Consolidated Edison ascents 0.70 percent despite modest market dip

In this story I am going to address all Consolidated Edison shareholders. I will look into why despite regular market tumult, the longer-term fundamental drivers of the firm are still sound. Consolidated Edison Earnings before Tax are expected to significantly increase based on the last few years of reporting. The last year Earnings before Tax were at 2.05 Billion. The current year Enterprise Value is expected to grow to about 50.5 B, whereas Average Assets are expected to decline to about 54.8 B. Consolidated Edison barely shadows market. The returns on investing in Consolidated Edison and the market returns of the last few months appear uncorrelated. Sound fundamental drivers of the firm may also indicate signals of longer-term gains for the firm shareholders. We consider Consolidated Edison very steady. Consolidated Edison secures Sharpe Ratio (or Efficiency) of 0.1996 which signifies that the organization had 0.1996% of return per unit of risk over the last 1 month. Our philosophy towards foreseeing volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Consolidated Edison which you can use to evaluate future volatility of the firm. Please confirm Consolidated Edison Downside Deviation of 0.7131, Risk Adjusted Performance of 0.1879 and Mean Deviation of 0.5253 to double-check if risk estimate we provide are consistent with the epected return of 0.1345%.
Published over a year ago
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Reviewed by Vlad Skutelnik

This firm average rating is Sell from 11 analysts. As of the 17th of February 2020 Consolidated Edison shows Downside Deviation of 0.7131, Risk Adjusted Performance of 0.1879 and Mean Deviation of 0.5253. Consolidated Edison technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm future prices. Put another way you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum or the prices will eventually revert. We found nineteen technical drivers for Consolidated Edison which can be compared to its rivals. Please confirm Consolidated Edison Maximum Drawdown, Semi Variance and the relationship between Jensen Alpha and Potential Upside to decide if Consolidated Edison is priced correctly providing market reflects its regular price of 94.3 per share. Given that Consolidated Edison has Jensen Alpha of 0.122, we suggest you validate Consolidated Edison prevailing market performance to make sure the company can sustain itself at future point.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Consolidated Edison. In general, sophisticated investors focus on analyzing Consolidated Edison stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Consolidated Edison's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Consolidated Edison's intrinsic value. In addition to deriving basic predictive indicators for Consolidated Edison, many experienced traders also check how macroeconomic factors affect Consolidated Edison price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Consolidated Edison's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Consolidated Edison. Your research has to be compared to or analyzed against Consolidated Edison's peers to derive any actionable benefits. When done correctly, Consolidated Edison's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Consolidated Edison.

How important is Consolidated Edison's Liquidity

Consolidated Edison financial leverage refers to using borrowed capital as a funding source to finance Consolidated Edison ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Consolidated Edison financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Consolidated Edison's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Consolidated Edison's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Consolidated Edison's total debt and its cash.

Consolidated Edison Gross Profit

Consolidated Edison Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Consolidated Edison previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Consolidated Edison Gross Profit growth over the last 10 years. Please check Consolidated Edison's gross profit and other fundamental indicators for more details.

Is Consolidated Edison valued correctly by the market?

The modest gains experienced by current holders of Consolidated Edison could raise concerns from investors as the firm closed today at a share price of 93.64 on slow start in volume. The company executives have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in January. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 0.6738. The very small Stock volatility is a good signal to investors with longer term investment horizons. Consolidated Edison preserves 57.88  of book value per share. Consolidated Edison is selling for 94.30. This is 0.70% increase. Today highest was 94.96. Consolidated Edison Earnings Before Interest Taxes and Depreciation Amortization EBITDA is rather stable at the moment. Consolidated Edison Net Income Per Employee is rather stable at the moment. Furthermore, Consolidated Edison Revenue Per Employee is increasing over the last 8 years.
 2017 2018 2019 2020 (projected)
Receivables1.86 B2.07 B2.38 B2.36 B
Inventories334 M358 M411.7 M419.32 M
Consolidated Edison, Inc., through its subsidiaries, engages in regulated electric, gas, and steam delivery businesses in the United States. Consolidated Edison, Inc. was founded in 1884 and is based in New York, New York. Consolidated Edison operates under UtilitiesRegulated Electric classification in USA and is traded on BATS Exchange. It employs 15307 people.
ReceivablesInventories
To conclude, we believe that at this point Consolidated Edison is under valued with below average probability of distress within the next 2 years. Our overall buy/sell recommendation on the firm is Strong Buy.

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Editorial Staff

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