Consolidated Edison Inc
🇺🇸 ED · NYSE/NASDAQ · US2091151041
Utilities
USD 105.36 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
18.7
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 105.36 ÷ 5.64 = 18.7
TTM period through: 2025-12-31
Forward P/E (estimated): 17.5
Based on analyst estimates
Reference: Provider P/E (Trailing): 18.0
Yield (Fwd)
3.30%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 3.24%
Div. Growth (5Y CAGR)
2.3%
Growth Streak
9 yrs
Consecutive years of increase
Net Debt/EBITDA (TTM)
4.4x
Latest quarter: 14.7x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2026-03-31): 14.7x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
61.7%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 57.6%
Cash Flow Payout (TTM): 24.3%
FCF Coverage (TTM): 0.03x
ROE
8.7%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
10.4x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Consolidated Edison is a premier regulated utility offering exceptional fundamental stability and a rock-solid dividend history. While the attractive P/FFO of 7.81x indicates strong underlying cash flow generation, traditional valuation metrics remain elevated and the yield is relatively low. Existing shareholders should maintain positions given the reliability, but new investors may want to monitor for a higher-yielding entry point.
Sector Context
Consolidated Edison is a major regulated electric and gas utility serving New York City and Westchester County. In the utility sector, massive infrastructure investments often result in negative free cash flow on a GAAP basis, making Price to Funds From Operations (P/FFO) a much more accurate measure of true cash generation and dividend sustainability.
📊 Strategy Analysis
- • Operating cash flow remains extremely robust, highlighted by an attractive P/FFO of 7.81x that demonstrates strong true earnings power despite heavy capital expenditures.
- • Regulated monopoly position in the New York market provides highly predictable revenues and underpins a perfect 100/100 dividend consistency score over the past decade.
- • Management has successfully executed a deleveraging trend, reducing Net Debt/EBITDA from 5.6x in 2019 to an acceptable utility-sector level of 4.41x.
⚠ What to Watch
- • Current P/E of 18.68 remains above the strategy's ideal 8-15x target range, keeping traditional valuation multiples elevated.
- • The 3.24% dividend yield provides a limited income premium, sitting near the absolute floor of the strategy's target range.
- • The recently announced $2 billion at-the-market equity offering program may create short-term shareholder dilution, despite being used to fund necessary infrastructure investments.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-05-16
Disclaimer: This information is for educational purposes only. Not financial advice.