FIRSTENERGY CORP (FE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FE - US3379321074 - Common Stock
44.75 USD
-0.16 (-0.36%)
44.75 USD
0 (0%)
Overall FE gets a fundamental rating of 3 out of 10. We evaluated FE against 48 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 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
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
Looking at the Return On Assets, with a value of 2.38%, FE is doing worse than 75.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.39%, FE is in line with its industry, outperforming 52.08% of the companies in the same industry.
FE has a Return On Invested Capital (4.34%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FE is in line with the industry average of 4.95%.
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 75.00% of its industry peers.
FE's Profit Margin has declined in the last couple of years.
FE has a Operating Margin of 19.35%. This is comparable to the rest of the industry: FE outperforms 41.67% of its industry peers.
In the last couple of years the Operating Margin of FE has declined.
The Gross Margin of FE (70.32%) is better than 60.42% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FE 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 0.76, we must say that FE is in the distress zone and has some risk of bankruptcy.
FE's Altman-Z score of 0.76 is in line compared to the rest of the industry. FE outperforms 41.67% of its industry peers.
A Debt/Equity ratio of 2.02 is on the high side and indicates that FE has dependencies on debt financing.
FE has a worse Debt to Equity ratio (2.02) than 89.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.7
WACC6.16%
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.
Looking at the Current ratio, with a value of 0.75, FE is doing worse than 70.83% of the companies in the same industry.
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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.26% over the past year.
The Earnings Per Share has been growing slightly by 0.31% on average over the past years.
Looking at the last year, FE shows a small growth in Revenue. The Revenue has grown by 7.64% in the last year.
The Revenue has been growing slightly by 4.07% on average over the past years.
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 5.91% 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 3.81% yearly.
EPS Next Y-0.06%
EPS Next 2Y3.33%
EPS Next 3Y4.74%
EPS Next 5Y5.91%
Revenue Next Year1.81%
Revenue Next 2Y2.75%
Revenue Next 3Y3.2%
Revenue Next 5Y3.81%
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
Based on the Price/Earnings ratio of 16.64, the valuation of FE can be described as correct.
FE's Price/Earnings is on the same level as the industry average.
FE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.94 indicates a correct valuation of FE.
FE's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.56. FE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.64 | ||
| Fwd PE | 15.94 |
4.2 Price Multiples
FE's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.59 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)54.19
EPS Next 2Y3.33%
EPS Next 3Y4.74%
5. Dividend
5.1 Amount
FE has a Yearly Dividend Yield of 3.94%.
Compared to an average industry Dividend Yield of 3.42, FE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, FE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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
75.49% of the earnings are spent on dividend by FE. 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 2Y3.33%
EPS Next 3Y4.74%
44.75
-0.16 (-0.36%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners89.73%
Inst Owner Change4.06%
Ins Owners0.13%
Ins Owner Change0.16%
Market Cap25.85B
Revenue(TTM)14.47B
Net Income(TTM)1.33B
Analysts76
Price Target50.61 (13.09%)
Short Float %5.1%
Short Ratio5.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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)-0.17%
PT rev (3m)7.08%
EPS NQ rev (1m)-2.41%
EPS NQ rev (3m)-0.65%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.64 | ||
| Fwd PE | 15.94 | ||
| P/S | 1.79 | ||
| P/FCF | N/A | ||
| P/OCF | 7.16 | ||
| P/B | 2.02 | ||
| P/tB | 3.6 | ||
| EV/EBITDA | 11.59 |
EPS(TTM)2.69
EY6.01%
EPS(NY)2.81
Fwd EY6.27%
FCF(TTM)-2.12
FCFYN/A
OCF(TTM)6.25
OCFY13.96%
SpS25.05
BVpS22.15
TBVpS12.43
PEG (NY)N/A
PEG (5Y)54.19
Graham Number36.62
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 | 0.76 |
F-Score5
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-0.06%
EPS Next 2Y3.33%
EPS Next 3Y4.74%
EPS Next 5Y5.91%
Revenue 1Y (TTM)7.64%
Revenue growth 3Y6.57%
Revenue growth 5Y4.07%
Sales Q2Q%11.24%
Revenue Next Year1.81%
Revenue Next 2Y2.75%
Revenue Next 3Y3.2%
Revenue Next 5Y3.81%
EBIT growth 1Y20.17%
EBIT growth 3Y13.67%
EBIT growth 5Y-1.1%
EBIT Next Year58.63%
EBIT Next 3Y25.05%
EBIT Next 5Y17.96%
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 4 / 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%.