FIRSTENERGY CORP (FE) Stock Fundamental Analysis
USA - NYSE:FE - US3379321074 - Common Stock
45.9 USD
+0.03 (+0.07%)
45.9 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. 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.
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 (2.41%) than 63.83% of its industry peers.
FE has a Return On Equity (10.18%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 4.31%, FE is in the better half of the industry, outperforming 61.70% 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 4.90%.
The 3 year average ROIC (3.82%) for FE is below the current ROIC(4.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 10.18% | ||
| ROIC | 4.31% |
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
With a Profit Margin value of 9.31%, FE is not doing good in the industry: 72.34% of the companies in the same industry are doing better.
FE's Profit Margin has declined in the last couple of years.
The Operating Margin of FE (19.20%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of FE has declined.
FE has a Gross Margin of 71.25%. This is in the better half of the industry: FE outperforms 68.09% 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 | 19.2% | ||
| PM (TTM) | 9.31% | ||
| GM | 71.25% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 0.77, we must say that FE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of FE (0.77) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.88 is on the high side and indicates that FE has dependencies on debt financing.
With a Debt to Equity ratio value of 1.88, FE is not doing good in the industry: 89.36% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.7
WACC6.18%
2.3 Liquidity
FE has a Current Ratio of 0.61. 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 Current ratio, with a value of 0.61, FE is doing worse than 76.60% of the companies in the same industry.
FE has a Quick Ratio of 0.61. 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 Quick ratio of FE (0.51) is worse than 70.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.51 |
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%.
FE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.31% yearly.
FE shows a small growth in Revenue. In the last year, the Revenue has grown by 7.60%.
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)7.6%
Revenue growth 3Y6.57%
Revenue growth 5Y4.07%
Sales Q2Q%11.08%
3.2 Future
The Earnings Per Share is expected to grow by 5.39% on average over the next years.
Based on estimates for the next years, FE will show a small growth in Revenue. The Revenue will grow by 3.61% on average per year.
EPS Next Y-0.72%
EPS Next 2Y3.03%
EPS Next 3Y4.49%
EPS Next 5Y5.39%
Revenue Next Year0.9%
Revenue Next 2Y2.26%
Revenue Next 3Y2.84%
Revenue Next 5Y3.61%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.06 indicates a rather expensive 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 (25.67), we can say FE is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.44, FE is valued correctly.
FE's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 31.86. FE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.06 | ||
| Fwd PE | 16.44 |
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 | 12 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)55.58
EPS Next 2Y3.03%
EPS Next 3Y4.49%
5. Dividend
5.1 Amount
FE has a Yearly Dividend Yield of 3.85%.
Compared to an average industry Dividend Yield of 3.29, FE pays a bit more dividend than its industry peers.
FE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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 75.84% 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.
DP75.84%
EPS Next 2Y3.03%
EPS Next 3Y4.49%
45.9
+0.03 (+0.07%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners87.97%
Inst Owner Change-0.44%
Ins Owners0.13%
Ins Owner Change-1.07%
Market Cap26.50B
Revenue(TTM)14.46B
Net Income(TTM)1.31B
Analysts75.65
Price Target50.7 (10.46%)
Short Float %4.88%
Short Ratio6.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
Yearly Dividend1.69
Dividend Growth(5Y)1.59%
DP75.84%
Div Incr Years2
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.89%
Min EPS beat(2)3.93%
Max EPS beat(2)7.84%
EPS beat(4)2
Avg EPS beat(4)-0.94%
Min EPS beat(4)-7.9%
Max EPS beat(4)7.84%
EPS beat(8)4
Avg EPS beat(8)-1.07%
EPS beat(12)5
Avg EPS beat(12)-1.83%
EPS beat(16)6
Avg EPS beat(16)-1.99%
Revenue beat(2)1
Avg Revenue beat(2)1.74%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)5.11%
Revenue beat(4)1
Avg Revenue beat(4)-7%
Min Revenue beat(4)-24.16%
Max Revenue beat(4)5.11%
Revenue beat(8)1
Avg Revenue beat(8)-5.21%
Revenue beat(12)5
Avg Revenue beat(12)0.13%
Revenue beat(16)7
Avg Revenue beat(16)-0.13%
PT rev (1m)7.26%
PT rev (3m)10.74%
EPS NQ rev (1m)-3.06%
EPS NQ rev (3m)-7.54%
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)-1.21%
Revenue NQ rev (3m)-1.74%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.06 | ||
| Fwd PE | 16.44 | ||
| P/S | 1.89 | ||
| P/FCF | N/A | ||
| P/OCF | 7.49 | ||
| P/B | 2.06 | ||
| P/tB | 3.66 | ||
| EV/EBITDA | 12 |
EPS(TTM)2.69
EY5.86%
EPS(NY)2.79
Fwd EY6.08%
FCF(TTM)-1.7
FCFYN/A
OCF(TTM)6.13
OCFY13.35%
SpS24.33
BVpS22.26
TBVpS12.53
PEG (NY)N/A
PEG (5Y)55.58
Graham Number36.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 10.18% | ||
| ROCE | 5.55% | ||
| ROIC | 4.31% | ||
| ROICexc | 4.36% | ||
| ROICexgc | 4.94% | ||
| OM | 19.2% | ||
| PM (TTM) | 9.31% | ||
| GM | 71.25% | ||
| 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-Score7
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.64 | ||
| Cap/Depr | 285.96% | ||
| Cap/Sales | 32.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.7% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 0.77 |
F-Score7
WACC6.18%
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-0.72%
EPS Next 2Y3.03%
EPS Next 3Y4.49%
EPS Next 5Y5.39%
Revenue 1Y (TTM)7.6%
Revenue growth 3Y6.57%
Revenue growth 5Y4.07%
Sales Q2Q%11.08%
Revenue Next Year0.9%
Revenue Next 2Y2.26%
Revenue Next 3Y2.84%
Revenue Next 5Y3.61%
EBIT growth 1Y18.86%
EBIT growth 3Y13.67%
EBIT growth 5Y-1.1%
EBIT Next Year61.83%
EBIT Next 3Y23.97%
EBIT Next 5Y15.23%
FCF growth 1Y46.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y198.06%
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 5 / 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 75.84%.