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what it is
Edison International delivers electricity to 5.28 million customers across 50,000 square miles of California through Southern California Edison.
how it gets paid
Last year Eix made $19.3B in revenue. Commercial electricity was the main engine at $8.30B, or 43% of sales.
why it's growing
Revenue grew 9.8% last year. Revenue hit $14.1B, up 145% vs. prior year, while EPS jumped 213% vs. prior year to $6.76 in the latest quarter data provided.
what just happened
Latest earnings crushed expectations, with EPS at $1.86 versus a $1.32 estimate.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
20/100 earnings predictability — expect surprises
10.1x trailing p/e — the market's not buying it — or you found a deal
5.5% return on capital — nothing to write home about
xvary composite: 57/100 — below average
What they do
Edison International delivers electricity to 5.28 million customers across 50,000 square miles of California through Southern California Edison.
You do not casually swap out your electric grid. Southern California Edison serves 5.28 million customers across 50,000 square miles, and that monopoly-like footprint gives it recurring demand. Rate base growth → more approved assets in the ground → so what: more wires and substations can turn into steadier earnings, with operating margin at 36.7%.
How they make money
$19.3B
annual revenue · their business grew +9.8% last year
Residential electricity
$7.72B
Commercial electricity
$8.30B
Industrial electricity
$0.58B
Other electric revenue
$2.70B
The products that matter
regulated electricity delivery
Southern California Edison
$19.3B · 100% of revenue
it's the whole business: 5.28 million customers and all $19.3B of annual revenue run through this regulated utility.
the business
exclusive customer footprint
Service Territory
5.28M customers
those 5.28 million customers are the moat and the constraint — stable demand, but pricing power sits with regulators, not management.
state-granted
Key numbers
10.1x
trailing p/e
Price-to-earnings ratio → what you pay for each dollar of profit → so what: EIX is priced below the broader market because investors are charging for wildfire and slowdown risk.
$84
18-month target
The published 18-month price objective is $84 versus a $60.62 stock price, or about 39% upside if liability fears cool down.
$34.5B
long-term debt
Long-term debt → money owed over many years → so what: utilities can carry debt, but 60% of capital leaves less room for bad surprises.
36.7%
operating margin
Operating margin → profit left after running the business → so what: regulated utility economics still throw off healthy earnings before interest costs.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 75 / 100
- long-term debt $34.5B (60% of capital)
- return on equity 13% — $0.13 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in EIX 3 years ago → it's now worth $10,660.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Latest earnings crushed expectations, with EPS at $1.86 versus a $1.32 estimate.
Revenue hit $14.1B, up 145% vs. prior year, while EPS jumped 213% vs. prior year to $6.76 in the latest quarter data provided. Quarterly reported results also showed Q4 2025 EPS of $1.32 after a very strong $2.34 in Q3.
$14.1B
revenue
$1.86
eps
36.7%
gross margin
the number that mattered
The 40.91% EPS surprise matters because utilities rarely produce dramatic beats unless timing, rates, or cost recovery breaks their way.
-
combined, tens of thousands of acres were burned and public infrastructure was ruined.
-
direct combined property damages alone are estimated to be as high as $55 billion.
-
the california wildfire fund of 2019 (cwf) ought to help limit liabilities.
-
the cwf serves as self insurance for the state’s three major investor-owned utilities (iou).
-
it was funded by the ious and their customers and contains $21 billion.under most circumstances, the cwf would prevent utilities from suffering major material losses beyond the first $1 billion of damages per incident. so, even if edison’s equipment is found to be at fault for the eaton fire, $1 billion would not be too problematic for the company’s balance sheet.
source: company earnings report, 2026
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What could go wrong
the #1 risk is wildfire liability tied to southern california edison equipment.
high
wildfire liability
direct property damages tied to recent southern california fires are estimated as high as $55B. the california wildfire fund helps, but EIX can still face the first $1B of losses per incident.
if the market starts modeling liability instead of earnings, the low multiple can stay low for a reason.
high
debt and refinancing pressure
long-term debt is $34.5B, equal to 60% of capital. higher rates and wider credit spreads hit a leveraged utility harder than they hit a cash-rich one.
a 1% increase in interest cost on that debt stack is roughly $345M in annual expense.
med
regulatory cost recovery
southern california edison generates effectively all $19.3B of revenue. if regulators push back on allowed returns or cost recovery, there is no second business to offset it.
one adverse ruling can hit the whole company, not a side segment.
med
low earnings predictability
earnings predictability is 20 / 100. for a regulated utility, that is a warning that headline risk still leaks into the numbers.
utilities usually sell stability. this one has to keep re-earning that label.
with $34.5B in debt and a first-loss layer of up to $1B per wildfire incident, EIX is less a pure defensive utility than a financing-and-liability story attached to one.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
full-year EPS holding around $6.15
if quarterly results keep supporting roughly $6.15 a year, a 10x earnings multiple starts to look too punitive.
risk
wildfire fund protection
watch whether any finding around southern california edison equipment pushes attention back to the first $1B loss layer per incident.
earnings
next earnings call commentary
the market will care less about the beat and more about management's liability, cost recovery, and capital needs commentary.
trend
institutional buying streak
institutions were net buyers for three straight quarters. see if 463 buyers versus 366 sellers keeps widening or stalls.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a middle-of-the-road setup near term.
risk profile
average
stability score 3 — average for the market, but not especially comforting for a utility investor looking for a sleepier ride.
chart momentum
below average
technical score 4 — the street still wants proof that liability headlines will fade before it rewards the chart.
earnings predictability
20 / 100
earnings are harder to model than they should be for a regulated monopoly. that is a real part of the discount.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 463 buyers vs. 366 sellers in 3q2025. total institutional holdings: 0.3B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$49
$118
$61
current price
$84
target midpoint · +39% from current · 3-5yr high: $110 (+80% · 20% ann'l return)
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