NYSE:ED

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Consolidated Edison's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ED has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.5%

ED

4.2%

US Integrated Utilities

1.6%

US Market


1 Year Return

-17.3%

ED

-8.5%

US Integrated Utilities

4.8%

US Market

Return vs Industry: ED underperformed the US Integrated Utilities industry which returned -8.5% over the past year.

Return vs Market: ED underperformed the US Market which returned 4.8% over the past year.


Shareholder returns

EDIndustryMarket
7 Day4.5%4.2%1.6%
30 Day-1.4%-3.2%2.3%
90 Day-5.3%12.3%29.5%
1 Year-14.3%-17.3%-5.3%-8.5%7.1%4.8%
3 Year2.2%-8.2%21.5%9.2%37.1%28.1%
5 Year46.3%22.0%59.3%33.1%67.2%48.6%

Price Volatility Vs. Market

How volatile is Consolidated Edison's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Consolidated Edison undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ED ($73.81) is trading below our estimate of fair value ($194.98)

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


Price To Earnings Ratio

PE vs Industry: ED is good value based on its PE Ratio (18.9x) compared to the Integrated Utilities industry average (18.9x).

PE vs Market: ED is poor value based on its PE Ratio (18.9x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: ED is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: ED is good value based on its PB Ratio (1.4x) compared to the US Integrated Utilities industry average (1.8x).


Next Steps

Future Growth

How is Consolidated Edison forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ED's forecast earnings growth (6.2% per year) is above the savings rate (2.2%).

Earnings vs Market: ED's earnings (6.2% per year) are forecast to grow slower than the US market (22.8% per year).

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

Revenue vs Market: ED's revenue (2.8% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: ED's revenue (2.8% 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 (7.9%).


Next Steps

Past Performance

How has Consolidated Edison performed over the past 5 years?

5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ED has high quality earnings.

Growing Profit Margin: ED's current net profit margins (10.5%) are lower than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: ED's earnings have grown by 5.2% per year over the past 5 years.

Accelerating Growth: ED's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ED had negative earnings growth (-6.1%) over the past year, making it difficult to compare to the Integrated Utilities industry average (-6.1%).


Return on Equity

High ROE: ED's Return on Equity (7.5%) is considered low.


Next Steps

Financial Health

How is Consolidated Edison's financial position?


Financial Position Analysis

Short Term Liabilities: ED's short term assets ($5.0B) do not cover its short term liabilities ($6.3B).

Long Term Liabilities: ED's short term assets ($5.0B) do not cover its long term liabilities ($34.4B).


Debt to Equity History and Analysis

Debt Level: ED's debt to equity ratio (123.7%) is considered high.

Reducing Debt: ED's debt to equity ratio has increased from 98.9% to 123.7% over the past 5 years.

Debt Coverage: ED's debt is not well covered by operating cash flow (13.5%).

Interest Coverage: ED's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

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

4.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ED's dividend (4.15%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: ED's dividend (4.15%) is low compared to the top 25% of dividend payers in the US market (4.51%).


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.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.4%), ED's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ED's dividends in 3 years are forecast to be covered by earnings (68.6% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

John McAvoy (59yo)

6.58yrs

Tenure

US$15,345,285

Compensation

Mr. John J. McAvoy has been the Chief Executive Officer and President at Consolidated Edison Inc., since December 26, 2013. Mr. McAvoy has been a Director of Electric Power Research Institute, Inc. since  ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD15.35M) is above average for companies of similar size in the US market ($USD11.50M).

Compensation vs Earnings: John's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John McAvoy
Chairman6.58yrsUS$15.35m0.040% $10.0m
Robert Hoglund
Senior VP & CFO14.83yrsUS$3.52m0.013% $3.1m
Timothy Cawley
President of Con Edison of New York2.5yrsUS$7.01m0.0047% $1.1m
Robert Sanchez
President & Chief Executive Officer of Orange and Rockland Utilities2.58yrsUS$3.61m0.00097% $239.2k
Robert Muccilo
Chief Accounting Officer11yrsno data0.0022% $552.4k
Jan Childress
Director of Investor Relations21.92yrsno datano data
Deneen Donnley
Senior VP & General Counsel0.50yrno data0.00012% $29.6k
James Dixon
COO & SVP of Clean Energy Corps3.42yrsno datano data
Joseph Oates
CEO & President of Con Edison Transmission3.83yrsno data0.0074% $1.8m
Yukari Saegusa
VP & Treasurer3.83yrsno data0.00055% $135.6k

3.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: ED's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John McAvoy
Chairman6.58yrsUS$15.35m0.040% $10.0m
Lewis Sutherland
Independent Director14.25yrsUS$295.00k0.0012% $295.9k
Ellen Futter
Director22.58yrsUS$277.50k0.00070% $172.6k
George Campbell
Independent Director20.42yrsUS$285.00k0.0012% $298.4k
Linda Sanford
Independent Director5.5yrsUS$280.00k0.00072% $177.6k
John Killian
Independent Director12.83yrsUS$295.00kno data
Armando Olivera
Independent Director6.42yrsUS$292.50k0.00015% $37.0k
Deirdre Stanley
Independent Director2.67yrsUS$265.00k0.0031% $759.5k
Michael Ranger
Independent Lead Directorno dataUS$330.00k0.018% $4.5m
William Mulrow
Independent Director2.67yrsUS$270.00kno data

6.4yrs

Average Tenure

66yo

Average Age

Experienced Board: ED's board of directors are considered experienced (6.4 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Consolidated Edison, Inc.
  • Ticker: ED
  • Exchange: NYSE
  • Founded: 1884
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: US$24.660b
  • Shares outstanding: 334.10m
  • Website: https://www.conedison.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EDNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
EDCDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
0I35LSE (London Stock Exchange)YesCommon SharesGBUSDJan 1968
EDCETLX (Eurotlx)YesCommon SharesITEURJan 1968

Biography

Consolidated Edison, Inc., through its subsidiaries, engages in regulated electric, gas, and steam delivery businesses in the United States. The company 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 1,589 customers in parts of Manhattan. It 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. The company operates 543 circuit miles of transmission lines; 15 transmission substations; 64 distribution substations; 89,395 in-service line transformers; 3,745 pole miles of overhead distribution lines; and 2,200 miles of underground distribution lines, as well as 4,318 miles of mains and 376,306 service lines for natural gas distribution. In addition, it owns, operates, and develops renewable and energy infrastructure projects; and provides energy-related products and services to wholesale and retail customers, as well as invests in electric and gas transmission projects. The company primarily sells electricity to industrial, commercial, residential, and government customers. Consolidated Edison, Inc. was founded in 1884 and is based in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/02 23:53
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.