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. Both the profitability and the financial health of ED get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past 5 years ED always reported a positive cash flow from operatings.
1.2 Ratios
ED has a Return On Assets of 2.68%. This is in the lower half of the industry: ED underperforms 60.00% of its industry peers.
ED has a worse Return On Equity (7.95%) than 68.00% of its industry peers.
With a Return On Invested Capital value of 3.55%, ED is not doing good in the industry: 76.00% 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 3.93%.
The 3 year average ROIC (3.42%) for ED is below the current ROIC(3.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 7.95% | ||
| ROIC | 3.55% |
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 11.98%, ED is in line with its industry, outperforming 44.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ED has grown nicely.
The Operating Margin of ED (17.85%) is worse than 76.00% 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 78.83%, 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 | 17.85% | ||
| PM (TTM) | 11.98% | ||
| GM | 78.83% |
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.
The number of shares outstanding for ED has been increased compared to 1 year ago.
The number of shares outstanding for ED has been increased compared to 5 years ago.
ED has a worse debt/assets ratio than last year.
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's Altman-Z score of 1.13 is amongst the best of the industry. ED outperforms 88.00% of its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that ED has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.08, ED belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.13 |
ROIC/WACC0.53
WACC6.76%
2.3 Liquidity
A Current Ratio of 1.28 indicates that ED should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.28, ED belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
A Quick Ratio of 1.19 indicates that ED should not have too much problems paying its short term obligations.
ED has a better Quick ratio (1.19) than 96.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.42% 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.
ED shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.52%.
The Revenue has been growing slightly by 3.94% on average over the past years.
EPS 1Y (TTM)2.42%
EPS 3Y7.23%
EPS 5Y4.28%
EPS Q2Q%5.12%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y3.71%
Revenue growth 5Y3.94%
Sales Q2Q%12.1%
3.2 Future
Based on estimates for the next years, ED will show a small growth in Earnings Per Share. The EPS will grow by 6.00% on average per year.
Based on estimates for the next years, ED will show a small growth in Revenue. The Revenue will grow by 5.19% on average per year.
EPS Next Y7.28%
EPS Next 2Y7.08%
EPS Next 3Y6.57%
EPS Next 5Y6%
Revenue Next Year5.7%
Revenue Next 2Y4.9%
Revenue Next 3Y4.81%
Revenue Next 5Y5.19%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.26, ED is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as ED.
ED's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.48.
Based on the Price/Forward Earnings ratio of 16.25, the valuation of ED can be described as correct.
60.00% of the companies in the same industry are cheaper than ED, based on the Price/Forward Earnings ratio.
ED is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.26 | ||
| Fwd PE | 16.25 |
4.2 Price Multiples
ED's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.12 |
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)4.27
EPS Next 2Y7.08%
EPS Next 3Y6.57%
5. Dividend
5.1 Amount
ED has a Yearly Dividend Yield of 3.36%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.73, ED has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, ED pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
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
58.59% of the earnings are spent on dividend by ED. This is a bit on the high side, but may be sustainable.
The dividend of ED is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.59%
EPS Next 2Y7.08%
EPS Next 3Y6.57%
100.6
+0.14 (+0.14%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners72.53%
Inst Owner Change0.01%
Ins Owners0.17%
Ins Owner Change1.52%
Market Cap36.25B
Analysts54.62
Price Target107.68 (7.04%)
Short Float %2.4%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
Yearly Dividend3.18
Dividend Growth(5Y)2.39%
DP58.59%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.1%
Min EPS beat(2)-0.36%
Max EPS beat(2)0.15%
EPS beat(4)3
Avg EPS beat(4)0.24%
Min EPS beat(4)-0.36%
Max EPS beat(4)0.61%
EPS beat(8)5
Avg EPS beat(8)1.13%
EPS beat(12)8
Avg EPS beat(12)2.85%
EPS beat(16)9
Avg EPS beat(16)1.26%
Revenue beat(2)1
Avg Revenue beat(2)0.81%
Min Revenue beat(2)-3.22%
Max Revenue beat(2)4.83%
Revenue beat(4)1
Avg Revenue beat(4)-2.28%
Min Revenue beat(4)-8.52%
Max Revenue beat(4)4.83%
Revenue beat(8)1
Avg Revenue beat(8)-5.1%
Revenue beat(12)5
Avg Revenue beat(12)1.15%
Revenue beat(16)9
Avg Revenue beat(16)2.65%
PT rev (1m)-0.16%
PT rev (3m)2.99%
EPS NQ rev (1m)-1.58%
EPS NQ rev (3m)-8.1%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.23%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.26 | ||
| Fwd PE | 16.25 | ||
| P/S | 2.3 | ||
| P/FCF | N/A | ||
| P/OCF | 9.35 | ||
| P/B | 1.52 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 12.12 |
EPS(TTM)5.51
EY5.48%
EPS(NY)6.19
Fwd EY6.15%
FCF(TTM)-2.25
FCFYN/A
OCF(TTM)10.76
OCFY10.7%
SpS43.79
BVpS66.01
TBVpS64.88
PEG (NY)2.51
PEG (5Y)4.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 7.95% | ||
| ROCE | 4.27% | ||
| ROIC | 3.55% | ||
| ROICexc | 3.57% | ||
| ROICexgc | 3.59% | ||
| OM | 17.85% | ||
| PM (TTM) | 11.98% | ||
| GM | 78.83% | ||
| 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-Score6
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.14 | ||
| Cap/Depr | 215.09% | ||
| Cap/Sales | 29.72% | ||
| Interest Coverage | 2.59 | ||
| Cash Conversion | 77.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 1.13 |
F-Score6
WACC6.76%
ROIC/WACC0.53
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)2.42%
EPS 3Y7.23%
EPS 5Y4.28%
EPS Q2Q%5.12%
EPS Next Y7.28%
EPS Next 2Y7.08%
EPS Next 3Y6.57%
EPS Next 5Y6%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y3.71%
Revenue growth 5Y3.94%
Sales Q2Q%12.1%
Revenue Next Year5.7%
Revenue Next 2Y4.9%
Revenue Next 3Y4.81%
Revenue Next 5Y5.19%
EBIT growth 1Y13.23%
EBIT growth 3Y-1.12%
EBIT growth 5Y0.42%
EBIT Next Year94.37%
EBIT Next 3Y33.02%
EBIT Next 5Y22.59%
FCF growth 1Y20.57%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y9.12%
OCF growth 3Y9.76%
OCF growth 5Y2.89%