Edison International (EIX)

Edison International's stock price has experienced a significant decline over the past six months. A notable event impacting the stock was a drop following a report about a lawsuit alleging that Southern California Edison's equipment caused the Eaton fire. Morgan Stanley reduced its price target for Edison International due to financial risks related to the Eaton Fire and concerns about the wildfire fund. The CEO stated that the company would likely incur "material losses" due to the Eaton Fire. Despite these challenges, Edison International affirmed its 2024 core EPS guidance and reiterated long-term core EPS growth rate targets.

Demand for Edison International's electricity is influenced by seasonality, particularly in Southern California. Electricity demand is projected to rise significantly by 2045 due to electrification. Utility companies typically experience higher demand during extreme weather conditions, such as hot summers and cold winters. The completion of upgrades to transmission lines is crucial for meeting peak summer demand.

Edison International is a public utility holding company based in Rosemead, California, primarily engaged in the generation and distribution of electric power. Its main subsidiary is Southern California Edison (SCE), which provides electricity to approximately 15 million people across a vast service area in central, coastal, and Southern California. Edison International also operates Edison Energy, a global energy advisory company. The company's products and services primarily revolve around electricity supply, including generation, transmission, and distribution, and it is actively investing in grid modernization, safety, wildfire mitigation, and integrating renewable energy sources.

Edison International's primary geographic footprint is Southern California, where Southern California Edison delivers power to approximately 15 million people across an area of about 50,000 square miles. Through Edison Energy, the company also provides energy advisory services to large commercial and industrial clients globally. Historically, Edison International's power portfolio included power plants in multiple states, with a significant portion of its energy coming from Illinois and California.

Edison International's brand reputation has been influenced by its commitment to clean energy and sustainability initiatives, as well as challenges related to wildfires. The company promotes its efforts towards achieving net-zero greenhouse gas emissions by 2045 and supporting California's climate goals. However, the company's reputation has been significantly impacted by its association with wildfires, including a lawsuit alleging that Southern California Edison's equipment caused the deadly Eaton fire.

Edison International's ownership is predominantly held by institutional investors, with approximately 86.75% of the company's stock owned by institutional shareholders, 0.58% by insiders, and 12.68% by retail investors. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., and State Street Corp.