ED

Consolidated Edison Inc

Energy


Presented:01/29/2016
Price:$69.39
Cap:$20.41B
Current Price:$105.45
Cap:$36.50B

Presented

Date01/29/2016
Price$69.39
Market Cap$20.41B
Ent Value$33.03B
P/E Ratio18.6x
Book Value$44.49
Div Yield3.86%
Shares O/S294.20M
Ave Daily Vol2,295,115
Short Int5.38%

Current

Price$105.45
Market Cap$36.50B
Consolidated Edison, Inc. operates as a holding company, which through its subsidiaries engages in the business of regulated electric, gas and steam delivery. It operates through three segments: Consolidated Edison Co. of New York, Inc., Orange & Rockland Utilities, Inc. and Competitive Energy Businesses. The Consolidated Edison Co. of New York segment engages in the regulated electric, gas and steam utility businesses. The Orange & Rockland Utilities segment engages in regulated electric and gas utility delivery businesses. The Competitive Energy Businesses segment sells electricity to wholesale and retail customers; provides energy-related products and services; and participates in energy infrastructure projects. The company was founded in 1823 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: Consolidated Edison Inc (ED), EQT Midstream Partners LP (EQM)

Highlights

The presenter said he has recently taken a short position in shares of Consolidated Edison (ED, or “Con Ed”) due to his outlook for the regulated utility’s future earnings power, interest rates and a relatively expensive valuation compared to historic norms. The Street is expecting Con Ed to earn roughly $4.10/ share in 2016, and $4.17/ share in 2017, but based on his estimates these forecasts could be high by ~5%. While this may not seem like a lot, “it is meaningful for a utility,” especially one that is trading at historically high multiples to future earnings with a backdrop of the US 10-year trading at just under a 2% yield. In addition, investments in unregulated assets could pose an incremental risk.

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Idea Discussion

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