Edison International Common Stock (EIX) : juste valeur

Thèse ACCE

Edison International is the parent of Southern California Edison, a regulated electric utility serving roughly 15 million people across central, coastal and southern California, with earnings driven by rate-base investment in transmission, distribution and grid hardening. Its structural edge is the regulated return on that asset base, which is why a 19.7% ROE and a 26.9% operating margin look unusual for a utility at this size. The near-term story hinges on wildfire liability and how the state's wildfire fund and rate recovery mechanisms absorb future claims, so the stock's discount is largely a bet on regulatory outcomes rather than on operations. At a trailing P/E of 5.7 and a forward P/E of 8.6, the market is pricing in a meaningful probability of adverse wildfire or regulatory events, and revenue has fallen 4.1%, which needs explaining before any valuation call is made. The score of 58/100 and index placement in ACCE Fair Value Leaders suggest the value case is real enough to justify a closer look at the wildfire fund exposure and the rate case calendar.