FIRSTENERGY CORP (FE) Stock Fundamental Analysis
NYSE:FE - US3379321074 - Common Stock
43.24 USD
-0.12 (-0.28%)
43.34 USD
+0.1 (+0.23%)
Overall FE gets a fundamental rating of 3 out of 10. We evaluated FE against 47 industry peers in the Electric Utilities industry. FE has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, FE is valued expensive at the moment. 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.
In the past 5 years FE has always 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 of 2.41%. This is in the lower half of the industry: FE underperforms 68.09% of its industry peers.
The Return On Equity of FE (10.18%) is comparable to the rest of the industry.
FE has a Return On Invested Capital (4.31%) 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 5.06%.
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 has a Operating Margin (19.20%) which is comparable to the rest of the industry.
FE's Operating Margin has declined in the last couple of years.
FE's Gross Margin of 71.25% is fine compared to the rest of the industry. FE outperforms 70.21% of its industry peers.
FE's Gross Margin has been stable in the last couple of years.
| 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
FE has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.75, we must say that FE is in the distress zone and has some risk of bankruptcy.
FE has a worse Altman-Z score (0.75) 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.
With a Debt to Equity ratio value of 1.88, FE is not doing good in the industry: 78.72% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC0.71
WACC6.09%
2.3 Liquidity
A Current Ratio of 0.61 indicates that FE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.61, FE is doing worse than 74.47% of the companies in the same industry.
A Quick Ratio of 0.51 indicates that FE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.51, FE is doing worse than 68.09% of the companies in the same industry.
| 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 3.83% over the past year.
FE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.31% yearly.
Looking at the last year, FE shows a small growth in Revenue. The Revenue has grown by 6.44% in the last year.
The Revenue has been growing slightly by 4.07% on average over the past years.
EPS 1Y (TTM)3.83%
EPS 3Y0.25%
EPS 5Y0.31%
EPS Q2Q%-7.14%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y6.57%
Revenue growth 5Y4.07%
Sales Q2Q%3.05%
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 5.20% on average per year.
FE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.53% yearly.
EPS Next Y-0.87%
EPS Next 2Y2.97%
EPS Next 3Y4.44%
EPS Next 5Y5.2%
Revenue Next Year0.5%
Revenue Next 2Y1.95%
Revenue Next 3Y2.48%
Revenue Next 5Y3.53%
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
A Price/Earnings ratio of 15.96 indicates a correct valuation of FE.
FE's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.03. FE is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.51, the valuation of FE can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as FE.
When comparing the Price/Forward Earnings ratio of FE to the average of the S&P500 Index (22.54), we can say FE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.96 | ||
| Fwd PE | 15.51 |
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 | 11.66 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)51.97
EPS Next 2Y2.97%
EPS Next 3Y4.44%
5. Dividend
5.1 Amount
FE has a Yearly Dividend Yield of 4.09%, which is a nice return.
Compared to an average industry Dividend Yield of 4.09, FE has a dividend in line with its industry peers.
FE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y2.97%
EPS Next 3Y4.44%
43.24
-0.12 (-0.28%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.6%
Inst Owner Change0.7%
Ins Owners0.13%
Ins Owner Change-1.02%
Market Cap24.97B
Analysts75.83
Price Target47.26 (9.3%)
Short Float %4.13%
Short Ratio5.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
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)2.08%
PT rev (3m)3.08%
EPS NQ rev (1m)0.5%
EPS NQ rev (3m)-11.25%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.96 | ||
| Fwd PE | 15.51 | ||
| P/S | 1.78 | ||
| P/FCF | N/A | ||
| P/OCF | 7.06 | ||
| P/B | 1.94 | ||
| P/tB | 3.45 | ||
| EV/EBITDA | 11.66 |
EPS(TTM)2.71
EY6.27%
EPS(NY)2.79
Fwd EY6.45%
FCF(TTM)-1.7
FCFYN/A
OCF(TTM)6.13
OCFY14.17%
SpS24.33
BVpS22.26
TBVpS12.53
PEG (NY)N/A
PEG (5Y)51.97
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%
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-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 | 0.75 |
F-Score7
WACC6.09%
ROIC/WACC0.71
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)3.83%
EPS 3Y0.25%
EPS 5Y0.31%
EPS Q2Q%-7.14%
EPS Next Y-0.87%
EPS Next 2Y2.97%
EPS Next 3Y4.44%
EPS Next 5Y5.2%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y6.57%
Revenue growth 5Y4.07%
Sales Q2Q%3.05%
Revenue Next Year0.5%
Revenue Next 2Y1.95%
Revenue Next 3Y2.48%
Revenue Next 5Y3.53%
EBIT growth 1Y18.86%
EBIT growth 3Y13.67%
EBIT growth 5Y-1.1%
EBIT Next Year61.66%
EBIT Next 3Y24.04%
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%