FIRSTENERGY CORP (FE) Stock Fundamental Analysis
USA - NYSE:FE - US3379321074 - Common Stock
46.64 USD
+0.12 (+0.26%)
46.64 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to FE. FE was compared to 47 industry peers in the Electric Utilities industry. While FE is still in line with the averages on profitability rating, there are concerns on its financial health. FE is quite expensive at the moment. It does show a decent growth rate. FE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year FE was profitable.
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
FE has a Return On Assets of 2.41%. This is in the lower half of the industry: FE underperforms 63.83% of its industry peers.
FE has a Return On Equity (10.18%) which is comparable to the rest of the industry.
FE's Return On Invested Capital of 4.31% is fine compared to the rest of the industry. FE outperforms 61.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FE is in line with the industry average of 4.90%.
The last Return On Invested Capital (4.31%) for FE is above the 3 year average (3.82%), which is a sign of increasing profitability.
| 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
FE's Profit Margin of 9.31% is on the low side compared to the rest of the industry. FE is outperformed by 72.34% of its industry peers.
In the last couple of years the Profit Margin of FE has declined.
FE's Operating Margin of 19.20% is in line compared to the rest of the industry. FE outperforms 42.55% of its industry peers.
In the last couple of years the Operating Margin of FE has declined.
Looking at the Gross Margin, with a value of 71.25%, FE is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
In the last couple of years the Gross Margin of FE has remained more or less at the same level.
| 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.
FE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.78, we must say that FE is in the distress zone and has some risk of bankruptcy.
FE has a Altman-Z score of 0.78. This is in the lower half of the industry: FE underperforms 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.
FE's Debt to Equity ratio of 1.88 is on the low side compared to the rest of the industry. FE is outperformed by 78.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.78 |
ROIC/WACC0.7
WACC6.16%
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.
With a Current ratio value of 0.61, FE is not doing good in the industry: 74.47% of the companies in the same industry are doing better.
FE has a Quick 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 Quick ratio (0.51) than 68.09% of its industry peers.
| 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 4.26% 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.
Looking at the last year, FE shows a small growth in Revenue. The Revenue has grown by 4.68% in the last year.
FE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.07% yearly.
EPS 1Y (TTM)4.26%
EPS 3Y0.25%
EPS 5Y0.31%
EPS Q2Q%-2.35%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y6.57%
Revenue growth 5Y4.07%
Sales Q2Q%11.24%
3.2 Future
Based on estimates for the next years, FE will show a small growth in Earnings Per Share. The EPS will grow by 5.39% on average per year.
Based on estimates for the next years, FE will show a small growth in Revenue. The Revenue will grow by 3.61% on average per year.
EPS Next Y-0.72%
EPS Next 2Y3.03%
EPS Next 3Y4.49%
EPS Next 5Y5.39%
Revenue Next Year0.9%
Revenue Next 2Y2.26%
Revenue Next 3Y2.84%
Revenue Next 5Y3.61%
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 17.34 indicates a rather expensive valuation of FE.
FE's Price/Earnings is on the same level as the industry average.
FE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.71, FE is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as FE.
When comparing the Price/Forward Earnings ratio of FE to the average of the S&P500 Index (22.92), we can say FE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.34 | ||
| Fwd PE | 16.71 |
4.2 Price Multiples
FE's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.09 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)56.48
EPS Next 2Y3.03%
EPS Next 3Y4.49%
5. Dividend
5.1 Amount
FE has a Yearly Dividend Yield of 3.76%.
FE's Dividend Yield is a higher than the industry average which is at 3.24.
FE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
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.
The dividend of FE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP75.84%
EPS Next 2Y3.03%
EPS Next 3Y4.49%
46.64
+0.12 (+0.26%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners87.97%
Inst Owner Change-0.09%
Ins Owners0.13%
Ins Owner Change-1.03%
Market Cap26.93B
Revenue(TTM)13.47B
Net Income(TTM)1.31B
Analysts75.65
Price Target46.96 (0.69%)
Short Float %4.67%
Short Ratio6.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
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)-0.64%
PT rev (3m)2.37%
EPS NQ rev (1m)-3.6%
EPS NQ rev (3m)-8.04%
EPS NY rev (1m)0%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.88%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.34 | ||
| Fwd PE | 16.71 | ||
| P/S | 1.92 | ||
| P/FCF | N/A | ||
| P/OCF | 7.61 | ||
| P/B | 2.1 | ||
| P/tB | 3.72 | ||
| EV/EBITDA | 12.09 |
EPS(TTM)2.69
EY5.77%
EPS(NY)2.79
Fwd EY5.99%
FCF(TTM)-1.7
FCFYN/A
OCF(TTM)6.13
OCFY13.14%
SpS24.33
BVpS22.26
TBVpS12.53
PEG (NY)N/A
PEG (5Y)56.48
Graham Number36.7
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%
ROICexgc growth 3Y5.98%
ROICexgc 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 | 0.78 |
F-Score7
WACC6.16%
ROIC/WACC0.7
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)4.26%
EPS 3Y0.25%
EPS 5Y0.31%
EPS Q2Q%-2.35%
EPS Next Y-0.72%
EPS Next 2Y3.03%
EPS Next 3Y4.49%
EPS Next 5Y5.39%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y6.57%
Revenue growth 5Y4.07%
Sales Q2Q%11.24%
Revenue Next Year0.9%
Revenue Next 2Y2.26%
Revenue Next 3Y2.84%
Revenue Next 5Y3.61%
EBIT growth 1Y18.86%
EBIT growth 3Y13.67%
EBIT growth 5Y-1.1%
EBIT Next Year61.83%
EBIT Next 3Y23.97%
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%
FIRSTENERGY CORP / FE FAQ
Can you provide the ChartMill fundamental rating for FIRSTENERGY CORP?
ChartMill assigns a fundamental rating of 3 / 10 to FE.
What is the valuation status of FIRSTENERGY CORP (FE) stock?
ChartMill assigns a valuation rating of 2 / 10 to FIRSTENERGY CORP (FE). This can be considered as Overvalued.
How profitable is FIRSTENERGY CORP (FE) stock?
FIRSTENERGY CORP (FE) has a profitability rating of 5 / 10.
Can you provide the financial health for FE stock?
The financial health rating of FIRSTENERGY CORP (FE) is 0 / 10.
Can you provide the dividend sustainability for FE stock?
The dividend rating of FIRSTENERGY CORP (FE) is 7 / 10 and the dividend payout ratio is 75.84%.