Consolidated Edison Inc (ED) stock analysis

P/E above its 5-year median

Consolidated Edison's P/E of 19.1 is above its own 5-year median of 18.8.

P/E below the industry

Consolidated Edison's P/E of 19.1 is below the Combination Electric and Gas, and Other Utility median of 19.2.

EV/EBITDA below its 5-year median

Consolidated Edison's EV/EBITDA of 7.8 is below its 5-year median of 11.1.

P/B below the industry

Consolidated Edison's price-to-book of 1.68 is below the Combination Electric and Gas, and Other Utility median of 1.74.

Trading below fair value

The share price of $119.19 is below our fair value estimate of $146.11.

Margin of safety under 20%

The price is 18.4% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 2.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 6.6% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 12.8% over the last twelve months, against a 5-year average of 12.9% a year.

Growing faster than the industry

Revenue grew 8.9% over the last twelve months; the Combination Electric and Gas, and Other Utility median is 5.2%.

Guidance unchanged

The latest outlook (year of 2026 adjusted earnings per share (non-GAAP), Aug 6, 2026) was maintained, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 9.1% over the last twelve months and averaged 8.9% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 10.0%, above the 10% that usually covers the cost of capital.

Return on equity below the industry

Consolidated Edison's return on equity of 9.1% is below the Combination Electric and Gas, and Other Utility median of 9.2%.

Earnings grew over 5 years

Net income grew 12.9% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 12.7% over the last twelve months, against a 5-year average of 12.3%.

Net margin below the industry

Consolidated Edison's net margin of 12.7% is below the Combination Electric and Gas, and Other Utility median of 12.7%.

Low debt

Debt is 1.5% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 119% five years ago to 1.5%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 1098% of total debt.

Interest not well covered

Operating income covers interest expense 2.7 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.18 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.20; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Consolidated Edison paid dividends worth 2.9% of the share price over the last twelve months.

Yield below Treasuries

The 2.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Consolidated Edison yields 2.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 9 fiscal years.

Covered by earnings

Dividends take 53.8% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.