Consolidated Edison, Inc. (ED)
Valuation Overview•Is Consolidated Edison, Inc. Overvalued or Undervalued?
Trading at a discount to intrinsic cash flow value, implying pessimistic long-term market expectations.
Moderate quality score of 55/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street sentiment is generally neutral with steady expected earnings growth. This is paired with healthy capital returns, anchored by a strong dividend yield, though free cash flow coverage appears tight.
ED demonstrates adequate business quality with stable profitability. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company exhibits steady, low-single-digit revenue growth paired with stable bottom-line earnings. The company maintains healthy operational efficiency with a 17.3% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $5.1B | +10.9% | +2.6% | +6.7% | +3.1% | |
| EBITDA | $1.5B | — | +4.0% | — | — | |
| Net Income | $924.0M | +11.2% | +6.8% | — | +5.4% | |
| EPS (Diluted) | $2.54 | +7.6% | +6.5% | +11.5% | +3.4% | |
| Free Cash Flow | -$999.0M | +103.1% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 65.0% | 62.4% | 62.6% | 61.6% |
| Operating Margin | 17.3% | 17.0% | 17.6% | 19.7% |
| Net Margin | 12.5% | 13.7% | 12.3% | 11.5% |
| FCF Margin | 16.4% | -7.8% | -6.7% | -7.6% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $2.28 | $2.17 | -4.8% | ||
| Q1'26 | $0.86 | $0.89 | +4.0% | ||
| Q4'25 | $1.74 | $1.90 | +9.2% | ||
| Q3'25 | $0.64 | $0.67 | +4.5% | ||
| Q2'25 | $2.21 | $2.25 | +1.8% | ||
| Q1'25 | $0.95 | $0.98 | +2.7% | ||
| Q4'24 | $1.62 | $1.68 | +3.7% | ||
| Q3'24 | $0.57 | $0.59 | +3.5% |
Total return is +9.0% (1Y), lagging the benchmark by -16.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +8.1% | -1.2% | — |
| 1Y | +9.0% | -16.0% | +3.4% |
| 3YCAGR | +8.2% | -11.2% | +11.0% |
| 5YCAGR | +10.5% | -2.4% | +22.1% |
| 10YCAGR | +5.9% | -7.7% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Consolidated Edison, Inc. (ED) valuation, health, and returns.
Consolidated Edison, Inc. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. undervalued (implying +20.2% upside to DCF intrinsic value of $127.88)
Consolidated Edison, Inc. has multiple valuation anchors: DCF Intrinsic Value: $127.88 | Peer Relative Fair Value: $106.48 | Wall Street Analyst Target: $107.36 (implying +0.9% upside). A convergence of these signals offers higher conviction.
Consolidated Edison, Inc. displays fair financial health with a composite quality score of 55/100, supported by a Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 4.4%.
Consolidated Edison, Inc. pays a 3.1% dividend yield, covered by a 58% payout ratio with 51 years of growth, supplemented by a 0.0% buyback yield.
Consolidated Edison, Inc.'s current growth trajectory is Accelerating. The company achieved +10.9% 1Y revenue growth and +7.6% 1Y EPS growth, compared to its 3Y revenue CAGR of +2.6%.
Wall Street consensus is Hold based on 27 analysts, beating EPS expectations in 83% of recent quarters with a -1-quarter streak. The consensus price target represents a +0.9% change from current levels.
Investment risks for Consolidated Edison, Inc. include: -10.4% 1-year max drawdown. Volatility risk is characterized by a beta of -0.39x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.