FIRSTENERGY CORP (FE)
US3379321074 - Common Stock
Taking everything into account, FE scores 4 out of 10 in our fundamental rating. FE was compared to 45 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.
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.
Each year in the past 5 years FE has been profitable.
Each year in the past 5 years FE had a positive operating cash flow.
1.2 Ratios
FE has a Return On Assets (2.64%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 10.93%, FE is in the better half of the industry, outperforming 75.56% of the companies in the same industry.
The Return On Invested Capital of FE (5.02%) is better than 88.89% 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 4.91%.
The 3 year average ROIC (3.58%) for FE is below the current ROIC(5.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 10.93% | ||
| ROIC | 5.02% |
ROA(3y)1.99%
ROA(5y)2.11%
ROE(3y)9.78%
ROE(5y)11.45%
ROIC(3y)3.58%
ROIC(5y)4%
1.3 Margins
Looking at the Profit Margin, with a value of 8.39%, FE is doing worse than 71.11% of the companies in the same industry.
In the last couple of years the Profit Margin of FE has remained more or less at the same level.
FE's Operating Margin of 17.81% is in line compared to the rest of the industry. FE outperforms 42.22% of its industry peers.
FE's Operating Margin has declined in the last couple of years.
The Gross Margin of FE (68.16%) is better than 68.89% 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 | 17.81% | ||
| PM (TTM) | 8.39% | ||
| GM | 68.16% |
OM growth 3Y-4.22%
OM growth 5Y-4.55%
PM growth 3Y-5.04%
PM growth 5Y-0.34%
GM growth 3Y-3.16%
GM growth 5Y-1.22%
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 worse debt/assets ratio than last year.
2.2 Solvency
FE has an Altman-Z score of 0.79. This is a bad value and indicates that FE is not financially healthy and even has some risk of bankruptcy.
FE has a Altman-Z score (0.79) which is comparable to the rest of the industry.
FE has a Debt/Equity ratio of 1.77. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.77, FE is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.79 |
ROIC/WACC0.81
WACC6.22%
2.3 Liquidity
A Current Ratio of 0.65 indicates that FE may have some problems paying its short term obligations.
With a Current ratio value of 0.65, FE is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
A Quick Ratio of 0.56 indicates that FE may have some problems paying its short term obligations.
FE's Quick ratio of 0.56 is on the low side compared to the rest of the industry. FE is outperformed by 71.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.13% over the past year.
FE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.15% yearly.
Looking at the last year, FE shows a very strong growth in Revenue. The Revenue has grown by 27.21%.
FE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.71% yearly.
EPS 1Y (TTM)4.13%
EPS 3Y2.45%
EPS 5Y-0.15%
EPS growth Q2Q-8.33%
Revenue 1Y (TTM)27.21%
Revenue growth 3Y6.05%
Revenue growth 5Y2.71%
Revenue growth Q2Q1.73%
3.2 Future
The Earnings Per Share is expected to grow by 7.17% on average over the next years.
The Revenue is expected to grow by 4.85% on average over the next years.
EPS Next Y7.77%
EPS Next 2Y6.96%
EPS Next 3Y6.79%
EPS Next 5Y7.17%
Revenue Next Year4.07%
Revenue Next 2Y3.76%
Revenue Next 3Y3.57%
Revenue Next 5Y4.85%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FE is valuated correctly with a Price/Earnings ratio of 15.62.
Compared to the rest of the industry, the Price/Earnings ratio of FE is on the same level as its industry peers.
When comparing the Price/Earnings ratio of FE to the average of the S&P500 Index (28.11), we can say FE is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.38, FE is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FE indicates a somewhat cheap valuation: FE is cheaper than 68.89% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.39, FE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.62 | ||
| Fwd PE | 13.38 |
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 | 11.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FE does not grow enough to justify the current Price/Earnings ratio.
FE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.01
PEG (5Y)N/A
EPS Next 2Y6.96%
EPS Next 3Y6.79%
5. Dividend
5.1 Amount
FE has a Yearly Dividend Yield of 4.35%, which is a nice return.
Compared to an average industry Dividend Yield of 4.11, FE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, FE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
5.2 History
The dividend of FE decreases each year by -2.56%.
FE has been paying a dividend for at least 10 years, so it has a reliable track record.
FE has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-2.56%
Div Incr Years1
Div Non Decr Years9
5.3 Sustainability
FE pays out 67.75% of its income as dividend. This is not a sustainable payout ratio.
DP67.75%
EPS Next 2Y6.96%
EPS Next 3Y6.79%
FIRSTENERGY CORP
NYSE:FE (5/7/2024, 7:04:00 PM)
After market: 39.35 0 (0%)39.35
+0.4 (+1.03%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap22.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.62 | ||
| Fwd PE | 13.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 10.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.81% | ||
| PM (TTM) | 8.39% | ||
| GM | 68.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)4.13%
EPS 3Y2.45%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.77%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)27.21%
Revenue growth 3Y6.05%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y