Can Edison International Stock Jump 30%?
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Edison International (EIX) stock trades at 6.0 times earnings, compared with 22.8 for the median S&P 500 company. Part of that profit falls outside management’s core earnings: on core earnings of $6.75 a share over the same twelve months, the stock trades at about 8.8 times. A 30% gain would still leave the shares just below their July 22, 2026 close of $79.08. The stock closed at $59.71 on November 2, 2026, so a rise of that size would take it to about $77.62. The stock has risen that much from a low to a later high inside a single calendar year in half of the last ten years. The low price could mark a sound utility on sale, or a fair price for one with real trouble. So what does a buyer at that price actually get?
What Does Edison Stock Offer At This Price?
A buyer gets a utility that keeps more of each sales dollar than the typical large company. Over the twelve months to September 30, 2026, Edison’s operating margin was 26.7%, compared with 18.6% for the median S&P 500 company. Net income over those twelve months was $3.81 billion, up from $3.19 billion a year earlier. Management’s 2026 guide for basic earnings per share is $5.66 to $5.96, which puts the stock at about 10 times earnings. Basic earnings include items management leaves out of its core figure, guided at a cost of $0.24 a share for 2026.
Edison also converted 37.5% of its revenue into cash from operations over those twelve months, and its dividend yields 5.8%. Management said on the October 29, 2026 call that its dividend policy has produced 22 consecutive years of dividend growth.
Edison’s Profits Come With Wildfire Liability And Debt
The latest twelve months look better than Edison’s longer record. That operating margin sits well above 21.8%, the average of the three latest twelve-month periods, this one included. Half of that twelve-month net income came from one quarter, with Edison earning $1.92 billion in the quarter ended December 31, 2025. In the September 2026 quarter, net income was $751 million, down from $888 million a year earlier.
A buyer also takes on the wildfire liability of SCE, Edison’s utility. Management said on the October 29 call that reports concluded the Eaton Fire ignition was caused by SCE equipment, and that through its compensation program, SCE has extended more than 3,200 offers totaling $1.1 billion. California’s legislative session ended without the durable long-term solution management wanted. Edison’s total debt equals 185.8% of its market value, compared with 19.2% for the S&P 500 taken as one company, and management warned that a credit rating below investment grade would add further costs.
Edison Is Pressing California For A Wildfire Fix
Alongside the other California utilities, management is pushing for a special legislative session that could send a bill to the governor by the constitutional deadline of November 15. Management warned that delay into 2027 would be costly: today’s higher borrowing costs could add an estimated $300 million for customers over the life of the bonds SCE expects to issue in 2027 alone. Without reform, SCE would request less capital in its 2029 general rate case, which it will file in about six months.
On the grid, SCE has hardened about 90% of its distribution system in high fire risk areas, including more than 7,200 miles of covered conductor. Management has also kept its own targets. On the October 29 call, it reaffirmed its 2026 core earnings per share guidance of $5.90 to $6.20, along with its long-term core earnings growth target of 5% to 7% through 2030.
Edison stock is cheap on its twelve-month profit. A buyer at this price is betting less on Edison’s earnings, which management has held to its guide, than on California giving utilities a durable way to handle wildfire costs. You can watch two results: whether California sends a wildfire bill to the governor by November 15, and Edison’s full-year 2026 core earnings per share, expected in February 2027.
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