CONSOLIDATED EDISON INC (ED) Stock Fundamental Analysis
NYSE:ED - New York Stock Exchange, Inc. - US2091151041 - Common Stock - Currency: USD
ED gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 25 industry peers in the Multi-Utilities industry. While ED is still in line with the averages on profitability rating, there are concerns on its financial health. ED is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ED had positive earnings in the past year.
In the past year ED had a positive cash flow from operations.
Each year in the past 5 years ED has been profitable.
In the past 5 years ED always reported a positive cash flow from operatings.
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.
With a Return On Equity value of 8.29%, ED is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 3.45%, ED is doing worse than 68.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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
ED has a Profit Margin (11.93%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ED has grown nicely.
The Operating Margin of ED (17.90%) is worse than 76.00% of its industry peers.
In the last couple of years the Operating Margin of ED has declined.
With an excellent Gross Margin value of 79.20%, ED belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ED is destroying value.
Compared to 1 year ago, ED has more shares outstanding
ED has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ED has a worse debt to assets ratio.
2.2 Solvency
ED has an Altman-Z score of 1.06. 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 1.06. This is amongst the best in the industry. ED outperforms 88.00% of its industry peers.
A Debt/Equity ratio of 1.24 is on the high side and indicates that ED has dependencies on debt financing.
ED has a better Debt to Equity ratio (1.24) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.06 |
ROIC/WACC0.52
WACC6.59%
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.
ED has a better Current ratio (1.04) than 92.00% of its industry peers.
ED has a Quick Ratio of 1.04. This is a bad value and indicates that ED is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.96, ED belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
ED shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.72%.
Measured over the past 5 years, ED shows a small growth in Earnings Per Share. The EPS has been growing by 4.28% on average per year.
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 5.65% on average over the next years.
Based on estimates for the next years, ED will show a small growth in Revenue. The Revenue will grow by 0.77% on average per year.
EPS Next Y7.38%
EPS Next 2Y6.79%
EPS Next 3Y6.21%
EPS Next 5Y5.65%
Revenue Next Year3.18%
Revenue Next 2Y3.36%
Revenue Next 3Y5.18%
Revenue Next 5Y0.77%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ED is valuated rather expensively with a Price/Earnings ratio of 18.52.
ED's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ED to the average of the S&P500 Index (29.71), we can say ED is valued slightly cheaper.
ED is valuated rather expensively with a Price/Forward Earnings ratio of 17.24.
The rest of the industry has a similar Price/Forward Earnings ratio as ED.
The average S&P500 Price/Forward Earnings ratio is at 22.34. ED is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.52 | ||
| Fwd PE | 17.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ED is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.51
PEG (5Y)4.33
EPS Next 2Y6.79%
EPS Next 3Y6.21%
5. Dividend
5.1 Amount
ED has a Yearly Dividend Yield of 3.40%.
ED's Dividend Yield is comparable with the industry average which is at 3.79.
ED's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
5.2 History
The dividend of ED has a limited annual growth rate of 2.39%.
ED has paid a dividend for at least 10 years, which is a reliable track record.
ED has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.39%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
ED pays out 60.44% of its income as dividend. 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 2Y6.79%
EPS Next 3Y6.21%
NYSE:ED (3/6/2025, 10:41:47 AM)
99.99
-0.21 (-0.21%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners71.4%
Inst Owner Change4.39%
Ins Owners0.18%
Ins Owner Change4.56%
Market Cap35.34B
Analysts54.81
Price Target101.02 (1.03%)
Short Float %4.53%
Short Ratio6.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
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)0.41%
PT rev (3m)-2.96%
EPS NQ rev (1m)2.12%
EPS NQ rev (3m)-2.22%
EPS NY rev (1m)-0.33%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.37%
Revenue NY rev (1m)-0.84%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.52 | ||
| Fwd PE | 17.24 | ||
| P/S | 2.32 | ||
| P/FCF | N/A | ||
| P/OCF | 9.78 | ||
| P/B | 1.61 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 12.02 |
EPS(TTM)5.4
EY5.4%
EPS(NY)5.8
Fwd EY5.8%
FCF(TTM)-3.27
FCFYN/A
OCF(TTM)10.22
OCFY10.23%
SpS43.18
BVpS62.13
TBVpS60.98
PEG (NY)2.51
PEG (5Y)4.33
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 | 1.06 |
F-Score5
WACC6.59%
ROIC/WACC0.52
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 Y7.38%
EPS Next 2Y6.79%
EPS Next 3Y6.21%
EPS Next 5Y5.65%
Revenue 1Y (TTM)4.08%
Revenue growth 3Y3.71%
Revenue growth 5Y3.94%
Sales Q2Q%6.53%
Revenue Next Year3.18%
Revenue Next 2Y3.36%
Revenue Next 3Y5.18%
Revenue Next 5Y0.77%
EBIT growth 1Y17.25%
EBIT growth 3Y-1.12%
EBIT growth 5Y0.42%
EBIT Next Year89.4%
EBIT Next 3Y29.27%
EBIT Next 5Y24.2%
FCF growth 1Y50.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y67.63%
OCF growth 3Y9.76%
OCF growth 5Y2.89%