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ED

Consolidated Edison NYSE:ED Stock Report

Last Price

US$97.19

Market Cap

US$34.5b

7D

-2.1%

1Y

28.7%

Updated

06 Aug, 2022

Data

Company Financials +
ED fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health1/6
Dividends4/6

ED Stock Overview

Consolidated Edison, Inc., through its subsidiaries, engages in the regulated electric, gas, and steam delivery businesses in the United States.

Consolidated Edison Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Consolidated Edison
Historical stock prices
Current Share PriceUS$97.19
52 Week HighUS$101.12
52 Week LowUS$71.52
Beta0.24
1 Month Change5.30%
3 Month Change3.42%
1 Year Change28.69%
3 Year Change11.38%
5 Year Change17.28%
Change since IPO232.27%

Recent News & Updates

Jul 03

Consolidated Edison Could Be A Winner In The Current Market Environment

Consolidated Edison has a strong track record of outperforming the broader market during times of low consumer confidence. The high and sustainable dividend payments could be attractive for dividend and dividend growth investors. The firm's clean energy commitment could be appealing for investors with an ESG focus. Currently, we rate ED's stock as "buy". Consolidated Edison (ED) is a firm operating in the multi-utilities industry and plays a role in the regulated electric, gas, and steam delivery across the United States. The firm's stock has substantially outperformed the broader market year to date. Data by YCharts While the broader market has seen a decline of almost 20%, ED's stock price has gained ~14%. While a large portion of the market is significantly influenced by the declining consumer confidence and the overall macroeconomic situation, we believe that ED's business is relatively recession-proof and has a strong track record of outperforming the market during times of low consumer confidence. We expect the firm to outperform the broader market in the near term, therefore, our current rating on Consolidated Edison is "buy". Let us take a closer look, why in our opinion ED could be an attractive investment option in the current environment. Consumer confidence Consumer confidence is often regarded as a leading economic indicator, which could signal potential changes in the spending behavior of the consumer. Although consumer spending has remained healthy in the first half of 2022, we believe that the declining level of consumer confidence will eventually have a negative impact on the spending in the near future. U.S. Consumer confidence (Tradingeconomics.com) During times of low consumer confidence, firms that are selling durable goods and non-essential, discretionary products are affected the most. Consumers are likely to cut or delay purchases of these goods or shift to lower-cost alternatives. As the current consumer confidence is even below the levels seen during the financial crisis in 2008-2009, we believe that it will have a meaningful negative impact on the broader market. On the other hand, we expect firms in the utilities sector to remain relatively unaffected. If we take a look at three periods in the last 20 years during which consumer confidence was low, we find that two out of three times Consolidated Edison outperformed the broader market, while once it performed in line with the S&P 500 (SPY). 2001-2003 Data by YCharts While in this two-year time frame, the SPY has declined by more than 30%, ED's stock price has increased by 11%, with relatively low volatility in the period. 2007-2010 Data by YCharts In this period, which also contains the 2008-2009 financial crisis, both ED and SPY have closed in the negative territory. However, ED has lost only 5% of its market value, while the SPY has declined by more than 20%. 2011-2013 Data by YCharts Between 2001 and 2013, both Consolidated Edison and the broader market have performed well, growing by more than 10%. Although initially ED performed much better than the SPY, at the end of the period, their performance was about in line. While past performance is not always a good indicator of future performance, we believe that the relative independence of the utilities sector from the consumer confidence makes ED an attractive candidate now. Not only the past performance but also ED's dividend yield could be appealing for many investors. Dividend Consolidated Edison currently pays a quarterly dividend of $0.79 per share, which is equivalent to an annual dividend yield of about 3.2%. Not only the firm's relatively high yield but also its dividend history makes Consolidated Edison attractive. The firm has been paying dividends to its shareholder for 48 consecutive years, and they even managed to increase these dividend payments each year. We also believe that the current dividend is safe and sustainable, despite the 72% dividend payout ratio ((TTM)) ((GAAP)). This payout ratio is not uncommon in the utilities sector. Although currently the sector median payout ratio is slightly lower, about 64%, the firm's 5-year average payout ratio is as much as 74%. All in all, we believe that ED could be an attractive addition to a dividend, dividend growth portfolio, especially in the current, volatile market environment. Clean Energy We like Consolidated Edison's clean energy strategy. The firm has presented its 5 pillars of extended clean energy commitment during the first quarter earnings presentation. In this strategy, the firm outlines its intention to aggressively transition away from fossil fuels and take a leadership role in the delivery of clean energy to its customers by investing in the construction and operation of a resilient, reliable, and innovative energy infrastructure. The five strategic pillars of the firms are: 1.) Building the grid of the future, which would deliver 100% clean energy by 2040. 2.) Empower all customers to meet their climate goals. This entails the improvement of energy efficiency and the electrification of heating systems by 2050.

Shareholder Returns

EDUS Integrated UtilitiesUS Market
7D-2.1%-1.1%1.0%
1Y28.7%11.2%-12.9%

Return vs Industry: ED exceeded the US Integrated Utilities industry which returned 11.2% over the past year.

Return vs Market: ED exceeded the US Market which returned -12.8% over the past year.

Price Volatility

Is ED's price volatile compared to industry and market?
ED volatility
ED Average Weekly Movement3.3%
Integrated Utilities Industry Average Movement3.4%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: ED is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ED's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
182313,871Tim Cawleyhttps://www.conedison.com

Consolidated Edison, Inc., through its subsidiaries, engages in the regulated electric, gas, and steam delivery businesses in the United States. It offers electric services to approximately 3.5 million customers in New York City and Westchester County; gas to approximately 1.1 million customers in Manhattan, the Bronx, parts of Queens, and Westchester County; and steam to approximately 1,555 customers in parts of Manhattan. The company also supplies electricity to approximately 0.3 million customers in southeastern New York and northern New Jersey; and gas to approximately 0.1 million customers in southeastern New York.

Consolidated Edison Fundamentals Summary

How do Consolidated Edison's earnings and revenue compare to its market cap?
ED fundamental statistics
Market CapUS$34.46b
Earnings (TTM)US$1.62b
Revenue (TTM)US$14.50b

21.3x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ED income statement (TTM)
RevenueUS$14.50b
Cost of RevenueUS$6.77b
Gross ProfitUS$7.74b
Other ExpensesUS$6.12b
EarningsUS$1.62b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.57
Gross Margin53.35%
Net Profit Margin11.16%
Debt/Equity Ratio122.8%

How did ED perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

68%

Payout Ratio

Does ED pay a reliable dividends?

See ED dividend history and benchmarks
When do you need to buy ED by to receive an upcoming dividend?
Consolidated Edison dividend dates
Ex Dividend DateAug 16 2022
Dividend Pay DateSep 15 2022
Days until Ex dividend8 days
Days until Dividend pay date38 days

Does ED pay a reliable dividends?

See ED dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is ED undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ED?

Other financial metrics that can be useful for relative valuation.

ED key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.1x
Enterprise Value/EBITDA11.7x
PEG Ratio2.7x

Price to Earnings Ratio vs Peers

How does ED's PE Ratio compare to its peers?

ED PE Ratio vs Peers
The above table shows the PE ratio for ED vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average30.9x
WEC WEC Energy Group
23.8x5.9%US$32.5b
AEE Ameren
23.4x8.5%US$23.6b
DTE DTE Energy
31.7x9.6%US$25.0b
SRE Sempra
44.6x9.0%US$50.2b
ED Consolidated Edison
21.3x8.0%US$34.5b

Price-To-Earnings vs Peers: ED is good value based on its Price-To-Earnings Ratio (21.3x) compared to the peer average (30.9x).


Price to Earnings Ratio vs Industry

How does ED's PE Ratio compare vs other companies in the Global Integrated Utilities Industry?

Price-To-Earnings vs Industry: ED is good value based on its Price-To-Earnings Ratio (21.3x) compared to the US Integrated Utilities industry average (23.4x)


Price to Earnings Ratio vs Fair Ratio

What is ED's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ED PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.3x
Fair PE Ratio23.7x

Price-To-Earnings vs Fair Ratio: ED is good value based on its Price-To-Earnings Ratio (21.3x) compared to the estimated Fair Price-To-Earnings Ratio (23.7x).


Share Price vs Fair Value

What is the Fair Price of ED when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ED ($97.19) is trading below our estimate of fair value ($353.83)

Significantly Below Fair Value: ED is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is lower than the current share price.


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Future Growth

How is Consolidated Edison forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ED's forecast earnings growth (8% per year) is above the savings rate (1.9%).

Earnings vs Market: ED's earnings (8% per year) are forecast to grow slower than the US market (12.8% per year).

High Growth Earnings: ED's earnings are forecast to grow, but not significantly.

Revenue vs Market: ED's revenue (4.5% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: ED's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ED's Return on Equity is forecast to be low in 3 years time (8.2%).


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Past Performance

How has Consolidated Edison performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-1.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ED has high quality earnings.

Growing Profit Margin: ED's current net profit margins (11.2%) are higher than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: ED's earnings have declined by 1.6% per year over the past 5 years.

Accelerating Growth: ED's earnings growth over the past year (44.6%) exceeds its 5-year average (-1.6% per year).

Earnings vs Industry: ED earnings growth over the past year (44.6%) exceeded the Integrated Utilities industry -1.3%.


Return on Equity

High ROE: ED's Return on Equity (7.1%) is considered low.


Discover strong past performing companies

Financial Health

How is Consolidated Edison's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ED's short term assets ($6.0B) do not cover its short term liabilities ($6.8B).

Long Term Liabilities: ED's short term assets ($6.0B) do not cover its long term liabilities ($37.6B).


Debt to Equity History and Analysis

Debt Level: ED's net debt to equity ratio (117.3%) is considered high.

Reducing Debt: ED's debt to equity ratio has increased from 112.9% to 122.8% over the past 5 years.

Debt Coverage: ED's debt is not well covered by operating cash flow (13%).

Interest Coverage: ED's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


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Dividend

What is Consolidated Edison current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.25%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 07 2022Ex Dividend DateAug 16 2022Dividend Pay DateSep 15 202230 days from Ex DividendBuy in the next 8 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ED's dividend (3.25%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: ED's dividend (3.25%) is low compared to the top 25% of dividend payers in the US market (4.09%).


Stability and Growth of Payments

Stable Dividend: ED's dividends per share have been stable in the past 10 years.

Growing Dividend: ED's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (68.3%), ED's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: ED is paying a dividend but the company has no free cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Tim Cawley (57 yo)

1.67yrs

Tenure

US$10,342,198

Compensation

Mr. Timothy P. Cawley, also known as Tim, serves as President, Chief Executive Officer and Director at Consolidated Edison, Inc. since December 29, 2020 and serves as its Chairman of the Board since Januar...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD10.34M) is about average for companies of similar size in the US market ($USD13.00M).

Compensation vs Earnings: Tim's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ED's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: ED's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ED insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Consolidated Edison, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Consolidated Edison, Inc.
  • Ticker: ED
  • Exchange: NYSE
  • Founded: 1823
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Implied Market Cap: US$34.462b
  • Shares outstanding: 354.58m
  • Website: https://www.conedison.com

Number of Employees


Location

  • Consolidated Edison, Inc.
  • 4 Irving Place
  • New York
  • New York
  • 10003
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.