Edison International (EIX)
Quantitative Summary
DeterministicAt 7.6x earnings — a 69% discount to the sector average of 24.4x — EIX is in the lower valuation range. Financial health is average: Piotroski 6/9, Altman Z 0.8.
Generated deterministically from quant metrics and financial statements. Not a recommendation.
Algorithmic Teardown
AI-GeneratedEdison International presents a distinct capital allocation profile characterized by high leverage driving returns rather than operational efficiency. The DuPont decomposition reveals that the 24.4% ROE is primarily an artifact of significant financial gearing, with an equity multiplier of 4.88x outweighing modest asset turnover of 0.21x and robust net margins of 24.3%. While this leverage amplifies returns for shareholders, it exposes the balance sheet to volatility; this is underscored by a precarious Altman Z-Score of 0.8, signaling elevated bankruptcy risk despite a solid Piotroski F-Score of 6/9 which indicates strong fundamental quality and earnings momentum alongside nearly double-digit revenue growth. The narrow ROIC-WACC spread of just +0.7% suggests that the firm's ability to generate value above its cost of capital is thin, even as profitability factors remain robust.
Valuation metrics indicate a significant market discount relative to sector peers, with the stock trading at 6.4x P/E compared to a utilities average of 24.2x. This compression implies that the market has priced in substantial downside risk or expects earnings deterioration that contradicts the current revenue trajectory. The low multiple disconnects from historical norms and peer valuation creates a wide gap between implied fair value derived from DCF models—which typically rely on normalized cash flows—and actual trading prices, suggesting the asset is currently valued as distressed despite its underlying profitability factors like HML tilt.
Risk-reward dynamics are further complicated by divergent signals regarding management confidence versus algorithmic performance. While Fama-French alpha data shows a strong annualized return of 16.37% and positive value factor exposure, recent insider activity reveals $645,622 in net selling over the past ninety days. This divergence between quantitative outperformance metrics and active ownership reduction warrants scrutiny regarding future capital allocation or liquidity needs, creating an asymmetric risk profile where potential upside is capped by leverage risks while downside protection relies heavily on continued margin expansion.
Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.
Valuation Context
Currently trading 27% above its 5-year average P/E of 5.2x.
Price Chart with Moving Averages
Technical Setup
AI GeneratedEdison International is currently trading at $70.68 within the Utilities sector, a position that requires careful examination of institutional positioning through available technical lenses. While specific moving average crossover data and volume trends are not provided in the immediate dataset, the absence of these metrics prevents a definitive conclusion regarding whether larger market participants are aggressively accumulating or distributing shares at this level. In typical utility scenarios, price action around $70 often coincides with significant support or resistance zones where institutional algorithms may be testing order flow limits. Without concrete volume spikes confirming upward momentum or declining averages suggesting distribution, the current setup remains ambiguous concerning the immediate intent of major holders. The lack of explicit trend indicators means that any assumption about whether smart money is building long positions or exiting existing ones would be speculative rather than factual. Institutional behavior in this sector frequently reacts to broader regulatory shifts and interest rate environments, which might influence how large players interact with the $70 price mark without leaving clear signals on a short-term chart. Consequently, the technical picture derived solely from the current price point does not offer sufficient evidence to determine if sophisticated investors view the asset as undervalued or overvalued at this moment. Market participants must await further confirmation through volume analysis and moving average interactions before forming a reliable hypothesis about institutional alignment with the stock's direction.
Quant Health Deep Dive
Profitability & Value Creation
DuPont Analysis — ROE Decomposition
Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.
Balance Sheet Health
Insider Activity (Last 90 Days)
Open-market buys vs sells by company insiders. Source: yfinance.
Earnings Surprise History
EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.
Dividend History
| Date | Amount | Change |
|---|---|---|
| 2026-04-07 | $0.8780 | 0.0% |
| 2026-01-07 | $0.8780 | +6.0% |
| 2025-10-07 | $0.8280 | 0.0% |
| 2025-07-07 | $0.8280 | 0.0% |
| 2025-04-07 | $0.8280 | 0.0% |
| 2025-01-07 | $0.8280 | +6.2% |
| 2024-10-07 | $0.7800 | 0.0% |
| 2024-07-08 | $0.7800 | 0.0% |
| 2024-03-27 | $0.7800 | 0.0% |
| 2023-12-28 | $0.7800 | +5.7% |
| 2023-09-28 | $0.7380 | 0.0% |
| 2023-07-03 | $0.7380 | 0.0% |
Dividend and split data from SEC filings and market data. Amounts are per share, not adjusted for splits. Source: yfinance.
Risk Profile
Sharpe = risk-adjusted return (higher is better). Max drawdown = largest peak-to-trough decline. 1,200+ trading days.
Underwater (Drawdown from Peak)
How far below the all-time high the price has been over time. Deeper = more pain for holders.
Rolling 60-Day Beta vs S&P 500 (VOO)
How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.
Fama-French 5-Factor Exposure
Academic factor model decomposition — what's really driving this stock's returns.
Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.
Fundamentals
Passive Flow Attribution
ETF Draft EffectWhen investors buy or sell ETFs like DVY or XLU, the fund manager is mechanically forced to buy or sell EIX shares regardless of Edison International's individual fundamentals. We estimate $5.0B of passive capital is structurally linked to EIX through 8 tracked ETFs. Index rebalances and ETF creation/redemption cycles can create noticeable volume spikes unrelated to company news.
Passive exposure = Σ (ETF AUM × stock weight in ETF) across 8 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.
ETF Contagion Visualizer
Simulate a price drop in Edison International to visualize passive redemption contagion across ETFs and collateral stocks.
If Edison International (EIX) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies NEXTERA ENERGY INC (NEE) as the most exposed collateral stock, sharing 2 ETFs with EIX. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.
Contagion model based on shared ETF exposure and constituent weights across 30 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.
EIX Ownership Dynamics
Passive funds hold 1 in every 5 EIX shares, reducing daily market volatility.
Edison International (EIX) exerts notable gravity on the passive index market, currently representing 2.0% of the iShares Select Dividend ETF (DVY) and 1.9% of the State Street Utilities Select Sector SPDR ETF (XLU). Across 30 tracked ETFs, approximately 76M shares (19.8% of float) are held by passive funds and rarely trade on the open market. This level of passive ownership means index rebalances can create outsized volume events.
ETFs with Highest EIX Exposure
Float lock-up computed from 30 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).
EIX Institutional Volume Profile
252-day volume distribution by price level. The Point of Control (POC) marks — the price where the most institutional volume transacted — an implicit support/resistance floor.
The highest-volume price zone for Edison International over the past year sits near $54.01 (13% of 252-day volume). The current price of $70.92 trades 31.3% above this institutional floor — a sign of upside momentum, though a pullback to the POC zone is a common reversion target. The highly concentrated volume profile (13% at POC) indicates strong consensus on fair value — institutional participants have repeatedly transacted near this price.
Volume Profile computed from 252 trading days of OHLCV data. Volume allocated to price bins proportionally based on daily high-low range. Not investment advice.
EIX Capital Efficiency
How efficiently does Edison International convert operating profits into free cash? The FCF Conversion ratio measures the gap between accounting earnings and real cash generation.
Edison International converts -7% of its EBITDA into free cash flow, negative FCF conversion — the company is consuming cash faster than it generates EBITDA, which is unsustainable long-term. The 107% reinvestment rate signals aggressive capacity expansion. The positive ROIC-WACC spread of 0.7% confirms that reinvested capital creates shareholder value.
Capital efficiency = Free Cash Flow ÷ EBITDA. Reinvestment = (EBITDA − FCF) ÷ EBITDA. Metrics from latest annual filings. Not investment advice.
Fails-to-Deliver (FTD) History
SEC-reported settlement failures. Elevated FTDs can indicate high short-selling pressure, operational settlement issues, or naked shorting activity.
| Date | Failed Shares | Close Price | Notional Value |
|---|---|---|---|
| 2026-05-12 | 999 | $70.58 | $70,509.42 |
| 2026-05-08 | 10,478 | $68.57 | $718,476.46 |
| 2026-05-06 | 128 | $68.87 | $8,815.36 |
| 2026-04-29 | 1,807 | $67.94 | $122,767.58 |
| 2026-04-28 | 552 | $68.57 | $37,850.64 |
| 2026-04-27 | 3,073 | $68.86 | $211,606.78 |
| 2026-04-23 | 1,884 | $69.38 | $130,711.92 |
| 2026-04-21 | 179 | $70.58 | $12,633.82 |
| 2026-04-17 | 12,194 | $71.60 | $873,090.4 |
| 2026-04-15 | 331 | $72.37 | $23,954.47 |
| 2026-04-14 | 15 | $72.39 | $1,085.85 |
| 2026-04-09 | 4 | $74.35 | $297.4 |
| 2026-04-07 | 400 | $73.59 | $29,436 |
| 2026-04-01 | 499 | $73.18 | $36,516.82 |
| 2026-03-30 | 256,995 | $70.30 | $18.1M |
| 2026-03-27 | 53,009 | $70.77 | $3.8M |
| 2026-03-25 | 39 | $71.28 | $2,779.92 |
| 2026-03-23 | 1 | $69.75 | $69.75 |
| 2026-03-17 | 69,347 | $72.97 | $5.1M |
| 2026-03-11 | 14,607 | $71.08 | $1.0M |
| 2026-03-10 | 15,010 | $70.73 | $1.1M |
| 2026-03-09 | 94,810 | $71.76 | $6.8M |
| 2026-03-06 | 2,814 | $71.22 | $200,413.08 |
| 2026-03-03 | 13,468 | $74.42 | $1.0M |
| 2026-02-23 | 1,907 | $73.74 | $140,622.18 |
| 2026-02-18 | 119,231 | $71.42 | $8.5M |
| 2026-02-17 | 2,428 | $71.46 | $173,504.88 |
| 2026-02-10 | 667 | $63.79 | $42,547.93 |
| 2026-01-29 | 894 | $62.25 | $55,651.5 |
| 2026-01-20 | 1,001 | $62.39 | $62,452.39 |
Source: SEC Regulation SHO FTD data. Data is reported with a ~30 day delay. High FTD quantities relative to average daily volume may indicate settlement stress.
Price Correlations
Statistical correlation of daily returns with other stocks. High correlations indicate stocks that move together; negative correlations can offer diversification.
| Peer | 252-Day (1Y) | 126-Day (6M) | Direction |
|---|---|---|---|
| WTGXX | NaN | NaN | |
| PCG | 0.788 | 0.777 | High co-movement |
| SRE | 0.613 | 0.586 | Moderate |
| VRTPX | 0.513 | 0.516 | Moderate |
| FE | 0.509 | 0.505 | Moderate |
| AEE | 0.501 | 0.585 | Moderate |
| DTE | 0.469 | 0.563 | Moderate |
| D | 0.461 | 0.452 | Moderate |
| LNT | 0.458 | 0.551 | Moderate |
| PNW | 0.454 | 0.501 | Moderate |
Pearson correlation of daily log returns. 252d ≈ 1 trading year. Computed from price history. Not investment advice.
Compare EIX to Peers
Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.
SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.