FIRSTENERGY CORP (FE) Stock Fundamental Analysis
NYSE:FE - New York Stock Exchange, Inc. - US3379321074 - Common Stock - Currency: USD
Taking everything into account, FE scores 3 out of 10 in our fundamental rating. FE was compared to 47 industry peers in the Electric Utilities industry. FE has a medium profitability rating, but doesn't score so well on its financial health evaluation. FE is valied quite expensively at the moment, while it does show a decent growth rate. Finally FE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
FE had positive earnings in the past year.
In the past year FE had a positive cash flow from operations.
FE had positive earnings in each of the past 5 years.
FE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.41%, FE is doing worse than 65.96% of the companies in the same industry.
The Return On Equity of FE (10.18%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 4.31%, FE is in line with its industry, outperforming 57.45% of the companies in the same industry.
FE had an Average Return On Invested Capital over the past 3 years of 3.82%. This is in line with the industry average of 5.09%.
The 3 year average ROIC (3.82%) for FE is below the current ROIC(4.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 10.18% | ||
| ROIC | 4.31% |
ROA(3y)1.67%
ROA(5y)2.05%
ROE(3y)7.47%
ROE(5y)10.42%
ROIC(3y)3.82%
ROIC(5y)3.73%
1.3 Margins
The Profit Margin of FE (9.31%) is worse than 74.47% of its industry peers.
FE's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.20%, FE is in line with its industry, outperforming 44.68% of the companies in the same industry.
FE's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 71.25%, FE is doing good in the industry, outperforming 70.21% of the companies in the same industry.
FE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.2% | ||
| PM (TTM) | 9.31% | ||
| GM | 71.25% |
OM growth 3Y6.67%
OM growth 5Y-4.97%
PM growth 3Y-14.28%
PM growth 5Y-2.47%
GM growth 3Y-1.11%
GM growth 5Y-0.69%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FE is destroying value.
The number of shares outstanding for FE has been increased compared to 1 year ago.
Compared to 5 years ago, FE has more shares outstanding
The debt/assets ratio for FE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.75, we must say that FE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of FE (0.75) is worse than 61.70% of its industry peers.
FE has a Debt/Equity ratio of 1.88. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.88, FE is not doing good in the industry: 78.72% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC0.69
WACC6.22%
2.3 Liquidity
FE has a Current Ratio of 0.61. This is a bad value and indicates that FE is not financially healthy enough and could expect problems in meeting its short term obligations.
FE has a worse Current ratio (0.61) than 76.60% of its industry peers.
A Quick Ratio of 0.51 indicates that FE may have some problems paying its short term obligations.
With a Quick ratio value of 0.51, FE is not doing good in the industry: 70.21% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.83% over the past year.
Measured over the past 5 years, FE shows a small growth in Earnings Per Share. The EPS has been growing by 0.31% on average per year.
FE shows a small growth in Revenue. In the last year, the Revenue has grown by 6.44%.
Measured over the past years, FE shows a small growth in Revenue. The Revenue has been growing by 4.07% on average per year.
EPS 1Y (TTM)3.83%
EPS 3Y0.25%
EPS 5Y0.31%
EPS Q2Q%-7.14%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y6.57%
Revenue growth 5Y4.07%
Sales Q2Q%3.05%
3.2 Future
The Earnings Per Share is expected to grow by 5.39% on average over the next years.
FE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.53% yearly.
EPS Next Y-0.93%
EPS Next 2Y2.94%
EPS Next 3Y4.4%
EPS Next 5Y5.39%
Revenue Next Year0.82%
Revenue Next 2Y2.04%
Revenue Next 3Y2.55%
Revenue Next 5Y3.53%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.04 indicates a correct valuation of FE.
Compared to the rest of the industry, the Price/Earnings ratio of FE is on the same level as its industry peers.
FE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.84.
Based on the Price/Forward Earnings ratio of 15.60, the valuation of FE can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as FE.
FE is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 15.6 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.68 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)52.25
EPS Next 2Y2.94%
EPS Next 3Y4.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.08%, FE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.46, FE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, FE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
5.2 History
The dividend of FE has a limited annual growth rate of 1.59%.
FE has paid a dividend for at least 10 years, which is a reliable track record.
FE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.59%
Div Incr Years2
Div Non Decr Years10
5.3 Sustainability
75.84% of the earnings are spent on dividend by FE. This is not a sustainable payout ratio.
FE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP75.84%
EPS Next 2Y2.94%
EPS Next 3Y4.4%
43.47
-0.19 (-0.44%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.6%
Inst Owner Change0.71%
Ins Owners0.13%
Ins Owner Change1.71%
Market Cap25.10B
Analysts74.4
Price Target46.3 (6.51%)
Short Float %3.46%
Short Ratio4.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
Yearly Dividend1.69
Dividend Growth(5Y)1.59%
DP75.84%
Div Incr Years2
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.89%
Min EPS beat(2)3.93%
Max EPS beat(2)7.84%
EPS beat(4)2
Avg EPS beat(4)-0.94%
Min EPS beat(4)-7.9%
Max EPS beat(4)7.84%
EPS beat(8)4
Avg EPS beat(8)-1.07%
EPS beat(12)5
Avg EPS beat(12)-1.83%
EPS beat(16)6
Avg EPS beat(16)-1.99%
Revenue beat(2)1
Avg Revenue beat(2)1.74%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)5.11%
Revenue beat(4)1
Avg Revenue beat(4)-7%
Min Revenue beat(4)-24.16%
Max Revenue beat(4)5.11%
Revenue beat(8)1
Avg Revenue beat(8)-5.21%
Revenue beat(12)5
Avg Revenue beat(12)0.13%
Revenue beat(16)7
Avg Revenue beat(16)-0.13%
PT rev (1m)0.93%
PT rev (3m)0.98%
EPS NQ rev (1m)-4.1%
EPS NQ rev (3m)-11.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 15.6 | ||
| P/S | 1.79 | ||
| P/FCF | N/A | ||
| P/OCF | 7.09 | ||
| P/B | 1.95 | ||
| P/tB | 3.47 | ||
| EV/EBITDA | 11.68 |
EPS(TTM)2.71
EY6.23%
EPS(NY)2.79
Fwd EY6.41%
FCF(TTM)-1.7
FCFYN/A
OCF(TTM)6.13
OCFY14.1%
SpS24.33
BVpS22.26
TBVpS12.53
PEG (NY)N/A
PEG (5Y)52.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 10.18% | ||
| ROCE | 5.55% | ||
| ROIC | 4.31% | ||
| ROICexc | 4.36% | ||
| ROICexgc | 4.94% | ||
| OM | 19.2% | ||
| PM (TTM) | 9.31% | ||
| GM | 71.25% | ||
| FCFM | N/A |
ROA(3y)1.67%
ROA(5y)2.05%
ROE(3y)7.47%
ROE(5y)10.42%
ROIC(3y)3.82%
ROIC(5y)3.73%
ROICexc(3y)3.84%
ROICexc(5y)3.79%
ROICexgc(3y)4.39%
ROICexgc(5y)4.37%
ROCE(3y)4.93%
ROCE(5y)4.84%
ROICexcg growth 3Y5.98%
ROICexcg growth 5Y-6.21%
ROICexc growth 3Y6.95%
ROICexc growth 5Y-5.5%
OM growth 3Y6.67%
OM growth 5Y-4.97%
PM growth 3Y-14.28%
PM growth 5Y-2.47%
GM growth 3Y-1.11%
GM growth 5Y-0.69%
F-Score7
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.64 | ||
| Cap/Depr | 285.96% | ||
| Cap/Sales | 32.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.7% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 0.75 |
F-Score7
WACC6.22%
ROIC/WACC0.69
Cap/Depr(3y)241.74%
Cap/Depr(5y)219.91%
Cap/Sales(3y)26.04%
Cap/Sales(5y)24.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.83%
EPS 3Y0.25%
EPS 5Y0.31%
EPS Q2Q%-7.14%
EPS Next Y-0.93%
EPS Next 2Y2.94%
EPS Next 3Y4.4%
EPS Next 5Y5.39%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y6.57%
Revenue growth 5Y4.07%
Sales Q2Q%3.05%
Revenue Next Year0.82%
Revenue Next 2Y2.04%
Revenue Next 3Y2.55%
Revenue Next 5Y3.53%
EBIT growth 1Y18.86%
EBIT growth 3Y13.67%
EBIT growth 5Y-1.1%
EBIT Next Year61.66%
EBIT Next 3Y24.04%
EBIT Next 5Y15.23%
FCF growth 1Y46.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y198.06%
OCF growth 3Y0.94%
OCF growth 5Y3.22%