Consolidated Edison Stock Intrinsic Value – Analysts Issue “Reduce” Rating for Consolidated Edison amid Fluctuating Market Conditions
August 11, 2023
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Consolidated Edison ($NYSE:ED), Inc. (ConEd) is an energy company that provides electricity, natural gas, and steam to New York City and Westchester County. It is the largest investor-owned energy service provider in the United States and has operations in the Northeast, Mid-Atlantic, and Midwest regions. Recently, analysts have evaluated the potential investment opportunities presented in the highly fluctuating market and issued a “Reduce” rating for ConEd. The company provides a number of services to its customers, including customer service, energy delivery, energy efficiency programs, and renewable energy. ConEd’s stock has been volatile in recent months due to the changing market conditions. The analysts’ “Reduce” rating reflects a lower risk in investing in ConEd, as the stock price may not reach the analysts’ forecasted levels in the near future. For potential investors, it is important to understand the risks associated with ConEd before investing in the stock. Analysts are advising investors to take a cautious approach when considering ConEd as an investment opportunity, as the stock may not remain profitable in the short-term.
Additionally, investors should consider the political and economic factors that could influence ConEd’s performance over time. Ultimately, investors should weigh their own personal risk tolerance and market conditions when deciding whether or not to invest in Consolidated Edison. The “Reduce” rating issued by analysts suggests that investors should approach this stock with caution and carefully consider all potential outcomes before making a decision to invest.
Share Price
Analysts have issued a “reduce” rating for Consolidated Edison (ConEd) on Friday amidst fluctuating market conditions. The ConEd stock opened at $90.6 and closed at $89.3, down by 1.1% from previous closing price of 90.3. The market conditions have been volatile, resulting in drastic swings in ConEd’s stock prices over the past few months. Analysts cite the company’s weak earnings report in late April as one of the main reasons for the current downward trend in its stock prices.
In addition, investors are wary of the uncertainty surrounding the energy sector due to rising costs of fossil fuels and changing regulations. Despite these unfavorable market conditions, analysts remain optimistic about ConEd’s long-term prospects. They believe that the company will benefit from its recent investments in renewable energy sources and its plans to modernize its energy grid. Furthermore, ConEd is in a strong financial position with low debt levels and a solid balance sheet. As such, analysts suggest that investors should not be overly concerned about the current dip in share prices and should continue to view ConEd as a good long-term investment. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Consolidated Edison. More…
| Total Revenues | Net Income | Net Margin |
| 15.54k | 2.46k | 11.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Consolidated Edison. More…
| Operations | Investing | Financing |
| 3.14k | -995 | -1.43k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Consolidated Edison. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 63.77k | 42.97k | 60.48 |
Key Ratios Snapshot
Some of the financial key ratios for Consolidated Edison are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.2% | -1.6% | 25.9% |
| FCF Margin | ROE | ROA |
| -8.5% | 12.1% | 3.9% |
Analysis – Consolidated Edison Stock Intrinsic Value
At GoodWhale, we recently conducted an analysis of CONEDISON’s wellbeing. After carefully examining the company’s financial information, we determined the intrinsic value of CONEDISON shares to be approximately $94.5, using our proprietary Valuation Line. Currently, CONEDISON stock is being traded at $89.3, which is a fair price, although slightly undervalued by 5.5%. We believe that shareholders may be able to benefit from this slight undervaluation and take advantage of buying the stock at a discount. More…
Peers
Consolidated Edison Inc is one of the leading energy companies in the United States. It is a holding company that engages in the business of energy through its subsidiaries. The Company’s segments include Consolidated Edison Company of New York, Inc. (CECONY), which delivers electricity, gas, and steam to customers in New York City and Westchester County; Orange and Rockland Utilities, Inc. (O&R), which delivers electricity and gas to customers in New York and Pennsylvania; Con Edison Clean Energy Businesses, Inc., which develops, owns, and operates renewable energy generation facilities and provides energy services; and Con Edison Transmission, Inc., which consists of electric transmission facilities. The Company’s competitors include Avangrid Inc, New Jersey Resources Corp, Exelon Corp.
– Avangrid Inc ($NYSE:AGR)
Avangrid is a leading energy services and delivery company with operations in 23 states. The company has a market cap of 15.34B as of 2022 and a Return on Equity of 3.84%. Avangrid’s operations include electric and gas utilities, renewable energy generation, and energy storage. The company’s electric utilities serve approximately 3.3 million customers in New York and New England. Gas utilities serve approximately 1.1 million customers in New York and New England. Renewable energy generation assets include approximately 9,000 MW of operating capacity, including solar, wind, and biomass.
– New Jersey Resources Corp ($NYSE:NJR)
New Jersey Resources is a publicly traded energy services holding company with operations in natural gas distribution, retail energy services, and midstream operations. Its principal subsidiary is New Jersey Natural Gas Company, which delivers safe, reliable, and affordable natural gas to over 500,000 residential, commercial, and industrial customers in Central and Northern New Jersey. The company also owns and operates two interstate natural gas pipelines, as well as a liquefied natural gas storage facility. In addition, through its subsidiaries, New Jersey Resources provides energy services to customers in the United States and Canada.
– Exelon Corp ($NASDAQ:EXC)
Exelon Corporation is an American energy company headquartered in the Chase Tower in the Loop area of Chicago, Illinois, United States, and is the largest U.S. utility holding company by revenue. The company was created in October 2000 by the merger of PECO Energy Company and Unicom Corp. It is now a Fortune 100 company and the largest operator of nuclear power plants in the United States. Exelon operates regulated utilities in Illinois, Maryland, New Jersey and Pennsylvania through its Exelon Utilities subsidiaries. Exelon has operations and business activities in 47 states, the District of Columbia and Canada.
Summary
Consolidated Edison, Inc. has received a “Reduce” rating from analysts in a recent report by Bloomberg.com. This evaluation of the energy provider’s investment potential reflects the volatile nature of the current market. Investors must take into consideration the risks and rewards associated with investing in Consolidated Edison.
This includes analyzing the company’s financials, evaluating their competitive position in the market, and researching potential changes in energy policies or regulations which could affect their profitability. Given the uncertain economic climate, it is important for investors to weigh the risks and benefits of investing in Consolidated Edison before making a decision.
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