Edison International (EIX) Monthly Report

Publication Date: September 22, 2024

Company Overview

Edison International (EIX) stands out as a premier entity within the utilities sector, primarily engaged in the generation and distribution of electric power across Southern California. The company, headquartered in Rosemead, California, covers an extensive service area of roughly 50,000 square miles, serving a diverse clientele that includes residential, commercial, industrial, and agricultural sectors. Established in 1886, Edison International has built a vast transmission network featuring lines that range from 55 kV to 500 kV, along with approximately 38,000 circuit-miles of overhead lines and 31,000 circuit-miles of underground lines. The company operates 730 distribution substations, affirming its role as a key player in the energy industry since it became publicly traded on March 4, 1957.

Investment Outlook and Financial Performance

In the regulated electric utilities sector, investments in Edison International currently carry a “buy” recommendation, reflecting a positive outlook bolstered by strong financial metrics. The company reported total revenues of around $16.82 billion, underscoring its stability and growth potential. Analysts have set a target high price of $95.00, suggesting substantial upside for those now considering entry. The current stock price stands at $85.43, with a mean target price of $88.35, indicating further potential gains.

Market sentiment is notably optimistic, as evidenced by the low short interest of just 1.66%, based on 5,155,612 shares currently shorted out of 386,176,992 outstanding shares. This suggests that investors maintain a favorable view of the company’s future prospects. Both the fifty-day moving average, currently at $82.072, and the stock’s resilience against a fifty-two-week low of $58.82 reinforce the favorable outlook, demonstrating potential upward momentum within the market.

Price Analysis and Analyst Consensus

The forecast for Edison International exhibits a bullish sentiment with a calculated target low price of $68.00, a mean target price of $88.35, and a median target price of $89.88, collectively indicating substantial room for upward movement. With a total of 16 analysts contributing to the assessment, the mean recommendation score of 2.2 further emphasizes the consensus for a positive investment stance. Given the current trading price of $85.43, slightly below its fifty-two-week high of $88.77, the company’s stock is poised for potential price appreciation, supported by a substantial recovery trajectory over the past year.

Overall, Edison International remains an attractive option for investors seeking to capitalize on expected growth within the energy sector. With a firm foundation and favorable market dynamics, the company’s steady performance highlights a profitable investment opportunity.

Metric	Value
Market Cap	$33.0b
Total Debt	$37.5b
Total Cash	$465.0m
Shares Outstanding	386.2m
Float Shares	385.3m