Consolidated Edison, Inc.Find Ratings Reports
CONSOLIDATED EDISON INC's gross profit margin for the first quarter of its fiscal year 2021 has decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the subsector, the net income growth has not. CONSOLIDATED EDISON INC has very weak liquidity. Currently, the Quick Ratio is 0.39 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.22% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q1 FY21||Q1 FY20|
|Net Sales ($mil)||3677.0||3234.0|
|Net Income ($mil)||419.0||375.0|
|Balance Sheet||Q1 FY21||Q1 FY20|
|Cash & Equiv. ($mil)||157.0||1574.0|
|Total Assets ($mil)||62299.0||59159.0|
|Total Debt ($mil)||24835.0||23601.0|
|Profitability||Q1 FY21||Q1 FY20|
|Gross Profit Margin||36.91||39.52|
|Return on Assets||1.83||2.18|
|Return on Equity||6.02||7.09|
|Debt||Q1 FY21||Q1 FY20|
|Share Data||Q1 FY21||Q1 FY20|
|Shares outstanding (mil)||342.0||334.0|
|Div / share||0.78||0.77|
|Book value / share||55.65||54.67|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2014687.0||2647506.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 24.72 for the Utilities subsector and a significant discount compared to the S&P 500 average of 34.07. Conducting a second comparison, its price-to-book ratio of 1.31 indicates a significant discount versus the S&P 500 average of 4.54 and a discount versus the subsector average of 2.06. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, CONSOLIDATED EDISON INC proves to trade at a discount to investment alternatives.
|ED 21.55||Peers 21.94||ED 12.10||Peers 11.85|
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation.
ED is trading at a valuation on par with its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
ED is trading at a valuation on par to its peers.
|ED 16.16||Peers 20.27||ED 0.73||Peers 1.11|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
ED is trading at a discount to its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
ED trades at a significant discount to its peers.
|ED 1.31||Peers 2.06||ED -12.86||Peers 90.20|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
ED is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, ED is expected to significantly trail its peers on the basis of its earnings growth rate.
|ED 1.97||Peers 3.25||ED 3.21||Peers 2.97|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
ED is trading at a significant discount to its subsector on this measurement.
Average. Comparing a company's sales growth to its subsector helps to determine if the company is adding or losing market share.
ED is keeping pace with its peers on the basis of sales growth.