📊 ED Key Takeaways
Is Consolidated Edison Inc. (ED) a Good Investment?
ConEd exhibits strong operating margins (23.1%) and stable revenue typical of regulated utilities, but is in an unsustainable financial position with negative free cash flow of -$4.3B and a severely depleted cash balance of $147M. The company must fund significant capex through debt despite weak interest coverage (3.8x) and minimal returns on deployed capital (ROE 3.6%, ROA 1.2%).
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.
Consolidated Edison Inc. Key Strengths (ED)
- High operating margin of 23.1% and net margin of 18.1% reflecting regulated utility pricing power
- EPS growth of 7.6% YoY despite flat revenue indicates operational efficiency improvements
- Stable regulated utility business model provides revenue visibility and predictability
- 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
- Negative free cash flow of -$4.3B annually is unsustainable; company generating only $174M operating cash flow against $4.5B capex
- Critical cash position of $147M relative to $25.8B debt and $4.5B annual capex creates refinancing dependency and financial vulnerability
- Weak returns on capital (ROE 3.6%, ROA 1.2%) combined with 1.01x debt-to-equity and 3.8x interest coverage suggest thin margin for error
- 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 trend and capex requirements - negative FCF sustainability is primary concern
- Cash balance trajectory and debt refinancing costs - watch for credit rating changes
- Regulated rate approvals and allowed return on equity - critical to improving returns on 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
Consolidated Edison Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
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 |
|---|---|---|---|
| Q1 2026 | $4.9B | $791.0M | $2.25 |
| 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 |
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 Grade of B from Claude (B) and ChatGPT (B) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ED's key strengths?
Claude: High operating margin of 23.1% and net margin of 18.1% reflecting regulated utility pricing power. EPS growth of 7.6% YoY despite flat revenue indicates operational efficiency improvements. 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: Negative free cash flow of -$4.3B annually is unsustainable; company generating only $174M operating cash flow against $4.5B capex. Critical cash position of $147M relative to $25.8B debt and $4.5B annual capex creates refinancing dependency and financial vulnerability. 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 $5.1B.
Does ED pay dividends?
Consolidated Edison Inc. pays dividends, with $308.0M 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 $2.54.
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 grade reflects both perspectives for balanced insights.
What is ED's fundamental grade?
Based on our AI fundamental analysis in June 2026, Consolidated Edison Inc. has a B grade with 74% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ED stock overvalued or undervalued?
Valuation metrics for ED: ROE of 3.6% (sector avg: 10%), net margin of 18.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is ED's AI grade for 2026?
Our dual AI analysis gives Consolidated Edison Inc. a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ED's free cash flow?
Consolidated Edison Inc.'s operating cash flow is $174.0M, with capital expenditures of $4.5B. FCF margin is -84.2%.
How does ED compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 18.1% (avg: 12%), ROE 3.6% (avg: 10%), current ratio 1.19 (avg: 0.8).