FIRSTENERGY CORP (FE) Stock Fundamental Analysis
NYSE:FE - New York Stock Exchange, Inc. - US3379321074 - Common Stock - Currency: USD
FE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. There are concerns on the financial health of FE while its profitability can be described as average. While showing a medium growth rate, FE is valued expensive at the moment. FE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
FE had positive earnings in the past year.
FE had a positive operating cash flow in the past year.
FE had positive earnings in each of the past 5 years.
Each year in the past 5 years FE had a positive operating cash flow.
1.2 Ratios
FE has a Return On Assets of 2.06%. This is amonst the worse of the industry: FE underperforms 82.98% of its industry peers.
FE has a worse Return On Equity (8.63%) than 68.09% of its industry peers.
The Return On Invested Capital of FE (4.10%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for FE is significantly below the industry average of 38.54%.
The 3 year average ROIC (3.82%) for FE is below the current ROIC(4.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 8.63% | ||
| ROIC | 4.1% |
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 7.78% is on the low side compared to the rest of the industry. FE is outperformed by 80.85% of its industry peers.
In the last couple of years the Profit Margin of FE has declined.
With a Operating Margin value of 17.73%, FE is not doing good in the industry: 68.09% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of FE has declined.
With a decent Gross Margin value of 71.58%, FE is doing good in 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 | 17.73% | ||
| PM (TTM) | 7.78% | ||
| GM | 71.58% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FE is destroying value.
FE has more shares outstanding than it did 1 year ago.
FE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FE has an improved debt to assets ratio.
2.2 Solvency
FE has an Altman-Z score of 0.68. This is a bad value and indicates that FE is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.68, FE is doing worse than 65.96% of the companies in the same industry.
FE has a Debt/Equity ratio of 1.82. This is a high value indicating a heavy dependency on external financing.
FE has a worse Debt to Equity ratio (1.82) than 74.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.68 |
ROIC/WACC0.5
WACC8.23%
2.3 Liquidity
A Current Ratio of 0.42 indicates that FE may have some problems paying its short term obligations.
With a Current ratio value of 0.42, FE is not doing good in the industry: 91.49% of the companies in the same industry are doing better.
FE has a Quick Ratio of 0.42. 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 (0.34) than 85.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.13% over the past year.
FE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.31% yearly.
The Revenue for FE has decreased by -13.66% in the past year. This is quite bad
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)9.13%
EPS 3Y0.25%
EPS 5Y0.31%
EPS Q2Q%21.82%
Revenue 1Y (TTM)-13.66%
Revenue growth 3Y6.57%
Revenue growth 5Y4.07%
Sales Q2Q%14.54%
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 5.42% on average per year.
Based on estimates for the next years, FE will show a small growth in Revenue. The Revenue will grow by 3.66% on average per year.
EPS Next Y-0.99%
EPS Next 2Y2.91%
EPS Next 3Y4.36%
EPS Next 5Y5.42%
Revenue Next Year0.93%
Revenue Next 2Y2.37%
Revenue Next 3Y2.72%
Revenue Next 5Y3.66%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FE is valuated correctly with a Price/Earnings ratio of 14.48.
FE's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.21. FE is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.30 indicates a correct valuation of FE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FE is on the same level as its industry peers.
FE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.48 | ||
| Fwd PE | 14.3 |
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 | 11.05 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)47.17
EPS Next 2Y2.91%
EPS Next 3Y4.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.46%, FE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.67, FE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, FE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.59%
Div Incr Years2
Div Non Decr Years10
5.3 Sustainability
90.32% 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.
DP90.32%
EPS Next 2Y2.91%
EPS Next 3Y4.36%
NYSE:FE (7/2/2025, 10:48:00 AM)
39.82
-0.56 (-1.39%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.37%
Inst Owner Change-0.88%
Ins Owners0.13%
Ins Owner Change1.62%
Market Cap22.98B
Analysts75.38
Price Target45.88 (15.22%)
Short Float %3.4%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
Yearly Dividend1.69
Dividend Growth(5Y)1.59%
DP90.32%
Div Incr Years2
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.11%
Min EPS beat(2)-7.63%
Max EPS beat(2)7.84%
EPS beat(4)1
Avg EPS beat(4)-2.48%
Min EPS beat(4)-7.9%
Max EPS beat(4)7.84%
EPS beat(8)4
Avg EPS beat(8)-1.48%
EPS beat(12)4
Avg EPS beat(12)-2.25%
EPS beat(16)6
Avg EPS beat(16)-2.23%
Revenue beat(2)1
Avg Revenue beat(2)-9.53%
Min Revenue beat(2)-24.16%
Max Revenue beat(2)5.11%
Revenue beat(4)1
Avg Revenue beat(4)-8.04%
Min Revenue beat(4)-24.16%
Max Revenue beat(4)5.11%
Revenue beat(8)2
Avg Revenue beat(8)-4.98%
Revenue beat(12)6
Avg Revenue beat(12)0.31%
Revenue beat(16)7
Avg Revenue beat(16)-0.27%
PT rev (1m)0.05%
PT rev (3m)2.36%
EPS NQ rev (1m)-0.86%
EPS NQ rev (3m)-3.32%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-12.37%
Revenue NQ rev (1m)0.76%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-2.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.48 | ||
| Fwd PE | 14.3 | ||
| P/S | 1.65 | ||
| P/FCF | N/A | ||
| P/OCF | 6.44 | ||
| P/B | 1.83 | ||
| P/tB | 3.31 | ||
| EV/EBITDA | 11.05 |
EPS(TTM)2.75
EY6.91%
EPS(NY)2.79
Fwd EY6.99%
FCF(TTM)-1.17
FCFYN/A
OCF(TTM)6.18
OCFY15.52%
SpS24.17
BVpS21.77
TBVpS12.04
PEG (NY)N/A
PEG (5Y)47.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 8.63% | ||
| ROCE | 5.42% | ||
| ROIC | 4.1% | ||
| ROICexc | 4.11% | ||
| ROICexgc | 4.67% | ||
| OM | 17.73% | ||
| PM (TTM) | 7.78% | ||
| GM | 71.58% | ||
| 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-Score5
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.45 | ||
| Cap/Depr | 246.8% | ||
| Cap/Sales | 30.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.07% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 0.68 |
F-Score5
WACC8.23%
ROIC/WACC0.5
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)9.13%
EPS 3Y0.25%
EPS 5Y0.31%
EPS Q2Q%21.82%
EPS Next Y-0.99%
EPS Next 2Y2.91%
EPS Next 3Y4.36%
EPS Next 5Y5.42%
Revenue 1Y (TTM)-13.66%
Revenue growth 3Y6.57%
Revenue growth 5Y4.07%
Sales Q2Q%14.54%
Revenue Next Year0.93%
Revenue Next 2Y2.37%
Revenue Next 3Y2.72%
Revenue Next 5Y3.66%
EBIT growth 1Y-14.04%
EBIT growth 3Y13.67%
EBIT growth 5Y-1.1%
EBIT Next Year63.21%
EBIT Next 3Y24.53%
EBIT Next 5Y15.23%
FCF growth 1Y-1.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y61.01%
OCF growth 3Y0.94%
OCF growth 5Y3.22%