CONSOLIDATED EDISON INC (ED) Stock Fundamental Analysis
NYSE:ED - New York Stock Exchange, Inc. - US2091151041 - Common Stock - Currency: USD
Overall ED gets a fundamental rating of 4 out of 10. We evaluated ED against 25 industry peers in the Multi-Utilities industry. ED has only an average score on both its financial health and profitability. 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.
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
The Return On Assets of ED (2.68%) is worse than 60.00% of its industry peers.
ED has a Return On Equity of 7.95%. This is in the lower half of the industry: ED underperforms 68.00% of its industry peers.
ED has a Return On Invested Capital of 3.55%. This is in the lower half of the industry: ED underperforms 68.00% of its industry peers.
ED had an Average Return On Invested Capital over the past 3 years of 3.42%. This is in line with the industry average of 3.83%.
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 | 2.68% | ||
| 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
With a Profit Margin value of 11.98%, ED perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ED has grown nicely.
ED has a worse Operating Margin (17.85%) than 76.00% of its industry peers.
ED's Operating Margin has declined in the last couple of years.
ED's Gross Margin of 78.83% is amongst the best of the industry. ED outperforms 92.00% 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 | 17.85% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ED is destroying value.
Compared to 1 year ago, ED has more shares outstanding
Compared to 5 years ago, ED has more shares outstanding
ED has a worse debt/assets ratio than last year.
2.2 Solvency
ED has an Altman-Z score of 1.14. This is a bad value and indicates that ED is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.14, ED belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
A Debt/Equity ratio of 1.08 is on the high side and indicates that ED has dependencies on debt financing.
The Debt to Equity ratio of ED (1.08) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.14 |
ROIC/WACC0.52
WACC6.86%
2.3 Liquidity
A Current Ratio of 1.28 indicates that ED should not have too much problems paying its short term obligations.
The Current ratio of ED (1.28) is better than 96.00% of its industry peers.
ED has a Quick Ratio of 1.19. This is a normal value and indicates that ED is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.19, ED belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
ED shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.42%.
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 8.52% in the past year. This is quite good.
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 5.88% on average per year.
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 Y7.45%
EPS Next 2Y6.99%
EPS Next 3Y6.55%
EPS Next 5Y5.88%
Revenue Next Year5.82%
Revenue Next 2Y4.93%
Revenue Next 3Y4.83%
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
With a Price/Earnings ratio of 18.89, ED is valued on the expensive side.
64.00% of the companies in the same industry are cheaper than ED, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.82, ED is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.84, which indicates a correct valuation of ED.
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 60.00% 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 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.89 | ||
| Fwd PE | 16.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ED is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.32 |
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)2.54
PEG (5Y)4.42
EPS Next 2Y6.99%
EPS Next 3Y6.55%
5. Dividend
5.1 Amount
ED has a Yearly Dividend Yield of 3.33%.
Compared to an average industry Dividend Yield of 3.67, ED has a dividend in line with its industry peers.
ED's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
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
ED pays out 58.59% of its income as dividend. 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.
DP58.59%
EPS Next 2Y6.99%
EPS Next 3Y6.55%
104.1
+0.68 (+0.66%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners71.4%
Inst Owner Change4%
Ins Owners0.18%
Ins Owner Change4.53%
Market Cap37.50B
Analysts54.81
Price Target109.8 (5.48%)
Short Float %2.31%
Short Ratio2.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
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)5.02%
PT rev (3m)9.13%
EPS NQ rev (1m)3.8%
EPS NQ rev (3m)1.2%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)6.04%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)2.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.89 | ||
| Fwd PE | 16.84 | ||
| P/S | 2.38 | ||
| P/FCF | N/A | ||
| P/OCF | 9.67 | ||
| P/B | 1.58 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 12.32 |
EPS(TTM)5.51
EY5.29%
EPS(NY)6.18
Fwd EY5.94%
FCF(TTM)-2.25
FCFYN/A
OCF(TTM)10.77
OCFY10.34%
SpS43.81
BVpS66.03
TBVpS64.89
PEG (NY)2.54
PEG (5Y)4.42
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 | 1.14 |
F-Score6
WACC6.86%
ROIC/WACC0.52
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 Y7.45%
EPS Next 2Y6.99%
EPS Next 3Y6.55%
EPS Next 5Y5.88%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y3.71%
Revenue growth 5Y3.94%
Sales Q2Q%12.1%
Revenue Next Year5.82%
Revenue Next 2Y4.93%
Revenue Next 3Y4.83%
Revenue Next 5Y3.82%
EBIT growth 1Y13.23%
EBIT growth 3Y-1.12%
EBIT growth 5Y0.42%
EBIT Next Year89.63%
EBIT Next 3Y30.54%
EBIT Next 5Y21.83%
FCF growth 1Y20.57%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y9.12%
OCF growth 3Y9.76%
OCF growth 5Y2.89%