IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
Relative valuation derived from Utilities sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 49.9GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
9.6%
Sector: 9.9%
Dividend Analysis audit
INCOME
3.36%
Trailing Yield
$3.36
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
60%MID
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
Sign up for free access to institutional-quality research tools.
Based on our 6-factor quantitative model, CONSOLIDATED EDISON INC (ED) receives a "Hold" rating with a composite score of 50.4/100, ranked #238 out of 4446 stocks. Key factor scores: Quality 50/100, Value 62/100, Momentum 49/100. This is quantitative analysis only — not investment advice.
CONSOLIDATED EDISON INC (ED) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does CONSOLIDATED EDISON INC Do?
Consolidated Edison, Inc., through its subsidiaries, engages in the regulated electric, gas, and steam delivery businesses in the United States. It offers electric services to approximately 3.5 million customers in New York City and Westchester County; gas to approximately 1.1 million customers in Manhattan, the Bronx, parts of Queens, and Westchester County; and steam to approximately 1,555 customers in parts of Manhattan. The company also supplies electricity to approximately 0.3 million customers in southeastern New York and northern New Jersey; and gas to approximately 0.1 million customers in southeastern New York. In addition, it operates 533 circuit miles of transmission lines; 15 transmission substations; 64 distribution substations; 87,564 in-service line transformers; 3,924 pole miles of overhead distribution lines; and 2,291 miles of underground distribution lines, as well as 4,350 miles of mains and 377,971 service lines for natural gas distribution. Further, the company owns, operates, and develops renewable and energy infrastructure projects; and provides energy-related products and services to wholesale and retail customers, as well as invests in electric and gas transmission projects. It primarily sells electricity to industrial, commercial, residential, and government customers. The company was founded in 1823 and is based in New York, New York. CONSOLIDATED EDISON INC (ED) is classified as a large-cap stock in the Utilities sector. The company is led by CEO Timothy P. Cawley and employs approximately 14,300 people, headquartered in New York, New York. With a market capitalization of $41.2B, ED is one of the prominent companies in the Utilities sector.
CONSOLIDATED EDISON INC (ED) Stock Rating — Hold (April 2026)
As of April 2026, CONSOLIDATED EDISON INC receives a Hold rating with a composite score of 50.4/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.ED ranks #238 out of 4,446 stocks in our coverage universe. Within the Utilities sector, CONSOLIDATED EDISON INC ranks #20 of 112 stocks, placing it in the top quartile of its Utilities peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
ED Stock Price and 52-Week Range
CONSOLIDATED EDISON INC (ED) currently trades at $113.56. The stock lost $1.42 (1.2%) in the most recent trading session. The 52-week high for ED is $116.23, which means the stock is currently trading -2.3% from its annual peak. The 52-week low is $94.96, putting the stock 19.6% above its annual trough. Recent trading volume was 1.1M shares, reflecting moderate market activity.
Is ED Overvalued or Undervalued? — Valuation Analysis
CONSOLIDATED EDISON INC (ED) carries a value factor score of 62/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 17.88x, compared to the Utilities sector average of 23.47x — a discount of 24%. The price-to-book ratio stands at 1.71x, versus the sector average of 1.98x. The price-to-sales ratio is 2.43x, compared to 0.82x for the average Utilities stock. On an enterprise value basis, ED trades at 12.02x EV/EBITDA, versus 4.75x for the sector.
Overall, ED's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
CONSOLIDATED EDISON INC Profitability — ROE, Margins, and Quality Score
CONSOLIDATED EDISON INC (ED) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 9.6%, compared to the Utilities sector average of 9.9%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 3.1% versus the sector average of 3.1%.
On a margin basis, CONSOLIDATED EDISON INC reports gross margins of 55.0%, compared to 53.1% for the sector. The operating margin is 18.9% (sector: 21.5%). Net profit margin stands at 13.2%, versus 12.8% for the average Utilities stock. Revenue growth is running at 40.7% on a trailing basis, compared to 20.1% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
ED Debt, Balance Sheet, and Financial Health
CONSOLIDATED EDISON INC has a debt-to-equity ratio of 107.0%, compared to the Utilities sector average of 164.5%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.02x, suggesting adequate working capital coverage. Total debt on the balance sheet is $25.80B. Cash and equivalents stand at $181M.
ED has a beta of -0.18, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for CONSOLIDATED EDISON INC is 96/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
CONSOLIDATED EDISON INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, CONSOLIDATED EDISON INC reported revenue of $17.02B and earnings per share (EPS) of $5.66. Net income for the quarter was $2.31B. Gross margin was 55.0%. Operating income came in at $3.31B.
In FY 2025, CONSOLIDATED EDISON INC reported revenue of $16.92B and earnings per share (EPS) of $5.66. Net income for the quarter was $2.02B. Revenue grew 10.9% year-over-year compared to FY 2024. Operating income came in at $2.94B.
In Q3 2025, CONSOLIDATED EDISON INC reported revenue of $4.53B and earnings per share (EPS) of $1.91. Net income for the quarter was $688M. Revenue grew 10.7% year-over-year compared to Q3 2024. Operating income came in at $968M.
In Q2 2025, CONSOLIDATED EDISON INC reported revenue of $3.60B and earnings per share (EPS) of $0.68. Net income for the quarter was $246M. Revenue grew 11.6% year-over-year compared to Q2 2024. Operating income came in at $355M.
Over the past 8 quarters, CONSOLIDATED EDISON INC has demonstrated a growth trajectory, with revenue expanding from $3.22B to $17.02B. Investors analyzing ED stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
ED Dividend Yield and Income Analysis
CONSOLIDATED EDISON INC (ED) currently pays a dividend yield of 3.4%. At this yield, a $10,000 investment in ED stock would generate approximately $$336.00 in annual dividend income. This compares to the Utilities sector average dividend yield of 2.8%, meaning ED offers above-average income for its sector. The net margin of 13.2% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
ED Momentum and Technical Analysis Profile
CONSOLIDATED EDISON INC (ED) has a momentum factor score of 49/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 23/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 19/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
ED vs Competitors — Utilities Sector Ranking and Peer Comparison
Comparing ED against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ED vs S&P 500 (SPY) comparison to assess how CONSOLIDATED EDISON INC stacks up against the broader market across all factor dimensions.
ED Next Earnings Date
No upcoming earnings date has been announced for CONSOLIDATED EDISON INC (ED) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy ED? — Investment Thesis Summary
CONSOLIDATED EDISON INC presents a balanced picture with arguments on both sides. The value score of 62/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 96/100) reduces downside risk.
In summary, CONSOLIDATED EDISON INC (ED) earns a Hold rating with a composite score of 50.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on ED stock.
We'll email you when stocks you follow change their composite rating.
Institutional Research Dossier
CONSOLIDATED EDISON INC (ED) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Consolidated Edison (ED), driven by its stable, regulated utility business, which provides consistent earnings and dividends. However, the company's relatively high valuation compared to its growth prospects and the negative free cash flow generation temper our enthusiasm. While ED offers a safe haven in volatile markets due to its low beta and stable dividend, we believe better opportunities exist elsewhere in the utility sector.
The core strength of Consolidated Edison lies in its regulated operations within the New York City metropolitan area, a region with high barriers to entry and consistent demand. This allows for predictable revenue streams and regulated returns on investment. However, the company's significant debt load and the capital-intensive nature of its infrastructure investments constrain its financial flexibility and growth potential. The current valuation appears to price in much of the stability and dividend yield, leaving limited upside potential.
Business Strategy & Overview
Consolidated Edison operates primarily as a regulated utility, delivering electricity, gas, and steam to customers in New York City and its surrounding areas. The company's revenue is largely derived from regulated tariffs, which are subject to approval by regulatory bodies. This regulatory framework provides a degree of predictability and stability to its earnings, but also limits its ability to generate outsized profits. The company's strategic focus is on maintaining and upgrading its existing infrastructure, as well as investing in renewable energy projects to meet evolving regulatory requirements and customer preferences.
A key aspect of Consolidated Edison's business strategy is its commitment to sustainability and the transition to cleaner energy sources. The company is investing in renewable energy projects, such as solar and wind farms, and is also exploring opportunities in energy storage and electric vehicle charging infrastructure. These investments are driven by both regulatory mandates and a desire to reduce its carbon footprint. However, these investments also require significant capital expenditures, which can strain its financial resources.
Consolidated Edison's geographic focus is primarily on the New York City metropolitan area, which is a densely populated region with high energy demand. This geographic concentration provides a degree of efficiency in terms of infrastructure maintenance and customer service. However, it also exposes the company to risks specific to the region, such as extreme weather events and economic downturns. The company's steam business, which serves a limited area in Manhattan, is a unique aspect of its operations, but it also faces challenges related to aging infrastructure and declining demand.
The company also operates a competitive energy business, which provides energy-related products and services to wholesale and retail customers. This segment is subject to greater competition and market volatility than its regulated utility operations. However, it also offers opportunities for growth and diversification. Consolidated Edison's investment in electric and gas transmission projects aims to improve the reliability and efficiency of its infrastructure, as well as to facilitate the integration of renewable energy sources.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
40.7%
Sector: 20.1%
+103% VS SCTR
Economic Moat Analysis
Consolidated Edison possesses a Narrow economic moat, primarily derived from its regulated utility operations and the high barriers to entry in its service territories. The company's regulated monopoly status in providing essential services like electricity, gas, and steam in New York City and Westchester County creates a significant advantage. It would be extremely difficult and costly for a new competitor to replicate the existing infrastructure and obtain the necessary regulatory approvals to compete directly with Consolidated Edison in these areas.
The regulatory framework in which Consolidated Edison operates provides a degree of protection from competition. The company's rates are subject to approval by regulatory bodies, which ensures a reasonable return on investment. This regulatory oversight also creates a barrier to entry for new competitors, as they would need to navigate a complex and time-consuming regulatory process to enter the market. The sheer scale of the existing infrastructure, including transmission lines, substations, and distribution networks, also makes it difficult for new entrants to compete.
However, the moat is not wide due to several factors. Firstly, the regulated nature of the business also caps the upside potential. While it ensures a stable return, it prevents the company from generating excessive profits. Secondly, the company faces increasing pressure to invest in renewable energy and upgrade its infrastructure, which requires significant capital expenditures. These investments may not always generate a commensurate return, which can erode the company's profitability. Thirdly, the company's steam business faces challenges related to aging infrastructure and declining demand, which could negatively impact its overall performance.
Furthermore, the increasing adoption of distributed generation technologies, such as solar panels and energy storage systems, could potentially reduce the demand for traditional utility services. While Consolidated Edison is investing in these technologies, it also faces the risk of disruption from new entrants and innovative business models. The company's competitive energy business is subject to greater competition and market volatility, which could also limit its overall profitability. Therefore, while Consolidated Edison benefits from its regulated monopoly status, its moat is not impenetrable and faces several challenges.
Financial Health & Profitability
Consolidated Edison's financial health presents a mixed picture. The company exhibits relatively stable revenue growth, with TTM revenue at $16.92 billion, a significant increase from $15.26 billion in FY2024 and $14.66 billion in FY2023. This growth is partly attributable to increased demand and regulatory rate adjustments. However, the company's free cash flow is a concern, currently at negative $1.81 billion. This negative FCF is likely due to the capital-intensive nature of the utility business, requiring substantial investments in infrastructure upgrades and renewable energy projects.
Profitability metrics show a decent performance. The net income for the TTM period is $2.02 billion, translating to a net margin of 13.2%, which is slightly above the sector average of 12.8%. The company's operating margin of 18.9% is slightly below the sector average of 21.7%. The ROE of 9.6% is also slightly below the sector average of 10.0%. These figures suggest that while Consolidated Edison is profitable, it is not significantly outperforming its peers in terms of profitability.
The balance sheet reveals a significant debt burden. Total debt stands at $25.80 billion, while total cash is only $181 million. This results in a high debt-to-equity ratio of 107.00, although it is lower than the sector average of 165.00. The current ratio of 1.02 indicates that the company has sufficient liquid assets to cover its short-term liabilities. However, the high debt level raises concerns about the company's financial flexibility and its ability to fund future investments.
Looking at the quarterly financial history, we observe consistent revenue and net income generation. However, the operating margin has fluctuated, ranging from 9.6% to 39.5% in Q1 2023, which appears to be an outlier. More recently, the operating margin has been in the range of 9.9% to 23.4%. The EPS has also varied, reflecting the fluctuations in net income. Overall, Consolidated Edison's financial health is characterized by stable revenue growth, decent profitability, a high debt load, and negative free cash flow. The company's financial performance is largely influenced by regulatory factors and its capital investment requirements.
Valuation Assessment
Consolidated Edison's valuation presents a mixed picture. The company's P/E ratio of 19.3x is below the sector average of 22.7x, suggesting that it may be undervalued relative to its peers. However, the EV/EBITDA ratio of 3.1x is also below the sector average of 4.8x, further reinforcing the potential undervaluation. These metrics indicate that the market may be undervaluing Consolidated Edison's earnings and cash flow generation capabilities.
However, it's crucial to consider the company's growth prospects and financial health when assessing its valuation. Consolidated Edison's revenue growth of 40.7% significantly exceeds the sector average of 20.1%. This suggests that the company is growing at a faster pace than its peers, which could justify a higher valuation. However, the negative free cash flow is a concern, as it indicates that the company is not generating enough cash to cover its capital expenditures and debt obligations.
The company's high debt load also needs to be taken into account. While the debt-to-equity ratio is lower than the sector average, it is still relatively high, which could limit the company's financial flexibility and growth potential. The company's dividend yield is an important factor to consider, as it is a key attraction for income-seeking investors. However, the dividend payout ratio needs to be sustainable, given the company's financial health and growth prospects.
Overall, Consolidated Edison's valuation appears to be fair, given its stable earnings, regulated business model, and decent growth prospects. However, the negative free cash flow and high debt load are concerns that need to be closely monitored. The company's valuation is likely to be influenced by regulatory factors, interest rates, and investor sentiment towards the utility sector. While the P/E and EV/EBITDA ratios suggest potential undervaluation, a more comprehensive analysis is needed to determine the true intrinsic value of the stock.
Risk & Uncertainty
Consolidated Edison faces several specific risks that could impact its financial performance and valuation. Regulatory risk is paramount, as the company's revenue and profitability are heavily dependent on regulatory approvals for rate adjustments and infrastructure investments. Changes in regulatory policies or unfavorable decisions by regulatory bodies could negatively impact the company's earnings. For example, delays in approving rate increases or stricter environmental regulations could increase costs and reduce profitability.
Another significant risk is related to infrastructure. The company's infrastructure is aging and requires ongoing maintenance and upgrades. Failure to adequately maintain or upgrade its infrastructure could lead to service disruptions, increased costs, and potential liabilities. Extreme weather events, such as hurricanes and floods, also pose a threat to the company's infrastructure and could result in significant damage and service interruptions. The increasing frequency and intensity of extreme weather events due to climate change could exacerbate this risk.
The company also faces risks related to its investments in renewable energy projects. These projects are subject to technological risks, regulatory risks, and market risks. For example, changes in government subsidies or tax incentives for renewable energy could negatively impact the economics of these projects. The company also faces competition from other renewable energy developers and from traditional energy sources.
Cybersecurity risk is also a growing concern. The company's operations are increasingly reliant on digital technologies, which makes it vulnerable to cyberattacks. A successful cyberattack could disrupt the company's operations, compromise sensitive data, and result in significant financial losses. The company needs to invest in robust cybersecurity measures to protect its systems and data from cyber threats.
Bulls Say / Bears Say
The Bull Case
BULL VIEWConsolidated Edison's regulated utility business provides a stable and predictable revenue stream, making it a safe haven for investors seeking income and stability.
BULL VIEWThe company's commitment to renewable energy and infrastructure upgrades positions it to benefit from the transition to a cleaner energy future and meet evolving regulatory requirements.
The Bear Case
BEAR VIEWConsolidated Edison's high debt load and negative free cash flow limit its financial flexibility and growth potential, making it a less attractive investment compared to peers with stronger balance sheets.
BEAR VIEWThe company's reliance on regulatory approvals and its exposure to extreme weather events create significant risks that could negatively impact its earnings and valuation.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score ED and 4,400+ other equities.
CONSOLIDATED EDISON INC exhibits a 77% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
3.1%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
55.0%
Sector: 53.1%
Operating Margin
Core business profitability
18.9%
Sector: 21.5%
Net Margin
Bottom-line profitability
13.2%
Sector: 12.8%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.83%
Yield Delta+19%
Income Projection audit
A $10,000 investment would generate approximately $336 annually in dividends at the current trailing rate.
