FIRSTENERGY CORP (FE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FE - US3379321074 - Common Stock
44.85 USD
0 (0%)
44.85 USD
0 (0%)
Overall FE gets a fundamental rating of 3 out of 10. We evaluated FE against 47 industry peers in the Electric Utilities industry. While FE is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
FE had a positive operating cash flow in the past year.
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's Return On Assets of 2.38% is on the low side compared to the rest of the industry. FE is outperformed by 76.60% of its industry peers.
With a Return On Equity value of 10.39%, FE perfoms like the industry average, outperforming 51.06% of the companies in the same industry.
With a Return On Invested Capital value of 4.34%, FE perfoms like the industry average, outperforming 53.19% 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 5.04%.
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 74.47% 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.
FE's Operating Margin has declined in the last couple of years.
The Gross Margin of FE (70.32%) is better than 61.70% of its industry peers.
FE's Gross Margin has been stable in the last couple of years.
| 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
FE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for FE has been increased compared to 1 year ago.
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 0.76, we must say that FE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.76, FE is in line with its industry, outperforming 42.55% of the companies in the same industry.
A Debt/Equity ratio of 2.02 is on the high side and indicates that FE has dependencies on debt financing.
FE's Debt to Equity ratio of 2.02 is on the low side compared to the rest of the industry. FE is outperformed by 89.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.7
WACC6.17%
2.3 Liquidity
A Current Ratio of 0.75 indicates that FE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.75, FE is doing worse than 70.21% of the companies in the same industry.
A Quick Ratio of 0.64 indicates that FE may have some problems paying its short term obligations.
With a Quick ratio value of 0.64, FE perfoms like the industry average, outperforming 46.81% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing slightly by 0.31% on average over the past years.
Looking at the last year, FE shows a small growth in Revenue. The Revenue has grown by 7.64% in the last year.
The Revenue has been growing slightly by 4.07% on average over the past years.
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
FE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.91% yearly.
Based on estimates for the next years, FE will show a small growth in Revenue. The Revenue will grow by 3.81% on average per year.
EPS Next Y-0.3%
EPS Next 2Y3.23%
EPS Next 3Y4.74%
EPS Next 5Y5.91%
Revenue Next Year2.17%
Revenue Next 2Y2.88%
Revenue Next 3Y3.32%
Revenue Next 5Y3.81%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 16.67 indicates a correct valuation of FE.
FE's Price/Earnings ratio is in line with the industry average.
FE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.00, the valuation of FE can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as FE.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, FE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 16 |
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 | 11.59 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)54.31
EPS Next 2Y3.23%
EPS Next 3Y4.74%
5. Dividend
5.1 Amount
FE has a Yearly Dividend Yield of 3.99%.
FE's Dividend Yield is a higher than the industry average which is at 2.95.
FE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
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 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 75.49% 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%
44.85
0 (0%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners89.73%
Inst Owner Change4.06%
Ins Owners0.13%
Ins Owner Change0.16%
Market Cap25.91B
Revenue(TTM)14.47B
Net Income(TTM)1.33B
Analysts76
Price Target50.44 (12.46%)
Short Float %4.8%
Short Ratio5.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
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)-0.5%
PT rev (3m)6.72%
EPS NQ rev (1m)-6.01%
EPS NQ rev (3m)-4.74%
EPS NY rev (1m)-0.24%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)-0.67%
Revenue NQ rev (3m)-1.56%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 16 | ||
| P/S | 1.79 | ||
| P/FCF | N/A | ||
| P/OCF | 7.18 | ||
| P/B | 2.02 | ||
| P/tB | 3.61 | ||
| EV/EBITDA | 11.59 |
EPS(TTM)2.69
EY6%
EPS(NY)2.8
Fwd EY6.25%
FCF(TTM)-2.12
FCFYN/A
OCF(TTM)6.25
OCFY13.93%
SpS25.05
BVpS22.15
TBVpS12.43
PEG (NY)N/A
PEG (5Y)54.31
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
WACC6.17%
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 5Y5.91%
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 5Y3.81%
EBIT growth 1Y20.17%
EBIT growth 3Y13.67%
EBIT growth 5Y-1.1%
EBIT Next Year58.63%
EBIT Next 3Y25.05%
EBIT Next 5Y17.96%
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 of FIRSTENERGY CORP (FE) stock?
ChartMill assigns a valuation rating of 2 / 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.
Can you provide the financial health for FE stock?
The financial health rating of FIRSTENERGY CORP (FE) is 1 / 10.
Can you provide the dividend sustainability for FE stock?
The dividend rating of FIRSTENERGY CORP (FE) is 7 / 10 and the dividend payout ratio is 75.49%.