CONSOLIDATED EDISON INC (ED) Stock Fundamental Analysis
NYSE:ED - New York Stock Exchange, Inc. - US2091151041 - Common Stock - Currency: USD
ED gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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.
In the past year ED had a positive cash flow from operations.
In the past 5 years ED has always been profitable.
Each year in the past 5 years ED had a positive operating cash flow.
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.
Looking at the Return On Equity, with a value of 7.95%, ED is doing worse than 68.00% of the companies in the same industry.
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.
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 3.92%.
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
ED has a Profit Margin (11.98%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ED has grown nicely.
With a Operating Margin value of 17.85%, ED is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of ED has declined.
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
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
Based on the Altman-Z score of 1.14, we must say that ED is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.14, ED belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
ED has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external 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
WACC6.78%
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.
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.
The Quick ratio of ED (1.19) is better 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.
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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.52%.
Measured over the past years, ED shows a small growth in Revenue. The Revenue has been growing by 3.94% on average per year.
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
The Earnings Per Share is expected to grow by 5.91% on average over the next years.
ED is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.16% yearly.
EPS Next Y7.45%
EPS Next 2Y6.99%
EPS Next 3Y6.55%
EPS Next 5Y5.91%
Revenue Next Year5.89%
Revenue Next 2Y5.02%
Revenue Next 3Y4.91%
Revenue Next 5Y4.16%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.87, 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.
ED is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
ED is valuated correctly with a Price/Forward Earnings ratio of 16.82.
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.
When comparing the Price/Forward Earnings ratio of ED to the average of the S&P500 Index (22.13), we can say ED is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.87 | ||
| Fwd PE | 16.82 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ED.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.36 |
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)2.53
PEG (5Y)4.41
EPS Next 2Y6.99%
EPS Next 3Y6.55%
5. Dividend
5.1 Amount
ED has a Yearly Dividend Yield of 3.28%.
Compared to an average industry Dividend Yield of 4.23, ED is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, ED pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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 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.
The dividend of ED is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.59%
EPS Next 2Y6.99%
EPS Next 3Y6.55%
103.96
+0.2 (+0.19%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners72.53%
Inst Owner Change3.94%
Ins Owners0.17%
Ins Owner Change5.6%
Market Cap37.46B
Analysts54.07
Price Target107.85 (3.74%)
Short Float %2.06%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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)-1.77%
PT rev (3m)5.09%
EPS NQ rev (1m)-10.05%
EPS NQ rev (3m)-6.75%
EPS NY rev (1m)0%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)-1.58%
Revenue NQ rev (3m)4.36%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.87 | ||
| Fwd PE | 16.82 | ||
| P/S | 2.37 | ||
| P/FCF | N/A | ||
| P/OCF | 9.66 | ||
| P/B | 1.57 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 12.36 |
EPS(TTM)5.51
EY5.3%
EPS(NY)6.18
Fwd EY5.95%
FCF(TTM)-2.25
FCFYN/A
OCF(TTM)10.76
OCFY10.35%
SpS43.79
BVpS66.01
TBVpS64.88
PEG (NY)2.53
PEG (5Y)4.41
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
WACC6.78%
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 5Y5.91%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y3.71%
Revenue growth 5Y3.94%
Sales Q2Q%12.1%
Revenue Next Year5.89%
Revenue Next 2Y5.02%
Revenue Next 3Y4.91%
Revenue Next 5Y4.16%
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%