Operating Margin - Consolidated Edison Inc (NYSE:ED)

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Price: 98.9 USD -0.49%

Market Cap: 35.7B USD

17.6%

Current

17%

Average

13.8%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

17.6%

Operating Profit

2.9B

Revenue

16.6B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
US		Consolidated Edison Inc NYSE:ED	35.7B USD	18%
UK		National Grid PLC LSE:NG	57B GBP	30%
FR		Engie SA PAR:ENGI	52.8B EUR	14%
US		Sempra Energy NYSE:SRE	57.4B USD	23%
US	S	Sempra VSE:SREN	43.4B EUR	23%
US		Dominion Energy Inc NYSE:D	50.7B USD	29%
DE		E.ON SE XETRA:EOAN	41B EUR	7%
US		Public Service Enterprise Group Inc NYSE:PEG	39.9B USD	25%
DE		RWE AG XETRA:RWE	32.1B EUR	10%
DE		E ON SE MIL:EOAN	31.3B EUR	2%
US		WEC Energy Group Inc NYSE:WEC	34B USD	25%

Consolidated Edison Inc
Glance View

Economic Moat

None

Market Cap

35.7B USD

Industry

Utilities

Consolidated Edison Inc., often recognized by its shorthand Con Edison, is a stalwart in the utilities sector with roots that delve deep into the bustling history of New York City. Established in the late 19th century, the company originally emerged as a pioneer of energy solutions during a time when gaslight flickered across the city. As modernity evolved, so did Con Edison, embracing electricity to illuminate and power one of the world's most vibrant urban centers. Today, its operations are multifaceted, stretching beyond just providing electricity. Con Edison maintains a crucial grip on the transmission and distribution of natural gas as well, serving several million customers across New York and its surrounding areas. This constant energy delivery ensures that the metropolis's homes, businesses, and infrastructure remain energized and operational around the clock. The business model of Con Edison is deeply entrenched in its franchised monopoly status, which allows it to operate as the exclusive utility provider in its designated areas, guided by regulatory oversight that ensures fair pricing for consumers and consistent returns for its shareholders. Its revenue streams primarily derive from the regulated sale of electricity and natural gas, along with ancillary services related to energy management and consultancy. This stable and recurring revenue base has been a cornerstone of its enduring success, allowing the company to maintain a steady growth trajectory, invest in cleaner energy initiatives, and adapt to the growing pressures of sustainability. Mounted on a framework of regulatory approvals and reliable service, Con Edison continues to light and heat New York, making it both a critical lifeline and a keystone in the city's vast industrial ecosystem.

View ED Analysis

ED Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

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Consolidated Edison Inc
NYSE:ED