| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 44.30 | -28 |
| Intrinsic value (DCF) | 21.98 | -64 |
| Graham-Dodd Method | 6.20 | -90 |
| Graham Formula | 42.20 | -31 |
Edison International (0IFJ.L) is a leading electric power generation and distribution company serving over 15 million customers across Southern, Central, and Coastal California. Headquartered in Rosemead, California, and listed on the London Stock Exchange, Edison International operates through its subsidiaries, primarily Southern California Edison (SCE), one of the largest electric utilities in the U.S. The company manages an extensive infrastructure, including 39,000 circuit-miles of overhead lines, 31,000 circuit-miles of underground lines, and 800 substations, ensuring reliable energy delivery. Edison International also provides tailored energy solutions for commercial and industrial clients, reinforcing its role in California's transition to sustainable energy. With a history dating back to 1886, the company remains a key player in the utilities sector, balancing regulatory compliance, infrastructure investment, and renewable energy initiatives. Its strategic focus on grid modernization and clean energy aligns with California's ambitious climate goals, positioning Edison International as a critical enabler of the state's energy future.
Edison International presents a stable investment opportunity within the regulated utilities sector, supported by consistent revenue streams from its essential services. The company's $21.75 billion market cap and $17.6 billion in revenue reflect its strong market position, while a beta of 0.77 indicates lower volatility compared to broader markets. However, high total debt ($37.76 billion) and substantial capital expenditures ($5.7 billion) highlight financial leverage and ongoing infrastructure costs. The dividend yield, with a $3.215 per share payout, may appeal to income-focused investors, but regulatory risks and wildfire-related liabilities in California remain key concerns. The company's focus on grid resilience and renewable energy integration aligns with long-term growth trends, but investors should weigh these opportunities against operational and regulatory challenges.
Edison International competes in the highly regulated California utilities market, where its primary advantage lies in its scale and entrenched infrastructure. Southern California Edison (SCE) operates as a monopoly in its service territory, providing revenue stability through rate-regulated returns. The company's investments in grid modernization and renewable energy (notably transmission for solar and wind projects) strengthen its positioning amid California's aggressive decarbonization targets. However, competition emerges from community choice aggregators (CCAs) like Clean Power Alliance, which erode SCE's customer base for electricity supply, though SCE retains distribution fees. Compared to peers, Edison International faces unique wildfire risk exposure, requiring costly mitigation efforts and insurance. Its financial leverage is higher than some peers, reflecting California's high capital cost environment. The company's regulatory relationship is critical, as rate cases determine recovery for investments. While its renewable integration efforts are a differentiator, execution risks persist given the complexity of California's energy transition.