Consolidated Edison, Inc.
Consolidated Edison, Inc. Fundamental Analysis
Consolidated Edison, Inc. (ED) shows moderate financial fundamentals with a PE ratio of 19.89, profit margin of 11.95%, and ROE of 8.43%. The company generates $16.9B in annual revenue with moderate year-over-year growth of 4.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ED's fundamental strength across five key dimensions:
Efficiency Score
WeakED struggles to generate sufficient returns from assets.
Valuation Score
ExcellentED trades at attractive valuation levels.
Growth Score
WeakED faces weak or negative growth trends.
Financial Health Score
ModerateED shows balanced financial health with some risks.
Profitability Score
WeakED struggles to sustain strong margins.
Key Financial Metrics
Is ED Expensive or Cheap?
P/E Ratio
ED trades at 19.89 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ED's PEG of -16.31 indicates potential undervaluation.
Price to Book
The market values Consolidated Edison, Inc. at 1.66 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.49 times EBITDA. This is generally considered low.
How Well Does ED Make Money?
Net Profit Margin
For every $100 in sales, Consolidated Edison, Inc. keeps $11.95 as profit after all expenses.
Operating Margin
Core operations generate 17.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.43 in profit for every $100 of shareholder equity.
ROA
Consolidated Edison, Inc. generates $2.71 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Consolidated Edison, Inc. generates strong operating cash flow of $4.80B, reflecting robust business health.
Free Cash Flow
Consolidated Edison, Inc. generates strong free cash flow of $3.50B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.68 in free cash annually.
FCF Yield
ED converts 8.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-16.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How ED Stacks Against Its Sector Peers
| Metric | ED Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.89 | 19.20 | Neutral |
| ROE | 8.43% | 1033.00% | Weak |
| Net Margin | 11.95% | 9191.00% | Weak |
| Debt/Equity | 1.19 | 6.63 | Strong (Low Leverage) |
| Current Ratio | 1.02 | 1.68 | Neutral |
| ROA | 2.71% | -237.00% (disorted) | Weak |
ED outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Consolidated Edison, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
15.42%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
28.66%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
9.48%
Industry Style: Defensive, Dividend, Income
Growing