Edison International (EIX) Stock Analysis
Verdict: WATCH (do not buy)
Eaton Fire wildfire liabilities and shelved protection bills drive a 29% crash, overriding low P/E valuation and strong recent beats.
Investment score: 45/100
Analysis as of
Is Edison International stock worth reviewing? AI model thesis
Edison International faces severe wild-fire litigation overhang after California lawmakers shelved liability cap legislation. Despite strong underlying earnings and low valuation multiples, balance sheet debt of $42.59B warrants caution.
7-factor investment score
- Valuation: 65/100 (weight 20%)
- Financial Health: 30/100 (weight 15%)
- Technical Momentum: 20/100 (weight 15%)
- Earnings Quality: 75/100 (weight 15%)
- Insider Sentiment: 40/100 (weight 10%)
- Analyst Consensus: 35/100 (weight 10%)
- Risk-Adjusted Return: 40/100 (weight 15%)
Edison International opportunities and risks
What speaks for EIX
- Substantial Valuation Discount to Utility Peers
What speaks against EIX
- Eaton Fire Wildfire Litigation and Inverse Condemnation Exposure
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| EIX | 5.8x | 1.1x | 8.3x | 39.9% | 19.8% | -1.8% |
| PCG | 10.1x | 1.4x | 9.6x | 56.2% | 12.3% | -11.4% |
| FE | 25.1x | 1.7x | 12.0x | 53.4% | 6.9% | 5.8% |
| ES | 18.5x | 1.9x | 10.1x | 35.2% | 10.4% | 1.1% |
| PPL | 27.7x | 3.7x | 13.9x | 34.6% | 13.5% | 1.0% |
| NRG | 29.3x | 0.6x | 11.1x | 16.4% | 2.3% | 1.5% |
| Peer median | 25.1x | 1.7x | 11.1x | 35.2% | 10.4% | 1.1% |
Frequently asked questions about Edison International (EIX)
Is EIX stock a good investment?
The cached TradeMates AI model rates Edison International as WATCH (do not buy) with an investment score of 45/100. Edison International faces severe wild-fire litigation overhang after California lawmakers shelved liability cap legislation. Despite strong underlying earnings and low valuation multiples, balance sheet debt of $42.59B warrants caution. This is algorithmic model output, not personal investment advice.
Is EIX stock a buy?
The TradeMates model verdict for EIX is WATCH (do not buy) with an investment score of 45/100. Treat this as a model signal to review, not a personal buy recommendation.