Is this utility built on regulated power delivery?
Edison International is a U.S. electric utility company, with operations centered on regulated electricity delivery. The business provides power to customers through its utility infrastructure and related services. Its economics are tied to maintaining and investing in a large physical network that supports day-to-day electricity demand. At today’s scale, it sits among larger listed utility operators by market value.
Are rising revenues offset by heavy capital spending?
FundamentalsFor 2025, reported in USD, revenue was about USD 19.3 billion, alongside EBIT of roughly USD 7.1 billion and net income of about USD 4.7 billion. Over the same period, revenue increased 9.8% versus the prior year, with trailing margins showing 39.30% gross margin, 30.77% operating margin, and a 19.27% net profit margin.
Cash generation and funding needs were uneven in the latest year: depreciation and amortization totaled about USD 3.2 billion while capital spending reached roughly USD 6.5 billion, producing a cash flow proxy of about USD 2.5 billion under the stated definition. Cash on hand was USD 158 million against USD 4.3 billion of total debt.
Is the stock price stretching fair value limits?
DCF / MultiplesAt USD 75.66, the stock trades near the upper end of the DCF range. That contrasts with the headline multiples, where the shares trade at 7.70x trailing earnings and 7.53x EV/EBITDA.
Valuation Depends on Cash Discipline
TakeawayThe price leans on a generous interpretation of fair value. That’s contrarian, given how low reported cash sits. The case works if cash generation keeps up with heavy spending. It also needs balance sheet pressure to stay contained. If funding demands rise, the valuation can unravel quickly.