Consolidated Edison (ED) AI Stock Analysis

• Market Cap: $39.64B
• Dividend Yield: 3.1%
• Average Volume (3M): 2.88M
• Price to Earnings (P/E): 20.3
• Beta (1Y): -0.05
• Revenue Growth: 8.52%
• EPS Growth: 3.91%
• Country: US
• Employees: 15,097
• Sector: Utilities
• Sector Strength: 90
• Industry: Regulated Electric
• EPS (TTM): 2.26
• Shares Outstanding: 360,296,100
• 10 Day Avg. Volume: 2,893,414
• 30 Day Avg. Volume: 2,884,571
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 7.92
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $108.09
• Price Target Upside: 0.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

Consolidated Edison exhibits stable financial performance and positive technical trends. While the company benefits from strong operational efficiency and stable equity, improvements in cash flow and net profitability are necessary. The valuation suggests moderate pricing with a solid dividend yield, making it an appealing option for income-focused investors. Despite cash flow challenges, the stock's performance is buoyed by its industry position and technical indicators.

Positive Factors

Earnings

ED reported Q1'25 adjusted operating EPS of $2.26, which is above consensus estimates.

Financial Guidance

Consolidated Edison maintains its 2025 EPS guidance and its significant capital expenditure plans through 2029.

Regulatory Environment

The setup for ED is positive into 2025 with potential favorable new NY legislation.

Negative Factors

Project Delays

Investors may focus on the ongoing rate case and the stop work order at the Empire Wind 1 site, which suggests uncertainty around these projects.

Rate Case Challenges

Growing affordability issues and opposition to rate increases create headwinds for the rate case.

Rate Increase Concerns

The double-digit rate increase will likely cause 'sticker shock' to rate payer advocates and other stakeholders.

Consolidated Edison Business Overview & Revenue Model

Company Description

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. In addition, it operates 533 circuit miles of transmission lines; 15 transmission substations; 64 distribution substations; 87,564 in-service line transformers; 3,924 pole miles of overhead distribution lines; and 2,291 miles of underground distribution lines, as well as 4,350 miles of mains and 377,971 service lines for natural gas distribution. Further, the company 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. It primarily sells electricity to industrial, commercial, residential, and government customers. The company was founded in 1823 and is based in New York, New York.

How the Company Makes Money

Consolidated Edison makes money through its diverse energy services, primarily by charging customers for electricity, natural gas, and steam services. The company's revenue model is centered on regulated utility operations, where it earns income by supplying electricity to residential, commercial, and industrial customers. Additionally, Con Edison generates revenue from natural gas distribution and steam production, mainly in New York City. Its earnings are influenced by regulatory frameworks that determine the rates it can charge, which are overseen by public utility commissions. Con Edison also invests in renewable energy projects and infrastructure upgrades to enhance service reliability and meet sustainability goals, which can contribute to long-term revenue growth. Key factors affecting its earnings include energy consumption patterns, regulatory rate adjustments, and investments in infrastructure and technology.

Consolidated Edison Financial Statement Overview

Summary

Consolidated Edison exhibits a solid financial foundation with strong income-generating capabilities. The balance sheet shows a reliance on debt, which, while common in the utilities sector, requires careful management. Cash flow improvements are noteworthy, although further enhancements in liquidity would benefit the company's financial flexibility.

Income Statement

Consolidated Edison has shown consistent revenue generation with a slight decline recently. The gross profit margin is robust, indicating efficient cost management. However, the net profit margin has fluctuated, partly due to variable operating expenses. The EBIT and EBITDA margins remain healthy, reflecting strong operational performance.

Balance Sheet

The company's balance sheet suggests solid equity backing, with a commendable equity ratio. However, the debt-to-equity ratio highlights a significant level of leverage, which might pose risks if not managed properly. Return on equity has been reasonable, showcasing decent profitability relative to shareholder investment.

Cash Flow

Operating cash flow is strong, supporting robust free cash flow generation in the latest year. The company has managed to turn around its free cash flow from negative to positive, indicating improvements in cash management. Nonetheless, the free cash flow to net income ratio suggests room for enhancement in converting earnings to cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
15.26B	14.66B	15.67B	13.68B	12.25B
	Gross Profit
8.17B	7.41B	7.68B	7.67B	7.15B
	EBIT
2.67B	3.20B	2.62B	2.83B	2.65B
	EBITDA
5.48B	6.06B	5.03B	4.72B	4.37B
	Net Income Common Stockholders
1.82B	2.52B	1.66B	1.35B	1.10B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.32B	1.19B	1.28B	992.00M	1.27B
	Total Assets
70.56B	66.33B	69.06B	63.12B	62.90B
	Total Debt
27.82B	25.01B	24.41B	25.36B	25.08B
	Net Debt
26.50B	23.82B	23.13B	24.37B	23.81B
	Total Liabilities
48.60B	45.17B	48.18B	42.78B	43.83B
	Stockholders Equity
21.96B	21.16B	20.69B	20.04B	18.85B
Cash Flow		Free Cash Flow
-1.16B	-2.34B	-233.00M	-1.22B	-1.71B
	Operating Cash Flow
3.61B	2.16B	3.94B	2.73B	2.20B
	Investing Cash Flow
-5.27B	-1.00B	-4.57B	-3.48B	-4.22B
	Financing Cash Flow
1.80B	-1.49B	1.01B	461.00M	2.25B

Consolidated Edison Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 107.68
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ED, the sentiment is Neutral. The current price of 107.68 is below the 20-day moving average (MA) of 111.05, below the 50-day MA of 108.22, and above the 200-day MA of 99.71, indicating a neutral trend. The MACD of 0.33 indicates Positive momentum. The RSI at 43.77 is Neutral, neither overbought nor oversold. The STOCH value of 20.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ED.

Consolidated Edison Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEC	74 Outperform	$35.02B	21.21	12.96%	3.15%	4.42%	11.98%
PCG	70 Outperform	$37.21B	15.57	8.55%	0.41%	1.91%	-4.40%
XEL	70 Neutral	$40.98B	20.90	10.26%	3.15%	-0.44%	2.14%
ED	68 Neutral	$39.64B	20.31	8.33%	3.10%	8.52%	3.91%
ETR	68 Neutral	$36.15B	27.38	8.96%	2.80%	-0.84%	-37.59%
PEG	65 Neutral	$39.77B	21.42	11.40%	3.06%	11.24%	1.15%
Sector *	63 Neutral	$8.48B	10.79	5.35%	4.36%	3.55%	-11.17%