CONSOLIDATED EDISON INC (ED) Stock Fundamental Analysis
USA - NYSE:ED - US2091151041 - Common Stock
96.62 USD
+0.29 (+0.3%)
96.7 USD
+0.08 (+0.08%)
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. ED has an average financial health and profitability rating. While showing a medium growth rate, ED is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
ED had positive earnings in the past year.
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 2.71%. This is in the better half of the industry: ED outperforms 64.00% of its industry peers.
Looking at the Return On Equity, with a value of 8.15%, ED is doing worse than 68.00% of the companies in the same industry.
ED's Return On Invested Capital of 3.55% is on the low side compared to the rest of the industry. ED is outperformed by 68.00% 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 3.82%.
The last Return On Invested Capital (3.55%) for ED is above the 3 year average (3.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | 8.15% | ||
| 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.
ED's Profit Margin has improved in the last couple of years.
ED has a Operating Margin of 17.65%. This is in the lower half of the industry: ED underperforms 76.00% of its industry peers.
ED's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 78.10%, ED belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
In the last couple of years the Gross Margin of ED has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.65% | ||
| PM (TTM) | 11.98% | ||
| GM | 78.1% |
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.
Compared to 5 years ago, ED has more shares outstanding
The debt/assets ratio for ED is higher compared to a year ago.
2.2 Solvency
ED has an Altman-Z score of 1.09. This is a bad value and indicates that ED is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ED (1.09) is better than 84.00% of its industry peers.
A Debt/Equity ratio of 1.12 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 1.12, ED belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.09 |
ROIC/WACC0.54
WACC6.53%
2.3 Liquidity
ED has a Current Ratio of 1.10. This is a normal value and indicates that ED is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ED (1.10) is better than 96.00% of its industry peers.
A Quick Ratio of 1.01 indicates that ED should not have too much problems paying its short term obligations.
ED has a better Quick ratio (1.01) than 96.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
ED shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.29%.
Measured over the past 5 years, ED shows a small growth in Earnings Per Share. The EPS has been growing by 4.28% on average per year.
The Revenue has grown by 9.03% in the past year. This is quite good.
ED shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.94% yearly.
EPS 1Y (TTM)4.29%
EPS 3Y7.23%
EPS 5Y4.28%
EPS Q2Q%13.56%
Revenue 1Y (TTM)9.03%
Revenue growth 3Y3.71%
Revenue growth 5Y3.94%
Sales Q2Q%19.99%
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 5.94% on average per year.
Based on estimates for the next years, ED will show a small growth in Revenue. The Revenue will grow by 5.06% on average per year.
EPS Next Y7.22%
EPS Next 2Y7.01%
EPS Next 3Y6.46%
EPS Next 5Y5.94%
Revenue Next Year6.19%
Revenue Next 2Y5.09%
Revenue Next 3Y4.83%
Revenue Next 5Y5.06%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.28, ED is valued on the expensive side.
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 (27.41), we can say ED is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.63, the valuation of ED can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ED is on the same level as its industry peers.
ED is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.28 | ||
| Fwd PE | 15.63 |
4.2 Price Multiples
ED's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.38 |
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)2.39
PEG (5Y)4.04
EPS Next 2Y7.01%
EPS Next 3Y6.46%
5. Dividend
5.1 Amount
ED has a Yearly Dividend Yield of 3.53%. Purely for dividend investing, there may be better candidates out there.
ED's Dividend Yield is slightly below the industry average, which is at 4.63.
ED's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
5.2 History
The dividend of ED has a limited annual growth rate of 2.39%.
ED has paid a dividend for at least 10 years, which is 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)2.39%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
58.24% 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.
DP58.24%
EPS Next 2Y7.01%
EPS Next 3Y6.46%
96.62
+0.29 (+0.3%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners72.03%
Inst Owner Change-2.04%
Ins Owners0.16%
Ins Owner Change0.53%
Market Cap34.85B
Analysts51.67
Price Target107.3 (11.05%)
Short Float %2.32%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
Yearly Dividend3.18
Dividend Growth(5Y)2.39%
DP58.24%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.61%
Min EPS beat(2)-0.36%
Max EPS beat(2)1.57%
EPS beat(4)3
Avg EPS beat(4)0.49%
Min EPS beat(4)-0.36%
Max EPS beat(4)1.57%
EPS beat(8)6
Avg EPS beat(8)1.6%
EPS beat(12)8
Avg EPS beat(12)2.49%
EPS beat(16)10
Avg EPS beat(16)2.43%
Revenue beat(2)2
Avg Revenue beat(2)2.84%
Min Revenue beat(2)0.84%
Max Revenue beat(2)4.83%
Revenue beat(4)2
Avg Revenue beat(4)0.06%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)4.83%
Revenue beat(8)2
Avg Revenue beat(8)-3.3%
Revenue beat(12)5
Avg Revenue beat(12)0.69%
Revenue beat(16)9
Avg Revenue beat(16)2.6%
PT rev (1m)-0.12%
PT rev (3m)-0.51%
EPS NQ rev (1m)-1.33%
EPS NQ rev (3m)-0.34%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.28 | ||
| Fwd PE | 15.63 | ||
| P/S | 2.16 | ||
| P/FCF | N/A | ||
| P/OCF | 7.71 | ||
| P/B | 1.47 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 11.38 |
EPS(TTM)5.59
EY5.79%
EPS(NY)6.18
Fwd EY6.4%
FCF(TTM)-0.77
FCFYN/A
OCF(TTM)12.53
OCFY12.97%
SpS44.79
BVpS65.87
TBVpS64.74
PEG (NY)2.39
PEG (5Y)4.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | 8.15% | ||
| ROCE | 4.32% | ||
| ROIC | 3.55% | ||
| ROICexc | 3.63% | ||
| ROICexgc | 3.65% | ||
| OM | 17.65% | ||
| PM (TTM) | 11.98% | ||
| GM | 78.1% | ||
| 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 Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.22 | ||
| Cap/Depr | 213.73% | ||
| Cap/Sales | 29.69% | ||
| Interest Coverage | 2.56 | ||
| Cash Conversion | 88.68% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 1.09 |
F-Score6
WACC6.53%
ROIC/WACC0.54
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)4.29%
EPS 3Y7.23%
EPS 5Y4.28%
EPS Q2Q%13.56%
EPS Next Y7.22%
EPS Next 2Y7.01%
EPS Next 3Y6.46%
EPS Next 5Y5.94%
Revenue 1Y (TTM)9.03%
Revenue growth 3Y3.71%
Revenue growth 5Y3.94%
Sales Q2Q%19.99%
Revenue Next Year6.19%
Revenue Next 2Y5.09%
Revenue Next 3Y4.83%
Revenue Next 5Y5.06%
EBIT growth 1Y12.42%
EBIT growth 3Y-1.12%
EBIT growth 5Y0.42%
EBIT Next Year92.81%
EBIT Next 3Y32.72%
EBIT Next 5Y22.9%
FCF growth 1Y80.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y43.79%
OCF growth 3Y9.76%
OCF growth 5Y2.89%