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Consolidated Edison, Inc.

Data period: Annual Quarterly Graham uses annual
NYSE · Utilities
Consolidated Edison, Inc.
ED · Utilities - Regulated Electric
$106.36
▼ -0.68 (-0.64%)
Cached · 10 min
Overall Grade
D
Defensive
C
Enterprising
Profitability
A
Gross Profit Margin 54.6%
Operating Margin 23.5%
Net Income Margin 18.1%
Fin. Health
D
Years to Pay Off Debt 29.4 yrs
Working Capital vs Long-Term Debt -$24.6B
Working Capital $1.0B
Valuation
F
Margin of Safety 0.0%
Price-to-Book 1.53x
Cash Flow
F
Free Cash Flow -$999M
CapEx % of Net Income 126.9%
Owner Earnings $2.7B
About Consolidated Edison, Inc.
Consolidated Edison, Inc., through its subsidiaries, engages in the regulated electric, gas, and steam delivery businesses in the United States. The company offers electric services to approximately 3.7 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 1,490 customers in parts of Manhattan. It 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, the company operates 552 circuit miles of transmission lines; 16 transmission substations; 63 distribution substations; 89,675 in-service line transformers; 3,764 pole miles of overhead distribution lines; and 2,417 miles of underground distribution lines, as well as 4,374 miles of mains and 379, 939 service lines for natural gas distribution. Further, it invests in electric and gas transmission projects. The company primarily sells electricity to industrial, commercial, residential, and government customers. Consolidated Edison, Inc. was founded in 1823 and is based in New York, New York.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Cap $39.2B
Enterprise Value $67.0B
P/E (TTM) 17.94
Dividend Yield 3.21%
Exchange NYSE
Gross Profit 54.6%
Operating Margin 23.5%
Net Margin 18.1%
Sector Utilities
Industry Utilities - Regulated Electric
Employees 15407
Country United States
📖
Full Graham Analysis

Mr. Market is currently offering Consolidated Edison, Inc. at $106.36.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $106.36, the stock trades at a 69% premium to its Graham Number of $63.00. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics
Income Highlights
Metric Q1 2026 Q4 2025 Q4 2024
Gross Profit % 54.6% 51.1% N/A
Operating Margin % 23.5% 12.5% N/A
Net Income % 18.1% 7.4% N/A
Diluted EPS 2.54 0.82 N/A
Balance Sheet Highlights
Metric Q1 2026 Q4 2025 Q4 2024
Total Assets $74.7B $74.6B N/A
Total Debt $27.2B $28.4B N/A
Working Capital $1.0B $136M N/A
Years to Pay Debt 29.41 95.54 N/A
Cash Flow Highlights
Metric Q1 2026 Q4 2025 Q4 2024
Free Cash Flow -$999M $176M N/A
Owner Earnings $2.7B $2.2B N/A
CapEx % of Net Income 126.9% 439.1% N/A
📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $4.8B ▲ $5.1B +6.2%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 54.9% ▲ 54.6% -0.3pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 25.0% ▲ 23.5% -1.5pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 16.5% ▲ 18.1% +1.6pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$5.1B/qtr (≈$20.4B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.19x current ratio
vs ≥ 2.0x
❌ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
-$999M
vs Positive
Operating Cash Flow
$174M
Latest quarter · Buffett's cash reality check
ROIC
1.4%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
1.5x
Net Assets: $25.6B
Peers & Industry
No auto-detected peers for Utilities - Regulated Electric. You can manually compare ED against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.19%
Low — management has little skin in the game
Return on Equity (ROE)
3.6%
Weak — poor returns on equity
Return on Assets (ROA)
1.2%
Poor — assets are not generating adequate returns
Debt Trend YoY
-4.2% YoY
Debt is declining — management is deleveraging
Leadership Team
Timothy Cawley
Chairman, President & CEO
Age 60
Pay: $4,357,347
0.472% of net income
Kirkland Andrews
Senior VP & CFO
Age 57
Pay: $1,983,342
0.215% of net income
Matthew Ketschke
President of Consolidated Edison Company of New York, Inc.
Age 53
Pay: $1,885,062
0.204% of net income
Robert Sanchez
President of Shared Services of Con Edison of New York
Age 59
Pay: $1,288,542
0.139% of net income
Stuart Nachmias
President & CEO of Con Edison Transmission, Inc.
Age 60
Top Institutional Holders
Institution % Owned Shares
Blackrock Inc. 10.71% 39,455,469
State Street Corporation 6.75% 24,879,928
Vanguard Capital Management LLC 6.38% 23,498,347
Vanguard Portfolio Management LLC 5.06% 18,641,984
Geode Capital Management, LLC 2.80% 10,322,025
Lazard Asset Management LLC 1.92% 7,075,838
Deutsche Bank AG 1.57% 5,797,582
Morgan Stanley 1.45% 5,359,232
Risk Analysis
Beta (Market Risk)
0.27
Low volatility — more stable than the market
Short Interest
4.2% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
1.06x
Moderate leverage
Current Ratio
1.19x
Adequate liquidity
52-Week Price Range
Low: $94.96 Current: $106.36 High: $116.23
Currently at 54% of 52-week range

Consolidated Edison, Inc. (ED) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's Fair Value: $63.00. Margin of safety: 0%. Gross profit margin: 54.6%. Operating margin: 23.5%. Net margin: 18.1%. Market cap: $39.2B. Sector: Utilities. Industry: Utilities - Regulated Electric. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett principles.

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