FIRSTENERGY CORP (FE) Stock Fundamental Analysis
USA - NYSE:FE - US3379321074 - Common Stock
43.43 USD
-0.01 (-0.02%)
43.43 USD
0 (0%)
Taking everything into account, FE scores 3 out of 10 in our fundamental rating. FE was compared to 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. FE is valied quite expensively at the moment, while 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.
Each year in the past 5 years FE has been profitable.
Each year in the past 5 years FE had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FE (2.41%) is worse than 68.75% of its industry peers.
The Return On Equity of FE (10.18%) is comparable to the rest of the industry.
FE has a Return On Invested Capital (4.31%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for FE is in line with the industry average of 5.43%.
The last Return On Invested Capital (4.31%) for FE is above the 3 year average (3.82%), which is a sign of increasing profitability.
| 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
The Profit Margin of FE (9.31%) is worse than 70.83% of its industry peers.
FE's Profit Margin has declined in the last couple of years.
FE's Operating Margin of 19.20% is in line compared to the rest of the industry. FE outperforms 45.83% of its industry peers.
FE's Operating Margin has declined in the last couple of years.
FE's Gross Margin of 71.25% is fine compared to the rest of the industry. FE outperforms 70.83% 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.
FE has more shares outstanding than it did 1 year ago.
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 0.75. This is a bad value and indicates that FE is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.75, FE is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.88 is on the high side and indicates that FE has dependencies on debt financing.
FE has a Debt to Equity ratio of 1.88. This is in the lower half of the industry: FE underperforms 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC0.71
WACC6.08%
2.3 Liquidity
A Current Ratio of 0.61 indicates that FE may have some problems paying its short term obligations.
FE's Current ratio of 0.61 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 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.
FE's Quick ratio of 0.51 is on the low side compared to the rest of the industry. FE is outperformed by 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.83% over the past year.
Measured over the past 5 years, FE shows a small growth in Earnings Per Share. The EPS has been growing by 0.31% on average per year.
The Revenue has been growing slightly by 6.44% 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)3.83%
EPS 3Y0.25%
EPS 5Y0.31%
EPS Q2Q%-7.14%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y6.57%
Revenue growth 5Y4.07%
Sales Q2Q%3.05%
3.2 Future
FE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.20% yearly.
The Revenue is expected to grow by 3.53% on average over the next years.
EPS Next Y-0.87%
EPS Next 2Y2.97%
EPS Next 3Y4.44%
EPS Next 5Y5.2%
Revenue Next Year0.94%
Revenue Next 2Y2.24%
Revenue Next 3Y2.7%
Revenue Next 5Y3.53%
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
FE is valuated correctly with a Price/Earnings ratio of 16.03.
The rest of the industry has a similar Price/Earnings ratio as FE.
The average S&P500 Price/Earnings ratio is at 27.41. FE is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.57, the valuation of FE can be described as correct.
FE's Price/Forward Earnings is on the same level as the industry average.
FE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.03 | ||
| Fwd PE | 15.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.67 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)52.2
EPS Next 2Y2.97%
EPS Next 3Y4.44%
5. Dividend
5.1 Amount
FE has a Yearly Dividend Yield of 4.08%, which is a nice return.
Compared to an average industry Dividend Yield of 3.47, FE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, FE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
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 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 75.84% of its income as dividend. This is not a sustainable payout ratio.
FE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP75.84%
EPS Next 2Y2.97%
EPS Next 3Y4.44%
43.43
-0.01 (-0.02%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.6%
Inst Owner Change0.71%
Ins Owners0.13%
Ins Owner Change-1.02%
Market Cap25.08B
Analysts75.83
Price Target47.26 (8.82%)
Short Float %4.45%
Short Ratio6.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
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)2.08%
PT rev (3m)3.08%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)-12.16%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.03 | ||
| Fwd PE | 15.57 | ||
| P/S | 1.78 | ||
| P/FCF | N/A | ||
| P/OCF | 7.09 | ||
| P/B | 1.95 | ||
| P/tB | 3.47 | ||
| EV/EBITDA | 11.67 |
EPS(TTM)2.71
EY6.24%
EPS(NY)2.79
Fwd EY6.42%
FCF(TTM)-1.7
FCFYN/A
OCF(TTM)6.13
OCFY14.11%
SpS24.33
BVpS22.26
TBVpS12.53
PEG (NY)N/A
PEG (5Y)52.2
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%
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-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 | 0.75 |
F-Score7
WACC6.08%
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)3.83%
EPS 3Y0.25%
EPS 5Y0.31%
EPS Q2Q%-7.14%
EPS Next Y-0.87%
EPS Next 2Y2.97%
EPS Next 3Y4.44%
EPS Next 5Y5.2%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y6.57%
Revenue growth 5Y4.07%
Sales Q2Q%3.05%
Revenue Next Year0.94%
Revenue Next 2Y2.24%
Revenue Next 3Y2.7%
Revenue Next 5Y3.53%
EBIT growth 1Y18.86%
EBIT growth 3Y13.67%
EBIT growth 5Y-1.1%
EBIT Next Year61.66%
EBIT Next 3Y24.04%
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%