FIRSTENERGY CORP (FE) Stock Fundamental Analysis
USA - NYSE:FE - US3379321074 - Common Stock
46.56 USD
+0.62 (+1.35%)
46.64 USD
+0.08 (+0.17%)
Taking everything into account, FE scores 3 out of 10 in our fundamental rating. FE was compared to 46 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
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.
In the past 5 years FE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FE (2.38%) is worse than 73.91% of its industry peers.
FE's Return On Equity of 10.39% is in line compared to the rest of the industry. FE outperforms 52.17% of its industry peers.
FE has a better Return On Invested Capital (4.34%) than 60.87% of its industry peers.
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 5.00%.
The last Return On Invested Capital (4.34%) for FE is above the 3 year average (3.82%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 10.39% | ||
| ROIC | 4.34% |
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 9.19% is on the low side compared to the rest of the industry. FE is outperformed by 73.91% of its industry peers.
In the last couple of years the Profit Margin of FE has declined.
With a Operating Margin value of 19.35%, FE perfoms like the industry average, outperforming 41.30% of the companies in the same industry.
FE's Operating Margin has declined in the last couple of years.
FE has a Gross Margin of 70.32%. This is in the better half of the industry: FE outperforms 67.39% of its industry peers.
FE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.35% | ||
| PM (TTM) | 9.19% | ||
| GM | 70.32% |
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.
Compared to 5 years ago, FE has more shares outstanding
FE has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.77, we must say that FE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.77, FE is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
A Debt/Equity ratio of 2.02 is on the high side and indicates that FE has dependencies on debt financing.
With a Debt to Equity ratio value of 2.02, FE is not doing good in the industry: 89.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.7
WACC6.22%
2.3 Liquidity
FE has a Current Ratio of 0.75. 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 (0.75) than 65.22% of its industry peers.
FE has a Quick Ratio of 0.75. 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 Quick ratio (0.64) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
FE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.26%.
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 7.64%.
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)7.64%
Revenue growth 3Y6.57%
Revenue growth 5Y4.07%
Sales Q2Q%11.24%
3.2 Future
The Earnings Per Share is expected to grow by 5.52% on average over the next years.
The Revenue is expected to grow by 3.66% on average over the next years.
EPS Next Y-0.06%
EPS Next 2Y3.22%
EPS Next 3Y4.74%
EPS Next 5Y5.52%
Revenue Next Year2.23%
Revenue Next 2Y2.91%
Revenue Next 3Y3.32%
Revenue Next 5Y3.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 17.31, FE is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as FE.
FE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.56.
With a Price/Forward Earnings ratio of 16.62, FE is valued correctly.
FE's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.62. FE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.31 | ||
| Fwd PE | 16.62 |
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 | 11.72 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)56.38
EPS Next 2Y3.22%
EPS Next 3Y4.74%
5. Dividend
5.1 Amount
FE has a Yearly Dividend Yield of 3.89%.
FE's Dividend Yield is a higher than the industry average which is at 3.77.
Compared to an average S&P500 Dividend Yield of 2.44, FE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
5.2 History
The dividend of FE has a limited annual growth rate of 1.59%.
FE has been paying a dividend for at least 10 years, so it has 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
FE pays out 75.49% of its income as dividend. This is not a sustainable payout ratio.
The dividend of FE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP75.49%
EPS Next 2Y3.22%
EPS Next 3Y4.74%
46.56
+0.62 (+1.35%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners87.97%
Inst Owner Change3.8%
Ins Owners0.13%
Ins Owner Change-2%
Market Cap26.88B
Revenue(TTM)14.47B
Net Income(TTM)1.33B
Analysts76
Price Target50.7 (8.89%)
Short Float %4.88%
Short Ratio6.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
Yearly Dividend1.69
Dividend Growth(5Y)1.59%
DP75.49%
Div Incr Years2
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.14%
Min EPS beat(2)3.93%
Max EPS beat(2)4.34%
EPS beat(4)3
Avg EPS beat(4)2.12%
Min EPS beat(4)-7.63%
Max EPS beat(4)7.84%
EPS beat(8)4
Avg EPS beat(8)-0.61%
EPS beat(12)6
Avg EPS beat(12)-1.32%
EPS beat(16)6
Avg EPS beat(16)-1.75%
Revenue beat(2)1
Avg Revenue beat(2)1%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)3.62%
Revenue beat(4)2
Avg Revenue beat(4)-4.27%
Min Revenue beat(4)-24.16%
Max Revenue beat(4)5.11%
Revenue beat(8)2
Avg Revenue beat(8)-4.22%
Revenue beat(12)5
Avg Revenue beat(12)-0.27%
Revenue beat(16)8
Avg Revenue beat(16)0.25%
PT rev (1m)7.95%
PT rev (3m)9.49%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)2.39%
EPS NY rev (1m)0.87%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)-1.29%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.31 | ||
| Fwd PE | 16.62 | ||
| P/S | 1.86 | ||
| P/FCF | N/A | ||
| P/OCF | 7.45 | ||
| P/B | 2.1 | ||
| P/tB | 3.74 | ||
| EV/EBITDA | 11.72 |
EPS(TTM)2.69
EY5.78%
EPS(NY)2.8
Fwd EY6.02%
FCF(TTM)-2.12
FCFYN/A
OCF(TTM)6.25
OCFY13.42%
SpS25.06
BVpS22.16
TBVpS12.44
PEG (NY)N/A
PEG (5Y)56.38
Graham Number36.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 10.39% | ||
| ROCE | 5.57% | ||
| ROIC | 4.34% | ||
| ROICexc | 4.46% | ||
| ROICexgc | 5.04% | ||
| OM | 19.35% | ||
| PM (TTM) | 9.19% | ||
| GM | 70.32% | ||
| 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-Score5
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.78 | ||
| Cap/Depr | 290.97% | ||
| Cap/Sales | 33.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.88% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 0.77 |
F-Score5
WACC6.22%
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-0.06%
EPS Next 2Y3.22%
EPS Next 3Y4.74%
EPS Next 5Y5.52%
Revenue 1Y (TTM)7.64%
Revenue growth 3Y6.57%
Revenue growth 5Y4.07%
Sales Q2Q%11.24%
Revenue Next Year2.23%
Revenue Next 2Y2.91%
Revenue Next 3Y3.32%
Revenue Next 5Y3.66%
EBIT growth 1Y20.17%
EBIT growth 3Y13.67%
EBIT growth 5Y-1.1%
EBIT Next Year61.83%
EBIT Next 3Y23.97%
EBIT Next 5Y17.09%
FCF growth 1Y37.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y182.98%
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 1 / 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 75.49%.