FIRSTENERGY CORP (FE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FE - US3379321074 - Common Stock
44.73 USD
+0.08 (+0.18%)
44.73 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to FE. FE was compared to 46 industry peers in the Electric Utilities industry. There are concerns on the financial health of FE while its profitability can be described as average. FE is quite expensive at the moment. It does show a decent growth rate. 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
With a Return On Assets value of 2.38%, FE is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
With a Return On Equity value of 10.39%, FE perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
The Return On Invested Capital of FE (4.34%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FE is in line with the industry average of 4.58%.
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 has a worse Profit Margin (9.19%) than 73.91% of its industry peers.
FE's Profit Margin has declined in the last couple of years.
FE has a Operating Margin (19.35%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of FE has declined.
FE has a Gross Margin of 70.32%. This is in the better half of the industry: FE outperforms 60.87% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 0.76. 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 0.76 is in line compared to the rest of the industry. FE outperforms 43.48% of its industry peers.
FE has a Debt/Equity ratio of 2.02. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.02, FE is doing worse than 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.7
WACC6.18%
2.3 Liquidity
A Current Ratio of 0.75 indicates that FE may have some problems paying its short term obligations.
FE's Current ratio of 0.75 is on the low side compared to the rest of the industry. FE is outperformed by 67.39% of its industry peers.
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.
FE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.31% yearly.
FE shows a small growth in Revenue. In the last year, the Revenue has grown by 7.64%.
Measured over the past years, FE shows a small growth in Revenue. The Revenue has been growing by 4.07% on average per year.
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 5.86% on average over the next years.
Based on estimates for the next years, FE will show a small growth in Revenue. The Revenue will grow by 3.92% on average per year.
EPS Next Y-0.3%
EPS Next 2Y3.23%
EPS Next 3Y4.74%
EPS Next 5Y5.86%
Revenue Next Year2.17%
Revenue Next 2Y2.88%
Revenue Next 3Y3.32%
Revenue Next 5Y3.92%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 16.63, FE is valued correctly.
Based on the Price/Earnings ratio, FE is valued a bit cheaper than the industry average as 60.87% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.25, FE is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.96 indicates a correct valuation of FE.
FE's Price/Forward Earnings is on the same level as the industry average.
FE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.63 | ||
| Fwd PE | 15.96 |
4.2 Price Multiples
FE's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.56 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)54.17
EPS Next 2Y3.23%
EPS Next 3Y4.74%
5. Dividend
5.1 Amount
FE has a Yearly Dividend Yield of 3.98%.
Compared to an average industry Dividend Yield of 3.46, FE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, FE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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
FE pays out 75.49% of its income as dividend. This is not a sustainable payout ratio.
FE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP75.49%
EPS Next 2Y3.23%
EPS Next 3Y4.74%
44.73
+0.08 (+0.18%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners89.8%
Inst Owner Change0.35%
Ins Owners0.13%
Ins Owner Change-0.3%
Market Cap25.84B
Revenue(TTM)14.47B
Net Income(TTM)1.33B
Analysts76
Price Target50.44 (12.77%)
Short Float %4.56%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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)-0.34%
PT rev (3m)7.41%
EPS NQ rev (1m)-4.23%
EPS NQ rev (3m)-4.74%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)-0.67%
Revenue NQ rev (3m)-1.56%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.63 | ||
| Fwd PE | 15.96 | ||
| P/S | 1.79 | ||
| P/FCF | N/A | ||
| P/OCF | 7.16 | ||
| P/B | 2.02 | ||
| P/tB | 3.6 | ||
| EV/EBITDA | 11.56 |
EPS(TTM)2.69
EY6.01%
EPS(NY)2.8
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)54.17
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
WACC6.18%
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-0.3%
EPS Next 2Y3.23%
EPS Next 3Y4.74%
EPS Next 5Y5.86%
Revenue 1Y (TTM)7.64%
Revenue growth 3Y6.57%
Revenue growth 5Y4.07%
Sales Q2Q%11.24%
Revenue Next Year2.17%
Revenue Next 2Y2.88%
Revenue Next 3Y3.32%
Revenue Next 5Y3.92%
EBIT growth 1Y20.17%
EBIT growth 3Y13.67%
EBIT growth 5Y-1.1%
EBIT Next Year60.87%
EBIT Next 3Y25.4%
EBIT Next 5Y17.06%
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 for FE stock?
ChartMill assigns a valuation rating of 3 / 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.
What is the financial health of FIRSTENERGY CORP (FE) stock?
The financial health rating of FIRSTENERGY CORP (FE) is 1 / 10.
Is the dividend of FIRSTENERGY CORP sustainable?
The dividend rating of FIRSTENERGY CORP (FE) is 7 / 10 and the dividend payout ratio is 75.49%.