Edison International (EIX) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Edison International

Updated on October 31, 2026 · accounts published on October 29, 2026

A regulated utility with record margins, modest returns on capital and a heavy debt load

Edison International trades at a P/E of 6.3× over the last 12 months, 70 % below its sector median of 20.7×, with net debt near twice its share price.

• Is Edison International expensive or cheap? Edison International's P/E of 6.3× over the last 12 months is 70 % below the 20.7× median of its 83 sector peers.
• How is the business doing? Operating margin hit 37 % in fiscal 2025, the highest in 12 years and far above the 14 % average for 2014-2025.
• How strong is the balance sheet? Net debt was $114.21 per share in fiscal 2025, equal to 194 % of the current share price.
• Is the dividend sustainable with this much debt? The 6.0 % dividend yield is covered by a 30 % payout in fiscal 2025, far below the 80 % ceiling considered healthy for utilities.
• What to expect from the next earnings? Analysts expect EPS of $1.35 for the quarter reported on February 17, 2027, with the 2026 consensus steady at $6.13.

Is Edison International expensive or cheap?

Every earnings-based yardstick points low. The P/E of 6.3× over the last 12 months sits 70 % below the utilities median of 20.7×, and the earnings yield reaches 31 %. EV/EBITDA of 8.9× and price to book of 1.3× look less extreme because they reflect the large debt load and asset base rather than one strong profit year. The discount to the sector rests on earnings far above their usual level, so the multiple is only as reliable as those earnings. The stock trades 27 % below its 52-week high of $80.38, though it is still up 10 % over the last 12 months.

How is the business doing?

Revenue grew 10 % over the last 12 months while EPS rose 249 %, a pace the sector rarely sustains. The operating margin of 22 % over the last 12 months already sits below the fiscal 2025 record of 37 %, though it stays well above the 14 % average for 2014-2025. Returns on capital tell a more modest story: ROIC of 3.8 % over the last 12 months trails the sector median of 4.0 % and has not topped 10 % in any of the last ten fiscal years. The 21 % ROE owes more to leverage and an exceptional profit year than to a structurally superior business.

How strong is the balance sheet?

The balance sheet carries most of the risk. Net debt of $114.21 per share in fiscal 2025 is almost twice the stock price, debt to equity stands at 2.39 over the last 12 months, and a current ratio of 0.77 means short-term liabilities exceed short-term assets. Interest coverage of 4.6× in fiscal 2025 leaves a cushion above the 3× floor considered healthy for utilities, and a Piotroski score of 7 out of 9 over the last 12 months signals solid underlying fundamentals. The debt is serviceable today, but it leaves the company sensitive to higher interest rates.

Is the dividend sustainable with this much debt?

Utilities are regulated, slow-growing businesses bought for income, almost like bonds, so debt, interest rates and payout consistency matter more than growth. On those tests Edison International passes. Net debt to EBITDA of 5.1× in fiscal 2025 is under the 5.5× healthy line, though close to it. The dividend grew 8 % a year over 2015-2025, above the 4 % healthy threshold, with six consecutive annual raises through fiscal 2025. The two failures are on the upside: ROE of 21 % and EPS growth of 38 % a year over 2020-2025 exceed the regulated ranges of 8-12 % and 4-7 %, a sign that recent profits are unusually high.

What to expect from the next earnings?

Edison International has beaten EPS estimates in 7 of the last 8 quarters. On October 29, 2026 it reported EPS of $1.87 against $1.81 expected, a 3.3 % beat. The 2026 EPS consensus held at $6.13 over the last 30 days among 9 analysts, and revenue estimates barely moved, so expectations look settled. Opinion on the stock is split: of 37 analysts, 15 recommend buying, 17 holding and 5 selling. The report on February 17, 2027, with expected EPS of $1.35, will show whether the elevated earnings base holds.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.