Consolidated Edison (ED) AI Stock Analysis

• Market Cap: $40.28B
• Dividend Yield: 3.44%
• Average Volume (3M): 1.96M
• Price to Earnings (P/E): 19.5
• Beta (1Y): -0.25
• Revenue Growth: 10.35%
• EPS Growth: 7.64%
• Country: US
• Employees: 15,097
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.89
• Shares Outstanding: 360,935,600
• 10 Day Avg. Volume: 1,947,574
• 30 Day Avg. Volume: 1,964,310
• PEG Ratio: 2.31
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 2.10
• P/FCF Ratio: 986.03
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 3.95
• Enterprise Value/Gross Profit: 6.36
• Enterprise Value/Ebitda: 12.71
• 1Y Price Target: $106.54
• Price Target Upside: -2.98% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $121.00 ▲(10.19% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is driven primarily by solid but cap-limited utility financial performance, tempered by historically negative free cash flow and a 2025 balance-sheet data discontinuity. Technicals are constructive with a strong uptrend, but momentum looks somewhat stretched (RSI ~70). Valuation is moderately attractive, supported by a ~3% dividend and a reasonable P/E.

Positive Factors

Regulated revenue durability

Con Edison’s core regulated electric and gas franchises produce steady, utility-like revenues and stable margins under a cost-of-service framework. This predictable cash flow profile supports durable earnings and reliability investments, anchoring performance over a multi-year horizon as electrification demand grows.

Historically manageable leverage

Debt levels historically align with capital-intensive utility norms, supporting large infrastructure spending while preserving credit capacity. Consistent, moderate leverage and regulated returns help maintain access to capital markets and long-term funding for grid modernization without excessive financial strain.

Clear multi-source capex funding plan

Con Edison has articulated a large, multi-year investment program with explicit funding channels—internal cash, debt issuance, and equity—reducing financing execution risk. Combined with prior asset monetizations and term loan access, this funding flexibility supports necessary grid upgrades and reliability investments over several years.

Negative Factors

Persistent negative free cash flow

Heavy, ongoing capex produces negative free cash flow in most years, limiting internal funding capacity and increasing reliance on external financing or equity issuance. Over the medium term this constrains financial flexibility, raises dilution or leverage risk, and narrows room for discretionary investments or shocks.

2025 balance-sheet discontinuity

A major 2025 data discontinuity undermines trend comparability for leverage, asset base and liquidity assessment. This reduces confidence in multi-year analysis used for regulatory filings, credit evaluation, and capital planning, complicating durable forecasts and stakeholder decision-making over the coming months.

Rate plan cuts limit allowed revenue

The adopted three-year rate plan significantly trims requested delivery revenue and limits increases to about inflation, constraining allowed returns and near-term rate base recovery. This regulatory outcome can delay project economics, pressure near-term earnings growth, and tighten the regulatory path for cost recovery.

Consolidated Edison Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Consolidated Edison generates revenue primarily through the regulated utility operations that provide electricity, natural gas, and steam services to residential, commercial, and industrial customers. The company operates under a cost-of-service model, where it earns a return on investments made in infrastructure and receives revenue based on the costs incurred to provide utilities, including a regulated profit margin. Key revenue streams include charges for electricity and gas usage, as well as fixed monthly service fees. Additionally, Con Edison invests in renewable energy projects, which may provide additional revenue through energy sales and incentives. The company also engages in energy efficiency programs, which can lead to cost savings for customers and additional revenue opportunities. Strategic partnerships with various energy providers and regulatory bodies further enhance its operational efficiency and market reach.

Consolidated Edison Financial Statement Overview

Summary

Steady, utility-like revenue and profitability (revenues rising over the cycle; net margin around ~12% in 2025) are positives, supported by segment KPI strength in core electric/gas operations. Offsetting this, free cash flow is negative in most years due to heavy capex, and the 2025 balance-sheet discontinuity (unusually low reported debt/assets vs. prior years) adds comparability risk.

Income Statement

Revenue has trended higher over the cycle (from ~$12.2B in 2020 to ~$16.9B in 2025), showing steady demand typical of a regulated utility. Profitability is solid and fairly stable, with net margin generally around ~9–17% and a 2025 net margin near ~12%. Offsetting this, growth has been inconsistent year to year (including a revenue decline in 2023), and net income peaked in 2023 before stepping down in 2024–2025, suggesting limited upside momentum despite improving 2025 gross/EBITDA margins.

Balance Sheet

Leverage looks manageable across most years with debt-to-equity around ~1.18–1.33 (2020–2024), which is common for capital-intensive regulated utilities. Returns on equity are steady but modest (~6–12%), consistent with regulated returns. A key concern is the 2025 balance sheet data point showing extremely low reported debt and assets relative to prior years (debt-to-equity ~0.01 and assets ~$24.6B vs. ~$63–71B historically), which is a major discontinuity and raises data consistency/comparability risk when evaluating the trend.

Cash Flow

Operating cash flow is consistently positive, but free cash flow is negative in most years (2020–2024), indicating heavy reinvestment/capex needs and reduced financial flexibility. Cash generation improved sharply in 2025 with strong operating cash flow (~$4.5B) and positive free cash flow (with a large reported growth rate), but that improvement is not yet a multi-year pattern. Overall, cash flow quality appears mixed: recurring operating inflows, but frequent cash deficits after investment.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.92B	15.26B	14.65B	15.66B	13.67B
Gross Profit	10.49B	9.76B	8.96B	9.55B	8.89B
EBITDA	5.25B	5.48B	6.06B	5.17B	4.37B
Net Income	2.02B	1.82B	2.52B	1.66B	1.35B
Balance Sheet
Total Assets	24.57B	70.56B	66.33B	69.06B	63.12B
Cash, Cash Equivalents and Short-Term Investments	1.00M	1.32B	1.19B	1.28B	992.00M
Total Debt	315.00M	27.82B	25.01B	24.41B	25.36B
Total Liabilities	377.00M	48.60B	45.17B	48.18B	42.78B
Stockholders Equity	24.19B	21.96B	21.16B	20.69B	20.04B
Cash Flow
Free Cash Flow	36.00M	-1.16B	-2.34B	-233.00M	-1.22B
Operating Cash Flow	4.80B	3.61B	2.16B	3.94B	2.73B
Investing Cash Flow	-5.25B	-5.27B	-1.00B	-4.57B	-3.48B
Financing Cash Flow	746.00M	1.80B	-1.49B	1.01B	461.00M

Consolidated Edison Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 109.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ED, the sentiment is Positive. The current price of 109.81 is above the 20-day moving average (MA) of 107.62, above the 50-day MA of 102.41, and above the 200-day MA of 99.69, indicating a bullish trend. The MACD of 2.68 indicates Negative momentum. The RSI at 60.69 is Neutral, neither overbought nor oversold. The STOCH value of 54.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ED.

Consolidated Edison Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEC	71 Outperform	$36.99B	23.64	11.96%	3.38%	11.88%	29.76%
ED	67 Neutral	$40.28B	19.50	8.76%	3.44%	10.35%	7.64%
PEG	66 Neutral	$42.11B	20.27	12.58%	3.13%	18.29%	2.40%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
EXC	65 Neutral	$48.32B	17.27	9.94%	3.68%	6.07%	15.20%
XEL	65 Neutral	$47.13B	23.30	9.36%	3.09%	3.32%	-2.30%
ETR	64 Neutral	$45.73B	26.19	10.93%	2.64%	6.71%	-0.12%

Consolidated Edison Corporate Events

Consolidated Edison Sells Stake in Mountain Valley Pipeline

Consolidated Edison, Inc., through its subsidiary, has entered into an agreement to sell its 6.6 percent interest in Mountain Valley Pipeline, LLC to an Ares Management fund for $357.5 million. This transaction, expected to close in the first half of 2026, will help Con Edison offset its common equity needs for the year and support other corporate purposes, although it remains subject to customary closing conditions and potential preferential rights of MVP’s founding members.

The most recent analyst rating on (ED) stock is a Sell with a $98.00 price target. To see the full list of analyst forecasts on Consolidated Edison stock, see the ED Stock Forecast page.

Consolidated Edison Secures $500M Term Loan Agreement

On November 24, 2025, CECONY entered into a $500 million 364-Day Senior Unsecured Term Loan Credit Agreement to repay a portion of its unsecured term loan facility due November 2025. The agreement includes covenants and events of default that could impact CECONY’s financial stability and obligations, highlighting the company’s strategic financial management to maintain its operations and market positioning.

The most recent analyst rating on (ED) stock is a Sell with a $98.00 price target. To see the full list of analyst forecasts on Consolidated Edison stock, see the ED Stock Forecast page.