Consolidated Edison ED
Consolidated Edison is a regulated utility that supplies electricity, gas, and steam to New York City and its surrounding areas, operating under a state-regulated revenue model. Consolidated Edison shows solid financial health (7.05) and an attractive dividend (7.55), but its quality is weak (3.73) due to negative free cash flow conversion (-13.71%) and low ROIC (5.42%). Growth is strong (7.44), although rising rates pressure its valuation.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Consolidated Edison is a regulated utility that supplies electricity, gas, and steam to New York City and its surrounding areas, operating under a state-regulated revenue model. Consolidated Edison shows solid financial health (7.05) and an attractive dividend (7.55), but its quality is weak (3.73) due to negative free cash flow conversion (-13.71%) and low ROIC (5.42%). Growth is strong (7.44), although rising rates pressure its valuation.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.8 |
| Quality / Moat | 3.7 |
| Valuation | 5.2 |
| Growth | 7.4 |
| Dividend | 7.5 |
| Momentum | 6.0 |
| Risk & Context | 8.6 |
OVERALL SCORE: 6.5/10
Context and risks
The rise in 10-year rates (5.17%) is a headwind for regulated utilities like Consolidated Edison, given its high leverage (Net Debt/EBITDA 4.36) and long-duration profile. However, its regulated revenue model in New York provides some stability, and the effect is already partially discounted in its P/E of 16.93.
News considered in the analysis
- 3 Large Cap Dividend Stocks For Higher For Longer Rates — Listículo genérico sin información nueva sobre la empresa.
- Is Consolidated Edison Stock Underperforming the Nasdaq? — Comparativa de rendimiento sin información fundamental nueva.
- 3 US Dividend Stocks Offering Defensive Cash Flow Right Now — Artículo promocional genérico sobre dividendos, sin datos específicos de la empresa.
- This Quiet Utility Has a Multi-Decade Dividend Growth Streak -- Here's Why Almost Nobody Talks About It — Destaca la larga racha de crecimiento de dividendos, un factor positivo de calidad, aunque ya conocido por el mercado.
- These 2 Utility Dividends Look Much Better When the IRS Gets None of the Income — Comentario sobre fiscalidad de dividendos, sin impacto en los fundamentales de la empresa.
Verdict: Hold; regulatory stability and the dividend offer defensiveness, but weak cash generation and rate sensitivity limit upside potential.
Main risk: The main risk is the combination of high leverage (Net Debt/EBITDA 4.36) with a rising rate environment, which makes debt refinancing more expensive and pressures its long-duration valuation.
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