EIX — Edison International

Sentiment is split rather than outright bullish or bearish. As of 2026-08-27, the stock sits at roughly 12.2x forward core EPS, with Q2 2026 core EPS of $1.54 beating consensus near $1.20 and FY26 guidance reaffirmed at $5.90-$6.20. Offsetting that, wildfires and Cal Fire/Eaton Fire investigations keep a lid on sentiment, the analyst community is mixed (18 Buy / 15 Hold / 4 Sell), and long Treasury yields above 5% pressure utility valuations.

Revenue on a trailing-twelve-month basis through Q2 2026 is approximately $19.4B, up roughly 10% from the prior-year TTM, but quarterly revenue is choppy: Q1 2026 rose 7.7% YoY while Q2 2026 fell 4.1% YoY. GAAP EPS is heavily distorted by one-off regulatory/tax items—Q4 2025 EPS of $4.78 and Q1 2025 EPS of $3.72 are not operational run-rate quarters; more normal quarters are in the $0.89-$1.38 range. The clean signal is that Q2 2026 operating income rose to $1.09B from $0.78B a year earlier, reflecting the 2025 GRC tailwind, and core EPS beat expectations. This is not a smooth accelerating trend; it is a rate-case-driven step-up buried under quarterly noise.

The trailing P/E of 7.57 is misleading because TTM EPS includes large one-off items. Using the FY26 core EPS guidance midpoint of $6.05, the forward P/E is about 12.2x; using consensus next-FY EPS of $6.13, it is about 12.0x. That is cheap versus EIX's own 5-year average P/E of 25.13, but that average is distorted by earlier depressed earnings. Against a normal regulated-utility multiple of roughly 14-16x, EIX is modestly cheap after accounting for wildfire risk. P/B of 1.62 and P/S of 1.46 versus the 5-year P/S average of 1.55 are also consistent with 'fair to modestly cheap,' while the 4.57% dividend yield is well-supported by forward earnings.

The market is correctly looking through the inflated trailing EPS and refusing to pay a premium for it. At $73.68, the stock is pricing in roughly a 12x multiple on realistic forward core EPS—meaning investors are not paying for aggressive growth or a quick wildfire resolution. If EIX executes its 5-7% core EPS growth through 2030 and avoids a major new liability shock, a re-rate to 13-14x core EPS would imply a range near $79-$85. If another negative fire development hits, the downside is toward the $62-$65 low analyst target. The current price is neither discounting a clear recovery nor fully pricing in a worst-case scenario.

As of 2026-08-27, RSI(14) is 51.35—neutral, not overbought or oversold. Price is 3.01% above the 20-day SMA, 0.79% below the 50-day SMA, and 7.6% above the 200-day SMA. That describes a stock grinding higher above its 200-day but stalling at its 50-day, essentially range-bound with no clean momentum signal. For entry timing, a pullback toward the 200-day SMA around $68.50 would offer a better risk/reward, while a decisive move above the 50-day with volume would signal early trend improvement.

• Long-dated Treasury yields above 5% periodically compress utility multiples and make a 4.57% dividend yield less competitive versus bonds.
• California wildfire and regulatory framework remain the dominant macro-political overhang; CPUC decisions, securitizations, and legislative liability reform directly affect SCE's risk profile.
• Rising interest rates raise debt-financing costs for the $38-$41B capital plan; EIX already carries 2.48x debt-to-equity and has negative free cash flow.
• Electrification, load growth, and grid-hardening investment support rate-base expansion and long-term EPS growth.
• Utility sector rotation often moves with macro rate expectations, creating sentiment swings unrelated to quarterly operating performance.

• Q3 2026 earnings in late October 2026: latest proof point on hitting the full-year $5.90-$6.20 core EPS guidance.
• New developments in the Eaton Fire / Cal Fire investigation or a settlement framework that reduces wildfire liability uncertainty.
• CPUC/FERC regulatory approvals tied to the 2025 GRC, securitizations, or broader California wildfire cost-recovery rules.
• A meaningful decline in long-term Treasury yields could trigger multiple expansion across defensive utility stocks.

• Wildfire liability: a new adverse Cal Fire finding or loss above SCE's $21B wildfire fund/insurance coverage could hit the balance sheet and equity.
• Financial strain from heavy capex: free cash flow was negative in nine of the last twelve quarters, and the $38-$41B plan depends on continuous debt/equity market access.
• Regulatory risk: CPUC/FERC disallowances, slower rate-case execution, or unfavorable liability framework changes could reduce allowed returns.
• Higher-for-longer interest rates would raise financing costs and pressure utility valuations.

EIX is a legitimate income-and-growth utility with a 4.57% dividend, 5-7% long-term core EPS growth guidance, and a recent Q2 beat. But at $73.68 the stock is already fairly priced at about 12.2x forward core EPS, and the wildfire/regulatory overhang plus heavy leverage justify the market's restraint. It is not a compelling buy or a clear sell—more a neutral, hold-quality total-return vehicle for investors comfortable with headline risk.

Applied a 13.0x justified forward P/E to the $6.05 midpoint of FY26 core EPS guidance; 13x is a discount to the typical 14-16x regulated-utility range due to wildfire and leverage risk, but above the current 12.2x forward multiple to reflect 5-7% EPS growth and the 4.57% dividend yield. This yields a fair-value estimate of $78.65 as of 2026-08-27.