December 31, 2027.
Edison International earns revenue primarily through SCE's regulated cost-of-service model. The CPUC decouples authorized revenue from electricity sales volume — differences between amounts collected and authorized levels are reconciled through rate adjustments that do not affect operating revenue, so electricity sales volume has no direct impact on SCE's financial results. SCE's authorized capital structure is 43% long-term debt, 5% preferred equity, and 52% common equity, with an authorized ROE of 10.03% for 2026 and a weighted average return on rate base of 7.59%. Approximately $1.6 billion in wildfire risk mitigation capital expenditures are excluded from rate base under AB 1054; SB 254 is expected to exclude an additional $2.9 billion of wildfire mitigation capital approved on or after January 1, 2026 — structurally limiting rate-base growth from this spending category.
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Wildfire liability is the dominant operating risk for SCE. California courts have applied inverse condemnation to find utilities strictly liable for property damage when utility equipment is a substantial cause of a wildfire, regardless of fault. The Eaton Fire igniting in Los Angeles County in January 2025 resulted in loss of life and property damage, and the 10-K notes that if Wildfire Fund reimbursements for eligible Eaton Fire claims arrive later than projected, SCE could face short-term liquidity pressure. The Wildfire Fund, established under AB 1054, could be exhausted by prior damage claims from participating utilities, eliminating both the reimbursement mechanism and the Liability Cap — a scenario that could materially affect SCE's financial condition.
See also: Utilities · Utilities - Regulated Electric
From Edison International's most recent 10-K filing, extracted June 10, 2026.
Recent developments
updated 2026-09-04Recent Developments — Edison International
Latest news
- NEWS Edison International stock underperforms Wednesday when compared to competitors - MarketWatch — MarketWatch negative
- NEWS Edison International stock underperforms Wednesday when compared to competitors - marketwatch.com — marketwatch.com negative
- NEWS EIX|Edison International|Price:79.789|Chg%:+1.149 - TradingKey — TradingKey positive
- NEWS Empowered Funds LLC Has $18.55 Million Holdings in Edison International $EIX - MarketBeat — MarketBeat neutral
- NEWS Edison International (EIX) Reports Strong Q1 2026 Earnings and R - GuruFocus — GuruFocus positive
Generated 2026-09-04T15:02:10Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHGeographicsouthern California10-K Item 1: 'an approximately 50,000 square-mile area of southern California. SCE serves approximately 5 million customers in its service area'
- HIGHregulatoryCPUC10-K Item 1: 'The CPUC regulates SCE's cost of capital, including its capital structure and authorized rates of return'
Material Events(8-K, last 90d)
- 2026-04-23Item 5.02MEDIUMCFO Maria Rigatti to resign effective July 3, 2026 and retire September 1, 2026. Aaron D. Moss (current SCE CFO since 2022) elected EVP and CFO of EIX effective July 3, 2026. Board also expanded from 11 to 12 members; M. Susan Hardwick elected independent director.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
1 floor-breaker
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $56.21, A.R:R 0.5:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: southern California; Concentration risk — Regulatory: CPUC. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $52.31. Score 5.5/10, moderate confidence.
Take-profit target: $60.22 (+7.1% upside). Prior stop was $52.31. Stop-loss: $52.31.
Concentration risk — Geographic: southern California; Concentration risk — Regulatory: CPUC; Thin upside margin: 7.1%.
Edison International trades at a P/E of 5.7 (forward 8.7). TrendMatrix value score: 7.4/10. Verdict: Sell.
25 analysts cover EIX with a consensus score of 2.8/5. Average price target: $69.
What does Edison International do?Edison International is the parent holding company of Southern California Edison (SCE), an investor-owned electric...
Edison International is the parent holding company of Southern California Edison (SCE), an investor-owned electric utility serving approximately 5 million customers across a 50,000 square-mile service territory in southern California, with CPUC-authorized revenues of $9.7 billion for 2025. SCE earns revenue through rates authorized in quadrennial General Rate Case proceedings; Edison International also owns Trio, an energy advisory firm.