Consolidated Edison Inc
🇺🇸 ED · NYSE/NASDAQ · US2091151041
Utilities
USD 115.43 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
20.5
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: 115.43 ÷ 5.64 = 20.5
TTM period through: 2025-12-31
Forward P/E (estimated): 18.9
Based on analyst estimates
Reference: Provider P/E (Trailing): 20.5
Yield (Fwd)
2.98%
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): 2.98%
Net Debt/EBITDA (TTM)
4.4x
Latest quarter: 21.1x
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 (2025-12-31): 21.1x
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)
61.0%
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
8.8%
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
11.1x
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 operating a highly entrenched monopoly in the New York market. While the company offers exceptional fundamental stability and a rock-solid dividend history, the current valuation around $115 (P/E > 20) offers limited upside and has compressed the yield below 3%. Existing shareholders should maintain positions given the strong business quality, but new investors may want to wait for a more attractive entry point.
Sector Context
Consolidated Edison is a regulated holding company that primarily provides electric, gas, and steam delivery services in New York City and surrounding areas. As a regulated utility, it benefits from a legally protected monopoly position and predictable, inflation-adjusted cash flows through periodic rate cases. However, utilities typically carry high debt loads and require massive capital expenditures to maintain and upgrade infrastructure, which heavily constraints free cash flow generation.
📊 Strategy Analysis
- • Operates as a highly entrenched regulated utility monopoly in the New York market, ensuring exceptional business stability.
- • Flawless dividend consistency over the past 10 years with a stable TTM payout ratio of 60%.
- • Consistent top-line growth with a 10-year revenue expansion of 40% and stable net margins around 12%.
⚠ What to Watch
- • Current P/E of 20.47 is well above the strategy's ideal 8-15x range and elevated for the utility sector.
- • Trading at $115.43, the stock exceeds our estimated monopoly fair value upper bound of $112.80.
- • Heavy capital expenditure requirements severely restrict free cash flow generation ($176M compared to $1.48B operating cash flow), resulting in poor FCF dividend coverage.
- • Dividend yield has compressed to 2.98%, falling slightly below the strategy's target minimum threshold.
📊 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: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.