Past performance does not predict future results. Informational only, not investment advice.
EIX trades at an extremely low PE relative to growing fundamentals and is protected from bankruptcy risk by California state bailout guarantees. The author views current depressed valuation as a compelling entry point.
SB 492's impact was overblown and forced-selling driven; the bill changed loss-sharing, not the Wildfire Fund backstop that exceeds even bear-case gross exposure. At 7x P/E and 5% yield, Edison is mispriced versus analyst targets still 18–38% higher, offering asymmetric upside on a regulated monopoly with near-term headline risk but intact fund protection.
EIX has fallen 25% due to failed CA wildfire legislation, but the market reaction appears overdone given the strong dividend yield (6.5%) and solid dividend coverage (2.8x). The author expects mean reversion or a near-term bounce.
End of results.