CONSOLIDATED EDISON INC (ED)
US2091151041 - Common Stock
We assign a fundamental rating of 4 out of 10 to ED. ED was compared to 26 industry peers in the Multi-Utilities industry. ED has only an average score on both its financial health and profitability. While showing a medium growth rate, ED is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year ED was profitable.
In the past year ED had a positive cash flow from operations.
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 3.80%. This is amongst the best in the industry. ED outperforms 92.31% of its industry peers.
With a decent Return On Equity value of 11.91%, ED is doing good in the industry, outperforming 76.92% of the companies in the same industry.
ED has a worse Return On Invested Capital (3.00%) than 80.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ED is in line with the industry average of 3.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.8% | ||
| ROE | 11.91% | ||
| ROIC | 3% |
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 an excellent Profit Margin value of 17.18%, ED belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
ED's Profit Margin has improved in the last couple of years.
The Operating Margin of ED (15.89%) is worse than 88.46% of its industry peers.
In the last couple of years the Operating Margin of ED has declined.
With an excellent Gross Margin value of 77.02%, ED belongs to the best of the industry, outperforming 88.46% 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 | 15.89% | ||
| PM (TTM) | 17.18% | ||
| GM | 77.02% |
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.
Compared to 1 year ago, ED has less shares outstanding
The number of shares outstanding for ED has been increased compared to 5 years ago.
The debt/assets ratio for ED is higher compared to a year ago.
2.2 Solvency
ED has an Altman-Z score of 1.05. 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 1.05. This is amongst the best in the industry. ED outperforms 92.31% of its industry peers.
A Debt/Equity ratio of 1.14 is on the high side and indicates that ED has dependencies on debt financing.
ED has a better Debt to Equity ratio (1.14) than 88.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.05 |
ROIC/WACC0.45
WACC6.69%
2.3 Liquidity
A Current Ratio of 1.01 indicates that ED should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.01, ED belongs to the best of the industry, outperforming 96.15% 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.
With an excellent Quick ratio value of 0.94, ED belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.21% over the past year.
ED shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.17% yearly.
The Revenue has decreased by -6.43% in the past year.
Measured over the past years, ED shows a small growth in Revenue. The Revenue has been growing by 3.51% on average per year.
EPS 1Y (TTM)11.21%
EPS 3Y6.58%
EPS 5Y3.17%
EPS growth Q2Q23.46%
Revenue 1Y (TTM)-6.43%
Revenue growth 3Y6.19%
Revenue growth 5Y3.51%
Revenue growth Q2Q-14.56%
3.2 Future
ED is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.08% yearly.
Based on estimates for the next years, ED will show a small growth in Revenue. The Revenue will grow by 3.79% on average per year.
EPS Next Y8.14%
EPS Next 2Y6.75%
EPS Next 3Y6.19%
EPS Next 5Y6.08%
Revenue Next Year2.79%
Revenue Next 2Y3.37%
Revenue Next 3Y3.14%
Revenue Next 5Y3.79%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.58, ED is valued on the expensive side.
ED's Price/Earnings ratio is a bit more expensive when compared to the industry. ED is more expensive than 65.38% of the companies in the same industry.
When comparing the Price/Earnings ratio of ED to the average of the S&P500 Index (25.25), we can say ED is valued slightly cheaper.
ED is valuated rather expensively with a Price/Forward Earnings ratio of 17.19.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ED indicates a slightly more expensive valuation: ED is more expensive than 69.23% of the companies listed in the same industry.
ED's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.58 | ||
| Fwd PE | 17.19 |
4.2 Price Multiples
ED's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ED is more expensive than 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.22 |
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.
ED has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.28
PEG (5Y)5.87
EPS Next 2Y6.75%
EPS Next 3Y6.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.65%, ED has a reasonable but not impressive dividend return.
ED's Dividend Yield is slightly below the industry average, which is at 4.48.
Compared to an average S&P500 Dividend Yield of 2.45, ED pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
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 Years13
Div Non Decr Years13
5.3 Sustainability
43.51% 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.
DP43.51%
EPS Next 2Y6.75%
EPS Next 3Y6.19%
CONSOLIDATED EDISON INC
NYSE:ED (4/25/2024, 2:03:51 PM)
94.04
+0.61 (+0.65%)
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 Cap32.51B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 18.58 | ||
| Fwd PE | 17.19 | ||
| 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)2.28
PEG (5Y)5.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.8% | ||
| ROE | 11.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.89% | ||
| PM (TTM) | 17.18% | ||
| GM | 77.02% | ||
| 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 | 1.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.94 | ||
| 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)
Growth
EPS 1Y (TTM)11.21%
EPS 3Y6.58%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.43%
Revenue growth 3Y6.19%
Revenue growth 5Y
Revenue growth 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