Company Overview
Edison International functions as a utility entity dedicated to the generation and distribution of electric power, supplying electricity through its electrical infrastructure to an area covering approximately 50,000 square miles across southern, central, and coastal California. This operational model places the company firmly within the Utilities sector and the Regulated Electric industry, where business activities are typically subject to government regulation and stable demand patterns. The company operates at a significant scale, characterized by a market capitalization of $27.06B and a trailing twelve-month revenue of $19.32B, while employing a workforce of 13,725 individuals. These valuation and revenue figures indicate that Edison International is a large-cap enterprise with a substantial installed base, reflecting its established position as a major provider of essential energy services to residential, commercial, and industrial customers within its defined service territory.
Financial Health
The company reported a total revenue of $19.32B and generated $4.46B in net income over the trailing twelve months, with EBITDA standing at $8.25B. The substantial gap between the $19.32B revenue and the $4.46B net income reveals a cost structure where operating expenses, including cost of goods sold and administrative costs, consume a significant portion of total revenue before reaching the bottom line. However, the free cash flow stands at -$649,500,032, indicating that the company is currently consuming cash rather than generating it, which impacts its immediate financial flexibility and ability to fund capital expenditures or acquisitions without external financing. Profitability is supported by a gross margin of 57.8%, an operating margin of 35.9%, and a profit margin of 23.1%, all of which demonstrate the company's ability to maintain pricing power and control costs effectively in a regulated environment. The balance sheet shows a cash balance of $158.00M against total debt of $41.55B, resulting in a debt-to-equity ratio of 215.74%, which signifies a highly leveraged position typical for capital-intensive utility firms. Short-term liquidity is constrained by a current ratio of 0.73, suggesting that current liabilities exceed current assets, though this is often managed through long-term debt structures in regulated utilities. Return metrics show a return on equity of 24.1% and a return on assets of 3.8%, revealing that management is highly effective at generating returns on shareholders' equity while the return on assets reflects the heavy asset base required for utility operations.
Valuation Assessment
Valuation metrics for Edison International include a trailing twelve-month P/E ratio of 6.09 and a forward P/E of 10.79, where the difference between these two figures implies that the market expects a significant expansion in earnings growth in the coming year. The price-to-book ratio is 1.58, indicating that the market values the company at a 58% premium over its net book value, which often reflects the value of intangible assets or the stability of regulated cash flows. Alternative valuation measures such as a price-to-sales ratio of 1.40 and an EV/EBITDA of 8.56 provide additional context, suggesting the company is priced reasonably relative to its sales volume and enterprise earnings power. Regarding price momentum, the stock has traded between a 52-week low of $47.73 and a 52-week high of $75.50, meaning the current price sits within this historical range and reflects recent market sentiment. The beta value of 0.78 indicates that the stock is less volatile than the broader market, exhibiting lower price swings relative to the overall index, which aligns with the defensive characteristics of the utility sector.
Growth & Income
Growth metrics display a revenue growth rate of 30.8% year-over-year and an earnings growth rate of 446.3% year-over-year, where earnings are growing significantly faster than revenue, which often implies one-time gains, restructuring benefits, or adjustments to non-recurring items. As a dividend payer, Edison International offers a dividend yield of 5.0% with a payout ratio of 29.1%, indicating that the dividend is well-covered by earnings and appears sustainable given the low payout percentage relative to the high return on equity. Since the earnings growth figure is so elevated, the current dividend sustainability is supported by the company's ability to cover the payout with a small fraction of its current earnings. The overall profile combines a high current yield with exceptional recent earnings acceleration, though investors must consider the leverage and negative free cash flow when evaluating the long-term growth trajectory.