FIRSTENERGY CORP (FE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FE - US3379321074 - Common Stock
44.91 USD
-0.23 (-0.51%)
44.91 USD
0 (0%)
FE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 48 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. Finally 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.
FE had positive earnings in each of the past 5 years.
FE had a positive operating cash flow in each of the past 5 years.
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 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.
FE's Return On Invested Capital of 4.34% is in line compared to the rest of the industry. FE outperforms 56.25% of its industry peers.
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 4.92%.
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 75.00% 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.
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
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.
FE has more shares outstanding than it did 5 years ago.
FE has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.77, we must say that FE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.77, FE perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
FE has a Debt/Equity ratio of 2.02. This is a high value indicating a heavy dependency on external 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 | 0.77 |
ROIC/WACC0.7
WACC6.17%
2.3 Liquidity
FE has a Current 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 Current ratio of 0.75 is on the low side compared to the rest of the industry. FE is outperformed by 68.75% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
FE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.26%.
The Earnings Per Share has been growing slightly by 0.31% on average over the past years.
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
FE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.91% yearly.
The Revenue is expected to grow by 3.81% on average over the next years.
EPS Next Y-0.06%
EPS Next 2Y3.22%
EPS Next 3Y4.74%
EPS Next 5Y5.91%
Revenue Next Year2.23%
Revenue Next 2Y2.91%
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
Based on the Price/Earnings ratio of 16.70, 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 26.46.
Based on the Price/Forward Earnings ratio of 16.03, the valuation of FE can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FE is on the same level as its industry peers.
FE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 16.03 |
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 | 11.62 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)54.38
EPS Next 2Y3.22%
EPS Next 3Y4.74%
5. Dividend
5.1 Amount
FE has a Yearly Dividend Yield of 3.76%. Purely for dividend investing, there may be better candidates out there.
FE's Dividend Yield is a higher than the industry average which is at 3.41.
Compared to an average S&P500 Dividend Yield of 2.32, FE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
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 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.
The dividend of FE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP75.49%
EPS Next 2Y3.22%
EPS Next 3Y4.74%
44.91
-0.23 (-0.51%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners87.97%
Inst Owner Change3.87%
Ins Owners0.13%
Ins Owner Change-0.33%
Market Cap25.94B
Revenue(TTM)14.47B
Net Income(TTM)1.33B
Analysts76
Price Target50.7 (12.89%)
Short Float %5.1%
Short Ratio5.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
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%
PT rev (3m)8.76%
EPS NQ rev (1m)1.49%
EPS NQ rev (3m)1.93%
EPS NY rev (1m)0.66%
EPS NY rev (3m)0.82%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)1.32%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 16.03 | ||
| P/S | 1.79 | ||
| P/FCF | N/A | ||
| P/OCF | 7.19 | ||
| P/B | 2.03 | ||
| P/tB | 3.61 | ||
| EV/EBITDA | 11.62 |
EPS(TTM)2.69
EY5.99%
EPS(NY)2.8
Fwd EY6.24%
FCF(TTM)-2.12
FCFYN/A
OCF(TTM)6.25
OCFY13.91%
SpS25.05
BVpS22.15
TBVpS12.43
PEG (NY)N/A
PEG (5Y)54.38
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 | 0.77 |
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-0.06%
EPS Next 2Y3.22%
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 Year2.23%
Revenue Next 2Y2.91%
Revenue Next 3Y3.32%
Revenue Next 5Y3.81%
EBIT growth 1Y20.17%
EBIT growth 3Y13.67%
EBIT growth 5Y-1.1%
EBIT Next Year61.83%
EBIT Next 3Y23.97%
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 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.
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%.