CONSOLIDATED EDISON INC (ED)
US2091151041 - Common Stock
We assign a fundamental rating of 4 out of 10 to ED. ED was compared to 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. While showing a medium growth rate, ED is valued expensive at the moment. Finally ED also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ED was profitable.
ED had a positive operating cash flow in the past year.
ED had positive earnings in each of the past 5 years.
In the past 5 years ED always reported a positive cash flow from operatings.
1.2 Ratios
ED has a Return On Assets of 2.69%. This is comparable to the rest of the industry: ED outperforms 44.00% of its industry peers.
With a Return On Equity value of 8.42%, ED is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
The Return On Invested Capital of ED (3.31%) is worse than 68.00% 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 3.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 8.42% | ||
| ROIC | 3.31% |
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
ED's Profit Margin of 12.26% is on the low side compared to the rest of the industry. ED is outperformed by 64.00% of its industry peers.
ED's Profit Margin has improved in the last couple of years.
ED's Operating Margin of 17.79% is on the low side compared to the rest of the industry. ED is outperformed by 92.00% of its industry peers.
In the last couple of years the Operating Margin of ED has declined.
Looking at the Gross Margin, with a value of 79.47%, ED belongs to the top of the industry, outperforming 88.00% 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 | 17.79% | ||
| PM (TTM) | 12.26% | ||
| GM | 79.47% |
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
ED has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ED has been reduced compared to 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
Based on the Altman-Z score of 1.07, we must say that ED is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.07, ED belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
ED has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
ED's Debt to Equity ratio of 1.16 is amongst the best of the industry. ED outperforms 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.07 |
ROIC/WACC0.5
WACC6.66%
2.3 Liquidity
A Current Ratio of 1.01 indicates that ED should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.01, ED is doing good in the industry, outperforming 76.00% of the companies in the same industry.
ED has a Quick Ratio of 1.01. This is a bad value and indicates that ED is not financially healthy enough and could expect problems in meeting its short term obligations.
ED has a better Quick ratio (0.93) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.29% 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.
Looking at the last year, ED shows a decrease in Revenue. The Revenue has decreased by -1.40% in the last year.
The Revenue has been growing slightly by 3.51% on average over the past years.
EPS 1Y (TTM)11.29%
EPS 3Y6.58%
EPS 5Y3.17%
EPS Q2Q%3.7%
Revenue 1Y (TTM)-1.4%
Revenue growth 3Y6.19%
Revenue growth 5Y3.51%
Sales Q2Q%5.68%
3.2 Future
The Earnings Per Share is expected to grow by 6.27% 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 3.85% on average per year.
EPS Next Y8.22%
EPS Next 2Y6.98%
EPS Next 3Y6.55%
EPS Next 5Y6.27%
Revenue Next Year2.05%
Revenue Next 2Y3.01%
Revenue Next 3Y3.23%
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.
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
Based on the Price/Earnings ratio of 18.21, the valuation of ED can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ED is on the same level as its industry peers.
When comparing the Price/Earnings ratio of ED to the average of the S&P500 Index (28.96), we can say ED is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.04, which indicates a rather expensive current valuation of ED.
ED's Price/Forward Earnings is on the same level as the industry average.
ED is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 17.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ED is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.98 |
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)2.21
PEG (5Y)5.75
EPS Next 2Y6.98%
EPS Next 3Y6.55%
5. Dividend
5.1 Amount
ED has a Yearly Dividend Yield of 3.49%.
ED's Dividend Yield is a higher than the industry average which is at 3.95.
Compared to an average S&P500 Dividend Yield of 2.23, ED pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.25%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
59.16% of the earnings are spent on dividend by ED. This is a bit on the high side, but may be sustainable.
ED's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP59.16%
EPS Next 2Y6.98%
EPS Next 3Y6.55%
CONSOLIDATED EDISON INC
NYSE:ED (11/21/2024, 8:24:00 PM)
After market: 98.7 0 (0%)98.7
+0.82 (+0.84%)
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 Cap34.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 | 18.21 | ||
| Fwd PE | 17.04 | ||
| 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)2.21
PEG (5Y)5.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 8.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.79% | ||
| PM (TTM) | 12.26% | ||
| GM | 79.47% | ||
| 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 | 1.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.93 | ||
| 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)11.29%
EPS 3Y6.58%
EPS 5Y
EPS Q2Q%
EPS Next Y8.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.4%
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