Consolidated Edison Inc (ED) Financial Statements

Analyzing Consolidated Edison through the GoodMoat Quality Indicators reveals a mixed but ultimately weak profile. The company shows a positive revenue growth trend of 8.9% YoY and solid profitability with a 12.0% profit margin and 17.3% operating margin. However, the free cash flow (FCF) picture is a critical weakness. An FCF yield of 0.1% indicates negligible cash generation relative to its market value, far below the framework's favourable threshold of a >10-15% FCF margin. This severely limits financial flexibility. The balance sheet is also a concern. A Debt/Equity ratio of 1.17 suggests a leveraged capital structure, which is unfavourable compared to the framework's preference for low or zero debt (Debt/EBITDA < 1.0x). The Return on Equity (ROE) of 8.4% is modest and does not meet the high return on capital standard sought for quality businesses. From a Growth Assessment perspective, the 8.9% revenue growth is positive but not at the accelerating or high double-digit rate the framework associates with durable, high-quality growth. Overall, the financial health is defined by stable utility-like earnings but is undermined by poor cash conversion and significant leverage, which are key considerations for a value investor focused on financial strength and capital efficiency. Analysis based on data as of 2024-05-15.