CONSOLIDATED EDISON INC (ED) Stock Fundamental Analysis
NYSE:ED - New York Stock Exchange, Inc. - US2091151041 - Common Stock - Currency: USD
Taking everything into account, ED scores 4 out of 10 in our fundamental rating. ED was compared to 25 industry peers in the Multi-Utilities industry. There are concerns on the financial health of ED while its profitability can be described as average. ED is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ED was profitable.
ED had a positive operating cash flow in the past year.
In the past 5 years ED has always been profitable.
ED had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ED has a Return On Assets of 2.58%. This is in the lower half of the industry: ED underperforms 64.00% of its industry peers.
ED has a Return On Equity of 8.29%. This is in the lower half of the industry: ED underperforms 64.00% of its industry peers.
With a Return On Invested Capital value of 3.45%, ED is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for ED is in line with the industry average of 3.76%.
The 3 year average ROIC (3.42%) for ED is below the current ROIC(3.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 8.29% | ||
| ROIC | 3.45% |
ROA(3y)2.93%
ROA(5y)2.53%
ROE(3y)9.41%
ROE(5y)8.16%
ROIC(3y)3.42%
ROIC(5y)3.64%
1.3 Margins
Looking at the Profit Margin, with a value of 11.93%, ED is in line with its industry, outperforming 48.00% of the companies in the same industry.
ED's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.90%, ED is doing worse than 76.00% of the companies in the same industry.
ED's Operating Margin has declined in the last couple of years.
ED has a Gross Margin of 79.20%. This is amongst the best in the industry. ED outperforms 84.00% of its industry peers.
ED's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.9% | ||
| PM (TTM) | 11.93% | ||
| GM | 79.2% |
OM growth 3Y-4.66%
OM growth 5Y-3.39%
PM growth 3Y6.62%
PM growth 5Y2.24%
GM growth 3Y-0.95%
GM growth 5Y-0.37%
2. Health
2.1 Basic Checks
ED has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ED has more shares outstanding than it did 1 year ago.
ED has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ED is higher compared to a year ago.
2.2 Solvency
ED has an Altman-Z score of 1.13. This is a bad value and indicates that ED is not financially healthy and even has some risk of bankruptcy.
ED has a Altman-Z score of 1.13. This is amongst the best in the industry. ED outperforms 92.00% of its industry peers.
ED has a Debt/Equity ratio of 1.24. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.24, ED is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.13 |
ROIC/WACC0.5
WACC6.84%
2.3 Liquidity
ED has a Current Ratio of 1.04. This is a normal value and indicates that ED is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.04, ED belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
A Quick Ratio of 0.96 indicates that ED may have some problems paying its short term obligations.
ED has a Quick ratio of 0.96. This is amongst the best in the industry. ED outperforms 96.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.72% over the past year.
ED shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.28% yearly.
The Revenue has been growing slightly by 4.08% in the past year.
The Revenue has been growing slightly by 3.94% on average over the past years.
EPS 1Y (TTM)6.72%
EPS 3Y7.23%
EPS 5Y4.28%
EPS Q2Q%-2%
Revenue 1Y (TTM)4.08%
Revenue growth 3Y3.71%
Revenue growth 5Y3.94%
Sales Q2Q%6.53%
3.2 Future
The Earnings Per Share is expected to grow by 5.88% on average over the next years.
ED is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.82% yearly.
EPS Next Y7.47%
EPS Next 2Y7.24%
EPS Next 3Y6.84%
EPS Next 5Y5.88%
Revenue Next Year5.08%
Revenue Next 2Y4.44%
Revenue Next 3Y4.36%
Revenue Next 5Y3.82%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.76, which indicates a rather expensive current valuation of ED.
Compared to the rest of the industry, the Price/Earnings ratio of ED indicates a slightly more expensive valuation: ED is more expensive than 64.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, ED is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 19.32, the valuation of ED can be described as rather expensive.
64.00% of the companies in the same industry are cheaper than ED, based on the Price/Forward Earnings ratio.
ED's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.76 | ||
| Fwd PE | 19.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ED indicates a slightly more expensive valuation: ED is more expensive than 72.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ED does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.78
PEG (5Y)4.85
EPS Next 2Y7.24%
EPS Next 3Y6.84%
5. Dividend
5.1 Amount
ED has a Yearly Dividend Yield of 3.03%. Purely for dividend investing, there may be better candidates out there.
ED's Dividend Yield is slightly below the industry average, which is at 3.72.
ED's Dividend Yield is a higher than the S&P500 average which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
5.2 History
The dividend of ED has a limited annual growth rate of 2.39%.
ED has been paying a dividend for at least 10 years, so it has a reliable track record.
ED has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.39%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
60.44% of the earnings are spent on dividend by ED. This is not a sustainable payout ratio.
The dividend of ED is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.44%
EPS Next 2Y7.24%
EPS Next 3Y6.84%
112.1
+0.66 (+0.59%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners71.4%
Inst Owner Change0.61%
Ins Owners0.18%
Ins Owner Change4.55%
Market Cap40.38B
Analysts54.81
Price Target104.56 (-6.73%)
Short Float %4.85%
Short Ratio6.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Yearly Dividend3.18
Dividend Growth(5Y)2.39%
DP60.44%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.37%
Min EPS beat(2)0.15%
Max EPS beat(2)0.58%
EPS beat(4)4
Avg EPS beat(4)3.05%
Min EPS beat(4)0.15%
Max EPS beat(4)10.88%
EPS beat(8)6
Avg EPS beat(8)2.72%
EPS beat(12)8
Avg EPS beat(12)2.57%
EPS beat(16)10
Avg EPS beat(16)1.45%
Revenue beat(2)0
Avg Revenue beat(2)-2.71%
Min Revenue beat(2)-3.22%
Max Revenue beat(2)-2.2%
Revenue beat(4)0
Avg Revenue beat(4)-4.87%
Min Revenue beat(4)-8.52%
Max Revenue beat(4)-2.2%
Revenue beat(8)1
Avg Revenue beat(8)-4.82%
Revenue beat(12)5
Avg Revenue beat(12)1.2%
Revenue beat(16)9
Avg Revenue beat(16)2.61%
PT rev (1m)1.88%
PT rev (3m)1.02%
EPS NQ rev (1m)2.14%
EPS NQ rev (3m)1.44%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)1.66%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.76 | ||
| Fwd PE | 19.32 | ||
| P/S | 2.65 | ||
| P/FCF | N/A | ||
| P/OCF | 11.17 | ||
| P/B | 1.84 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 13.04 |
EPS(TTM)5.4
EY4.82%
EPS(NY)5.8
Fwd EY5.18%
FCF(TTM)-3.21
FCFYN/A
OCF(TTM)10.03
OCFY8.95%
SpS42.37
BVpS60.97
TBVpS59.84
PEG (NY)2.78
PEG (5Y)4.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 8.29% | ||
| ROCE | 4.26% | ||
| ROIC | 3.45% | ||
| ROICexc | 3.52% | ||
| ROICexgc | 3.55% | ||
| OM | 17.9% | ||
| PM (TTM) | 11.93% | ||
| GM | 79.2% | ||
| FCFM | N/A |
ROA(3y)2.93%
ROA(5y)2.53%
ROE(3y)9.41%
ROE(5y)8.16%
ROIC(3y)3.42%
ROIC(5y)3.64%
ROICexc(3y)3.49%
ROICexc(5y)3.71%
ROICexgc(3y)3.52%
ROICexgc(5y)3.78%
ROCE(3y)4.23%
ROCE(5y)4.48%
ROICexcg growth 3Y-5.69%
ROICexcg growth 5Y-4.55%
ROICexc growth 3Y-4.94%
ROICexc growth 5Y-3.92%
OM growth 3Y-4.66%
OM growth 5Y-3.39%
PM growth 3Y6.62%
PM growth 5Y2.24%
GM growth 3Y-0.95%
GM growth 5Y-0.37%
F-Score5
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.59 | ||
| Cap/Depr | 221.39% | ||
| Cap/Sales | 31.26% | ||
| Interest Coverage | 2.55 | ||
| Cash Conversion | 73.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.13 |
F-Score5
WACC6.84%
ROIC/WACC0.5
Cap/Depr(3y)216.17%
Cap/Depr(5y)209.9%
Cap/Sales(3y)29.64%
Cap/Sales(5y)30.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.72%
EPS 3Y7.23%
EPS 5Y4.28%
EPS Q2Q%-2%
EPS Next Y7.47%
EPS Next 2Y7.24%
EPS Next 3Y6.84%
EPS Next 5Y5.88%
Revenue 1Y (TTM)4.08%
Revenue growth 3Y3.71%
Revenue growth 5Y3.94%
Sales Q2Q%6.53%
Revenue Next Year5.08%
Revenue Next 2Y4.44%
Revenue Next 3Y4.36%
Revenue Next 5Y3.82%
EBIT growth 1Y17.25%
EBIT growth 3Y-1.12%
EBIT growth 5Y0.42%
EBIT Next Year89.63%
EBIT Next 3Y30.54%
EBIT Next 5Y21.83%
FCF growth 1Y50.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y67.63%
OCF growth 3Y9.76%
OCF growth 5Y2.89%