Stock Price & Analysis

Based on recent market data and analyst reports, Edison International (EIX) is facing significant headwinds that suggest a SELL recommendation at current levels. Here's why:

Recent Market Performance

• Stock has declined significantly, with a -2.83% drop in the last trading session to $50.06
• Currently trading well below analyst price targets, indicating potential value trap concerns

Key Risk Factors

• Morgan Stanley recently downgraded EIX to "Underweight" and drastically cut price target from $71 to $48, citing severe financial risks related to California wildfire liabilities
• Concerns about the adequacy of California's wildfire fund, with potential $13.5 billion in damages from the recent Eaton Fire that could deplete much of the $21 billion fund
• Ongoing investigation into whether Southern California Edison equipment was involved in igniting the Hurst fire, creating additional liability uncertainty

Valuation Concerns

• Trading at a P/E of 39.81x, suggesting relatively expensive valuation despite mounting risks
• High debt-to-equity ratio of 180.65% indicates significant leverage
• Current ratio of 0.68 suggests potential liquidity concerns

Given the combination of significant wildfire liability risks, regulatory uncertainties, and relatively high valuation multiples, investors should consider selling EIX stock at current levels and wait for more clarity on the wildfire fund situation and potential liabilities before reconsidering a position.

Based on the provided data and recent market developments, here's the price prediction analysis for EIX stock in 2025:

Technical Analysis

The stock is currently trading at $50.77 [Relevant Data], showing significant downward pressure since January. The stock has fallen about 24% year-to-date, primarily due to the LA wildfires impact.

Key Price Levels:

• Support: $48.55 (Fibonacci S2)
• Resistance: $52.97 (Fibonacci R1)
• Current pivot point: $51.28

Fundamental Drivers

1. Positive Factors:

• Strong earnings growth projection: EPS expected to increase 16.4% YoY to $5.75 in fiscal 2025
• Attractive dividend yield of 4.19% [Relevant Data]
• Higher wholesale power prices forecast for 2025, with 30-35% increases expected in California

2. Risk Factors:

• Ongoing LA wildfire litigation and potential financial damages
• Equipment management concerns and legal repercussions
• Rising power demand from AI data centers putting pressure on infrastructure

Analyst Consensus

• 10 Strong Buy, 1 Moderate Buy, 6 Hold, 1 Strong Sell ratings
• Average price target: $83.68, indicating 42.1% upside potential

2025 Price Prediction: Based on technical analysis, fundamental factors, and analyst projections, here are the three scenarios:

1. Bullish Case ($75-80) - 35% probability

• Successful resolution of wildfire litigation
• Strong execution on infrastructure upgrades
• Benefit from higher power prices in California

2. Base Case ($65-70) - 45% probability

• Moderate impact from wildfire damages
• Continued steady earnings growth
• Gradual recovery in investor confidence

3. Bearish Case ($45-50) - 20% probability

• Severe financial penalties from wildfires
• Continued equipment management issues
• Higher than expected operational costs

Most likely scenario is the Base Case, supported by strong fundamentals and analyst consensus, despite near-term headwinds from the wildfire situation.

The S1 support level for EIX Stock is $49.62 ,The R1 resistant level for EIX Stock is $52.57.

As of the end of day on 2025-02-21, the price of EIX Stock was $52.12.

The target price for EIX Stock according to analyst rating is 73.38, with the highest price target at 100.00 and the lowest at 56.50. Analysts have a Moderate Buy rating on EIX Stock overall.

The market cap of EIX is $20.2B.

Based on the provided data and recent events, I'll analyze whether EIX is overvalued.

Recent Events Impact: Morgan Stanley recently downgraded EIX and lowered its price target from $71 to $48, citing severe financial risks related to California's wildfire fund adequacy. The stock has faced significant pressure due to potential wildfire liabilities, particularly after the recent Eaton Fire incident.

Valuation Metrics Analysis:

• P/E ratio decreased from 39.81 (2022) to 22.99 (2023), showing improved valuation
• EV/EBITDA slightly increased from 10.35 to 10.48
• P/S ratio increased from 1.42 to 1.68
• P/B ratio rose from 1.78 to 1.98
• Dividend yield declined from 4.46% to 4.19%

Financial Performance:

• Net income improved significantly from $612M (2022) to $1.197B (2023)
• EPS grew from $1.60 to $3.11
• ROE increased from 4.44% to 8.71%
• Net margin improved from 4.79% to 8.61%

Conclusion: EIX is not overvalued based on traditional metrics, with its P/E ratio below industry average and improved financial performance. However, significant wildfire-related risks and potential liabilities create substantial uncertainty around the company's valuation. The recent stock price decline reflects these heightened risks rather than fundamental overvaluation.

Edison International is the holding company of Southern California Edison Company (SCE) and Edison Energy, LLC (Edison Energy). The Company is engaged in providing clean and reliable energy and energy services through its independent companies. SCE is a public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of Southern California. SCE delivers electricity to approximately 15 million people across Southern, Central and Coastal California. Edison Energy, LLC, an indirect wholly owned non-utility subsidiary of Edison International, a global energy advisory firm providing integrated sustainability and energy solutions to commercial, industrial and institutional customers.

Based on the provided data and recent market analysis, here's a price prediction for Edison International (EIX) stock by 2030:

EIX stock is projected to reach $83-85 by 2030, driven by the company's strong position in California's utility market and increasing demand from AI data centers. The stock is currently significantly undervalued with over 42% upside potential according to analyst consensus.

The company's earnings are expected to grow at 16.4% year-over-year to $5.75 in fiscal 2025, suggesting a steady growth trajectory that could support higher valuations over the long term.

EIX has a total of 14316 employees.