Company Overview
Consolidated Edison, Inc. operates as a major utility provider through its subsidiaries, focusing on regulated electric, gas, and steam delivery businesses within the United States. The company primarily serves a substantial customer base, offering electric services to approximately 3.7 million customers in New York City and Westchester County, as well as gas services to roughly 1.1 million customers. This entity functions within the Utilities sector, specifically classified under the Utilities - Regulated Electric industry, which implies operations subject to government regulation regarding rates and service standards. The company demonstrates significant scale with a market capitalization of $40.35B and annual revenue of $16.92B, supported by an workforce of 15,407 employees. These valuation and revenue figures indicate that Consolidated Edison, Inc. occupies a dominant position as a large-cap entity within the utility landscape, reflecting its established role in delivering essential energy infrastructure to millions of residents.
Financial Health
The company reported a total revenue of $16.92B over the trailing twelve months, generating a net income of $2.02B and an EBITDA of $6.02B during the same period. The substantial gap between the $16.92B in revenue and the $2.02B in net income reveals a cost structure where operating expenses, including cost of goods sold and operational overhead, consume a significant portion of top-line revenue before reaching the bottom line. While the company generated $6.02B in EBITDA, its free cash flow stood at -$145,250,000, indicating that capital expenditures exceeded operating cash generation and limiting immediate financial flexibility for discretionary spending. The gross margin stands at 53.3%, suggesting a pricing power or cost advantage in the regulated electric and gas delivery businesses, while the operating margin of 17.8% reflects efficiency in managing overhead relative to revenue. The profit margin of 12.0% further quantifies the portion of revenue that translates into actual earnings available to shareholders after all expenses. On the balance sheet, the company holds $1.63B in cash against total debt of $28.38B, resulting in a debt-to-equity ratio of 117.32%, which characterizes the capital structure as highly leveraged rather than conservative. Liquidity is assessed via a current ratio of 1.02, indicating that the company's current assets barely exceed its current liabilities, signaling a tight working capital position that requires careful cash management. Return on Equity is 8.8% and Return on Assets is 3.2%, metrics that reveal the effectiveness of management in generating returns on the equity invested and the total asset base, respectively.
Valuation Assessment
The trailing twelve-month P/E ratio is 19.80, while the forward P/E is projected at 17.21, implying that the market expects earnings growth that would justify a lower valuation multiple in the future compared to historical performance. The price-to-book ratio of 1.67 indicates that the market values the company at a premium of roughly 67% over its book value, reflecting expectations of future earnings stability and regulatory support. Alternative valuation metrics include a price-to-sales ratio of 2.39 and an EV/EBITDA of 11.14, which suggest that investors are pricing the stock based on revenue generation and enterprise value relative to earnings power rather than just current earnings. The 52-week trading range spans from a low of $94.96 to a high of $116.23, providing a context for price volatility and historical performance levels relative to recent market movements. The stock exhibits a beta of 0.34, which indicates that the price of the stock is significantly less volatile than the broader market, moving at roughly one-third the magnitude of market swings.
Growth & Income
Revenue growth for the trailing twelve months was 8.9%, whereas earnings growth registered at -8.3%, indicating that earnings are currently growing slower than revenue, likely due to one-time charges, increased costs, or regulatory adjustments impacting the bottom line. As a dividend payer, the company offers a dividend yield of 3.1% with a payout ratio of 60.3%, a level that appears sustainable given the regulated nature of the business and the consistent cash flows from utility operations, though the negative earnings growth warrants monitoring. The high payout ratio relative to the current earnings decline suggests that dividends may be supported by retained earnings and cash reserves rather than current period profitability. Overall, the growth and income profile presents a utility stock with moderate revenue expansion, declining earnings growth, and a steady dividend yield, balancing income generation against near-term earnings headwinds.