| Metric | Grade | Score | Evidence | Horizon |
|---|---|---|---|---|
| FINAL ESEN MASTER SCORE | B+ | 78 | Defensive utility with stable earnings growth (9.59% YoY), moderate valuation, and 3.17% dividend yield. Low beta (0.26) provides downside protection. Forward PE compression (17.29x) attractive vs. trailing (20.46x). | 6–12M |
| SA Quality/Value Composite | B | 74 | PE 20.46x trailing / 17.29x forward suggests fair valuation for regulated utility. PEG 2.13x indicates moderate growth premium. Dividend sustainability supported by 9.08% revenue growth YoY. | 6–12M |
| Zacks Earnings Momentum | B− | 68 | EPS growth 9.59% YoY is solid for utilities. Earnings date not disclosed; no recent analyst revisions data available. Growth flagged as "hyper_growth" (likely relative to sector baseline). | 1–3M |
| Institutional & Smart Money Flow | C+ | 62 | Average volume 2.17M shares; no institutional ownership or insider flow data disclosed. 52-week return +10.89% suggests passive accumulation in dividend-focused portfolios. | 1–3M |
| Growth Sustainability & Moat | B+ | 76 | Regulated utility monopoly in NY/NJ provides structural moat. Revenue growth 9.08% YoY supports rate base expansion and grid modernization initiatives. Low beta (0.26) reflects defensive nature and minimal cyclicality. | 6–12M |
| Valuation & Safety (Pre-Penalty) | B | 75 | Trading $112.25 vs. 52-week range $94.96–$116.23 (near 52-week high). Market cap $41.4B supports liquidity. No extreme leverage signals flagged. Dividend yield 3.17% stable. | 6–12M |
| Penalty Overlay | −5 | −5 | Data gaps: earnings date unknown, no TTM revenue, no analyst target price. "Weak profitability" flag requires context verification. Regulatory risk inherent to utility sector not quantified. | 6–12M |
| CONFIDENCE SCORE | B | 72 | Strong quote and metric coverage from Finnhub. Missing earnings date and target consensus limits near-term precision. Fundamental data (P/E, dividend, growth) reliable. | 6–12M |
| Volatility & Drawdown Risk | A− | 86 | Beta 0.26 is exceptionally low; suggests <26% of market volatility. Utilities sector historically provides capital preservation in downturns. Low drawdown risk profile suitable for conservative allocators. | 6–12M |
| Crowding Risk Flag | MODERATE | 65 | Dividend yield 3.17% may attract crowding in rate-sensitive environment. Near 52-week high suggests some froth. Regulatory approval uncertainty for rate increases could trigger sharp correction. | 1–3M |
ED vs. Utility Sector Median: Consolidated Edison trades at a modest premium to large-cap utility peers (e.g., DUK, NEE, SO) on valuation, justified by NYC/NJ regulated monopoly position and ~9% revenue growth. Forward P/E compression to 17.29x from 20.46x trailing signals market repricing downward as growth moderates. Dividend yield 3.17% sits at sector midpoint—competitive but not exceptional. The "hyper_growth" flag likely reflects capex-driven rate base expansion exceeding sector average. Low beta (0.26) is sector-leading in defensiveness.
Near 52-week high ($116.23 vs. $112.25 current). Short-term risk of mean reversion or rate-hike sensitivity. Missing earnings date creates uncertainty catalyst. Hold or accumulate on weakness to $110–$111.
Structural growth (9% revenue CAGR), stable earnings (9.6% EPS growth), and dividend sustainability support upside to $118–$125 range. Regulatory tailwinds (clean energy capex, grid hardening) create optionality. Beta 0.26 provides portfolio ballast.
ED Systematic Research
Consolidated Edison operates as a defensive utility holding with a beta of 0.27, positioning it among the least volatile names in its sector. The company's market capitalization of $40.1 billion reflects its status as a major regulated electric and gas provider serving the New York metropolitan area. Systematic screening highlights an 18.69 P/E ratio trading slightly above typical utility multiples, while the 1.48 price-to-book ratio signals a modest premium to the $67.01 book value per share.
Profitability metrics reveal balanced characteristics:
- Return on equity stands at 8.82%, typical for regulated utilities operating under rate-of-return frameworks
- Net margin of 12.52% reflects stable cash conversion in the capital-intensive utility business model
- Operating margin at 18.43% demonstrates consistent regulatory cost recovery mechanisms
- Recent growth acceleration shows revenue expanding 9.08% year-over-year alongside 9.59% EPS growth, outpacing typical utility expansion rates
The balance sheet presents a D/E ratio of 1.15, representing moderate leverage within acceptable utility industry parameters. The current ratio of 1.02 indicates tight liquidity management, a research perspective flag for monitoring working capital adequacy during capital expenditure cycles. Current price of $108.85 sits approximately 6% below the 52-week high of $116.23, following a modest 0.74% single-day decline.
Compared to peer utilities D (Dominion Energy), SRE (Sempra Energy), and PEG (Public Service Enterprise Group), Consolidated Edison's 2.34 price-to-sales ratio and defensive beta profile position it as a lower-volatility alternative. The model indicates that exposure to New York's regulatory environment creates concentration risk offset by infrastructure investment opportunities in renewable energy transitions.
Analysis updated monthly based on systematic screening of fundamentals, profitability, growth, and peer positioning.