FIRSTENERGY CORP (FE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FE - US3379321074 - Common Stock
44.77 USD
-0.19 (-0.42%)
44.77 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to FE. FE was compared to 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. FE also has an excellent dividend rating.
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
Looking at the Return On Assets, with a value of 2.38%, FE is doing worse than 76.60% of the companies in the same industry.
FE has a Return On Equity (10.39%) which is in line with its industry peers.
FE's Return On Invested Capital of 4.34% is in line compared to the rest of the industry. FE outperforms 53.19% of its industry peers.
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's Profit Margin of 9.19% is on the low side compared to the rest of the industry. FE is outperformed by 74.47% of its industry peers.
In the last couple of years the Profit Margin of FE has declined.
FE's Operating Margin of 19.35% is in line compared to the rest of the industry. FE outperforms 40.43% of its industry peers.
In the last couple of years the Operating Margin of FE has declined.
FE's Gross Margin of 70.32% is fine compared to the rest of the industry. FE outperforms 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.
Compared to 1 year ago, FE has more shares outstanding
Compared to 5 years ago, FE has more shares outstanding
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.
FE has a Altman-Z score (0.76) which is in line with its industry peers.
FE has a Debt/Equity ratio of 2.02. This is a high value indicating a heavy dependency on external financing.
FE has a Debt to Equity ratio of 2.02. This is amonst the worse of the industry: FE underperforms 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
WACC6.16%
2.3 Liquidity
A Current Ratio of 0.75 indicates that FE may have some problems paying its short term obligations.
With a Current ratio value of 0.75, FE is not doing good in the industry: 70.21% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 0.64, FE is in line with its industry, 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.
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-0.3%
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
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
A Price/Earnings ratio of 16.64 indicates a correct valuation of FE.
Compared to the rest of the industry, the Price/Earnings ratio of FE is on the same level as its industry peers.
When comparing the Price/Earnings ratio of FE to the average of the S&P500 Index (26.51), we can say FE is valued slightly cheaper.
FE is valuated correctly with a Price/Forward Earnings ratio of 15.97.
The rest of the industry has a similar Price/Forward Earnings ratio as FE.
FE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.64 | ||
| Fwd PE | 15.97 |
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 | 11.6 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)54.21
EPS Next 2Y3.23%
EPS Next 3Y4.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.97%, FE has a reasonable but not impressive dividend return.
FE's Dividend Yield is a higher than the industry average which is at 3.02.
Compared to an average S&P500 Dividend Yield of 2.00, FE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
5.2 History
The dividend of FE has a limited annual growth rate of 1.59%.
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)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 2Y3.23%
EPS Next 3Y4.74%
44.77
-0.19 (-0.42%)
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 Change-0.28%
Market Cap25.86B
Revenue(TTM)14.47B
Net Income(TTM)1.33B
Analysts76
Price Target50.44 (12.66%)
Short Float %4.56%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
Yearly Dividend1.69
Dividend Growth(5Y)1.59%
DP75.49%
Div Incr Years2
Div Non Decr Years10
Ex-DateN/A
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 | 16.64 | ||
| Fwd PE | 15.97 | ||
| P/S | 1.79 | ||
| P/FCF | N/A | ||
| P/OCF | 7.17 | ||
| P/B | 2.02 | ||
| P/tB | 3.6 | ||
| EV/EBITDA | 11.6 |
EPS(TTM)2.69
EY6.01%
EPS(NY)2.8
Fwd EY6.26%
FCF(TTM)-2.12
FCFYN/A
OCF(TTM)6.25
OCFY13.95%
SpS25.05
BVpS22.15
TBVpS12.43
PEG (NY)N/A
PEG (5Y)54.21
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
WACC6.16%
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 Year60.87%
EBIT Next 3Y25.4%
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 for 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.
What is the financial health of FIRSTENERGY CORP (FE) stock?
The financial health rating of FIRSTENERGY CORP (FE) is 1 / 10.
Is the dividend of FIRSTENERGY CORP sustainable?
The dividend rating of FIRSTENERGY CORP (FE) is 7 / 10 and the dividend payout ratio is 75.49%.