FIRSTENERGY CORP (FE) Stock Fundamental Analysis
USA - NYSE:FE - US3379321074 - Common Stock
46.64 USD
+0.12 (+0.26%)
46.64 USD
0 (0%)
Overall FE gets a fundamental rating of 3 out of 10. We evaluated FE against 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. 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 worse Return On Assets (2.41%) than 63.83% of its industry peers.
FE's Return On Equity of 10.18% is in line compared to the rest of the industry. FE outperforms 51.06% of its industry peers.
FE has a better Return On Invested Capital (4.31%) than 61.70% 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 4.90%.
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
Looking at the Profit Margin, with a value of 9.31%, FE is doing worse than 72.34% of the companies in the same industry.
FE's Profit Margin has declined in the last couple of years.
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.
FE's Operating Margin has declined in the last couple of years.
The Gross Margin of FE (71.25%) is better than 70.21% of its industry peers.
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.
Compared to 1 year ago, FE has more shares outstanding
Compared to 5 years ago, FE has more shares outstanding
Compared to 1 year ago, FE has an improved debt to assets ratio.
2.2 Solvency
FE has an Altman-Z score of 0.78. This is a bad value and indicates that FE is not financially healthy and even has some risk of bankruptcy.
FE has a worse Altman-Z score (0.78) 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.
FE has a worse Debt to Equity ratio (1.88) than 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
A Current Ratio of 0.61 indicates that FE may have some problems paying its short term obligations.
The Current ratio of FE (0.61) is worse than 74.47% of its industry peers.
A Quick Ratio of 0.51 indicates that FE may have some problems paying 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.
FE shows a small growth in Revenue. In the last year, the Revenue has grown by 4.68%.
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)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
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 3.61% yearly.
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
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
A Price/Earnings ratio of 17.34 indicates a rather expensive 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 is valuated rather cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.71 indicates a correct valuation of FE.
The rest of the industry has a similar Price/Forward Earnings ratio as FE.
The average S&P500 Price/Forward Earnings ratio is at 22.92. FE is valued slightly cheaper when compared to this.
| 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
With a Yearly Dividend Yield of 3.76%, FE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.24, FE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, FE pays a better dividend.
| 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 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 75.84% 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.
DP75.84%
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%.