Consolidated Edison, Inc.EDNYSE
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Executive Summary
Latest Data: Dec 2024Utilities•Regulated Electric
$41.0BLarge Cap
A large-scale business, with solid profitability valued in line with the market.
Key Investment Themes
Mature business (4% growth)
Solid 12% profitability
Business Narrative
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.
UtilitiesRegulated Electric
Capital Intensive
medium confidence
Revenue Mix
Single segment business
Bull Case
- +Solid profitability with room for margin expansion
Bear Case
- -Negative free cash flow may necessitate future capital raises
Company at a Glance
Business Performance
Key Highlights
Watch Areas
- Negative free cash flow - burning cash
Financial Health
Liquidity
Watch
Current Ratio1.04
1.0-2.0 = Adequate
Cash & Equivalents$1.3B
Leverage
Watch
Debt / Equity1.27
1.0-2.0 = Moderate
Interest Coverage2.30x
2-5x = Adequate
Efficiency
Concern
Return on Equity8.3%
8-15% = Fair
Return on Capital3.5%
<8% = Weak
Valuation Assessment
Market Cap
$41.0B
Large Cap
P/E (TTM)
20.2x
In-line
vs 5Y avg: 18.8x (+7%)
P/S (TTM)
2.5x
In-line
vs 5Y avg: 2.1x (+18%)
EV/EBITDA
9.7x
Discounted
vs 5Y avg: 10.9x
(-11%)
(-11%)
P/E Historical Range (5Y)
Min: 12.6xAvg: 18.8xNow: 20.2xMax: 22.1x
P/S Historical Range (5Y)
Min: 2.0xAvg: 2.1xNow: 2.5xMax: 2.2x
EV/EBITDA Historical Range (5Y)
Min: 9.1xAvg: 10.9xNow: 9.7xMax: 12.4x
Valuation Corridor
CHEAP
FCF Yield
8.3%
vs Cost of Capital ~8.0% = Strong
P/E Corridor (5Y)20.2x
12.6xFair: 14.7x-22.1x22.1x
P/S Corridor (5Y)2.5x
2.0xFair: 2.0x-2.2x2.2x
EV/EBITDA Corridor (5Y)9.7x
9.1xFair: 9.7x-12.2x12.4x
Detailed Financials
Comprehensive financial statement data for deep analysis
| Metric | Dec 20 | Dec 21 | Dec 22 | Dec 23 | Dec 24 |
|---|---|---|---|---|---|
| Return on Equity | - | - | - | - | - |
| Return on Invested Capital | - | - | - | - | - |
| Gross Margin | 65.9% | 65.0%↓1.3% | 61.0%↓6.2% | 61.2%↑0.3% | 64.0%↑4.6% |
| Operating Margin | 21.7% | 20.5%↓5.5% | 16.7%↓18.5% | 15.8%↓5.5% | 17.9%↑13.5% |
| Net Margin | 9.0% | 9.8%↑9.4% | 10.6%↑7.6% | 17.2%↑62.3% | 11.9%↓30.6% |
| Earnings Yield | - | - | - | - | - |
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