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Consolidated Edison Inc (ED) Stock

Consolidated Edison Inc Stock Details, Movements and Public Alerts

Consolidated Edison Inc (ED): NYC's Power Monopoly Delivering 3.5% Yields Since 1885

Since Timothy Cawley became CEO in 2020, Consolidated Edison has navigated rising interest rates, extreme weather events, and aggressive renewable energy mandates—all while maintaining its streak as one of America's most reliable dividend payers. Con Ed's regulated monopoly in NYC provides electricity to 3.4 million customers, gas to 1.1 million, and steam heat to Manhattan's commercial buildings—a unique asset no competitor can replicate. While utility stocks face headwinds from higher rates pressuring valuations, Con Ed's critical infrastructure role, recession-proof demand, and $22 billion grid modernization plan create stability income investors prize. Trading near book value with a 3.5% yield backed by 50 years of consecutive dividend increases, ED offers defensive positioning for portfolios seeking low-volatility cash flow.

52-Week Range

$112.03 - $84.37

-11.29% from high · +17.79% from low

Avg Daily Volume

2,387,928

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

16.66

Near market average

Forward P/E

15.95

Earnings expected to grow

PEG Ratio

3.19

Potentially overvalued

Price to Book

1.43

EV/EBITDA

10.09

EPS (TTM)

$5.74

Price to Sales

2.08

Beta

0.36

Less volatile than market

How is ED valued relative to its earnings and growth?
Consolidated Edison Inc trades at a P/E ratio of 16.66, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 15.95 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 3.19 indicates a premium valuation even accounting for growth.
What is ED's risk profile compared to the market?
With a beta of 0.36, Consolidated Edison Inc is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 1.43 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

12.30%

Operating Margin

25.30%

EBITDA

$5.95B

Return on Equity

8.84%

Return on Assets

3.26%

Revenue Growth (YoY)

10.70%

Earnings Growth (YoY)

12.40%

How profitable and efficient is ED's business model?
Consolidated Edison Inc achieves a profit margin of 12.30%, meaning it retains $12.30 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 25.30% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 8.84% and ROA at 3.26%, the company achieves moderate returns on invested capital.
What are ED's recent growth trends?
Consolidated Edison Inc's revenue grew by 10.70% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 12.40% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against UTILITIES - REGULATED ELECTRIC industry averages for proper context.

Dividend Information

Dividend Per Share

$3.38

Dividend Yield

3.54%

Ex-Dividend Date

Nov 19, 2025

Dividend Date

Dec 15, 2025

What dividend income can investors expect from ED?
Consolidated Edison Inc offers a dividend yield of 3.54%, paying $3.38 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Nov 19, 2025.
How reliable is ED's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Consolidated Edison Inc pays $3.38 per share in dividends against earnings of $5.74 per share, resulting in a payout ratio of 58.89%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Dec 15, 2025.

Company Size & Market

Market Cap

$34.5B

Revenue (TTM)

$16.59B

Revenue/Share (TTM)

$46.89

Shares Outstanding

360.94M

Book Value/Share

$66.95

Asset Type

Common Stock

What is ED's market capitalization and position?
Consolidated Edison Inc has a market capitalization of $34.5B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 360.94M shares outstanding, the company's ownership is relatively concentrated. As a participant in the UTILITIES - REGULATED ELECTRIC industry, it competes with other firms in this sector.
How does ED's price compare to its book value?
Consolidated Edison Inc's book value per share is $66.95, while the current stock price is $99.38, resulting in a price-to-book (P/B) ratio of 1.48. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$104.71

5.36% upside potential

Analyst Recommendations

Strong Buy

0

Buy

3

Hold

7

Sell

3

Strong Sell

4

How reliable are analyst predictions for ED?
17 analysts cover ED with 18% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $104.71 implies 5.4% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on ED?
Current analyst recommendations:03 Buy, 7 Hold, 3 Sell, 4 Strong Sell. The bearish sentiment indicates concerns, but contrarian investors sometimes find opportunities when Wall Street is negative.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:24 AM

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Consolidated Edison Inc (ED) Stock Analysis 2025: Complete Investment Guide

The Utility That Powers New York City

Turn on a light in Manhattan, and Con Edison delivered that electricity. Heat a Midtown office building in winter, and Con Ed's steam system (yes, NYC runs on 19th-century steam heat technology) keeps it warm. Since 1885, Consolidated Edison has powered New York City through world wars, financial crises, and pandemics—never missing a dividend payment. Under Timothy Cawley's leadership since 2020, Con Ed navigates modern challenges: climate change driving storm hardening investments, renewable energy mandates requiring grid upgrades, and interest rate sensitivity pressuring utility valuations.

For income investors, Con Ed's appeal is simple: regulatory protection creates earnings visibility, NYC monopoly eliminates competition, and 50+ years of consecutive dividend increases demonstrate commitment to shareholder returns. The stock trades like a bond with equity upside—defensive, recession-resistant, and offering 3.5% yield in a volatile market. While growth investors avoid utilities, conservative portfolios prize Con Ed's stability during turbulent periods.

Business Model & Competitive Moat

Con Edison operates three regulated utilities: Con Edison of New York (electric, gas, steam in NYC/Westchester), Orange & Rockland (electric/gas in NY/NJ/PA), and Con Edison Clean Energy Businesses (renewables development). Revenue comes from rate-regulated charges on electricity/gas delivery—customers pay based on usage, and regulators approve rates ensuring Con Ed earns 9-10% return on invested capital. 90%+ of earnings derive from regulated operations with minimal commodity exposure.

The competitive moat is absolute: geographic monopoly. No competitor can legally serve Con Ed's territory. Regulatory oversight prevents price gouging while guaranteeing returns. The steam business—Manhattan's district steam heating system serving 1,600 buildings—represents infrastructure competitors cannot replicate (installing new steam pipes under Manhattan is cost-prohibitive). This monopoly positioning creates recession-proof demand (electricity usage doesn't disappear during downturns), predictable cash flows, and minimal execution risk—Con Ed's job is operating infrastructure efficiently, not competing for customers.

Financial Performance

Con Edison's financials reflect regulated utility economics:

  • •Dividend Yield: 3.5% with 50+ years consecutive increases, supported by 70% payout ratio
  • •Earnings Stability: EPS grows 3-4% annually via rate base expansion from capex
  • •Regulatory Framework: 9-10% allowed ROE from NY Public Service Commission
  • •Rate Base Growth: $22B capex plan (2023-2027) expands rate base 6-7% annually
  • •Credit Quality: A-/A3 credit ratings support low-cost debt financing for infrastructure
  • •Valuation: Trades near 1.0x book value, typical for regulated utilities

Growth Catalysts

  • •Grid Modernization: $22B infrastructure investment through 2027 expands rate base, driving EPS growth
  • •Clean Energy Mandates: NY Climate Act requires 70% renewable energy by 2030, necessitating grid upgrades Con Ed profits from
  • •Storm Hardening: Extreme weather investments (undergrounding lines, flood protection) earn regulatory returns
  • •Electric Vehicle Growth: EV adoption increases electricity demand and charging infrastructure investment
  • •Steam System Modernization: Upgrading Manhattan steam pipes creates incremental rate base growth
  • •Data Center Demand: NYC data center growth drives commercial electricity consumption

Risks & Challenges

  • •Interest Rate Sensitivity: Higher rates pressure utility valuations as bond-like cash flows become less attractive
  • •Regulatory Risk: Unfavorable rate cases or ROE reductions impact profitability
  • •Infrastructure Failures: Major outages or accidents create regulatory penalties and reputational damage
  • •Climate Liability: Extreme weather damage to grid infrastructure creates unrecoverable costs
  • •Debt Burden: $22B capex plan requires significant debt issuance, increasing leverage
  • •Political Risk: NY politicians pressuring regulators to limit rate increases squeezes margins

Competitive Landscape

Con Edison faces zero competition in its core territories—regulated monopolies by definition exclude competitors. The only "competition" comes from regulatory dynamics: Con Ed must justify rate increases to the NY Public Service Commission, balancing shareholder returns against customer affordability. Compared to peers (Duke Energy, Southern Company, NextEra Energy), Con Ed trades at similar multiples but offers lower growth given NYC's mature market versus Sunbelt population growth benefiting southern utilities.

Timothy Cawley's strategy focuses on regulatory relationships and operational excellence. By reliably delivering power to America's largest city, Con Ed maintains goodwill with regulators, ensuring constructive rate case outcomes. The company avoids merchant generation (unregulated power plants) and renewable development risks, sticking to low-risk regulated utility operations. This conservative approach sacrifices growth for stability—a trade-off income investors embrace but growth investors avoid.

Who Is This Stock Suitable For?

Perfect For

  • ✓Income investors prioritizing stable, growing dividends (3.5% yield, 50+ year streak)
  • ✓Retirees seeking low-volatility, recession-resistant cash flow
  • ✓Conservative portfolios needing defensive positioning during market turbulence
  • ✓Long-term holders (10+ years) focused on dividend compounding over capital appreciation

Less Suitable For

  • ✗Growth investors seeking capital appreciation (utilities grow 3-4% annually)
  • ✗Aggressive investors wanting volatility and outsized returns
  • ✗Short-term traders (utility stocks exhibit minimal price movement)
  • ✗Investors concerned about rising interest rates (utilities underperform in rising rate environments)

Investment Thesis

Con Edison exemplifies the defensive income investment: monopoly positioning, recession-proof demand, regulatory protection, and 50+ years of dividend increases. Timothy Cawley's $22 billion infrastructure plan creates visibility to 3-4% annual EPS growth through rate base expansion. The 3.5% dividend yield—supported by a sustainable 70% payout ratio—provides immediate income while annual increases offer inflation protection.

The investment case hinges on perspective. For growth investors, Con Ed is boring—utilities cannot deliver explosive returns. For income investors, Con Ed is ideal—reliable cash flow during market volatility. The current environment (higher rates) pressures utility valuations, but long-term fundamentals remain intact: NYC isn't disappearing, electricity demand is stable-to-growing (EVs, data centers), and regulatory frameworks support 9-10% returns on capital. For conservative portfolios seeking ballast, Con Ed offers exactly what it promises: slow, steady, reliable income.

Conclusion

Con Edison is a HOLD for income investors, BUY on weakness below $90. The stock delivers exactly what it promises: stable 3.5% dividend yield with annual increases, defensive recession-resistant positioning, and low volatility. While growth prospects are limited (3-4% annual EPS growth), the quality of cash flow justifies holding for conservative portfolios. Current valuation (near book value) is fair but not cheap—income investors should maintain positions, while new buyers should wait for better entry points during market selloffs when utilities typically underperform. For retirees and conservative investors, Con Ed merits core holding status as portfolio ballast, providing reliable income while growth positions drive returns elsewhere.
Bull Case
$115 (20% upside) - Rate cases favorable, infrastructure investment accelerates, rates decline
Base Case
$105 (10% upside) - Steady 3-4% earnings growth, dividend increases continue
Bear Case
$85 (11% downside) - Regulatory headwinds, higher rates pressure valuation, major infrastructure failure

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