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Consolidated Edison, Inc. powers millions of homes and businesses across New York, shaping daily life with reliable electric, gas, and steam delivery. As a dominant player in the regulated electric utility sector, Con Edison is renowned for its robust infrastructure and steady innovation in energy services. With a deep-rooted presence since 1823, the company continues to evolve amid shifting energy demands. The question now is whether its strong fundamentals can sustain growth and justify its current market valuation in an increasingly dynamic energy landscape.
Table of contents
Business Model & Company Overview
Consolidated Edison, Inc., founded in 1823 and based in New York City, stands as a dominant player in the regulated electric sector. Its cohesive energy ecosystem delivers electric, gas, and steam services to millions of customers across New York and parts of New Jersey. This integrated approach supports residential, commercial, industrial, and governmental clients through a vast network of transmission lines, substations, and distribution infrastructure.
The company’s revenue engine balances regulated electricity and gas delivery with investments in renewable energy and infrastructure projects. Its extensive physical assets and energy services create a stable recurring income stream across key US markets in the Americas. Consolidated Edison’s robust infrastructure and regulatory positioning form a durable economic moat, securing its role in shaping the future of energy distribution.
Financial Performance & Fundamental Metrics
I will analyze Consolidated Edison, Inc.’s income statement, key financial ratios, and dividend payout policy to provide a clear view of its fundamental strength.
Income Statement
The following table presents Consolidated Edison, Inc.’s key income statement figures for the fiscal years 2020 through 2024, reflecting revenue, expenses, profits, and earnings per share.
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Revenue | 12.2B | 13.7B | 15.7B | 14.6B | 15.3B |
| Cost of Revenue | 4.2B | 4.8B | 6.1B | 5.7B | 5.5B |
| Operating Expenses | 5.4B | 6.1B | 6.9B | 6.6B | 7.0B |
| Gross Profit | 8.1B | 8.9B | 9.6B | 9.0B | 9.8B |
| EBITDA | 4.1B | 4.4B | 5.2B | 6.1B | 5.5B |
| EBIT | 2.2B | 2.3B | 3.1B | 4.0B | 3.3B |
| Interest Expense | 1.0B | 0.9B | 1.0B | 1.0B | 1.2B |
| Net Income | 1.1B | 1.3B | 1.7B | 2.5B | 1.8B |
| EPS | 3.29 | 3.86 | 4.68 | 7.24 | 5.26 |
| Filing Date | 2021-02-18 | 2022-02-17 | 2023-02-16 | 2024-02-15 | 2025-02-20 |
Income Statement Evolution
Between 2020 and 2024, Consolidated Edison, Inc. saw a favorable overall increase in revenue by 24.65% and net income by 65.3%. Despite a neutral revenue growth of 4.16% from 2023 to 2024, net income and EPS declined by 30.64% and 27.32% respectively in the last year. Gross and net margins improved notably over the period, with gross margin at 63.99% and net margin at 11.93%, indicating a generally positive margin trend.
Is the Income Statement Favorable?
The 2024 income statement reveals a mixed picture: while revenue and gross profit increased, operating expenses rose at the same rate as revenue, leading to a 17.51% EBIT decline and reduced profitability. Interest expenses remain neutral at 7.78% of revenue. Overall, the fundamentals are assessed as favorable, supported by positive margin levels and long-term growth, despite short-term margin pressures and EPS contraction.
Financial Ratios
The following table presents key financial ratios for Consolidated Edison, Inc. (ED) over the past five fiscal years, illustrating profitability, valuation, liquidity, leverage, and efficiency metrics:
| Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 9.0% | 9.8% | 10.6% | 17.2% | 11.9% |
| ROE | 5.8% | 6.7% | 8.0% | 11.9% | 8.3% |
| ROIC | 4.1% | 4.0% | 3.2% | 3.1% | 3.5% |
| P/E | 22.0 | 22.1 | 20.4 | 12.6 | 17.0 |
| P/B | 1.28 | 1.48 | 1.63 | 1.49 | 1.41 |
| Current Ratio | 0.72 | 1.02 | 1.14 | 1.01 | 1.04 |
| Quick Ratio | 0.67 | 0.94 | 1.10 | 0.94 | 0.96 |
| D/E | 1.33 | 1.27 | 1.18 | 1.18 | 1.27 |
| Debt-to-Assets | 39.9% | 40.2% | 35.4% | 37.7% | 39.4% |
| Interest Coverage | 2.60 | 3.05 | 2.75 | 2.26 | 2.30 |
| Asset Turnover | 0.19 | 0.22 | 0.23 | 0.22 | 0.22 |
| Fixed Asset Turnover | 0.26 | 0.28 | 0.33 | 0.29 | 0.29 |
| Dividend Yield | 4.0% | 3.5% | 3.2% | 3.5% | 3.6% |
Evolution of Financial Ratios
From 2020 to 2024, Consolidated Edison, Inc. showed fluctuating trends in key ratios. The Return on Equity (ROE) improved from 5.84% in 2020 to 11.91% in 2023 but declined to 8.29% in 2024, indicating some volatility in profitability. The Current Ratio remained relatively stable near 1.0, suggesting consistent short-term liquidity, while the Debt-to-Equity Ratio rose slightly to 1.27 in 2024, reflecting moderate leverage increase.
Are the Financial Ratios Favorable?
In 2024, profitability metrics showed mixed results: net margin was favorable at 11.93%, but ROE and ROIC were unfavorable at 8.29% and 3.48%, respectively. Liquidity ratios like current and quick ratios were neutral around 1.0 and 0.96. Leverage ratios, including debt-to-equity at 1.27, were unfavorable, while interest coverage was neutral at 2.8. Market valuation ratios presented a neutral to favorable outlook, with a price-to-book ratio of 1.41 favorable and a price-to-earnings ratio near 17 considered neutral. Overall, the financial ratios were slightly unfavorable.
Shareholder Return Policy
Consolidated Edison, Inc. maintains a consistent dividend policy, with a payout ratio around 60% and a dividend yield near 3.5% as of 2024. Dividend per share has gradually increased from $2.91 in 2020 to $3.18 in 2024, despite negative free cash flow coverage, while share buybacks are not explicitly reported.
The dividend payments are supported partially by operating cash flow but constrained by recurring negative free cash flow. This distribution approach suggests a cautious balance between rewarding shareholders and managing capital expenditures, aligning with sustainable long-term value creation amid financial leverage and capital intensity.
Score analysis
The following radar chart illustrates the company’s key financial scores across various valuation and performance metrics:
Consolidated Edison, Inc. presents a mixed score profile with a very unfavorable discounted cash flow score of 1, moderate scores of 3 in return on equity and return on assets, and moderate valuations indicated by debt to equity, price to earnings, and price to book scores ranging from 2 to 3.
Analysis of the company’s bankruptcy risk
The Altman Z-Score places the company in the distress zone, signaling a higher risk of financial distress and potential bankruptcy:
Is the company in good financial health?
The Piotroski Score diagram below highlights the company’s financial strength based on nine accounting criteria:
With a Piotroski Score of 7, Consolidated Edison, Inc. demonstrates strong financial health, indicating solid profitability, leverage, liquidity, and operational efficiency compared to weaker peers.
Competitive Landscape & Sector Positioning
This sector analysis will examine Consolidated Edison, Inc.’s strategic positioning, revenue by segment, key products, and main competitors. I will assess whether the company holds a competitive advantage relative to its peers in the regulated electric industry.
Strategic Positioning
Consolidated Edison, Inc. maintains a concentrated portfolio primarily focused on regulated electric, gas, and steam delivery services, with 2023 revenues of $10.8B from electricity, $3.1B from oil and gas, and $569M from steam. Its operations are geographically concentrated in New York and parts of New Jersey.
Revenue by Segment
This pie chart illustrates Consolidated Edison, Inc.’s revenue distribution by segment for the fiscal year 2023, highlighting the key business areas contributing to its total income.
In 2023, Electricity remained the dominant revenue driver at 10.8B USD, showing steady growth from previous years. Oil and Gas, Purchased contributed significantly with 3.1B USD, although slightly down from 3.2B USD in 2022. Steam revenue declined marginally to 569M USD. Notably, Non-Utility Products and Services were excluded in 2023, indicating a potential shift or reclassification in segment reporting. The business continues to rely heavily on electricity sales, reflecting its core utility focus.
Key Products & Brands
The table below outlines the key products and their descriptions offered by Consolidated Edison, Inc.:
| Product | Description |
|---|---|
| Electricity | Electric services delivered to approximately 3.8 million customers across New York City, Westchester County, and parts of New Jersey. |
| Oil and Gas, Purchased | Purchased oil and gas supplies for distribution, serving customers in southeastern New York and northern New Jersey. |
| Steam | Steam delivery to approximately 1,555 customers in parts of Manhattan. |
| Non-Utility Products and Services | Energy-related products and services provided to wholesale and retail customers, including renewable and energy infrastructure projects. |
Consolidated Edison’s core revenue streams are centered on electricity, oil and gas purchases, and steam delivery, supplemented by various non-utility energy products and services.
Main Competitors
There are 23 competitors in the sector, with the table below listing the top 10 leaders by market capitalization:
| Competitor | Market Cap. |
|---|---|
| NextEra Energy, Inc. | 169B |
| The Southern Company | 96B |
| Duke Energy Corporation | 91B |
| American Electric Power Company, Inc. | 62B |
| Dominion Energy, Inc. | 51B |
| Exelon Corporation | 44B |
| Xcel Energy Inc. | 44B |
| Entergy Corporation | 42B |
| Public Service Enterprise Group Incorporated | 40B |
| Consolidated Edison, Inc. | 36B |
Consolidated Edison, Inc. ranks 10th among 23 competitors, with a market cap about 22% that of the leader, NextEra Energy. The company is below the average market cap of the top 10 peers (67.5B) but remains above the sector median (34B). It maintains a 7.83% market cap lead over its closest competitor above, highlighting a moderate gap.
Comparisons with competitors
Check out how we compare the company to its competitors:
Does ED have a competitive advantage?
Consolidated Edison, Inc. does not currently present a competitive advantage as its return on invested capital (ROIC) is below its weighted average cost of capital (WACC) and the ROIC trend is declining, indicating value destruction. The company’s profitability is decreasing, which is a warning sign for sustained economic moat strength.
Looking ahead, Consolidated Edison is engaged in renewable and energy infrastructure projects and invests in electric and gas transmission, presenting potential market opportunities. These efforts may influence future performance, though the current value creation metrics remain unfavorable.
SWOT Analysis
This SWOT analysis highlights Consolidated Edison, Inc.’s key internal strengths and weaknesses alongside external opportunities and threats to guide investment decisions.
Strengths
- Stable regulated utility business
- Strong gross and net margins
- Consistent dividend with 3.56% yield
Weaknesses
- Declining ROIC indicating value destruction
- High debt-to-equity ratio (1.27)
- Negative recent earnings growth
Opportunities
- Expansion in renewable energy projects
- Growing demand for clean energy infrastructure
- Investments in electric and gas transmission projects
Threats
- Regulatory risks in utility sector
- Rising operational costs impacting margins
- Competition from alternative energy providers
Overall, Consolidated Edison benefits from a solid regulated presence and attractive dividends but faces challenges from declining profitability and leverage levels. Strategic focus on renewables and cost control is essential to mitigate risks and sustain long-term growth.
Stock Price Action Analysis
The following weekly chart illustrates Consolidated Edison, Inc. (ticker: ED) stock price movements over the past 100 weeks, highlighting key trends and volatility:
Trend Analysis
Over the past 12 months, ED’s stock price increased by 19.38%, indicating a bullish trend with acceleration. The price ranged between a low of 87.01 and a high of 112.1. The standard deviation of 5.85 reflects moderate volatility supporting this upward momentum.
Volume Analysis
In the last three months, trading volume has been strongly buyer-driven, with buyers accounting for 70.95% of activity. Volume is increasing, signaling heightened market participation and positive investor sentiment toward ED shares.
Target Prices
Analysts present a moderate target price consensus for Consolidated Edison, Inc. (ED).
| Target High | Target Low | Consensus |
|---|---|---|
| 166 | 86 | 110.63 |
The target prices suggest that analysts expect a potential upside from current levels, with a balanced view reflecting some volatility risk.
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Analyst & Consumer Opinions
This section examines recent analyst ratings and consumer feedback related to Consolidated Edison, Inc. (ED).
Stock Grades
Here is the latest summary of stock grades for Consolidated Edison, Inc. from recognized financial institutions:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Neutral | 2026-01-23 |
| Barclays | Maintain | Underweight | 2026-01-22 |
| Wells Fargo | Maintain | Equal Weight | 2026-01-20 |
| UBS | Maintain | Neutral | 2026-01-07 |
| UBS | Maintain | Neutral | 2025-12-17 |
| JP Morgan | Maintain | Underweight | 2025-12-12 |
| Keybanc | Maintain | Underweight | 2025-12-12 |
| Barclays | Maintain | Underweight | 2025-11-10 |
| Barclays | Maintain | Underweight | 2025-10-22 |
| Morgan Stanley | Maintain | Underweight | 2025-10-22 |
The grades predominantly reflect a cautious stance, with most firms maintaining underweight or neutral ratings. The consensus remains a Hold, signaling moderate confidence without strong directional conviction.
Consumer Opinions
Consumer sentiment around Consolidated Edison, Inc. (ED) reflects a mix of appreciation for reliable service and concerns over pricing and customer support.
| Positive Reviews | Negative Reviews |
|---|---|
| “Consistently reliable electricity supply, rarely any outages.” | “Customer service response times can be slow and frustrating.” |
| “Transparent billing with detailed statements helps track usage.” | “Electricity rates have increased noticeably over the past year.” |
| “Helpful energy-saving tips and programs provided by the company.” | “Occasional delays in maintenance updates and notifications.” |
Overall, consumers appreciate Consolidated Edison’s dependable energy delivery and clear billing, but recurring issues with customer service and rising costs remain points of dissatisfaction.
Risk Analysis
Below is a summary table highlighting key risks associated with Consolidated Edison, Inc. for investor consideration:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Financial Distress | Altman Z-Score at 1.22 places company in distress zone, indicating elevated bankruptcy risk. | Medium | High |
| Regulatory Risk | As a regulated utility, changes in government policies or tariffs could significantly impact revenue. | Medium | High |
| Debt Levels | Debt-to-equity ratio at 1.27 is unfavorable, increasing financial leverage risk. | Medium | Medium |
| Operational Efficiency | Low asset turnover (0.22) and fixed asset turnover (0.29) suggest inefficiency in asset use. | Medium | Medium |
| Market Volatility | Beta of 0.379 indicates low market sensitivity but limits upside during market rallies. | Low | Low |
| Dividend Sustainability | Dividend yield is favorable at 3.56%, but pressure on cash flows could affect future payouts. | Medium | Medium |
The most pressing concern is the financial distress indicated by the Altman Z-Score in the distress zone, signaling a potential risk of bankruptcy if conditions worsen. Regulatory changes also pose a significant threat due to the company’s reliance on tariff structures. Careful monitoring of debt levels and operational efficiency is advisable to mitigate these risks.
Should You Buy Consolidated Edison, Inc.?
Consolidated Edison, Inc. appears to be facing a challenging value creation profile with declining profitability and a very unfavorable competitive moat, while its leverage profile could be seen as moderate. Despite a distress-zone Altman Z-score, the overall rating suggests a cautiously moderate investment profile.
Strength & Efficiency Pillars
Consolidated Edison, Inc. exhibits solid profitability with a favorable net margin of 11.93% and a robust gross margin of 63.99%, underscoring operational efficiency. The Piotroski score of 7 further signals strong financial health, reflecting good fundamentals in profitability and liquidity. Although the company’s ROIC stands at 3.48%, it falls below the WACC of 4.79%, indicating value erosion rather than creation. The Altman Z-score of 1.22 places the firm in the distress zone, highlighting financial vulnerability despite some operational strengths.
Weaknesses and Drawbacks
Several metrics spotlight risks for investors: the debt-to-equity ratio at 1.27 is unfavorable, suggesting a relatively high leverage burden that could pressure financial flexibility. The return on equity of 8.29% is also weak relative to peers, signaling underwhelming shareholder returns. Valuation measures appear moderate, with a P/E of 16.96 and a P/B of 1.41, neither deeply discounted nor expensive. Asset turnover ratios (0.22) reveal inefficiencies in asset utilization, and the Altman Z-score signals potential bankruptcy risk, which heightens caution amid these leverage concerns.
Our Verdict about Consolidated Edison, Inc.
The long-term fundamental profile of Consolidated Edison, Inc. might appear mixed to unfavorable due to ongoing value destruction and financial distress signals. However, the bullish overall stock trend combined with strong buyer dominance in the recent period suggests improving market sentiment. Despite this, recent financial and operational challenges could warrant a wait-and-see approach for a better entry point, as the company has yet to demonstrate sustainable value creation.
Disclaimer: This content is for informational purposes only and does not constitute financial, investment, or other professional advice. Investing in financial markets involves a significant risk of loss, and past performance is not indicative of future results.
Additional Resources
- Consolidated Edison (ED) Sees Price Target Hike by UBS Today | E – GuruFocus (Jan 23, 2026)
- Consolidated Edison’s (NYSE:ED) investors will be pleased with their favorable 74% return over the last five years – Yahoo Finance (Jan 22, 2026)
- New York Cuts ConEd’s Rate Request by 85%, Citing Affordability – Bloomberg (Jan 22, 2026)
- Your Con Ed Bill Just Went Up, New York: State Approves Hike – thecity.nyc (Jan 22, 2026)
- New York regulator slashes ConEd’s rate request by more than 85%, citing affordability (ED:NYSE) – Seeking Alpha (Jan 22, 2026)
For more information about Consolidated Edison, Inc., please visit the official website: conedison.com
