FIRSTENERGY CORP (FE) Stock Fundamental Analysis
NYSE:FE - New York Stock Exchange, Inc. - US3379321074 - Common Stock - Currency: USD
FE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals 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. FE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
FE had positive earnings in the past year.
FE had a positive operating cash flow in the past year.
FE had positive earnings in each of the past 5 years.
In the past 5 years FE always reported a positive cash flow from operatings.
1.2 Ratios
FE has a worse Return On Assets (1.88%) than 73.68% of its industry peers.
Looking at the Return On Equity, with a value of 7.85%, FE is doing worse than 73.68% of the companies in the same industry.
FE has a Return On Invested Capital (3.91%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FE is in line with the industry average of 4.94%.
The last Return On Invested Capital (3.91%) for FE is above the 3 year average (3.82%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 7.85% | ||
| ROIC | 3.91% |
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
Looking at the Profit Margin, with a value of 7.26%, FE is doing worse than 78.95% of the companies in the same industry.
FE's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 17.63%, FE is not doing good in the industry: 76.32% of the companies in the same industry are doing better.
FE's Operating Margin has declined in the last couple of years.
FE's Gross Margin of 70.96% is fine compared to the rest of the industry. FE outperforms 63.16% of its industry peers.
FE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.63% | ||
| PM (TTM) | 7.26% | ||
| GM | 70.96% |
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.
The debt/assets ratio for FE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.70, 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 0.70, FE is doing worse than 60.53% of the companies in the same industry.
A Debt/Equity ratio of 1.85 is on the high side and indicates that FE has dependencies on debt financing.
The Debt to Equity ratio of FE (1.85) is worse than 81.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.7 |
ROIC/WACC0.64
WACC6.11%
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.
The Current ratio of FE (0.56) is worse than 81.58% of its industry peers.
A Quick Ratio of 0.45 indicates that FE may have some problems paying its short term obligations.
FE has a Quick ratio of 0.45. This is in the lower half of the industry: FE underperforms 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.33% over the past year.
The Earnings Per Share has been growing slightly by 0.31% on average over the past years.
FE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.33%.
The Revenue has been growing slightly by 4.07% on average over the past years.
EPS 1Y (TTM)2.33%
EPS 3Y0.25%
EPS 5Y0.31%
EPS Q2Q%8.06%
Revenue 1Y (TTM)-16.33%
Revenue growth 3Y6.57%
Revenue growth 5Y4.07%
Sales Q2Q%0.99%
3.2 Future
Based on estimates for the next years, FE will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.05% on average per year.
FE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.80% yearly.
EPS Next Y12.99%
EPS Next 2Y9.97%
EPS Next 3Y9.04%
EPS Next 5Y8.05%
Revenue Next Year3.99%
Revenue Next 2Y3.74%
Revenue Next 3Y3.26%
Revenue Next 5Y2.8%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FE is valuated correctly with a Price/Earnings ratio of 14.98.
FE's Price/Earnings ratio is a bit cheaper when compared to the industry. FE is cheaper than 60.53% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.98. FE is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 13.26, 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 73.68% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.66, FE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 13.26 |
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 | 11.53 |
4.3 Compensation for Growth
FE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.15
PEG (5Y)48.8
EPS Next 2Y9.97%
EPS Next 3Y9.04%
5. Dividend
5.1 Amount
FE has a Yearly Dividend Yield of 4.38%, which is a nice return.
Compared to an average industry Dividend Yield of 3.48, FE pays a better dividend. On top of this FE pays more dividend than 86.84% 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 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.38% |
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.
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)-2.56%
Div Incr Years2
Div Non Decr Years10
5.3 Sustainability
99.18% of the earnings are spent on dividend by FE. This is not a sustainable payout ratio.
DP99.18%
EPS Next 2Y9.97%
EPS Next 3Y9.04%
NYSE:FE (3/3/2025, 2:28:08 PM)
39.4
+0.63 (+1.62%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners86.29%
Inst Owner Change1.32%
Ins Owners0.1%
Ins Owner Change-0.39%
Market Cap22.71B
Analysts75.38
Price Target47.64 (20.91%)
Short Float %2.06%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.38% |
Yearly Dividend1.58
Dividend Growth(5Y)-2.56%
DP99.18%
Div Incr Years2
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.76%
Min EPS beat(2)-7.9%
Max EPS beat(2)-7.63%
EPS beat(4)0
Avg EPS beat(4)-5.62%
Min EPS beat(4)-7.9%
Max EPS beat(4)-2.24%
EPS beat(8)3
Avg EPS beat(8)-3.01%
EPS beat(12)3
Avg EPS beat(12)-3.34%
EPS beat(16)5
Avg EPS beat(16)-2.77%
Revenue beat(2)0
Avg Revenue beat(2)-15.75%
Min Revenue beat(2)-24.16%
Max Revenue beat(2)-7.33%
Revenue beat(4)0
Avg Revenue beat(4)-9.56%
Min Revenue beat(4)-24.16%
Max Revenue beat(4)-0.96%
Revenue beat(8)2
Avg Revenue beat(8)-5.25%
Revenue beat(12)6
Avg Revenue beat(12)0.13%
Revenue beat(16)6
Avg Revenue beat(16)-1.21%
PT rev (1m)0%
PT rev (3m)-1.09%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)0.42%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-0.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 13.26 | ||
| P/S | 1.69 | ||
| P/FCF | N/A | ||
| P/OCF | 7.85 | ||
| P/B | 1.82 | ||
| P/tB | 3.32 | ||
| EV/EBITDA | 11.53 |
EPS(TTM)2.63
EY6.68%
EPS(NY)2.97
Fwd EY7.54%
FCF(TTM)-1.98
FCFYN/A
OCF(TTM)5.02
OCFY12.73%
SpS23.38
BVpS21.61
TBVpS11.86
PEG (NY)1.15
PEG (5Y)48.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 7.85% | ||
| ROCE | 5.05% | ||
| ROIC | 3.91% | ||
| ROICexc | 3.92% | ||
| ROICexgc | 4.44% | ||
| OM | 17.63% | ||
| PM (TTM) | 7.26% | ||
| GM | 70.96% | ||
| 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-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.82 | ||
| Cap/Depr | 253.78% | ||
| Cap/Sales | 29.91% | ||
| Interest Coverage | 2.24 | ||
| Cash Conversion | 72.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 0.7 |
F-Score6
WACC6.11%
ROIC/WACC0.64
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)2.33%
EPS 3Y0.25%
EPS 5Y0.31%
EPS Q2Q%8.06%
EPS Next Y12.99%
EPS Next 2Y9.97%
EPS Next 3Y9.04%
EPS Next 5Y8.05%
Revenue 1Y (TTM)-16.33%
Revenue growth 3Y6.57%
Revenue growth 5Y4.07%
Sales Q2Q%0.99%
Revenue Next Year3.99%
Revenue Next 2Y3.74%
Revenue Next 3Y3.26%
Revenue Next 5Y2.8%
EBIT growth 1Y-15.69%
EBIT growth 3Y13.67%
EBIT growth 5Y-1.1%
EBIT Next Year68.39%
EBIT Next 3Y24.83%
EBIT Next 5Y15.95%
FCF growth 1Y42.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y108.44%
OCF growth 3Y0.94%
OCF growth 5Y3.22%