Consolidated Edison Inc

ED

Electric & Other Services Combined

Mkt Cap

$32.26B

PE

17.87

Debt

$24.23B

Cash

$175M

EV

$56.32B

FCF

-$1.903B

Market Cap

$32.26B

P/E Ratio

17.87

Debt

$24.23B

Cash

$175M

EV

$56.32B

FCF

-$1.903B

Charts data: {"Earnings":[{"time":"2014-12-30","value":1092000000},{"time":"2015-12-30","value":1193000000},{"time":"2016-12-30","value":1245000000},{"time":"2017-12-30","value":1525000000},{"time":"2018-12-30","value":1382000000},{"time":"2019-12-30","value":1343000000},{"time":"2020-12-30","value":1101000000},{"time":"2021-12-30","value":1193000000},{"time":"2022-12-30","value":1600000000},{"time":"2023-12-30","value":2516000000}],"Sales":[{"time":"2014-12-30","value":12919000000},{"time":"2015-12-30","value":12554000000},{"time":"2016-12-30","value":12075000000},{"time":"2017-12-30","value":12033000000},{"time":"2018-12-30","value":12337000000},{"time":"2019-12-30","value":12574000000},{"time":"2020-12-30","value":12246000000},{"time":"2021-12-30","value":13676000000},{"time":"2022-12-30","value":15670000000},{"time":"2023-12-30","value":14663000000}],"Net Margins":[{"time":"2014-12-30","value":0.08452666615063086},{"time":"2015-12-30","value":0.09502947267803091},{"time":"2016-12-30","value":0.1031055900621118},{"time":"2017-12-30","value":0.12673481259868694},{"time":"2018-12-30","value":0.11202075058766313},{"time":"2019-12-30","value":0.10680769842532209},{"time":"2020-12-30","value":0.08990690837824596},{"time":"2021-12-30","value":0.08723310909622696},{"time":"2022-12-30","value":0.1021059349074665},{"time":"2023-12-30","value":0.1715883516333629}],"Assets":[{"time":"2014-12-30","value":44308000000},{"time":"2015-12-30","value":45642000000},{"time":"2016-12-30","value":48255000000},{"time":"2017-12-30","value":48111000000},{"time":"2018-12-30","value":53920000000},{"time":"2019-12-30","value":58079000000},{"time":"2020-12-30","value":62895000000},{"time":"2021-12-30","value":63116000000},{"time":"2022-12-30","value":69065000000},{"time":"2023-12-30","value":66331000000}],"Stockholders Equity":[{"time":"2014-12-30","value":12585000000},{"time":"2015-12-30","value":13061000000},{"time":"2016-12-30","value":14306000000},{"time":"2017-12-30","value":15425000000},{"time":"2018-12-30","value":16839000000},{"time":"2019-12-30","value":18213000000},{"time":"2020-12-30","value":19065000000},{"time":"2021-12-30","value":20336000000},{"time":"2022-12-30","value":20889000000},{"time":"2023-12-30","value":21158000000}],"ROE":[{"time":"2014-12-30","value":0.0867699642431466},{"time":"2015-12-30","value":0.09134063241711966},{"time":"2016-12-30","value":0.08702642248007829},{"time":"2017-12-30","value":0.09886547811993517},{"time":"2018-12-30","value":0.08207138191103985},{"time":"2019-12-30","value":0.07373853840663262},{"time":"2020-12-30","value":0.057749803304484655},{"time":"2021-12-30","value":0.05866443745082612},{"time":"2022-12-30","value":0.07659533725884436},{"time":"2023-12-30","value":0.11891483126949617}],"ROA":[{"time":"2014-12-30","value":0.05080346664259276},{"time":"2015-12-30","value":0.05370053897725779},{"time":"2016-12-30","value":0.05468863330224847},{"time":"2017-12-30","value":0.056660638939119955},{"time":"2018-12-30","value":0.04940652818991098},{"time":"2019-12-30","value":0.04695328776321906},{"time":"2020-12-30","value":0.042197312981954054},{"time":"2021-12-30","value":0.04477470055136574},{"time":"2022-12-30","value":0.037993194816477234},{"time":"2023-12-30","value":0.04818259938791817}]}

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 3.6 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 1,530 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 543 circuit miles of transmission lines; 15 transmission substations; 63 distribution substations; 87,951 in-service line transformers; 3,869 pole miles of overhead distribution lines; and 2,320 miles of underground distribution lines, as well as 4,359 miles of mains and 377,741 service lines for natural gas distribution. Further, the company owns, develops, and operates 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. Consolidated Edison, Inc. was founded in 1823 and is based in New York, New York.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 5.6%

Earnings Stability 37%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	9.5%	10%	13%	11%	11%	9%	8.7%	10%	17%	12%
ROA	5.4%	5.5%	5.7%	4.9%	4.7%	4.2%	4.5%	3.8%	4.8%	3.7%
ROE	9.1%	8.7%	9.9%	8.2%	7.4%	5.8%	5.9%	7.7%	12%	8.4%

What is the average Net Margin?

The average Net Margin over the past 5 years is +11.16%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.8%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +4.49%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.09%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +7.8%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.55%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	19.96	25.37	51.11	-7.79	-39.97	-12.89	-19.93	-49.21	-11.16	-12.73
Debt Equity	1.09	1.11	1.12	1.18	1.19	1.28	1.21	1.25	1.16	1.12
MIN
Graham Stability	-	-	100%	100%	97%	78%	94%	100%	100%	78%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -12.73.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -1.48.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.78.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	2.8%	3.5%	6.2%	-6.4%	0.99%
Net Income	11%	13%	32%	57%	4.1%
Stockholders Equity	5.7%	4.7%	3.5%	1.3%	-0.62%
FCF	-	-	-	-	-33%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +3.51%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.99%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +12.73%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +4.07%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +4.67%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.62%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -2.97%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -33.23%.