Edison International (EIX): Assessing Valuation After Capital Reshuffle and 6% Dividend Increase

Edison International (EIX) just wrapped up cash tender offers for its Series A and B preferred stock while lifting its common dividend by 6%, a one two move aimed squarely at reshaping its capital stack.

See our latest analysis for Edison International.

Despite the capital structure shake up and 6% dividend lift, Edison International’s recent 90 day share price return of 11.19% comes against a much weaker year to date share price return of 24.88% and a more resilient five year total shareholder return of 21.57%. This suggests near term momentum is improving even as the longer term story remains steady.

While you assess EIX’s recalibrated balance sheet, it could also be a smart moment to scout other regulated names by exploring healthcare stocks as a fresh set of defensive ideas.

With preferreds retired at a discount, a 6% dividend hike, and the stock still trading below consensus and intrinsic value estimates, is EIX quietly offering upside, or is the market already baking in its next leg of growth?

Most Popular Narrative: 10.8% Undervalued

With Edison International last closing at $60.10 against a narrative fair value of $67.37, the story leans toward upside built on regulated growth.

Significant state and federal investment, along with policy momentum for decarbonization, will underwrite large-scale grid modernization and renewable energy integration projects, providing Edison International with stable, above-inflation capital expenditure opportunities and growing its regulated rate base, supporting earnings and rate base-driven revenue growth.

Read the complete narrative.

Curious how steady load growth, shifting margins, and a richer future earnings multiple can still point to upside? The narrative’s math hides some unexpected trade offs.

Result: Fair Value of $67.37 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that upside depends on cooperative regulators and contained wildfire liabilities, and either a weaker AB 1054 framework or larger settlements could quickly erode it.

Find out about the key risks to this Edison International narrative.

Build Your Own Edison International Narrative

If this framing does not quite fit your view, or you would rather lean on your own work, you can build a custom version in minutes: Do it your way.

A great starting point for your Edison International research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.

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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.

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