FIRSTENERGY CORP (FE) Stock Fundamental Analysis
NYSE:FE - New York Stock Exchange, Inc. - US3379321074 - Common Stock - Currency: USD
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. 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. Finally FE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
FE had positive earnings in the past year.
In the past year FE had a positive cash flow from operations.
Each year in the past 5 years FE has been profitable.
In the past 5 years FE always reported a positive cash flow from operatings.
1.2 Ratios
FE's Return On Assets of 2.06% is on the low side compared to the rest of the industry. FE is outperformed by 69.57% of its industry peers.
The Return On Equity of FE (8.63%) is worse than 60.87% of its industry peers.
FE has a better Return On Invested Capital (4.10%) than 63.04% of its industry peers.
FE had an Average Return On Invested Capital over the past 3 years of 3.82%. This is significantly below the industry average of 45.26%.
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 has a Profit Margin of 7.78%. This is in the lower half of the industry: FE underperforms 65.22% of its industry peers.
In the last couple of years the Profit Margin of FE has declined.
FE has a Operating Margin of 17.73%. This is comparable to the rest of the industry: FE outperforms 41.30% 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 71.58%, FE is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
FE's Gross Margin has been stable in the last couple of years.
| 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
FE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, FE has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.70, we must say that FE is in the distress zone and has some risk of bankruptcy.
FE has a Altman-Z score (0.70) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.82 is on the high side and indicates that FE has dependencies on debt financing.
FE's Debt to Equity ratio of 1.82 is in line compared to the rest of the industry. FE outperforms 41.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.7 |
ROIC/WACC0.65
WACC6.26%
2.3 Liquidity
FE has a Current 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 Current ratio of 0.42. This is in the lower half of the industry: FE underperforms 78.26% of its industry peers.
A Quick Ratio of 0.34 indicates that FE may have some problems paying its short term obligations.
The Quick ratio of FE (0.34) is worse than 69.57% 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.
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 very negative growth in Revenue. The Revenue has decreased by -13.66% in the last year.
The Revenue has been growing slightly by 4.07% on average over the past years.
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-0.74%
EPS Next 2Y2.89%
EPS Next 3Y4.34%
EPS Next 5Y5.42%
Revenue Next Year1.01%
Revenue Next 2Y2.34%
Revenue Next 3Y2.69%
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.
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
Based on the Price/Earnings ratio of 15.47, the valuation of FE can be described as correct.
71.74% of the companies in the same industry are more expensive than FE, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.60. FE is valued slightly cheaper when compared to this.
FE is valuated correctly with a Price/Forward Earnings ratio of 15.28.
71.74% of the companies in the same industry are more expensive than FE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, FE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.47 | ||
| Fwd PE | 15.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FE is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.37 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)50.41
EPS Next 2Y2.89%
EPS Next 3Y4.34%
5. Dividend
5.1 Amount
FE has a Yearly Dividend Yield of 4.19%, which is a nice return.
Compared to an average industry Dividend Yield of 3.45, FE pays a better dividend. On top of this FE pays more dividend than 80.43% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, FE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
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
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 2Y2.89%
EPS Next 3Y4.34%
NYSE:FE (5/21/2025, 11:16:09 AM)
42.555
-0.17 (-0.41%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners86.29%
Inst Owner Change-0.89%
Ins Owners0.1%
Ins Owner Change2.13%
Market Cap24.56B
Analysts75.38
Price Target45.85 (7.74%)
Short Float %2.8%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
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)3.18%
PT rev (3m)-3.76%
EPS NQ rev (1m)4.99%
EPS NQ rev (3m)-9.31%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-12.15%
Revenue NQ rev (1m)-1.12%
Revenue NQ rev (3m)1.41%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-2.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.47 | ||
| Fwd PE | 15.28 | ||
| P/S | 1.76 | ||
| P/FCF | N/A | ||
| P/OCF | 6.88 | ||
| P/B | 1.95 | ||
| P/tB | 3.53 | ||
| EV/EBITDA | 11.37 |
EPS(TTM)2.75
EY6.46%
EPS(NY)2.78
Fwd EY6.54%
FCF(TTM)-1.17
FCFYN/A
OCF(TTM)6.18
OCFY14.53%
SpS24.17
BVpS21.77
TBVpS12.04
PEG (NY)N/A
PEG (5Y)50.41
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 | 0.7 |
F-Score5
WACC6.26%
ROIC/WACC0.65
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-0.74%
EPS Next 2Y2.89%
EPS Next 3Y4.34%
EPS Next 5Y5.42%
Revenue 1Y (TTM)-13.66%
Revenue growth 3Y6.57%
Revenue growth 5Y4.07%
Sales Q2Q%14.54%
Revenue Next Year1.01%
Revenue Next 2Y2.34%
Revenue Next 3Y2.69%
Revenue Next 5Y3.66%
EBIT growth 1Y-14.04%
EBIT growth 3Y13.67%
EBIT growth 5Y-1.1%
EBIT Next Year67.06%
EBIT Next 3Y24.76%
EBIT Next 5Y15.85%
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%