Is this utility built for steady returns?
Consolidated Edison is a regulated utility that delivers electric, gas, and steam service. It operates in the US utility market with a large installed network and long-lived infrastructure. The business is built around running and maintaining that system while funding ongoing upgrades and expansion. At roughly USD 38.9 billion in market value, it sits in the large-cap end of the utilities space.
Are rising costs limiting profitability growth?
FundamentalsIn 2025, reported in USD, revenue was about USD 16.9 billion, with EBIT of roughly USD 2.9 billion and net income of around USD 2.0 billion. Revenue grew 10.9% versus the prior annual period, while trailing margins were 46.69% gross, 18.43% operating, and 12.52% net.
The capital intensity shows up clearly in the cash and investment lines: depreciation and amortization ran at about USD 2.3 billion against USD 4.8 billion of capital expenditures. Using an EBIT-based proxy that adds back depreciation and amortization and subtracts capital spending, the period came out at about negative USD 82 million. Total debt was roughly USD 1.8 billion, while trailing ROE was 8.82% and a return-
Is the market underpricing future returns?
DCF / MultiplesAt USD 105.63, the stock trades below the range implied by the discounted cash flow model’s weaker-
Returns Bound by Heavy Spending
TakeawayThe valuation only works if returns hold up through capex cycles. Today’s returns look bounded, not expansive. Cash generation is the weak spot when spending runs ahead. If capex stays high without better returns, value creation stalls.