CONSOLIDATED EDISON INC (ED) Stock Fundamental Analysis
NYSE:ED - New York Stock Exchange, Inc. - US2091151041 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to ED. ED was compared to 25 industry peers in the Multi-Utilities industry. ED has a medium profitability rating, but doesn't score so well on its financial health evaluation. ED is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years ED has always been profitable.
ED had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.58%, ED is doing worse than 64.00% of the companies in the same industry.
The Return On Equity of ED (8.29%) is worse than 64.00% of its industry peers.
ED has a worse Return On Invested Capital (3.45%) than 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 3.79%.
The last Return On Invested Capital (3.45%) for ED is above the 3 year average (3.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 8.29% | ||
| ROIC | 3.45% |
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
ED has a Profit Margin of 11.93%. This is comparable to the rest of the industry: ED outperforms 48.00% of its industry peers.
ED's Profit Margin has improved in the last couple of years.
ED has a Operating Margin of 17.90%. This is in the lower half of the industry: ED underperforms 76.00% of its industry peers.
In the last couple of years the Operating Margin of ED has declined.
The Gross Margin of ED (79.20%) is better than 84.00% of its industry peers.
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 | 17.9% | ||
| PM (TTM) | 11.93% | ||
| GM | 79.2% |
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
ED has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ED has more shares outstanding than it did 1 year ago.
ED has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ED has a worse debt to assets ratio.
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 92.00% of its industry peers.
A Debt/Equity ratio of 1.24 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 1.24, ED is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.13 |
ROIC/WACC0.51
WACC6.81%
2.3 Liquidity
ED has a Current Ratio of 1.04. This is a normal value and indicates that ED is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.04, ED is doing good in the industry, outperforming 80.00% of the companies in the same industry.
ED has a Quick Ratio of 1.04. 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 Quick ratio of 0.96. This is amongst the best in the industry. ED outperforms 96.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.23% 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 4.28% on average per year.
ED shows a small growth in Revenue. In the last year, the Revenue has grown by 4.04%.
ED shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.94% yearly.
EPS 1Y (TTM)2.23%
EPS 3Y7.23%
EPS 5Y4.28%
EPS Q2Q%4.65%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y3.71%
Revenue growth 5Y3.94%
Sales Q2Q%12.1%
3.2 Future
The Earnings Per Share is expected to grow by 5.88% 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 3.82% on average per year.
EPS Next Y7.47%
EPS Next 2Y7.24%
EPS Next 3Y6.84%
EPS Next 5Y5.88%
Revenue Next Year5.09%
Revenue Next 2Y4.5%
Revenue Next 3Y4.42%
Revenue Next 5Y3.82%
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
The Price/Earnings ratio is 20.01, which indicates a rather expensive current valuation of ED.
Based on the Price/Earnings ratio, ED is valued a bit more expensive than the industry average as 64.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 28.22, ED is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.72, the valuation of ED can be described as rather expensive.
64.00% of the companies in the same industry are cheaper than ED, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.86. ED is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.01 | ||
| Fwd PE | 17.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ED is valued a bit more expensive than the industry average as 68.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.07 |
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)2.68
PEG (5Y)4.68
EPS Next 2Y7.24%
EPS Next 3Y6.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.02%, ED has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.66, ED is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.44, ED pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
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
60.44% of the earnings are spent on dividend by ED. This is not a sustainable payout ratio.
The dividend of ED is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.44%
EPS Next 2Y7.24%
EPS Next 3Y6.84%
110.03
-2.53 (-2.25%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners71.4%
Inst Owner Change0.59%
Ins Owners0.18%
Ins Owner Change4.53%
Market Cap39.63B
Analysts54.81
Price Target106.09 (-3.58%)
Short Float %2.4%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
Yearly Dividend3.18
Dividend Growth(5Y)2.39%
DP60.44%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.37%
Min EPS beat(2)0.15%
Max EPS beat(2)0.58%
EPS beat(4)4
Avg EPS beat(4)3.05%
Min EPS beat(4)0.15%
Max EPS beat(4)10.88%
EPS beat(8)6
Avg EPS beat(8)2.72%
EPS beat(12)8
Avg EPS beat(12)2.57%
EPS beat(16)10
Avg EPS beat(16)1.45%
Revenue beat(2)0
Avg Revenue beat(2)-2.71%
Min Revenue beat(2)-3.22%
Max Revenue beat(2)-2.2%
Revenue beat(4)0
Avg Revenue beat(4)-4.87%
Min Revenue beat(4)-8.52%
Max Revenue beat(4)-2.2%
Revenue beat(8)1
Avg Revenue beat(8)-4.82%
Revenue beat(12)5
Avg Revenue beat(12)1.2%
Revenue beat(16)9
Avg Revenue beat(16)2.61%
PT rev (1m)3.37%
PT rev (3m)2.5%
EPS NQ rev (1m)2.14%
EPS NQ rev (3m)1.44%
EPS NY rev (1m)0.13%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)1.66%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.01 | ||
| Fwd PE | 17.72 | ||
| P/S | 2.6 | ||
| P/FCF | N/A | ||
| P/OCF | 10.97 | ||
| P/B | 1.8 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 13.07 |
EPS(TTM)5.5
EY5%
EPS(NY)6.21
Fwd EY5.64%
FCF(TTM)-3.21
FCFYN/A
OCF(TTM)10.03
OCFY9.12%
SpS42.37
BVpS60.97
TBVpS59.84
PEG (NY)2.68
PEG (5Y)4.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 8.29% | ||
| ROCE | 4.26% | ||
| ROIC | 3.45% | ||
| ROICexc | 3.52% | ||
| ROICexgc | 3.55% | ||
| OM | 17.9% | ||
| PM (TTM) | 11.93% | ||
| GM | 79.2% | ||
| 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-Score5
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.59 | ||
| Cap/Depr | 221.39% | ||
| Cap/Sales | 31.26% | ||
| Interest Coverage | 2.55 | ||
| Cash Conversion | 73.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.13 |
F-Score5
WACC6.81%
ROIC/WACC0.51
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)2.23%
EPS 3Y7.23%
EPS 5Y4.28%
EPS Q2Q%4.65%
EPS Next Y7.47%
EPS Next 2Y7.24%
EPS Next 3Y6.84%
EPS Next 5Y5.88%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y3.71%
Revenue growth 5Y3.94%
Sales Q2Q%12.1%
Revenue Next Year5.09%
Revenue Next 2Y4.5%
Revenue Next 3Y4.42%
Revenue Next 5Y3.82%
EBIT growth 1Y17.25%
EBIT growth 3Y-1.12%
EBIT growth 5Y0.42%
EBIT Next Year89.63%
EBIT Next 3Y30.54%
EBIT Next 5Y21.83%
FCF growth 1Y50.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y67.63%
OCF growth 3Y9.76%
OCF growth 5Y2.89%