Investment Thesis
Consolidated Edison demonstrates stable utility fundamentals with solid profitability (12.0% net margin, 17.3% operating margin) and consistent cash generation, but faces significant leverage constraints with a 1.07x debt-to-equity ratio and weak interest coverage of 2.4x that limit financial flexibility. Minimal revenue growth (-0.8% YoY) and capital-intensive business model (FCF margin of only 2.0%) restrict upside potential, though the company maintains adequate liquidity and generates meaningful operating cash flow.
ED Strengths
- Strong net and operating margins (12.0% and 17.3%) reflecting pricing power in regulated utility environment
- Substantial operating cash flow of $4.8B supports dividend sustainability and debt service
- Stable, predictable business model with defensive characteristics in electric/gas utilities sector
- Modest EPS growth of 7.6% YoY despite flat net income indicates disciplined share count management
ED Risks
- High leverage with debt-to-equity ratio of 1.07x and weak interest coverage of 2.4x constrains financial flexibility
- Minimal revenue growth (-0.8% YoY) reflects mature market with limited organic expansion opportunities
- Capital-intensive operations produce low free cash flow margin (2.0%) relative to $4.5B annual capex
- Low return metrics (ROE 8.4%, ROA 2.7%) indicate modest earnings generation on invested capital base
Key Metrics to Watch
- Operating cash flow sustainability and capital expenditure trends to assess free cash flow adequacy
- Debt-to-equity ratio and interest coverage ratio evolution given leverage constraints
- Revenue growth trajectory and operational margin stability in face of regulatory and inflationary pressures
- Return on equity and return on assets improvement relative to cost of capital
ED Financial Metrics
ED Profitability Ratios
ED Balance Sheet & Liquidity
ED 5-Year Financial Trend
5-Year Trend Summary: CONSOLIDATED EDISON INC's revenue has grown significantly by 27% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.21 reflects profitable operations.
ED Growth Metrics (YoY)
ED Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $4.2B | $202.0M | $1.69 |
| Q2 2025 | $3.3B | $202.0M | $0.58 |
| Q1 2025 | $4.3B | $720.0M | $2.08 |
| Q3 2024 | $3.9B | $526.0M | $1.52 |
| Q2 2024 | $2.8B | $202.0M | $0.58 |
| Q1 2024 | $4.2B | $720.0M | $2.08 |
| Q3 2023 | $3.9B | $526.0M | $1.52 |
| Q2 2023 | $2.8B | $226.0M | $0.65 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ED Capital Allocation
ED SEC Filings
Access official SEC EDGAR filings for CONSOLIDATED EDISON INC (CIK: 0001047862)