FIRSTENERGY CORP (FE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FE - US3379321074 - Common Stock
44.26 USD
+0.18 (+0.41%)
44.35 USD
+0.09 (+0.2%)
Overall FE gets a fundamental rating of 3 out of 10. We evaluated FE against 48 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. 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
FE has a worse Return On Assets (2.38%) than 75.00% of its industry peers.
FE has a Return On Equity of 10.39%. This is comparable to the rest of the industry: FE outperforms 52.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.34%, FE is in line with its industry, outperforming 56.25% of the companies in the same industry.
FE had an Average Return On Invested Capital over the past 3 years of 3.82%. This is in line with the industry average of 4.95%.
The 3 year average ROIC (3.82%) for FE is below the current ROIC(4.34%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 9.19%, FE is doing worse than 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of FE has declined.
With a Operating Margin value of 19.35%, FE perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
FE's Operating Margin has declined in the last couple of years.
FE has a better Gross Margin (70.32%) than 60.42% 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
FE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, FE has more shares outstanding
FE has more shares outstanding than it did 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.
Looking at the Altman-Z score, with a value of 0.76, FE is doing worse than 60.42% 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.
The Debt to Equity ratio of FE (2.02) is worse than 89.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.71
WACC6.15%
2.3 Liquidity
A Current Ratio of 0.75 indicates that FE may have some problems paying its short term obligations.
FE has a worse Current ratio (0.75) than 70.83% 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's Quick ratio of 0.64 is in line compared to the rest of the industry. FE outperforms 45.83% of 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.
The Revenue has been growing slightly by 7.64% in the past year.
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
Based on estimates for the next years, FE will show a small growth in Earnings Per Share. The EPS will grow by 5.91% on average per year.
FE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.81% yearly.
EPS Next Y-0.06%
EPS Next 2Y3.33%
EPS Next 3Y4.74%
EPS Next 5Y5.91%
Revenue Next Year1.81%
Revenue Next 2Y2.75%
Revenue Next 3Y3.2%
Revenue Next 5Y3.81%
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.
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
Based on the Price/Earnings ratio of 16.45, the valuation of FE can be described as correct.
FE's Price/Earnings is on the same level as the industry average.
FE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.54.
With a Price/Forward Earnings ratio of 15.76, FE is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FE is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of FE to the average of the S&P500 Index (23.78), we can say FE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.45 | ||
| Fwd PE | 15.76 |
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 | 11.49 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)53.6
EPS Next 2Y3.33%
EPS Next 3Y4.74%
5. Dividend
5.1 Amount
FE has a Yearly Dividend Yield of 3.94%.
FE's Dividend Yield is a higher than the industry average which is at 3.42.
Compared to an average S&P500 Dividend Yield of 2.27, FE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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.
The dividend of FE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP75.49%
EPS Next 2Y3.33%
EPS Next 3Y4.74%
44.26
+0.18 (+0.41%)
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 Cap25.57B
Revenue(TTM)14.47B
Net Income(TTM)1.33B
Analysts76
Price Target50.61 (14.35%)
Short Float %5.1%
Short Ratio5.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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)-0.17%
PT rev (3m)7.08%
EPS NQ rev (1m)-2.41%
EPS NQ rev (3m)-0.65%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.45 | ||
| Fwd PE | 15.76 | ||
| P/S | 1.77 | ||
| P/FCF | N/A | ||
| P/OCF | 7.09 | ||
| P/B | 2 | ||
| P/tB | 3.56 | ||
| EV/EBITDA | 11.49 |
EPS(TTM)2.69
EY6.08%
EPS(NY)2.81
Fwd EY6.34%
FCF(TTM)-2.12
FCFYN/A
OCF(TTM)6.25
OCFY14.11%
SpS25.05
BVpS22.15
TBVpS12.43
PEG (NY)N/A
PEG (5Y)53.6
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
WACC6.15%
ROIC/WACC0.71
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-0.06%
EPS Next 2Y3.33%
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 Year1.81%
Revenue Next 2Y2.75%
Revenue Next 3Y3.2%
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%.