📊 ED Key Takeaways
Is Consolidated Edison Inc. (ED) a Good Investment?
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.
Consolidated Edison shows solid fundamental stability, with resilient earnings, healthy operating margins, and strong operating cash generation typical of a regulated utility. However, growth quality is modest because revenue is flat, free cash flow is thin after heavy capital spending, and leverage plus weak interest coverage constrain financial flexibility.
Why Buy Consolidated Edison Inc. Stock? ED Key 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
- Stable net income and rising diluted EPS indicate resilient underlying earnings quality
- Operating cash flow of $4.80B supports the capital-intensive utility model
- Balance sheet liquidity appears adequate with a current ratio of 1.02x and substantial equity base of $24.19B
ED Stock Risks: Consolidated Edison Inc. Investment 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
- Free cash flow is only $335M, leaving limited cushion after capital expenditures
- Debt levels are meaningful with debt-to-equity at 1.07x and long-term debt of $25.80B
- Interest coverage of 2.4x suggests limited room if borrowing costs or operating pressure increase
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
- Free cash flow relative to capital expenditures
- Interest coverage and long-term debt trend
Consolidated Edison Inc. (ED) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.0% FCF margin may limit capital allocation flexibility.
ED Profit Margin, ROE & Profitability Analysis
ED vs Utilities Sector: How Consolidated Edison Inc. Compares
How Consolidated Edison Inc. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Consolidated Edison Inc. Stock Overvalued? ED Valuation Analysis 2026
Based on fundamental analysis, Consolidated Edison Inc. has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Consolidated Edison Inc. Balance Sheet: ED Debt, Cash & Liquidity
ED Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
ED Quarterly Earnings & 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.
Consolidated Edison Inc. Dividends, Buybacks & Capital Allocation
ED SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Consolidated Edison Inc. (CIK: 0001047862)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ED
What is the AI rating for ED?
Consolidated Edison Inc. (ED) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ED's key strengths?
Claude: 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. ChatGPT: Stable net income and rising diluted EPS indicate resilient underlying earnings quality. Operating cash flow of $4.80B supports the capital-intensive utility model.
What are the risks of investing in ED?
Claude: 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. ChatGPT: Free cash flow is only $335M, leaving limited cushion after capital expenditures. Debt levels are meaningful with debt-to-equity at 1.07x and long-term debt of $25.80B.
What is ED's revenue and growth?
Consolidated Edison Inc. reported revenue of $16.9B.
Does ED pay dividends?
Consolidated Edison Inc. pays dividends, with $1,166.0M distributed to shareholders in the trailing twelve months.
Where can I find ED SEC filings?
Official SEC filings for Consolidated Edison Inc. (CIK: 0001047862) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ED's EPS?
Consolidated Edison Inc. has a diluted EPS of $5.64.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ED a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Consolidated Edison Inc. has a HOLD rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ED stock overvalued or undervalued?
Valuation metrics for ED: ROE of 8.4% (sector avg: 10%), net margin of 12.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy ED stock in 2026?
Our dual AI analysis gives Consolidated Edison Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ED's free cash flow?
Consolidated Edison Inc.'s operating cash flow is $4.8B, with capital expenditures of $4.5B. FCF margin is 2.0%.
How does ED compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 12.0% (avg: 12%), ROE 8.4% (avg: 10%), current ratio 1.02 (avg: 0.8).