EDISON INTERNATIONAL (EIX) Stock Analysis
EDISON INTERNATIONAL (EIX) Stock Analysis
Analysis from 10-Q filed 2025-10-28. Data as of Q4 2025.
Overall Grade: F (Concerning)
EDISON INTERNATIONAL faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 9.1% | Near cost of capital |
| FCF Margin | -3.7% | Cash flow pressure |
| Debt/Equity | 2.3x | Elevated debt |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore EDISON INTERNATIONAL: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: EDISON INTERNATIONAL earns 9.1% ROIC, Top 25% in Utilities
EDISON INTERNATIONAL's trailing-twelve-month ROIC of 9.1% ranks Top 25% in Utilities companies (sector median: 5.8%), driven by NOPAT margin of 28.8% combined with asset turnover of 0.2x. Source: 10-Q filed 2025-10-28.
| Metric | EIX | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 9.1% | Adequate | Above sector median of 5.8% |
| Return on Equity (ROE) | 26.6% | Excellent | Efficient use of shareholder equity |
| Operating Margin | 36.7% | Excellent | Efficient operations |
Cash Flow: EDISON INTERNATIONAL generates $-715.0M FCF at -3.7% margin, positive NaN/8 quarters
EDISON INTERNATIONAL generated $-715.0M in free cash flow (TTM), a -3.7% FCF margin, a margin that ranks Bottom 50% in Utilities. Operating cash flow exceeds net income by 1.3x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-28.
| Metric | EIX | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | -3.7% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-715.0M | Red flag | Cash burn |
| OCF/Net Income | 1.3x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: EDISON INTERNATIONAL at 2.3x leverage
EDISON INTERNATIONAL's debt-to-equity ratio of 2.3x reflects high leverage. Total debt of $40.4B offset by $720.0M in cash. Source: 10-Q filed 2025-10-28.
| Metric | EIX | Rating | Context |
|---|---|---|---|
| Debt to Equity | 2.3x | Warning | Elevated leverage |
| Net Cash Position | $-39.7B | Warning | Net debt position |
Valuation: EDISON INTERNATIONAL trades at 5.2x earnings
EDISON INTERNATIONAL trades at a P/E of 5.2x. Free cash flow yield of -3.1% reflects market expectations for growth.
| Metric | EIX | Rating | Context |
|---|---|---|---|
| P/E Ratio | 5.2x | Adequate | Reasonable valuation |
| EV/Sales | 3.1x | Good | Growth premium priced in |
| FCF Yield | -3.1% | Warning | Lower cash yield |
| Dividend Yield | 9.7% | Good | Meaningful income |
Capital Allocation: EDISON INTERNATIONAL returns 9.8% shareholder yield
EDISON INTERNATIONAL's total shareholder yield is 9.8% (dividends 9.7% + buybacks 0.1%). Source: 10-Q filed 2025-10-28.
| Metric | EIX | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 9.8% | Excellent | Dividend + buyback yield combined |
| Buyback Yield | 0.1% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $1.4B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 9.1% | Top 25% | 1.6x above |
| Free Cash Flow Margin | -3.7% | Bottom 50% | - |
| Operating Margin | 36.7% | Top 10% | 1.8x above |
| Return on Equity (ROE) | 26.6% | Top 5% | 2.8x above |
| P/E Ratio | 5.2x | N/A | - |
Financial Scorecard
| Metric | EIX | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 9.1% | Adequate | Top 25% of sector (median: 5.8%) |
| Free Cash Flow Margin | -3.7% | Red flag | Bottom 50% of sector (median: 0.0%) |
| Debt to Equity Ratio | 229.8% | Warning | High financial leverage |
| P/E Ratio (Price-to-Earnings) | 518.3% | Adequate | Attractively valued |
| Free Cash Flow Yield | -3.1% | Red flag | Growth-focused valuation |
Frequently Asked Questions
Q: What is EDISON INTERNATIONAL's Return on Invested Capital (ROIC)?
EDISON INTERNATIONAL (EIX) has a trailing twelve-month Return on Invested Capital (ROIC) of 9.1%. This compares above the sector median of 5.8%. An ROIC near 8-12% is approximately the cost of capital for most companies.
Q: What is EDISON INTERNATIONAL's Free Cash Flow Margin?
EDISON INTERNATIONAL (EIX) has a free cash flow margin of -3.7%, generating $-715.0 million in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is EDISON INTERNATIONAL stock overvalued or undervalued?
EDISON INTERNATIONAL (EIX) trades at a P/E ratio of 5.2x, which is above the sector median of N/A. The EV/Sales multiple is 3.1x.
Q: Does EDISON INTERNATIONAL pay a dividend?
EDISON INTERNATIONAL (EIX) currently pays a dividend yield of 9.7%. Including share buybacks, the total shareholder yield is 9.8%. A yield above 4% is attractive for income investors, though sustainability should be verified through payout ratio analysis.
Q: How much debt does EDISON INTERNATIONAL have?
EDISON INTERNATIONAL (EIX) has a debt-to-equity ratio of 2.3x with total debt of $40.4 billion. Net debt position is $39.7 billion.
Q: What is EDISON INTERNATIONAL's revenue and earnings growth?
EDISON INTERNATIONAL (EIX) grew revenue by 9.8% year-over-year. Earnings per share increased by 251.4% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: How does EDISON INTERNATIONAL compare to competitors in Utilities?
Compared to other companies in Utilities, EDISON INTERNATIONAL (EIX) shows: ROIC of 9.1% is above the sector median of 5.8% (Top 22%). FCF margin of -3.7% trails the sector median of 0.0% (Bottom 40% of sector). These rankings are based on MetricDuck's analysis of all Utilities companies with available SEC filings.
Q: What warning signs should I watch for with EDISON INTERNATIONAL?
Investors in EDISON INTERNATIONAL (EIX) should monitor these potential warning signs: 1) FCF margin is thin at -3.7%, leaving limited buffer for economic downturns. 2) Debt-to-equity of 2.3x is elevated. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-10-28. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.