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. 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.
1. Profitability
1.1 Basic Checks
In the past year FE was profitable.
FE had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 1.76%, FE is doing worse than 78.38% of the companies in the same industry.
The Return On Equity of FE (7.18%) is worse than 75.68% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.06%, FE is in the better half of the industry, outperforming 64.86% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FE is in line with the industry average of 4.60%.
The 3 year average ROIC (3.58%) for FE is below the current ROIC(4.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 7.18% | ||
| ROIC | 4.06% |
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
With a Profit Margin value of 6.64%, FE is not doing good in the industry: 78.38% of the companies in the same industry are doing better.
FE's Profit Margin has been stable in the last couple of years.
FE has a worse Operating Margin (17.33%) than 72.97% of its industry peers.
FE's Operating Margin has declined in the last couple of years.
FE's Gross Margin of 70.73% is fine compared to the rest of the industry. FE outperforms 67.57% 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 | 17.33% | ||
| PM (TTM) | 6.64% | ||
| GM | 70.73% |
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
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.
FE has a worse debt/assets ratio than last year.
2.2 Solvency
FE has an Altman-Z score of 0.72. This is a bad value and indicates that FE is not financially healthy and even has some risk of bankruptcy.
FE's Altman-Z score of 0.72 is on the low side compared to the rest of the industry. FE is outperformed by 62.16% of its industry peers.
A Debt/Equity ratio of 1.74 is on the high side and indicates that FE has dependencies on debt financing.
FE has a Debt to Equity ratio of 1.74. This is in the lower half of the industry: FE underperforms 64.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACC0.65
WACC6.26%
2.3 Liquidity
FE has a Current Ratio of 0.56. 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's Current ratio of 0.56 is on the low side compared to the rest of the industry. FE is outperformed by 86.49% of its industry peers.
FE has a Quick Ratio of 0.56. 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 of 0.46. This is in the lower half of the industry: FE underperforms 78.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.31% over the past year.
Measured over the past years, FE shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.15% on average per year.
The Revenue for FE has decreased by -16.67% 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 2.71% yearly.
EPS 1Y (TTM)5.31%
EPS 3Y2.45%
EPS 5Y-0.15%
EPS Q2Q%-3.41%
Revenue 1Y (TTM)-16.67%
Revenue growth 3Y6.05%
Revenue growth 5Y2.71%
Sales Q2Q%6.94%
3.2 Future
FE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.38% yearly.
Based on estimates for the next years, FE will show a small growth in Revenue. The Revenue will grow by 6.13% on average per year.
EPS Next Y7.37%
EPS Next 2Y7.53%
EPS Next 3Y7.41%
EPS Next 5Y7.38%
Revenue Next Year7.9%
Revenue Next 2Y6.14%
Revenue Next 3Y5.29%
Revenue Next 5Y6.13%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.43, FE is valued correctly.
Based on the Price/Earnings ratio, FE is valued a bit cheaper than 62.16% of the companies in the same industry.
When comparing the Price/Earnings ratio of FE to the average of the S&P500 Index (28.46), we can say FE is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.39, which indicates a correct valuation of FE.
Based on the Price/Forward Earnings ratio, FE is valued a bit cheaper than the industry average as 72.97% of the companies are valued more expensively.
FE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.43 | ||
| Fwd PE | 13.39 |
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 | 11.77 |
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.
PEG (NY)2.09
PEG (5Y)N/A
EPS Next 2Y7.53%
EPS Next 3Y7.41%
5. Dividend
5.1 Amount
FE has a Yearly Dividend Yield of 4.36%, which is a nice return.
Compared to an average industry Dividend Yield of 3.64, FE pays a better dividend. On top of this FE pays more dividend than 89.19% of the companies listed in the same industry.
FE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
5.2 History
The dividend of FE decreases each year by -2.56%.
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)-2.56%
Div Incr Years2
Div Non Decr Years10
5.3 Sustainability
FE pays out 107.74% of its income as dividend. This is not a sustainable payout ratio.
DP107.74%
EPS Next 2Y7.53%
EPS Next 3Y7.41%
FIRSTENERGY CORP
NYSE:FE (1/31/2025, 8:04:00 PM)
After market: 39.97 +0.17 (+0.43%)39.8
+0.08 (+0.2%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners91.12%
Inst Owner Change0.01%
Ins Owners0.1%
Ins Owner Change-0.39%
Market Cap22.94B
Analysts77.04
Price Target48.3 (21.36%)
Short Float %1.81%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
Yearly Dividend1.58
Dividend Growth(5Y)-2.56%
DP107.74%
Div Incr Years2
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.07%
Min EPS beat(2)-7.9%
Max EPS beat(2)-2.24%
EPS beat(4)1
Avg EPS beat(4)-3.34%
Min EPS beat(4)-7.9%
Max EPS beat(4)1.48%
EPS beat(8)3
Avg EPS beat(8)-3.04%
EPS beat(12)3
Avg EPS beat(12)-3.04%
EPS beat(16)5
Avg EPS beat(16)-4.37%
Revenue beat(2)0
Avg Revenue beat(2)-6.55%
Min Revenue beat(2)-7.33%
Max Revenue beat(2)-5.77%
Revenue beat(4)0
Avg Revenue beat(4)-4.17%
Min Revenue beat(4)-7.33%
Max Revenue beat(4)-0.96%
Revenue beat(8)3
Avg Revenue beat(8)1.72%
Revenue beat(12)6
Avg Revenue beat(12)1.76%
Revenue beat(16)6
Avg Revenue beat(16)-0.59%
PT rev (1m)0.53%
PT rev (3m)3.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.12%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.11%
Revenue NY rev (1m)-0.92%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.43 | ||
| Fwd PE | 13.39 | ||
| P/S | 1.71 | ||
| P/FCF | N/A | ||
| P/OCF | 8.18 | ||
| P/B | 1.85 | ||
| P/tB | 3.37 | ||
| EV/EBITDA | 11.77 |
EPS(TTM)2.58
EY6.48%
EPS(NY)2.97
Fwd EY7.47%
FCF(TTM)-1.77
FCFYN/A
OCF(TTM)4.87
OCFY12.23%
SpS23.32
BVpS21.56
TBVpS11.81
PEG (NY)2.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 7.18% | ||
| ROCE | 5.15% | ||
| ROIC | 4.06% | ||
| ROICexc | 4.1% | ||
| ROICexgc | 4.68% | ||
| OM | 17.33% | ||
| PM (TTM) | 6.64% | ||
| GM | 70.73% | ||
| FCFM | N/A |
ROA(3y)1.99%
ROA(5y)2.11%
ROE(3y)9.78%
ROE(5y)11.45%
ROIC(3y)3.58%
ROIC(5y)4%
ROICexc(3y)3.63%
ROICexc(5y)4.08%
ROICexgc(3y)4.19%
ROICexgc(5y)4.75%
ROCE(3y)4.57%
ROCE(5y)5.18%
ROICexcg growth 3Y-2.24%
ROICexcg growth 5Y-6.31%
ROICexc growth 3Y-1.67%
ROICexc growth 5Y-5.66%
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%
F-Score7
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.54 | ||
| Cap/Depr | 241.54% | ||
| Cap/Sales | 28.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 0.72 |
F-Score7
WACC6.26%
ROIC/WACC0.65
Cap/Depr(3y)208.06%
Cap/Depr(5y)212.95%
Cap/Sales(3y)23.39%
Cap/Sales(5y)23.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.31%
EPS 3Y2.45%
EPS 5Y-0.15%
EPS Q2Q%-3.41%
EPS Next Y7.37%
EPS Next 2Y7.53%
EPS Next 3Y7.41%
EPS Next 5Y7.38%
Revenue 1Y (TTM)-16.67%
Revenue growth 3Y6.05%
Revenue growth 5Y2.71%
Sales Q2Q%6.94%
Revenue Next Year7.9%
Revenue Next 2Y6.14%
Revenue Next 3Y5.29%
Revenue Next 5Y6.13%
EBIT growth 1Y-12.01%
EBIT growth 3Y1.58%
EBIT growth 5Y-1.96%
EBIT Next Year74.22%
EBIT Next 3Y27.68%
EBIT Next 5Y19.76%
FCF growth 1Y-1392.41%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y10.26%
OCF growth 3Y-0.85%
OCF growth 5Y-0.33%