FIRSTENERGY CORP (FE)
US3379321074 - Common Stock
Overall FE gets a fundamental rating of 3 out of 10. We evaluated FE against 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.
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.
In the past 5 years FE always reported a positive cash flow from operatings.
1.2 Ratios
FE has a Return On Assets of 1.76%. This is amonst the worse of the industry: FE underperforms 80.00% of its industry peers.
FE's Return On Equity of 7.18% is on the low side compared to the rest of the industry. FE is outperformed by 68.89% of its industry peers.
FE's Return On Invested Capital of 4.06% is in line compared to the rest of the industry. FE outperforms 60.00% of its industry peers.
FE had an Average Return On Invested Capital over the past 3 years of 3.58%. This is in line with the industry average of 4.67%.
The last Return On Invested Capital (4.06%) for FE is above the 3 year average (3.58%), which is a sign of increasing profitability.
| 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
FE has a Profit Margin of 6.64%. This is in the lower half of the industry: FE underperforms 77.78% of its industry peers.
FE's Profit Margin has been stable in the last couple of years.
FE has a worse Operating Margin (17.33%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of FE has declined.
The Gross Margin of FE (70.73%) is better than 71.11% of its industry peers.
FE's Gross Margin has been stable in the last couple of years.
| 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
FE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FE has more shares outstanding than it did 1 year ago.
FE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FE has a worse debt to assets ratio.
2.2 Solvency
FE has an Altman-Z score of 0.74. 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 0.74. This is in the lower half of the industry: FE underperforms 64.44% of its industry peers.
FE has a Debt/Equity ratio of 1.74. This is a high value indicating a heavy dependency on external financing.
FE has a worse Debt to Equity ratio (1.74) than 71.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.74 |
ROIC/WACC0.65
WACC6.29%
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 has a worse Current ratio (0.56) than 84.44% of its industry peers.
A Quick Ratio of 0.46 indicates that FE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.46, FE is doing worse than 77.78% of the companies in the same industry.
| 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.
The Earnings Per Share has been decreasing by -0.15% on average over the past years.
Looking at the last year, FE shows a very negative growth in Revenue. The Revenue has decreased by -16.67% in the last year.
Measured over the past years, FE shows a small growth in Revenue. The Revenue has been growing by 2.71% on average per year.
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 7.29% yearly.
The Revenue is expected to grow by 6.41% on average over the next years.
EPS Next Y7.62%
EPS Next 2Y7.55%
EPS Next 3Y7.43%
EPS Next 5Y7.29%
Revenue Next Year8.83%
Revenue Next 2Y6.28%
Revenue Next 3Y5.4%
Revenue Next 5Y6.41%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.36, the valuation of FE can be described as correct.
FE's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.96. FE is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.20, FE is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FE indicates a somewhat cheap valuation: FE is cheaper than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. FE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 14.2 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.15
PEG (5Y)N/A
EPS Next 2Y7.55%
EPS Next 3Y7.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.16%, FE is a good candidate for dividend investing.
FE's Dividend Yield is a higher than the industry average which is at 3.44.
Compared to an average S&P500 Dividend Yield of 2.23, FE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
5.2 History
The dividend of FE decreases each year by -2.56%.
FE has been paying a dividend for at least 10 years, so it has a reliable track record.
As FE did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-2.56%
Div Incr Years1
Div Non Decr Years9
5.3 Sustainability
107.74% of the earnings are spent on dividend by FE. This is not a sustainable payout ratio.
DP107.74%
EPS Next 2Y7.55%
EPS Next 3Y7.43%
FIRSTENERGY CORP
NYSE:FE (11/21/2024, 8:04:00 PM)
After market: 42.2 0 (0%)42.2
+0.47 (+1.13%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap24.32B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 14.2 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 7.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.33% | ||
| PM (TTM) | 6.64% | ||
| GM | 70.73% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)5.31%
EPS 3Y2.45%
EPS 5Y
EPS Q2Q%
EPS Next Y7.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-16.67%
Revenue growth 3Y6.05%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y