Edison International (EIX): One-Off Gain Drives Profit Margin, Challenging Bullish Narratives

Edison International (EIX) reported net profit margins of 16.3%, more than double last year’s 7.6%, with EPS growth of 123.2% over the past year far surpassing its 5-year average of 32.6% per year. While profits have grown at an impressive 32.6% annual rate over five years, this year’s results received a boost from a non-recurring $679 million gain. Despite the strong bottom line, market expectations for future performance are muted, as earnings are forecast to decline and revenue growth is set to trail the broader US market.

See our full analysis for Edison International.

Next up, we’ll see how these headline numbers hold up against the popular narratives in the Simply Wall St community, highlighting where consensus is confirmed and where the story may shift.

See what the community is saying about Edison InternationalNYSE:EIX Earnings & Revenue History as at Oct 2025

Analyst Price Target Sits 17.6% Above Current Share Price

The current share price of $55.39 is 17.6% below the analyst consensus target of $66.55, a gap that shows analysts see more upside than the market is currently willing to price in. According to the analysts' consensus view, this expectation rests on several major assumptions:

Revenue is forecast to grow by 5.2% per year for the next three years, despite profit margins shrinking from 15.0% to 11.8% in the same period. Analysts are betting that grid modernization, electrification, and favorable regulatory trends are durable enough to offset near-term pressures on earnings and margins.

See how the latest results fit into the bigger picture and what analysts expect next for Edison International. Explore the full consensus case: 📊 Read the full Edison International Consensus Narrative.

Low PE Ratio Contrasts with Sector Premium

EIX trades at a price-to-earnings ratio of 7.2x, well below both direct peers (23.5x average) and the wider US Electric Utilities industry (21.3x average). Analysts' consensus view highlights a tension. While EIX’s valuation looks attractive versus the sector, discounted cash flow models peg fair value closer to $14.00, far beneath today's price, suggesting the low PE alone does not guarantee undervaluation.

Consensus also notes that, barring unexpectedly strong earnings retention or uplifts in allowed returns, the discount may simply reflect genuine market risks around future growth and cash generation.

Non-Recurring Gain Lifts Net Margins

This year’s net profit margin of 16.3% more than doubled last year’s 7.6%, a change that was heavily skewed by a one-time $679 million gain not expected to repeat. Analysts' consensus narrative points out that long-term margin estimates are materially lower, with profit margins projected to fall to 11.8% within three years as non-recurring items drop away.

This perspective challenges the idea that recent margin strength can be viewed as a new baseline. It reinforces the need to look through one-off gains when evaluating the company’s ability to maintain dividends and sustain profit.

Story Continues

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Edison International on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A great starting point for your Edison International research is our analysis highlighting 4 key rewards and 4 important warning signs that could impact your investment decision.

See What Else Is Out There

Edison International’s bottom line improvements are clouded by non-recurring gains, declining profit margins, and muted growth forecasts. These factors raise questions about ongoing value.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include EIX.

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