Consolidated Edison, Inc.
EDConsolidated Edison is a regulated monopoly whose long-term value depends on disciplined infrastructure investment and fair regulation.
Because in utilities, small differences in regulation and capital allocation compound over decades.
Business Model
Regulated utility service
It delivers electricity and gas to millions of customers at state-approved rates.
Economic Engine
Allowed returns on assets
Profits are driven by how much infrastructure it builds and the return regulators allow on that base.
Long-Term Lens
Infrastructure reinvestment
The key question is whether rising capital spending earns adequate long-term returns.
On this page
Company Story
How do Consolidated Edison, Inc.'s business model and economics hold up on a closer read?
Start with the business itself, then go one layer deeper into the model, the economics, and the long-term case.
“A steady but capital-hungry regulated utility that offers durability, not dynamism, for patient 20-year income-focused investors.”
What does Consolidated Edison, Inc. actually do?
It provides electricity and gas to homes and businesses, primarily in and around New York City.
- Owns and maintains power lines, substations, and gas pipelines
- Delivers essential energy services to a dense urban customer base
- Operates under state regulation that sets customer rates
Why it matters
Essential service provider
Electricity and heat are non-negotiable needs, which makes demand relatively stable over time.
How does Consolidated Edison, Inc. make money?
It earns a regulated return on the infrastructure it builds and operates.
- Invests billions each year in grid upgrades and maintenance, $4.8 billion in the last 12 months
- Regulators approve customer rates designed to cover costs plus a profit
- Revenue has grown about 5.5% per year on average over the past five years
Economic clue
Profits tied to asset base
The more productive infrastructure it adds, the larger the base on which it can earn returns.
Why do long-term investors keep Consolidated Edison, Inc. on the radar?
It offers steady earnings growth backed by essential infrastructure in a critical region.
- Earnings per share have grown about 10% per year on average over five years
- Gross margin sits at 62%, reflecting the pricing structure of regulated utilities
- Serves one of the most economically important metropolitan areas in the country
Investor takeaway
Slow but steady compounding
Over decades, mid-single-digit revenue growth combined with controlled costs can add up.
Based on company financial statements.
Benchmark Comparison
How has Consolidated Edison, Inc. performed against common long-term benchmarks?
Once the business case is clear, compare the stock against broad market and alternative long-term baselines.
$1,644
+64.4% total return
$1,753
+75.3% total return
$2,975
+197.5% total return
$1,393
+39.3% total return
| Asset | Total Return | Dollar Value |
|---|---|---|
| ED | +64.4% | $1,644 |
| S&P 500 | +75.3% | $1,753 |
| Gold | +197.5% | $2,975 |
| Bitcoin | +39.3% | $1,393 |
From Mar 5, 2021 to Mar 6, 2026. Historical price data based on company financial statements and market indices. Each card uses the same starting amount so the comparison stays apples-to-apples.
Investor Fit
How a first-time investor could frame Consolidated Edison, Inc.
Before going deeper, decide what kind of business this is, what it tends to suit, and what deserves monitoring over time.
This Can Fit If You Want
- A stable, essential service business
- Moderate earnings growth around mid to high single digits
- Exposure to long-term infrastructure investment in a dense urban region
Be Careful If You Expect
- High growth similar to technology or consumer brands
- Strong free cash flow relative to reported profits
- Rapid margin expansion over time
What To Watch Over Time
- Whether operating margins continue to contract from the current 17.3%
- How effectively $4.8 billion in annual capital spending turns into earnings growth
- Regulatory decisions that determine allowed returns and customer rates
Key Metrics
Which metrics matter most for Consolidated Edison, Inc. right now?
Three durable business metrics that matter more than day-to-day price moves.
5.5% per year
10.0% per year
62% gross margin
| Metric | Value | Context |
|---|---|---|
| Revenue Growth | 5.5% per year | Shows whether the business has been expanding fast enough to create more long-term value. |
| EPS Growth | 10.0% per year | Shows whether earnings per share are compounding for owners over time. |
| Margin Quality | 62% gross margin | Shows how much room the business has to fund growth, absorb shocks, and stay profitable. |
Based on company financial statements.
Fundamentals
What do Consolidated Edison, Inc.'s fundamentals say right now?
Core financial markers that explain how the business is performing beneath the stock price.
4.3% ROIC
62.0% gross margin
0.2% FCF margin
Stable to shrinking
| Metric | Value | Interpretation |
|---|---|---|
| Capital Efficiency | 4.3% ROIC | The business is currently showing poor capital efficiency. |
| Profitability | 62.0% gross margin | Healthy gross margins give the company room to invest, price competitively, and absorb shocks. |
| Cash Generation | 0.2% FCF margin | Free cash flow margin shows how much real cash the business keeps after funding operations and investment. |
| Ownership Trend | Stable to shrinking | The company is not currently diluting owners and may be buying back shares instead. |
Based on company financial statements.
Included In Funds
Which ETFs and funds currently hold Consolidated Edison, Inc.?
Consolidated Edison, Inc. currently appears in these ETF and fund proxies.
SPY
SPDR S&P 500 ETF Trust
IWB
iShares Russell 1000 ETF
Questions & Answers
What questions come up most often about Consolidated Edison, Inc.?
Company-specific questions readers often ask about Consolidated Edison, Inc..
Each entry answers a direct question about the business, the long-term thesis, or the risks that matter over time.
It delivers electricity and gas to homes and businesses, mainly in New York City and nearby areas, using infrastructure it owns and maintains.
Decision Framing
Secondary context after the long-term thesis
Shorter-horizon context and comparison tools, after the core long-term read.
Shorter-horizon price moves, two-sided debate, and comparison tools live here so the page stays anchored on business quality, durability, and BinaPrint fit first.
Investment Thesis
Bull vs Bear
Two-sided framing before any decision.
Current argument weight is balanced.
Bull case
What can work
Regulated monopoly status in a dense urban region creates a durable customer base with limited competition and stable demand.
Ongoing electrification trends, including electric vehicles and building electrification, could steadily increase electricity usage over the next 10 to 20 years.
Five-year average earnings per share growth of about 10% shows the model can compound when capital spending is matched with fair rate approvals.
Massive infrastructure needs in aging urban grids create a long runway for reinvestment at regulated returns.
Bear case
What can break
Adverse regulatory decisions could lower allowed returns, squeezing profitability across a large portion of revenue.
Rising capital requirements, already $4.8 billion in the last year, could pressure balance sheets and dilute returns if not matched by higher earnings.
Distributed energy like rooftop solar and local storage could reduce reliance on centralized grids over decades.
Climate change and extreme weather in the Northeast could increase repair costs and capital needs beyond what regulators are willing to approve.
Risk Radar
Key Risks
Where downside pressure can build.
Regulatory risk, the majority of revenue comes from a single state-regulated territory where allowed returns determine profitability.
Capital intensity, $4.8 billion in annual capital spending versus very low free cash flow could require ongoing debt issuance.
Margin pressure, operating margin at 17.3% has been contracting, which could limit earnings growth.
Pressure points
Concentration risk
Consolidated Edison is heavily concentrated geographically, primarily serving New York City and surrounding areas. This means economic conditions, weather events, and regulatory decisions in one region can materially impact most of its revenue.
Sizing matters
Risks should be read as scenario inputs, not certainties. Position size and time horizon determine how much of this downside profile is acceptable.
Market Snapshot
Tactical context after the core long-term read.
- Price
- $112.28
- Daily move
- +1.42%
Peer Set
A compact peer list for side-by-side context.
Next Actions
Explore planning scenarios or keep browsing similar companies.