CONSOLIDATED EDISON INC (ED)
US2091151041 - Common Stock
We assign a fundamental rating of 3 out of 10 to ED. 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
ED had positive earnings in the past year.
ED had a positive operating cash flow in the past year.
In the past 5 years ED has always been profitable.
In the past 5 years ED always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.62%, ED is doing worse than 64.00% of the companies in the same industry.
With a Return On Equity value of 8.27%, ED is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
The Return On Invested Capital of ED (3.16%) is worse than 76.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ED is in line with the industry average of 3.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 8.27% | ||
| ROIC | 3.16% |
ROA(3y)2.78%
ROA(5y)2.48%
ROE(3y)8.88%
ROE(5y)7.99%
ROIC(3y)3.43%
ROIC(5y)3.6%
1.3 Margins
With a Profit Margin value of 12.03%, ED perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ED has grown nicely.
Looking at the Operating Margin, with a value of 17.12%, ED is doing worse than 92.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ED has declined.
ED has a better Gross Margin (78.77%) than 84.00% of its industry peers.
ED's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.12% | ||
| PM (TTM) | 12.03% | ||
| GM | 78.77% |
OM growth 3Y-9.81%
OM growth 5Y-4.99%
PM growth 3Y24.09%
PM growth 5Y8.93%
GM growth 3Y-2.32%
GM growth 5Y-0.31%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ED is destroying value.
The number of shares outstanding for ED has been reduced compared to 1 year ago.
Compared to 5 years ago, ED has more shares outstanding
Compared to 1 year ago, ED has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.10, we must say that ED is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.10, ED belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
ED has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ED (1.19) is better than 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.1 |
ROIC/WACC0.5
WACC6.27%
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 76.00% of its industry peers.
A Quick Ratio of 0.97 indicates that ED may have some problems paying its short term obligations.
ED has a Quick ratio of 0.97. 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 | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.84% over the past year.
Measured over the past 5 years, ED shows a small growth in Earnings Per Share. The EPS has been growing by 3.17% on average per year.
ED shows a decrease in Revenue. In the last year, the revenue decreased by -4.68%.
The Revenue has been growing slightly by 3.51% on average over the past years.
EPS 1Y (TTM)9.84%
EPS 3Y6.58%
EPS 5Y3.17%
EPS Q2Q%-3.28%
Revenue 1Y (TTM)-4.68%
Revenue growth 3Y6.19%
Revenue growth 5Y3.51%
Sales Q2Q%1.77%
3.2 Future
ED is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.27% yearly.
ED is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.85% yearly.
EPS Next Y7.98%
EPS Next 2Y6.95%
EPS Next 3Y6.41%
EPS Next 5Y6.27%
Revenue Next Year1.87%
Revenue Next 2Y2.78%
Revenue Next 3Y2.97%
Revenue Next 5Y3.85%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.22, the valuation of ED can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ED indicates a slightly more expensive valuation: ED is more expensive than 68.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ED to the average of the S&P500 Index (30.57), we can say ED is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.79, ED is valued on the expensive side.
68.00% of the companies in the same industry are cheaper than ED, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.04, ED is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.22 | ||
| Fwd PE | 17.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ED is valued a bit more expensive than the industry average as 64.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.59 |
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)2.41
PEG (5Y)6.07
EPS Next 2Y6.95%
EPS Next 3Y6.41%
5. Dividend
5.1 Amount
ED has a Yearly Dividend Yield of 3.21%.
ED's Dividend Yield is comparable with the industry average which is at 3.91.
Compared to an average S&P500 Dividend Yield of 2.26, ED pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
5.2 History
The dividend of ED has a limited annual growth rate of 3.25%.
ED has been paying a dividend for at least 10 years, so it has 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)3.25%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
ED pays out 60.77% 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.
DP60.77%
EPS Next 2Y6.95%
EPS Next 3Y6.41%
CONSOLIDATED EDISON INC
NYSE:ED (9/18/2024, 2:40:05 PM)
103
-1.54 (-1.47%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap35.62B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.22 | ||
| Fwd PE | 17.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.41
PEG (5Y)6.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 8.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.12% | ||
| PM (TTM) | 12.03% | ||
| GM | 78.77% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)9.84%
EPS 3Y6.58%
EPS 5Y
EPS Q2Q%
EPS Next Y7.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.68%
Revenue growth 3Y6.19%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y