EIX Edison International

Edison International is the parent company of Southern California Edison, one of the nation's largest electric utilities, serving millions of customers in central and southern California. Sector: Utilities.

Edison International (EIX) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Through the lens of capital efficiency, ROIC is 5.27%, WACC is 5.80%, and the economic spread is -0.53%. On balance, the gap between operating returns and funding costs is unfavorable — a structural challenge that typically weighs on intrinsic value over time. Supporting metrics show ROE at 26.11% and ROA at 4.53%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that likely needs operating improvement before returns quality can be considered durable.

On a multiple basis, the company trades at trailing P/E of 6.43, forward P/E of 12.17, PEG of 1.10. Forward P/E is broadly in line with trailing, suggesting analysts are not projecting a material change in profitability over the coming year. The PEG reading here is low enough to suggest investors are not being asked to overpay for the growth embedded in analyst estimates. The company's weighted current ratio of 0.73 suggests near-term liquidity is more constrained than average. The valuation setup is broadly consistent with a market that is pricing growth without being reckless about it — a balanced but not cautious stance.

The margin profile breaks down as follows: gross margin sits at 52.95%, operating margin at 27.73%, and free cash flow margin at -3.70%. Gross margins are in good shape, suggesting the the company maintain pricing discipline at the revenue-to-cost interface. Operating margins are solid, reflecting adequate cost control relative to the revenue base. The company's FCF margin is minimal, suggesting the company are heavily reinvesting or facing meaningful capex demands. This stack calls for monitoring: profitability is present, but conversion from revenue to operating income to free cash is not fully consistent.

The growth and outlook picture reads as follows: TTM revenue growth of 30.85% pointing to healthy demand conditions for the company represented in the company. In parallel, analyst price targets collectively imply a decline from current levels based on current consensus targets. The gap between trailing fundamentals and forward expectations matters most at inflection points — and the current environment is not without those. For long-term holders, the central question is whether today's execution quality is a leading indicator of what's already priced into analyst targets. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Readers should note that several metrics reviewed here point to a challenging near-term environment — capital preservation warrants priority over aggressive return maximization at this juncture.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.