Consolidated Edison (ED) has wrapped up FY 2025 with fourth quarter revenue of US$3,994 million and basic EPS of US$0.82, alongside trailing twelve month revenue of US$16.9 billion and basic EPS of US$5.66, set against earnings growth of 11.2% over the past year and an average 10.5% per year over five years. Over recent periods, the company has seen quarterly revenue range from US$3,595 million to US$4,798 million while basic EPS moved between US$0.68 and US$2.26, giving investors a clearer view of how the top and bottom lines have tracked together. With a net profit margin around 12% and earnings forecast growth of 8.55% a year, the latest results indicate that profitability is a central focus for the business.

See our full analysis for Consolidated Edison.

With the headline numbers on the table, the next step is to see how these results line up with the widely held narratives around Consolidated Edison's growth potential, income appeal, and risk profile.

11.2% earnings growth backed by steady margin

• On a trailing twelve month basis, net income is US$2.0b on US$16.9b of revenue, giving a roughly 12% net margin alongside 11.2% earnings growth and a 10.5% 5 year earnings growth rate.
• Supporters of a more optimistic view point to this combination of 11.2% trailing earnings growth and a 12% margin as evidence of a solid profit engine. However, the fact that revenue is forecast to grow at about 4.1% a year while earnings are forecast at 8.55% a year means investors should watch how much of that gap is driven by efficiency versus factors like rate decisions and cost controls that are not visible in these figures.
  • The trailing twelve month revenue trend from US$15.3b to US$16.9b and net income from US$1.8b to US$2.0b supports the idea of a business that has paired growth with roughly stable profitability.
  • At the same time, the quarterly pattern, with basic EPS ranging from US$0.68 to US$2.26 in FY 2025, shows that earnings per share can move around within the year even when the full year margin looks stable.

For a broader view on how other investors are interpreting this mix of growth and profitability, you can see what the wider community is focusing on through the Curious how numbers become stories that shape markets? Explore Community Narratives.

P/E of 19.4x with price near DCF fair value

• The stock trades at US$106.39, very close to a DCF fair value estimate of US$106.50, with a P/E of 19.4x compared with 19.5x for peers and 18.9x for the wider Global Integrated Utilities group.
• Some investors argue that this near alignment between share price and DCF fair value, plus a P/E roughly in line with peers, supports a more bullish stance on valuation. At the same time, the modest premium to the broader industry and forecast revenue growth of about 4.1% a year keep the story grounded in measured rather than aggressive expectations.
  • The market price being only about 0.1% below the US$106.50 DCF fair value suggests little implied discount or premium based on this model alone.
  • Forecast earnings growth of around 8.55% a year sitting above forecast revenue growth underlines that a lot of the valuation case rests on sustaining margin and earnings quality rather than rapid top line expansion.

To see how other investors connect these valuation signals to long term narratives, you can Curious how numbers become stories that shape markets? Explore Community Narratives.

Cash flow strain against debt and dividend

• On the risk side, the trailing twelve month data highlights that operating cash flow has not comfortably covered debt and free cash flow has not fully covered the 3.34% dividend yield.
• Critics focus on this cash coverage gap as a bearish counterpoint to the solid earnings record, arguing that an 11.2% earnings growth rate and a 12% net margin only tell part of the story when operating cash flow coverage of debt and free cash flow support for the dividend lag behind accounting earnings.
  • The flagged shortfall in operating cash flow relative to debt obligations directly contrasts with the strong net income figures around US$2.0b over the same period.
  • The fact that the dividend is not well covered by free cash flow means income focused investors may weigh the 3.34% yield against these balance sheet and cash flow pressures rather than looking at payout level alone.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Consolidated Edison's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Seeing both risks and rewards in the story so far, it is worth checking the numbers yourself and deciding how they stack up for your portfolio, starting with 3 key rewards and 3 important warning signs.

See What Else Is Out There

While earnings and margins look solid, the strain on operating cash flow relative to debt and limited free cash flow support for the dividend stand out as key weak spots.

If that cash flow pressure worries you, it is worth checking companies screened for stronger coverage of debt and payouts through the solid balance sheet and fundamentals stocks screener (44 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.