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AGING Analysis Report
Aug 29, 2026
23 days ago · 100% complete
SEC data is missing this company's latest quarter
SEC data is missing this company's latest quarter: the SEC's companyfacts (refetched) ends at 2026-03-31 while its index lists a statement period 2026-06-30 — the SEC's aggregation omitted the filing; not recoverable from any archive we read Found by the Foundation Sweep four-quarter pass 2026-09-11; held under the four-quarter coverage policy (2026-09-11) and released automatically once the pass resolves it.
This page shows our last published analysis, from Aug 29, 2026. It is not being updated, and new reports can't be run for this company.
For AI assistants & researchers — machine-readable summary of this page

What this page is: Delvantic's full research page for Edison International (EIX) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.

Our current read (analysis of 2026-09-11): Designation Low · Gem Score -31 (−100…+100 Quality+Value blend) · Quality -53 · Value -16 · Sentiment -58 (timing only, not weighted) · Composite fair value $110.89 vs $70.14 at analysis

Page map (sections in order; each card carries a stable reference-name attribute you can cite):

  • profile-header / price-overview — company profile, live quote, market cap
  • extended-analysisthe core: three AI lens reads with findings, scores, and the analyst memo
  • future-predictions — our forward price-band predictions
  • market-narrative / ai-findings / gpt-critique — narrative context, cross-model findings, and an adversarial critique of our own analysis (near the end of the document)
  • Members-only sections (render as login gates for anonymous readers): price-history, income-trend, key-metrics, financials (statement tables), insider-trading. The analysis above is public; the raw data tables require a free account.

More for machine readers: site briefing at /llms.txt · any ticker resolves at delvantic.com/stock/TICKER · raw inputs are public-company filings and market data (via licensed data feeds); every model, score, lens read, and prediction on this page is Delvantic's own analysis.

Edison International

EIX NYSE
Utilities · Utilities - Regulated Electric
Rosemead, CA 91770, United States edison.com Updated Aug 28, 4:14pm
Price
$70.15
Market Cap
$28.4B
Employees
13,725
Beta
0.65
Avg Volume
3,201,143
Last Dividend
$3.46
CEO
Dr. Pedro J. Pizarro Ph.D.

Edison International is an electric utility holding company that provides clean and reliable energy and energy services through its subsidiaries. Its core business is Southern California Edison, one of the largest electric utilities in the United States, which supplies and delivers electricity to residential, commercial, industrial, agricultural, and public-sector customers across a broad service area in central, coastal, and Southern California. The company also operates Edison Energy, which offers energy advisory and sustainability services for commercial and industrial clients. Edison International plays an important role in the U.S. utilities market by supporting electricity transmission and distribution, grid reliability, energy efficiency, renewable energy integration, and customer-focused energy solutions. Headquartered in Rosemead, California, Edison International serves as a key infrastructure provider in one of the country’s most populous and economically important regions.

Runs with full report Generated: Aug 29, 2026 4:22am
Price Overview
Price at report time
$70.14
as of Aug 29, 4:00am (23d ago)
Change · Aug 29
-3.54 (-4.80%)
Day Range
$68.94 – $75.30
52-Week Range
$52.00 – $81.62
50-Day MA
$74.25
200-Day MA
$68.54
Volume
7,395,049.00
Right now · live
Log in to get the live feed
Members see the real-time price and the move since this report (over 23d).
Share Structure
Outstanding 384,787,767.00
Float 383,686,474.00
Free Float 99.7%
High free float — 99.7% of shares trade freely, ~0.3% held by insiders/institutions
Very liquid — most shares trade freely. Low insider ownership can mean less management alignment, but makes large position sizing straightforward.
Price History (1 Year)
Last updated: Aug 29, 2026 4:35am (23d ago)
Revenue & Net Income Trend
The directional story — useful even when net income is negative.
Last updated: Aug 29, 2026 4:35am (23d ago)
Revenue
The top line — total sales before any costs or taxes are subtracted. A measure of how much business the company is doing.
Net Income
The bottom line — profit left after subtracting all expenses, interest, and taxes from revenue. Reflects accounting profitability, but includes non-cash items like depreciation, so it isn't the same as cash earned.
Operating Cash Flow
The real cash generated by the day-to-day business — selling products, paying suppliers, collecting from customers. Calculated from net income by adding back non-cash items and adjusting for timing (unpaid bills, unsold inventory). When OCF consistently lags net income, the reported profit may not be converting to real money.
Period Revenue Net Income Net Margin YoY/QoQ
Key Metrics
TD Twelve Data statement HEX SEC filing
Industry comparison last run: Aug 29, 2026 4:14am
P/E · trailing (TTM) (Price per dollar of earnings over the past year — not a run-rate or forward P/E)
HEX
Stock Price / EPS (Diluted)
6.07
Stock Price: $70.15
EPS (Diluted): 11.55
P/B Ratio (Price vs net asset value)
HEX
Stock Price / Book Value Per Share
1.41
Stock Price: $70.15
Total Equity: $19.26B
Shares: 386,000,000
EV/EBITDA (Total value vs operating profit)
HEX
Enterprise Value / EBITDA
6.51
Market Cap: $28.35B
Total Debt: $40.39B
Cash: $158.00M
EBITDA: $10.33B
Enterprise Value (Takeover price (cap + debt - cash))
HEX
Market Cap + Total Debt - Cash
$67.2B
Market Cap: $28.35B
Total Debt: $40.39B
Cash: $158.00M
Gross Margin (Revenue left after direct costs)
HEX
Gross Profit / Revenue
Gross Profit: N/A
Revenue: $19.32B
Missing from API: Gross Profit
Operating Margin (Revenue left after all operations)
HEX
Operating Income / Revenue
36.7%
Operating Income: $7.09B
Revenue: $19.32B
Net Margin (Revenue left as actual profit)
HEX
Net Income / Revenue
23.1%
Net Income: $4.46B
Revenue: $19.32B
ROE (Profit from shareholder equity)
HEX
Net Income / Total Equity
23.2%
Net Income: $4.46B
Total Equity: $19.26B
ROIC (Profit from all invested capital)
HEX
NOPAT / Invested Capital
9.4%
Operating Income: $7.09B
Tax Rate: 21.5%
Equity: $19.26B
Total Debt: $40.39B
Cash: $158.00M
Current Ratio (Can it pay short-term bills)
HEX
Current Assets / Current Liabilities
0.73
Current Assets: $7.69B
Current Liabilities: $10.54B
Debt/Equity (Leverage — debt vs equity)
HEX
Total Debt / Total Equity
2.10
Short-Term Debt: $4.32B
Long-Term Debt: $36.07B
Total Debt: $40.39B
Total Equity: $19.26B
Rev/Share (Top-line per share)
HEX
Revenue / Shares Outstanding
$50.04
Revenue: $19.32B
Shares: 386,000,000
Book Value/Share (Net assets per share)
HEX
(Total Assets - Total Liabilities) / Shares
$49.89
Total Equity: $19.26B
Shares: 386,000,000
FCF/Share (Real cash generated per share)
HEX
(Operating Cash Flow + CapEx) / Shares
$-1.85
Operating CF: $5.80B
CapEx: -$6.52B
Shares: 386,000,000
CapEx is negative (outflow) — added to OCF to get FCF
Div Yield (Annual income from holding)
TD
Last Annual Dividend / Stock Price
4.9%
Last Dividend: $3.46
Stock Price: $70.15
Payout Ratio (Earnings paid out as dividends)
HEX
Dividends Paid / Net Income
28.6%
Dividends Paid: -$1.27B
Net Income: $4.46B
Industry Benchmarks
Last run: Aug 29, 2026 4:14am
Compares EIX against LLM-researched typical ranges for its industry. One research call per industry, cached indefinitely — every stock in the same industry reuses the same baseline.
Income Statement (Annual)
Last updated: Aug 29, 2026 4:35am (23d ago)
Metric 2021 2022 2023 2024 2025
Revenue $14.9B $17.2B $16.3B $17.6B $19.3B
Cost of Revenue
Gross Profit
Operating Expenses $13.4B $15.7B $13.7B $14.7B $12.2B
Operating Income $1.5B $1.5B $2.6B $2.9B $7.1B
Net Income $1.2B $1.3B $4.5B
EBITDA $3.8B $4.1B $5.3B $5.9B $10.3B
EPS $2.00 $1.61 $3.12 $3.33 $11.58
EPS (Diluted) $2.00 $1.60 $3.11 $3.31 $11.55
Balance Sheet (Annual)
Last updated: Aug 29, 2026 4:00am (23d ago)
Metric 2021 2022 2023 2024 2025
Cash & Equivalents $390.0M $914.0M $345.0M $193.0M $158.0M
Total Current Assets $5.5B $7.1B $6.8B $7.2B $7.7B
Total Assets $74.7B $78.0B $81.8B $85.6B $94.0B
Current Liabilities $8.6B $10.3B $8.6B $8.4B $10.5B
Long-Term Debt $24.2B $27.0B $30.3B $33.5B $36.1B
Total Liabilities $57.0B $60.5B $63.8B $67.8B $74.8B
Total Equity $17.8B $17.5B $17.9B $17.7B $19.3B
Retained Earnings $7.9B $7.5B $7.5B $7.6B $10.7B
Cash Flow (Annual)
Last updated: Aug 29, 2026 4:35am (23d ago)
Metric 2021 2022 2023 2024 2025
Operating Cash Flow $11.0M $3.2B $3.4B $5.0B $5.8B
Capital Expenditure -$5.5B -$5.8B -$5.4B -$5.7B -$6.5B
Free Cash Flow -$5.5B -$2.6B -$2.0B -$693.0M -$715.0M
Acquisitions (net)
Net Debt Issued / (Repaid) $4.4B $4.9B $2.6B $2.6B $3.1B
Dividends Paid -$988.0M -$1.1B -$1.1B -$1.2B -$1.3B
Stock Buybacks $0 $0 -$200.0M -$32.0M
Net Change in Cash $305.0M $523.0M -$385.0M $152.0M $36.0M
Growth Trends (YoY %)
Last updated: Aug 29, 2026 4:35am (23d ago)
Metric 2022 2023 2024 2025
Revenue Growth +15.5% -5.1% +7.7% +9.8%
Gross Profit Growth
Operating Income Growth +0.4% +77.1% +11.5% +142.1%
Net Income Growth +7.3% +247.3%
EBITDA Growth +9.3% +29.9% +9.7% +76.0%
Dividend History (Last 20)
Last updated: Aug 29, 2026 4:00am (23d ago)
Date Dividend Declaration Record Payment
2026-07-07 $0.88
2026-04-07 $0.88
2026-01-07 $0.88
2025-10-07 $0.83
2025-07-07 $0.83
2025-04-07 $0.83
2025-01-07 $0.83
2024-10-07 $0.78
2024-07-08 $0.78
2024-03-27 $0.78
2023-12-28 $0.78
2023-09-28 $0.74
2023-07-03 $0.74
2023-03-30 $0.74
2022-12-29 $0.74
2022-09-29 $0.70
2022-07-01 $0.70
2022-03-30 $0.70
2021-12-30 $0.70
2021-09-29 $0.66
0Company Classification 1Industry Landscape 2Company Momentum 3Forward Projection 4aDCF Valuation 4bEarnings Power Value 4cAnchored PE 4dReverse DCF 4eRevenue-Based DCF 4fAnchored P/S 4gScenario Analysis 4hDividend Discount Model 4iBook Value Analysis 4jInsider Activity 4fCash Flow Quality 4gDebt Maturity Risk 4hMacro Environment 4iSector Intelligence 4jRevenue Confidence 4kSensitivity Analysis 4lSector Demand Cycle 5AI Investigation 5bThesis Evaluation 6Valuation Synthesis
computed not applicable not yet run 15 computed · 6 not applicable · 3 not yet run
Risk : Reward — upside vs downside from this company's own quarters
Not computed yet
Why there is no ratio: Risk:reward has not been computed for this name yet — its report predates the mechanical valuation chain. It is added, at $0, the next time a report or the nightly touches this ticker.
Narrative Economics
The story the market is telling about this stock — the intangible X-factor (founder mythology, cult dynamics, TAM-of-imagination) that moves price beyond what cash flows alone explain. After Shiller, Narrative Economics.
No narrative profile yet for EIX — it's generated by the pipeline (market-narrative step).
Growth Outlook
Analyzed 2026-08-29 04:47

The question every valuation on this page silently assumes: is this company likely to grow? Judged forward — the business, its category, the world — against what's already printed.

Growing Revenue is compounding ~9-10% on a regulated capex supercycle that SCE gets to earn on, and the earnings line is rebounding hard off a wildfire-charge-depressed base — but the structural rung is capped by equity funding and unresolved Eaton-fire liability, so this is Growing, not Accelerating. conf 7/10
Inline with category Category growing · Category median recent growth ~9.1% in a confirmed boom phase (heavy investment, broad revenue acceleration, margins holding); EIX revenue +9.8% YoY. EIX is growing essentially at category pace — riding the same regulated-capex tide, neither visibly gaining nor losing position on the top line. Its differentiator versus peers is negative rather than positive: California wildfire exposure is a company-specific drag on the per-share translation of that in-line top-line growth.
Next 2 quarters
Growing
Authorized revenue increases and rate base additions are already in the tariff, and the comparison base still contains prior-year wildfire charges. Revenue should hold near high-single-digit growth; reported EPS growth stays optically strong even as the base effect begins to fade.
↑ above expectations
Year 1
Growing
Full-year revenue tracks the authorized revenue requirement; rate base growth plus capital tracker recovery supports mid-to-high single digit core earnings growth. Deceleration in the quarterly trend and equity funding keep it from Accelerating.
≈ inline with expectations
Years 2–3
Holding
Rate base should still compound, but the base effect is exhausted and the funding of both capex and any wildfire settlement comes through equity and debt at 4.67% long rates. Per-share earnings power more likely holds around flat-to-modestly-up than compounds at the headline rate base pace, and an adverse liability resolution would push it lower.
↑ above expectations
The creme: each rung's call measured against what's already printed (vs analyst estimates · vs guidance / FY consensus · vs price-implied growth) — expectations in print are already in the price, so only the variant margin can pay. Hover a rung's chip for the margin read.
Growth drivers
70 Rate base capex supercycle — SCE's spend on grid hardening, covered conductor/undergrounding, distribution capacity and renewable interconnection converts directly into rate base, and rate base is the growth engine of a regulated electric. This is the single most reliable forward driver: revenue growth of ~9.8% YoY with low volatility (0.0102) and all years positive is the signature of authorized revenue-requirement step-ups, not cyclical demand.
40 California electrification and load growth — Transport and building electrification plus emerging large-load interconnection requests give SCE a volume tailwind after a decade of flat throughput. Load growth matters because it spreads the fixed revenue requirement across more kWh, easing the affordability constraint that otherwise throttles capex approval.
42 Cost-recovery machinery — AB 1054 wildfire fund, memo/balancing accounts and GRC true-ups mean prudently incurred wildfire and capital costs are largely deferred and recovered rather than expensed permanently. That mechanism is exactly what turned the prior-year charge into this year's +247% earnings snapback and is why revenue confidence is graded Good.
30 Category in boom phase — Regulated electric peers show median recent growth of ~9.1% with margins holding and heavy investment — the category is funding the same buildout. EIX at ~9.8% revenue growth is participating fully rather than being carried.
36 Depressed comparison base — Recent earnings YoY of +2.47x and the 0.93 earnings CAGR are largely arithmetic off wildfire-charge-suppressed prior periods. It is real for reported EPS optics over the next two prints but is not a repeatable growth mechanism — it fades by year 2.
Growth risks
76 Eaton fire and wildfire liability overhang — The largest single determinant of EIX's earnings power is how much of the fire loss lands on shareholders versus the AB 1054 fund and ratepayers. Fund adequacy, the prudency standard and any legislative reopening are outside management's control; an adverse path would force charges, additional equity and a reset of the growth base. This is the risk that can invert the whole call.
52 Equity funding dilution — Rate base can grow high single digits while EPS grows far less if the capex and liability funding come through share issuance. This is the standard wedge between the revenue growth you can see and the per-share growth investors receive, and it is the main reason the structural rung is not Growing strongly.
41 Affordability and regulatory lag — California bills are already high; the CPUC faces political pressure to trim requested capex, disallow costs, or stretch recovery timing. Industry revenue CAGR of only ~3.6% at the landscape level hints that authorized growth can come in below requests.
26 Financing cost with 10y at 4.67% — A capital-intensive, heavily levered utility refinancing into higher rates sees authorized ROE lag actual cost of capital; macro is flagged as headwind. Erodes the spread that makes rate base growth accretive.
19 Decelerating quarterly revenue trend — The revenue-confidence read flags a decelerating quarterly trend even as the annual average is 8.7%. Suggests the rate-increase step-up is annualizing rather than compounding faster — argues against any acceleration call.
The world is spending enormously to rebuild and expand electric grids — electrification, renewable interconnection, and rising large-load demand all push authorized utility investment up, and regulators broadly permit recovery. That is a structural tailwind EIX cannot easily lose access to: SCE is the monopoly wire in a large, essential service territory. The counter-current is that the same climate transition that creates the capex also creates the wildfire liability, and California is the epicenter of both. So EIX sits at the intersection of the strongest secular demand story in utilities and the sharpest tail risk in the sector. Higher long rates make the capex more expensive to fund and make the gap between authorized ROE and true cost of capital the quiet governor on real growth.
Growth position composite -4
ShrinkingStallingHoldingGrowingAccelerating
70Next 2 quarters · Growing
70Year 1 · Growing
50Years 2–3 · Holding
-4Composite (−100…+100)
A research prediction, not advice. Forward-graded: each rung is scored against the prints that follow it. Not an input to the GEM designation — track record first.
Claude Reading
Independent analyst synthesis · claude-opus-4-7 · generated 2026-08-29 04:33:56
Verdict Synthesis is anchored on inflated 2025 GAAP earnings — normalized fair value is $75-82, not $119; modestly undervalued as a yield vehicle but not the 70% mispricing advertised.

Looking at the raw numbers first: EIX is a $28B market cap regulated utility with $40.4B of debt against $19.3B equity (2.1x D/E), $158M cash, and negative FCF of -$715M in 2025 as capex ($6.5B) swamped operating cash flow ($5.8B). The 2025 reported net income of $4.46B — driving that 6x P/E — is materially inflated by lumpy items: Q1 2025 shows a 37.7% net margin and Q4 2025 shows 35.4%, versus 7-14% in every other quarter. Strip out those two spikes and normalized earnings look closer to $2.0-2.5B, putting a "clean" P/E at 11-14x, not 6x. The synthesis model's $119 DCF fair value almost certainly extrapolates the flattered 2025 op income of $7.09B (vs $2.9B in 2024 and $2.6B in 2023) — that's a garbage-in problem, not a hidden compounder.

The pre-flight note that the earnings spike "appears anomalous (likely wildfire settlement or regulatory item)" is exactly right and should have flowed downstream, but the synthesis engine ignored it and produced a +70% upside signal anyway. That's the central contradiction in the prior model stack: pre-flight flags the earnings as non-recurring, momentum then reports 93% earnings CAGR and 247% YoY as if it's real, and synthesis anchors fair value on that inflated base. The narrative layer at least honestly frames the debate — fallen-angel with unresolved wildfire tail risk — but its "anchored" designation is generous when the fundamental anchor itself is a one-time gain. A 4.9% dividend yield with a 29% payout ratio on real (not GAAP-inflated) earnings is more like a 50-60% payout, which is normal for a utility, not the fortress coverage the bull story implies.

The contrarian case a skeptic would press: California wildfire liability is not a solved problem. AB 1054's wildfire fund is finite ($21B), and a single catastrophic season (Eaton Fire exposure is live) can burn through utility contributions and force equity issuance. EIX carries 2.1x debt/equity with 0.73 current ratio and needs to fund $6.5B/yr of capex indefinitely in a rising-rate environment — every 100bps of refi cost on $40B of debt is $400M of pretax income, roughly 20% of normalized earnings. Interest coverage on normalized EBIT is thin. The insider tape is uninformative — all April 2026 grants, one tiny 500-share sale — no cluster buying that would signal management sees the discount as real. Decelerating quarterly revenue trend (Q1 2026 at $4.10B is the weakest print in the series) undercuts the rate-base growth story.

I dissent from the synthesis "fair_value / +70% upside" framing and land closer to fairly-valued-to-modestly-undervalued. On normalized ~$2.2B earnings and ~55M shares, EPS is roughly $5.70, and a peer-appropriate 13-14x multiple (discounted from the ~17x sector for genuine California/wildfire overhang) gets you $74-80 — call it 5-15% upside plus a 4.9% yield, so a 10-20% total return case, not 70%. The market's 6x headline P/E is not mispricing so much as correctly discounting a non-recurring earnings base. The narrative layer's bear thesis (California-specific liability trap, capex ROI compression) is the more honest read of why the discount exists. I'd own EIX as a yield-plus-modest-capital-return utility position, not as a 70% mispricing. Fair value $75-82; not a table-pounder either way, and the thesis genuinely does hinge on wildfire season outcomes and the next GRC decision — measurable via Eaton Fire settlement disclosures and CPUC rate case rulings over the next 2-4 quarters.

GPT Reading
Independent reading · gpt-5.4 · generated 2026-08-29 04:34:10
Verdict Fairly valued to slightly overvalued at $70 — the headline 6x P/E is flattered by non-recurring earnings; on normalized utility economics and wildfire-adjusted risk, fair value is closer to $60-$70.

At $70, EIX looks cheap on the surface and only cheap on the surface. The 6.1x P/E, 1.4x book, and 4.9% dividend yield scream utility bargain, but the earnings base behind that multiple is clearly distorted. 2025 net income was $4.46B on $19.32B of revenue, versus $1.28B on $17.60B in 2024 and $1.20B in 2023. That is not the profile of a suddenly transformed regulated utility; it is the profile of a company with large episodic items running through the P&L. You can see it in the quarterly margins: 37.7% in 1Q25 and 35.4% in 4Q25, surrounded by more normal-looking 7.6% to 14.5% quarters. For a regulated electric utility, reported earnings are a poor anchor when they jump from roughly $1.2B to $4.5B in one year while free cash flow remains negative. If I normalize earnings closer to the 2023-2024 run rate plus modest rate-base growth, the stock is not trading at 6x earnings; it is closer to a low-teens multiple, which is much less obviously mispriced.

The balance sheet is the real governor on valuation. EIX ended 2025 with $40.39B of debt against just $158M of cash and $19.26B of equity, a debt-to-equity ratio of 2.1x and a current ratio below 0.73x. Operating cash flow of $5.80B sounds solid until you put it beside $6.52B of capex, leaving free cash flow at negative $715M. That is not unusual for a utility in investment mode, but it does mean the equity story depends on uninterrupted capital-market access and constructive regulation. A utility can carry heavy leverage if its allowed returns, recovery mechanisms, and legal environment are stable; California wildfire exposure means EIX does not get to enjoy the same valuation as a plain-vanilla southeastern utility. The market is not irrational for haircutting a business that is simultaneously levered, capex-hungry, cash-flow negative after investment, and exposed to low-frequency/high-severity liabilities.

What stands out most is the contradiction between model-driven “massive upside” logic and the underlying quality of the earnings stream being capitalized. EV/EBITDA at 6.5x and P/B at 1.4x are not demanding if you believe the 2025 step-up is durable and liability risk is over-feared. I don’t. Revenue growth is respectable — from $14.91B in 2021 to $19.32B in 2025, about 6%-7% annualized on the annual figures — but that is exactly what a utility should produce through rate base and tariff recovery. It does not justify treating 2025 profitability as a new steady state. The dividend looks covered on the reported 28.6% payout ratio, yet if normalized earnings are materially lower than 2025’s $4.46B, that cushion is less generous than it appears, especially with external funding needs. My read is that the stock deserves a discount, just not because the franchise is weak; it deserves one because accounting earnings overstate distributable economics and because tail risk belongs in the multiple.

The best argument against my caution is straightforward: even after normalizing away some of the 2025 jump, the stock may still be inexpensive. Annual revenue rose to $19.32B, recent quarterly revenue was up 9.8% year over year, and 1Q26 net income of $531M on $4.10B of revenue was still better than many historical quarters without relying on the most extreme 2025 spikes. If the regulatory construct allows most wildfire-related and grid-hardening costs to be recovered, then the right lens is not free cash flow but rate-base compounding. On that view, negative FCF is a feature of utility growth, not a flaw, and 1.4x book for a sector leader with a near-5% yield could be undemanding. A smart bull would also say the market has already embedded a very large California-risk discount, so any evidence that catastrophic liability outcomes are less severe than feared could rerate the stock quickly.

What would change my mind is evidence that 2025 was not a one-off earnings mirage and that the liability discount should compress. Concretely, if EIX can produce something like $2.0B-$2.5B of annualized net income excluding unusual items, keep quarterly margins in a sustainable low-teens range rather than bouncing between 8% and 35%+, and move operating cash flow meaningfully above capex so free cash flow approaches breakeven without equity dilution, then I would view $70 as too low. Just as important would be legal and regulatory clarity that caps wildfire downside or confirms timely cost recovery. Absent that, I think investors anchoring on the headline 6x P/E are paying too little attention to how fragile that “E” is.

Grok Reading
Independent reading · grok-4.5 · generated 2026-08-29 04:35:01
Verdict Modestly undervalued at $70 — normalized earnings support ~$85-95, not the $119 DCF; 5% yield and rate-base growth offset CA wildfire overhang

The numbers that jump out first are not the headline multiples but the earnings quality behind them. Edison printed $4.46B of net income in 2025 on $19.32B of revenue—more than triple the $1.28B earned in 2024 and nearly four times the $1.20B of 2023—while operating income leapt from $2.93B to $7.09B. The quarterly pattern exposes the distortion: margins swung from 37.7% and 35.4% in two quarters down to 7.6% and 12.9% in others, and the first quarter of 2026 already snapped back to a more ordinary $531M of net income on $4.10B of revenue. A 6.1x trailing P/E and 6.5x EV/EBITDA are therefore optical bargains built on non-recurring items, almost certainly wildfire-related recoveries or regulatory true-ups rather than a new steady-state earnings power. Strip the spike and you are looking at something closer to a mid-teens multiple on normalized mid-$1B to low-$2B earnings—still inexpensive for a regulated electric utility, but no longer a deep-value mirage.

What is durable is the top line and the reinvestment cycle. Revenue grew from $14.91B in 2021 to $19.32B in 2025 (roughly 8.7% CAGR), with recent year-over-year still near 10%. Operating cash flow of $5.80B easily funds the dividend at a 28.6% payout and a 4.9% yield, even while free cash flow runs negative $715M on $6.52B of capex. That capex is the rate-base growth engine; for a California IOU it is the primary path to allowed returns. Balance-sheet leverage is the real constraint: $40.39B of debt against $158M of cash, a 2.1x debt-to-equity ratio, and a 0.73 current ratio leave little margin for error on refinancing or an unexpected liability spike. ROE of 23% and a 37% operating margin are not sustainable regulated returns—allowed ROEs live nearer 9–11%—so any model that capitalizes the 2025 print at a clean-utility multiple is overstating intrinsic value by a wide margin. The $111–$119 composite fair-value figures in the prior synthesis look unreasonably optimistic once earnings are normalized; a more grounded range sits nearer $85–95, still implying meaningful upside from $70 but not seventy percent.

The market narrative is correctly focused on California wildfire tail risk and the PG&E precedent, and that story explains most of the discount to peer multiples. Yet the data also show a company that continues to grow rate base, collect a mid-single-digit yield, and generate multi-billion operating cash flow while the regulatory recovery mechanisms have improved since the last crisis cycle. Insider activity is noise—mostly routine awards and a trivial 500-share sale—and does not signal distress. The contradiction I catch is between the rule-based “mature earner” label and the secondary flag of weak FCF quality: this is a classic heavy-capex utility, not a free-cash compounder, and it should be underwritten on rate-base ROE and regulatory lag, not on a single year’s inflated net income.

The strongest case against this read is straightforward: if even half of the 2025 earnings power proves sticky through higher authorized rate base and wildfire-hardening cost recovery, then the stock is dramatically cheap, the 6x multiple is real, and $110-plus is achievable without heroic assumptions. Bears who stay short also have to explain why revenue keeps compounding near 9–10% and why the payout ratio remains so conservative if the equity is truly impaired. I weigh that argument down because the quarterly mean-reversion is already visible in early 2026, the balance sheet cannot absorb another multi-billion unrecoverable hit without dilutive consequences, and regulated returns simply do not stay at 23% ROE. The discount is partly earned; it is not pure panic.

What would flip the verdict is a clean full-year 2026 net income print that holds above roughly $2.2–2.5B without one-time credits, paired with any material reduction in wildfire liability reserves or a constructive CPUC decision that locks in higher equity returns on the incremental grid and vegetation-management spend. Conversely, another large uninsured fire season or a punitive regulatory order that strands capex would justify the current discount and push the stock toward the low $50s.

Big-3 Panel — where each AI stands
Each AI above independently stated a direction (undervalued, fairly valued, or overvalued) and how strongly it believes it (conviction, 0–5). We combine those into a Bull-Bear Index on a 0–10 scale: 5 is neutral, 10 is maximum bullish (undervalued at full conviction), 0 is maximum bearish. We compute the score ourselves with the same arithmetic for every seat — the models never grade their own bullishness — so the three are directly comparable. Δ shows how far each seat sits from the panel average of 6.0; a large Δ marks the dissenting voice, usually the one worth reading.
Claude claude-opus-4-7 5.0
fairly valued · conviction 3/5 · Δ -1.0 vs panel · self: 5.0
GPT gpt-5.4 5.0
fairly valued · conviction 4/5 · Δ -1.0 vs panel · self: 4.0
Grok grok-4.5 8.0
undervalued · conviction 3/5 · Δ +2.0 vs panel · self: 6.0
Advanced Analysis Forensic deep-dive · separate lenses
Separate reads — Company Quality (is it a great business?), Valuation (is it mispriced?), and General Sentiment (how macro + narrative are pushing it), kept deliberately apart · 2026-08-29 05:07:52
Delvantic - Cairn AI
Wait for a dip - low-60s starter 7/10
Modestly cheap California utility with a wildfire narrative peaking into a hard date - fair-ish here, actionable in the low-60s.
The cruxWhether the Aug 31 California wildfire-liability legislative outcome preserves AB1054-style protections - that single event resets both the deserved multiple and the tail risk.
Forensic checks Derived mechanically from EIX's filed financials — not from the AI lenses
Liquidity & RunwayCritical Runway
DilutionStable Share Count
Earnings QualityGood Earnings Quality
The four lensesswitch a tab for its full read — score + evidence
Company Quality
-53
Shaky
edge √Σ 70 · risk √Σ 129 · conf 6/10

Edison International is a California regulated electric utility (SCE) - a mature earner with revenue growing from $14.9B in 2021 to $19.3B in 2025 and reported operating margins expanding sharply to 36.7% in 2025 (likely reflecting wildfire cost recovery/regulatory items rather than a true structural step-up). Net income of $4.46B in 2025 looks strong on paper, and OCF/NI at 2.68x with negative accruals (-2.8% of assets) suggests reported earnings are not being inflated by aggressive accrual choices. Share count is essentially flat (0.4% CAGR), so per-share value is not being diluted away.
The problem is the balance sheet and cash conversion. Net debt is roughly $40.2B against $158M of liquid cash, short-term debt of $4.32B dwarfs cash, and FCF has been deeply negative every year shown (-$5.5B, -$2.6B, -$2.1B, -$693M, -$715M). Altman Z of 0.81 sits in the classical distress zone. This is structurally a capex-heavy, debt-financed utility whose 'runway' math looks alarming in isolation but is masked by continuous access to capital markets - that access is the entire business model, and it is contingent on regulatory outcomes and wildfire liability resolution. Insider tape is unremarkable: routine director awards and small $37K sales by one officer, no meaningful buying.
Quality read: earnings integrity looks acceptable, dilution discipline is fine, but survival math depends wholly on continued capital-market access and regulatory support, and free cash flow has never turned positive in the window shown.

Strengths 3
m45
Earnings quality not flagged
OCF/NI of 2.68x and accruals of -2.8% of assets indicate reported earnings are not being propped up by accrual buildup; cash-based conversion looks clean at the operating level.
m40
Stable share count
Diluted share CAGR of 0.4% (380M to 386M over 5 years) - management is not diluting equity holders to plug the FCF gap; the gap is funded with debt instead.
m35
Regulated revenue growth
Revenue up from $14.9B to $19.3B (a 6.7% CAGR) with reported operating margin expanding into the 30%s in 2025, consistent with rate-base growth and cost recovery.
Concerns 5
m75
Chronic negative FCF
FCF was negative every year 2021-2025 (-$5.49B, -$2.56B, -$2.05B, -$693M, -$715M). The business cannot self-fund its capex and dividend; it is a permanent net issuer of debt.
m70
Net debt $40B vs $158M cash
Liquid cash covers under 1% of market cap; short-term debt of $4.32B exceeds cash by 27x. Refinancing access is the business, not a margin of safety.
m55
Altman Z 0.81 - distress zone
Z-score in the classical bankruptcy range. Model overstates risk for regulated utilities, but it reflects genuine leverage intensity.
m50
Wildfire liability overhang
SCE remains exposed to California wildfire litigation and AB1054 fund mechanics; the 2025 earnings jump may reflect regulatory recovery items that are not a clean run-rate.
m25
No insider conviction buying
Six small sales totaling $721K and zero open-market buys over 12 months - no signal, but also no vote of confidence from insiders given the overhang.
This is a classic regulated-utility quality profile with a California-specific twist: the reported earnings look fine, dilution is disciplined, and the top line is growing predictably with the rate base - but the business does not generate free cash and it never has in the window I can see, so its solvency is a bet on continuous capital-market access and constructive regulation, both of which are hostage to wildfire liability. I would not call this a fortress or even solid; it is a leveraged, regulated cash-burner where quality hinges on things I cannot see in the numbers. Shaky, with a lean toward Mixed if the wildfire tail resolves cleanly.
Verify before trusting this (5)
  • Composition of 2025 net income jump to $4.46B - how much is one-time wildfire cost recovery or regulatory true-ups vs recurring earnings
  • Status of AB1054 wildfire insurance fund contributions and any outstanding uninsured wildfire liability claims
  • Maturity ladder and weighted average cost of the $40B+ debt stack, and whether any covenants are near triggers
  • SCE authorized ROE and current GRC cycle status with the CPUC
  • HoldCo (EIX) vs OpCo (SCE) debt allocation and structural subordination
Valuation / Mispricing
-16
Modestly Cheap
edge √Σ 76 · risk √Σ 93 · conf 5/10
Price $70.14 vs a skeptical deserved value of roughly $75-80 - a ~10% discount, thin margin of safety given wildfire tail risk. attractive below $60.00

The e2e composite fair value of $111 and signal-adjusted $119 imply ~60-70% upside, but these need heavy sanity-checking. The anchored-PE method spits out $205 which is absurd for a California utility with negative FCF and an Altman Z of 0.81; that number is a runaway and should be discounted. The EPV floor of $17.56 is the other extreme, reflecting near-zero owner earnings once you charge for maintenance capex. Triangulating: a fair regulated-utility multiple of ~13-15x on normalized EPS (EIX has guided ~$5.50-6.00 range historically) lands deserved value in the $75-90 zone before wildfire haircut, call it $70-80 after a prudent liability discount. Against a $70 price, that is essentially fair to modestly cheap - maybe 5-15% below deserved, not 70%. What's priced in: the market already sees the wildfire tail, chronic negative FCF, and California regulatory friction. What's not fully priced: constructive AB1054 protection, rate-base CAGR into grid hardening, and a normalization of the fear discount if no major fire season materializes. The gap is real but modest, not a fat pitch.

Cheap signals 3
m55
Discount to peer-normalized utility multiple
At ~12x forward earnings versus regulated-utility peers at 15-18x, EIX carries a visible California/wildfire discount that partially overstates the risk if AB1054 holds.
m40
Composite FV meaningfully above price
Composite $111 and signal-adj $119 vs $70.14 price implies 58-70% upside; even haircut 50% for method risk, deserved value still sits above spot.
m35
Fallen-angel setup if fire season is benign
Sentiment-driven derating creates optionality: a quiet season or a favorable liability outcome could re-rate the multiple 2-3 turns, worth ~$15-20/share.
Rich / priced-in 3
m60
Anchored-PE method is a runaway
$204.59 anchored-PE fair value is not credible for a utility with negative FCF and distress-zone Altman Z; it inflates the composite and should be down-weighted.
m55
EPV floor near zero
$17.56 EPV floor reflects that on maintenance-capex-adjusted owner earnings, the business generates almost nothing - the whole equity story depends on continued rate-base growth funded by external capital.
m45
Chronic negative FCF caps deserved multiple
No free cash across the visible window means the deserved P/E must sit below sector median - the market is right to apply a discount, and part of the apparent 'cheapness' is just fair pricing of that structural flaw.
Modestly cheap, not a screaming bargain. The composite fair value is inflated by a runaway anchored-PE method; strip that out and I get deserved value in the mid-70s to low-80s, so at $70 I'm looking at maybe 10-15% upside plus a dividend, not 70%. That's not enough cushion for a business that has never generated free cash and carries an existential wildfire tail. I want it in the low-60s before I get interested - that would give me a real margin of safety against the next bad fire year.
Verify before trusting this (5)
  • Latest wildfire liability accrual and AB1054 fund balance
  • 2025 rate case outcome and authorized ROE
  • Actual maintenance vs growth capex split to test the EPV floor
  • Equity issuance guidance - dilution risk from funding negative FCF
  • Forward EPS guidance for normalized multiple math
General Sentiment
-58
Headwind
tail √Σ 39 · head √Σ 106 · conf 7/10

The dominant force on EIX today is a live, name-specific narrative shock: PG&E just dropped 7.5% on Aug 28 into an Aug 31 legislative deadline on California wildfire-liability protections, and EIX is the co-defendant in that same narrative complex (Eaton Fire meetings still being scheduled). This is a classic fallen-angel setup where the story, not the fundamentals, sets the price, and the story is loudest exactly this week. Analyst tone and momentum are constructive (strong positive trend, 8.7% CAGR), but they are being drowned out by binary regulatory-headline risk into a hard date. The macro tape is a mild risk-on (+35, VIX 14), which normally helps, but on a beta-0.65 regulated utility the market backdrop barely registers - the tape doesn't rescue a name whose price is being set by Sacramento, not the S&P. Net: moderate, directional headwind pressure with an identifiable near-term catalyst that could flip it either way.

Tailwinds 2
m25
Risk-on tape, muted transmission
VIX 14 and a mild risk-on regime are supportive, but with beta 0.65 the macro tailwind barely reaches this name - a small offset, not a rescue.
m30
Dividend declaration and bill-relief optics
Q3 dividend declaration and the customer bill-credit announcement reinforce the 'stable regulated utility' counter-narrative and give bulls something to cite.
Headwinds 4
m78
Wildfire-liability deadline overhang
PG&E -7.5% on Aug 28 into the Aug 31 legislative deadline drags EIX by direct read-through; wildfire narrative is the single biggest price-setting force on this stock this week.
m55
Fallen-angel narrative still in force
Story-driven discount (price $70 vs bull-case anchor $119) reflects unresolved regulatory and litigation overhang that the market refuses to underwrite until clarity arrives - a persistent, moderate press on the tape.
m30
Eaton Fire headline drip
SCE's ongoing community-recovery meetings keep the fire narrative in the news cycle, preventing the story from fading even on quiet days.
m35
Rate backdrop unfriendly to utilities
10y at 4.67% is a persistent structural headwind for a rate-sensitive regulated utility, capping multiple expansion even if the wildfire cloud clears.
The pressure on EIX right now is clearly negative and stock-specific: a California wildfire-liability narrative is peaking into a hard legislative date, and the co-defendant utility just cratered 7.5% next door. The mild risk-on tape and low beta mean the broad market backdrop is essentially inert here - this name is being priced by Sacramento headlines, not the SPX. I read it as a moderate headwind with a real near-term catalyst; a favorable Aug 31 outcome could flip the sentiment sharply positive given how fallen-angel setups snap back, but into the print the pressure leans down.
Verify before trusting this (4)
  • Aug 31 California wildfire-liability legislative outcome - binary catalyst that could flip pressure to strong tailwind or strong headwind
  • Any target-price revisions or downgrades from utility analysts in the wake of the PG&E move
  • Whether EIX trades in sympathy with PG&E day-of, or decouples (a decoupling would signal narrative fatigue)
  • 10y yield direction - a rally in bonds would materially ease the utility-cohort press
The market-wide tape + this name's exposure to it (beta / sector / narrative durability). Context on the non-fundamental pressure — not a call on the business or the price. processId: detail-general-sentiment
Growth Outlook
-4
Growing
edge √Σ 102 · risk √Σ 106 · conf 7/10

The world is spending enormously to rebuild and expand electric grids — electrification, renewable interconnection, and rising large-load demand all push authorized utility investment up, and regulators broadly permit recovery. That is a structural tailwind EIX cannot easily lose access to: SCE is the monopoly wire in a large, essential service territory. The counter-current is that the same climate transition that creates the capex also creates the wildfire liability, and California is the epicenter of both. So EIX sits at the intersection of the strongest secular demand story in utilities and the sharpest tail risk in the sector. Higher long rates make the capex more expensive to fund and make the gap between authorized ROE and true cost of capital the quiet governor on real growth.

Growth drivers 5
m70
Rate base capex supercycle
SCE's spend on grid hardening, covered conductor/undergrounding, distribution capacity and renewable interconnection converts directly into rate base, and rate base is the growth engine of a regulated electric. This is the single most reliable forward driver: revenue growth of ~9.8% YoY with low volatility (0.0102) and all years positive is the signature of authorized revenue-requirement step-ups, not cyclical demand.
m40
California electrification and load growth
Transport and building electrification plus emerging large-load interconnection requests give SCE a volume tailwind after a decade of flat throughput. Load growth matters because it spreads the fixed revenue requirement across more kWh, easing the affordability constraint that otherwise throttles capex approval.
m42
Cost-recovery machinery
AB 1054 wildfire fund, memo/balancing accounts and GRC true-ups mean prudently incurred wildfire and capital costs are largely deferred and recovered rather than expensed permanently. That mechanism is exactly what turned the prior-year charge into this year's +247% earnings snapback and is why revenue confidence is graded Good.
m30
Category in boom phase
Regulated electric peers show median recent growth of ~9.1% with margins holding and heavy investment — the category is funding the same buildout. EIX at ~9.8% revenue growth is participating fully rather than being carried.
m36
Depressed comparison base
Recent earnings YoY of +2.47x and the 0.93 earnings CAGR are largely arithmetic off wildfire-charge-suppressed prior periods. It is real for reported EPS optics over the next two prints but is not a repeatable growth mechanism — it fades by year 2.
Growth risks 5
m76
Eaton fire and wildfire liability overhang
The largest single determinant of EIX's earnings power is how much of the fire loss lands on shareholders versus the AB 1054 fund and ratepayers. Fund adequacy, the prudency standard and any legislative reopening are outside management's control; an adverse path would force charges, additional equity and a reset of the growth base. This is the risk that can invert the whole call.
m52
Equity funding dilution
Rate base can grow high single digits while EPS grows far less if the capex and liability funding come through share issuance. This is the standard wedge between the revenue growth you can see and the per-share growth investors receive, and it is the main reason the structural rung is not Growing strongly.
m41
Affordability and regulatory lag
California bills are already high; the CPUC faces political pressure to trim requested capex, disallow costs, or stretch recovery timing. Industry revenue CAGR of only ~3.6% at the landscape level hints that authorized growth can come in below requests.
m26
Financing cost with 10y at 4.67%
A capital-intensive, heavily levered utility refinancing into higher rates sees authorized ROE lag actual cost of capital; macro is flagged as headwind. Erodes the spread that makes rate base growth accretive.
m19
Decelerating quarterly revenue trend
The revenue-confidence read flags a decelerating quarterly trend even as the annual average is 8.7%. Suggests the rate-increase step-up is annualizing rather than compounding faster — argues against any acceleration call.
vs expectations: ~6m above · 1y inline · 2-3y above
The forward growth verdict — is the business itself likely to grow (next 2 quarters / year 1 / years 2–3), judged against its category and against printed expectations. The full horizon ladder + creme renders on the Growth Outlook card above. Not a call on the price (Valuation owns that) or the tape (Sentiment owns that).
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Lenses kept deliberately separate — Company Quality (price-agnostic), Valuation (price-conditional), General Sentiment (non-fundamental macro/narrative pressure), and Growth Outlook (the forward growth verdict). The scores are not blended. Filing-level items (convertibles, lock-ups, customer concentration) are v2 — see each lens's "verify."
Price Prediction
Higher +7.6% v0.6.0 View full prediction →

When we made this prediction on Aug 29, 2026, EIX was $70.14. We expect it to be $75.50 by Mar 2027, and we consider it great value under $60.00. This is an early model (v0.6.0) — the direction is more reliable than the exact price. Made Aug 29, 2026.

Price when predicted$70.14
Our estimate for Mar 2027$75.50+7.6%
Great value below$60.00
Price history shown (6 Months)

Blue is our prediction, starting the day we made it. Grey is a slower route to the same place — the same destination, taking longer. Black is the actual price, so you can see how we are doing.

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My Notes personal — only you see this
v1.1.647 · fdb9d9c9 · 2026-09-21 02:01:21