MeritValue

EDISON INTERNATIONAL

EIXdata completeness 100%19 fiscal years on file
The thesis, from the filings

EDISON INTERNATIONAL earns about 3% on invested capital, with a roughly flat share count. The applicable estimate puts fair value near $32.14 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$14.9B1$17.2B2$16.3B3$17.6B3$19.3B3
Net income$925M4$824M5$1.2B6$1.28B6$4.46B6
Operating cash flow$11M7$3.22B8$3.4B9$5.01B9$5.8B9
Capital expenditure$5.51B10$5.78B11$5.45B12$5.71B12$6.52B12
Free cash flow (derived)−$5.49B7−$2.56B8−$2.05B9−$693M9−$715M9
Total debt$52.8B13$61.3B14$67.1B15$72.2B16$78.4B16
Cash & equivalents$390M17$914M18$345M19$193M20$158M20
Diluted shares380.0M383.0M385.0M388.0M386.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$455.41
your share of equity
Profit it earned you last year
$115.52
Free cash flow it threw off
−$18.52
Debt you’d be carrying
$2,030.73

10 shares is a claim on $455.41 of net worth that earned you $115.52 and generated −$18.52 of cash last year, against $2,030.73 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
3% avg · 5y
FY21 3%FY22 2%FY23 4%FY24 2%FY25 5%

It earned an average 3% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+2% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has risen 48% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$32.14
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$1.2B
  • growthAssumed0.0%
Graham Number
$108.79
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000827052-24-000013 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0000827052-25-000022 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0000827052-26-000012 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0000827052-24-000013 (ProfitLoss)
  5. 10-K · period ending 2022-12-31 · accession 0000827052-25-000022 (ProfitLoss)
  6. 10-K · period ending 2023-12-31 · accession 0000827052-26-000012 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000827052-24-000013 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000827052-25-000022 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0000827052-26-000012 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0000827052-24-000013 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0000827052-25-000022 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0000827052-26-000012 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0000827052-23-000010 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0000827052-24-000013 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-12-31 · accession 0000827052-25-000022 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-12-31 · accession 0000827052-26-000012 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-12-31 · accession 0000827052-23-000010 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0000827052-24-000013 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0000827052-25-000022 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0000827052-26-000012 (CashAndCashEquivalentsAtCarryingValue)