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 47 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. 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.
In the past 5 years FE has always been profitable.
FE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FE (2.06%) is worse than 82.98% of its industry peers.
With a Return On Equity value of 8.63%, FE is not doing good in the industry: 68.09% of the companies in the same industry are doing better.
FE has a Return On Invested Capital (4.10%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for FE is significantly below the industry average of 38.54%.
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's Profit Margin of 7.78% is on the low side compared to the rest of the industry. FE is outperformed by 80.85% of its industry peers.
In the last couple of years the Profit Margin of FE has declined.
FE's Operating Margin of 17.73% is on the low side compared to the rest of the industry. FE is outperformed by 68.09% of its industry peers.
FE's Operating Margin has declined in the last couple of years.
The Gross Margin of FE (71.58%) 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 | 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
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.
The number of shares outstanding for FE has been increased compared to 5 years ago.
Compared to 1 year ago, FE has an improved debt to assets ratio.
2.2 Solvency
FE has an Altman-Z score of 0.69. 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 of 0.69. This is in the lower half of the industry: FE underperforms 65.96% of its industry peers.
FE has a Debt/Equity ratio of 1.82. This is a high value indicating a heavy dependency on external financing.
FE has a Debt to Equity ratio of 1.82. This is in the lower half of the industry: FE underperforms 74.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.69 |
ROIC/WACC0.66
WACC6.18%
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.
Looking at the Current ratio, with a value of 0.42, FE is doing worse than 91.49% of the companies in the same industry.
FE has a Quick 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 worse Quick ratio (0.34) than 85.11% 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.
The Earnings Per Share has been growing slightly by 0.31% on average over the past years.
The Revenue for FE has decreased by -13.66% in the past year. This is quite bad
FE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.07% yearly.
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
FE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.42% yearly.
The Revenue is expected to grow by 3.66% on average over the next years.
EPS Next Y-0.93%
EPS Next 2Y2.94%
EPS Next 3Y4.4%
EPS Next 5Y5.42%
Revenue Next Year1.02%
Revenue Next 2Y2.16%
Revenue Next 3Y2.61%
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.
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 14.95, the valuation of FE can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of FE is on the same level as its industry peers.
FE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.53.
A Price/Forward Earnings ratio of 14.75 indicates a correct valuation of FE.
FE's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.71, FE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.95 | ||
| Fwd PE | 14.75 |
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 | 11.21 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)48.68
EPS Next 2Y2.94%
EPS Next 3Y4.4%
5. Dividend
5.1 Amount
FE has a Yearly Dividend Yield of 4.39%, which is a nice return.
FE's Dividend Yield is a higher than the industry average which is at 3.54.
FE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
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
FE pays out 90.32% 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.
DP90.32%
EPS Next 2Y2.94%
EPS Next 3Y4.4%
NYSE:FE (7/23/2025, 3:37:03 PM)
41.1
-0.48 (-1.15%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.37%
Inst Owner Change0.02%
Ins Owners0.13%
Ins Owner Change1.71%
Market Cap23.72B
Analysts75
Price Target45.78 (11.39%)
Short Float %3.67%
Short Ratio4.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
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)-0.16%
PT rev (3m)3.01%
EPS NQ rev (1m)4.41%
EPS NQ rev (3m)7.74%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)2.57%
Revenue NQ rev (3m)2.07%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.95 | ||
| Fwd PE | 14.75 | ||
| P/S | 1.7 | ||
| P/FCF | N/A | ||
| P/OCF | 6.65 | ||
| P/B | 1.89 | ||
| P/tB | 3.41 | ||
| EV/EBITDA | 11.21 |
EPS(TTM)2.75
EY6.69%
EPS(NY)2.79
Fwd EY6.78%
FCF(TTM)-1.17
FCFYN/A
OCF(TTM)6.18
OCFY15.04%
SpS24.17
BVpS21.77
TBVpS12.04
PEG (NY)N/A
PEG (5Y)48.68
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 | 0.69 |
F-Score5
WACC6.18%
ROIC/WACC0.66
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-0.93%
EPS Next 2Y2.94%
EPS Next 3Y4.4%
EPS Next 5Y5.42%
Revenue 1Y (TTM)-13.66%
Revenue growth 3Y6.57%
Revenue growth 5Y4.07%
Sales Q2Q%14.54%
Revenue Next Year1.02%
Revenue Next 2Y2.16%
Revenue Next 3Y2.61%
Revenue Next 5Y3.66%
EBIT growth 1Y-14.04%
EBIT growth 3Y13.67%
EBIT growth 5Y-1.1%
EBIT Next Year63.21%
EBIT Next 3Y24.53%
EBIT Next 5Y15.23%
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%