Operating Margin

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Price: 60.56 USD -0.3% Market Closed

Market Cap: $23.3B

24.3%

Improving

by 3.4%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

24.3%

Operating Income

$4.4B

Revenue

$18.1B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

24.3%

Operating Income

$4.4B

Revenue

$18.1B

Peer Comparison

Country	Company	Market Cap	Operating Margin
US	Edison International NYSE:EIX	23.3B USD	Loading...
US	Nextera Energy Inc NYSE:NEE	176.1B USD	Loading...
ES	Iberdrola SA MAD:IBE	117.7B EUR	Loading...
IT	Enel SpA MIL:ENEL	91.2B EUR	Loading...
US	Southern Co NYSE:SO	95.9B USD	Loading...
US	Duke Energy Corp NYSE:DUK	91B USD	Loading...
US	Constellation Energy Corp NASDAQ:CEG	90.3B USD	Loading...
US	American Electric Power Company Inc NASDAQ:AEP	62B USD	Loading...
FR	Electricite de France SA PAR:EDF	46.6B EUR	Loading...
US	Exelon Corp NASDAQ:EXC	44.2B USD	Loading...
US	Xcel Energy Inc NASDAQ:XEL	44.1B USD	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Edison International
Glance View

Economic Moat

None

Market Cap

23.3B USD

Industry

Utilities

In the bustling landscape of the American energy sector, Edison International stands as a vital player, orchestrating the complex choreography of electricity generation and distribution in California. Born from the rich industrial era of the late 19th century, Edison International emerged as a forward-thinking entity, primarily through its subsidiary, Southern California Edison (SCE). This subsidiary operates one of the nation's largest electric utilities, delivering electricity to millions of households and businesses across central, coastal, and southern California. The company’s robust infrastructure spans a vast network of power lines and substations, facilitating the seamless flow of electricity from power plants to consumers. Edison International's business model intricately threads regulated utility operations with a focus on renewable energy sources, reflecting a keen commitment to sustainability and environmental responsibility in an era eager for green transitions. Edison International navigates the energy market with an astute blend of traditional utility operations and forward-looking clean energy initiatives. Revenue streams spring primarily from electricity services, but the company is acutely aware of the shifting paradigms in energy consumption. Thus, it invests substantially in solar, wind, and energy storage projects, both to comply with California's rigorous environmental mandates and to capture growth opportunities in the renewable sector. Through decoupling mechanisms that separate revenue from total sales volume, Edison ensures financial stability even as it encourages energy conservation among its customers. This strategic weaving of operational reliability with environmental conscientiousness not only fortifies Edison against the volatility of contemporary energy markets but also positions it as a progressive leader in the renewable energy movement.

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EIX Intrinsic Value

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Edison International
NYSE:EIX

Peer Comparison

Market Distribution

Other Profitability Ratios

Edison International
Glance View

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Edison International NYSE:EIX