Edison International (HAM:EIX) Interest Coverage: 2.04 (As of Mar. 2026) — 22% Above Median


HAM:EIX Edison International HAM:EIX
69 GF Score
Price €64.70
GF Value €64.09
Valuation Fairly Valued
! 12 Warning Signs
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What is Edison International Interest Coverage?

Edison International HAM:EIX +0.37% 69 Interest Coverage is 2.04 as of Mar. 2026, which is 22% above its 10-year median of 1.67. GuruFocus rates HAM:EIX with a GF Score™ of 69/100 and a GF Value™ of €64.09 (Fairly Valued). The stock has 12 warning signs investors should review. Among 449 Utilities - Regulated companies, Edison International ranks worse than 69.93% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Edison International's Operating Income for the three months ended in Mar. 2026 was €924 Mil. Edison International's Interest Expense for the three months ended in Mar. 2026 was €-453 Mil. Edison International's interest coverage for the quarter that ended in Mar. 2026 was 2.04. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Edison International interest coverage is 2.36, which is low.

The historical rank and industry rank for Edison International's Interest Coverage or its related term are showing as below:

HAM:EIX' s Interest Coverage Range Over the Past 10 Years
Min: 1.07   Med: 1.67   Max: 3.59
Current: 2.36


HAM:EIX's Interest Coverage is ranked worse than
69.93% of 449 companies
in the Utilities - Regulated industry
Industry Median: 3.78 vs HAM:EIX: 2.36

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Edison International  (HAM:EIX) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Edison International Interest Coverage Related Terms


Edison International Interest Coverage Historical Data

* Premium members only.

The historical data trend for Edison International's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Edison International Interest Coverage Chart

Edison International Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.67 1.31 1.63 1.57 3.40

Edison International Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.78 1.54 3.11 3.26 2.04

HAM:EIX vs FE, PPL, CNP: Interest Coverage Comparison

For the Utilities - Regulated Electric subindustry, Edison International's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Edison International Interest Coverage vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Edison International's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Edison International's Interest Coverage falls into.


HAM:EIX
69GF Score
Edison International HAM:EIX
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Edison International Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Edison International's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Edison International's Interest Expense was €-1,314 Mil. Its Operating Income was €4,475 Mil. And its Long-Term Debt & Capital Lease Obligation was €31,693 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*4474.96/-1314.306
=3.40

Edison International's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Edison International's Interest Expense was €-453 Mil. Its Operating Income was €924 Mil. And its Long-Term Debt & Capital Lease Obligation was €33,163 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*923.82/-453.26
=2.04

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 2.04 mean?
Edison International (HAM:EIX) has a Interest Coverage of 2.04 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Edison International and its competitors. This is 22% above median its historical median of 1.67. Over the past decade, Edison International's Interest Coverage has ranged from 1.07 to 3.59. According to the industry distribution chart, Edison International ranks #314 out of 449 companies in the Utilities - Regulated industry, placing it in the top 69.9%.
Is Edison International's Interest Coverage too high?
Edison International's current Interest Coverage of 2.04 is 22% above median its 10-year median of 1.67. Over the past 10 years, this metric has ranged from a low of 1.07 to a high of 3.59. The Utilities - Regulated industry median Interest Coverage is 3.78. Edison International's value of 2.04 is 46% below this industry median. Based on the distribution chart, Edison International ranks #314 out of 449 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Edison International has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Edison International's Interest Coverage compare to FE and PPL?
According to the Utilities - Regulated industry distribution chart, Edison International ranks #314 out of 449 companies for Interest Coverage. This places Edison International in the lower half of its industry. The industry median Interest Coverage is 3.78. Edison International's value of 2.04 is 46% below this benchmark. Historically, Edison International's own Interest Coverage has ranged from 1.07 to 3.59 over the past decade. While the company's 10-year median is 1.67 vs. the industry median of 3.78, Edison International has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.78, based on 449 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Edison International's current Interest Coverage of 2.04 is 46% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Edison International and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Edison International's current Interest Coverage is 2.04, which is 22% above median its own 10-year median of 1.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Edison International stock overvalued right now?
Based on GuruFocus' analysis, Edison International (HAM:EIX) is currently considered Fairly Valued. The stock's GF Value™ is €64.09, compared to a current price of €64.70 — trading 1% above its estimated fair value. The current Interest Coverage is 2.04, which is 22% above median its 10-year median of 1.67 and 46% below the Utilities - Regulated industry median of 3.78. Edison International's overall GF Score™ is 69/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Edison International (HAM:EIX), the current Interest Coverage is 2.04 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Edison International (HAM:EIX) Overvalued in 2026?

Based on GuruFocus' analysis, Edison International stock appears to be overvalued. The current stock price of €64.70 is trading 1% above its estimated GF Value™ of €64.09. GuruFocus considers Edison International to be Fairly Valued.

Key valuation signals for HAM:EIX:

  • Interest Coverage: 2.04 (22% above median its 10-year median of 1.67)
  • GF Value™: €64.09 vs. price of €64.70 (1% above fair value)
  • GF Score™: 69/100 with 12 warning signs
  • Industry Position: 46% below the Utilities - Regulated median (#314 of 449)

No single metric tells the full story. See the HAM:EIX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Edison International Business Description

Address 2244 Walnut Grove Avenue, P.O. Box 976, Rosemead, CA, USA, 91770
Edison International is the parent company of Southern California Edison, an electric utility that distributes electricity to 5 million customers in a 50,000-square-mile area of Southern California, excluding Los Angeles. Edison Energy owns interests in nonutility businesses that deal in energy-related products and services. In 2014, Edison International sold its wholesale power generation subsidiary Edison Mission Energy out of bankruptcy to NRG Energy.
69GF Score

Get the complete analysis for HAM:EIX

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€64.70
Price
€64.09
GF Value