FIRSTENERGY CORP (FE)

US3379321074 - Common Stock

39.78  +0.14 (+0.35%)

After market: 39.78 0 (0%)

Fundamental Rating

3

Taking everything into account, FE scores 3 out of 10 in our fundamental rating. FE was compared to 46 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. While showing a medium growth rate, FE is valued expensive at the moment.



4

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.
Each year in the past 5 years FE had a positive operating cash flow.

1.2 Ratios

FE has a worse Return On Assets (1.76%) than 78.38% of its industry peers.
With a Return On Equity value of 7.18%, FE is not doing good in the industry: 75.68% of the companies in the same industry are doing better.
With a decent Return On Invested Capital value of 4.06%, FE is doing good in the industry, outperforming 62.16% of the companies in the same industry.
FE had an Average Return On Invested Capital over the past 3 years of 3.58%. This is in line with the industry average of 4.73%.
The last Return On Invested Capital (4.06%) for FE is above the 3 year average (3.58%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.76%
ROE 7.18%
ROIC 4.06%
ROA(3y)1.99%
ROA(5y)2.11%
ROE(3y)9.78%
ROE(5y)11.45%
ROIC(3y)3.58%
ROIC(5y)4%

1.3 Margins

With a Profit Margin value of 6.64%, FE is not doing good in the industry: 78.38% of the companies in the same industry are doing better.
FE's Profit Margin has been stable in the last couple of years.
The Operating Margin of FE (17.33%) is worse than 72.97% of its industry peers.
In the last couple of years the Operating Margin of FE has declined.
With a decent Gross Margin value of 70.73%, FE is doing good in the industry, outperforming 67.57% of the companies in the same industry.
FE's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 17.33%
PM (TTM) 6.64%
GM 70.73%
OM growth 3Y-4.22%
OM growth 5Y-4.55%
PM growth 3Y-5.04%
PM growth 5Y-0.34%
GM growth 3Y-3.16%
GM growth 5Y-1.22%

0

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.
FE has more shares outstanding than it did 1 year ago.
The number of shares outstanding for FE has been increased compared to 5 years ago.
Compared to 1 year ago, FE has a worse debt to assets ratio.

2.2 Solvency

FE has an Altman-Z score of 0.72. 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 0.72, FE is not doing good in the industry: 64.86% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.74 is on the high side and indicates that FE has dependencies on debt financing.
With a Debt to Equity ratio value of 1.74, FE is not doing good in the industry: 64.86% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.74
Debt/FCF N/A
Altman-Z 0.72
ROIC/WACC0.65
WACC6.29%

2.3 Liquidity

A Current Ratio of 0.56 indicates that FE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.56, FE is doing worse than 83.78% of the companies in the same industry.
A Quick Ratio of 0.46 indicates that FE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.46, FE is doing worse than 75.68% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.56
Quick Ratio 0.46

4

3. Growth

3.1 Past

FE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.31%.
Measured over the past years, FE shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.15% on average per year.
Looking at the last year, FE shows a very negative growth in Revenue. The Revenue has decreased by -16.67% in the last year.
Measured over the past years, FE shows a small growth in Revenue. The Revenue has been growing by 2.71% on average per year.
EPS 1Y (TTM)5.31%
EPS 3Y2.45%
EPS 5Y-0.15%
EPS Q2Q%-3.41%
Revenue 1Y (TTM)-16.67%
Revenue growth 3Y6.05%
Revenue growth 5Y2.71%
Sales Q2Q%6.94%

3.2 Future

The Earnings Per Share is expected to grow by 7.38% 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 6.13% on average per year.
EPS Next Y7.37%
EPS Next 2Y7.53%
EPS Next 3Y7.41%
EPS Next 5Y7.38%
Revenue Next Year8.9%
Revenue Next 2Y6.63%
Revenue Next 3Y5.64%
Revenue Next 5Y6.13%

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 accelerating: in the next years the growth will be better than in the last years.

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 15.42, which indicates a correct valuation of FE.
FE's Price/Earnings ratio is in line with the industry average.
FE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.39 indicates a correct valuation of FE.
FE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FE is cheaper than 72.97% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.59. FE is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 15.42
Fwd PE 13.39

4.2 Price Multiples

FE's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 11.78

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.09
PEG (5Y)N/A
EPS Next 2Y7.53%
EPS Next 3Y7.41%

6

5. Dividend

5.1 Amount

FE has a Yearly Dividend Yield of 4.27%, which is a nice return.
Compared to an average industry Dividend Yield of 3.59, FE pays a better dividend. On top of this FE pays more dividend than 86.49% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, FE pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.27%

5.2 History

The dividend of FE decreases each year by -2.56%.
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)-2.56%
Div Incr Years2
Div Non Decr Years10

5.3 Sustainability

107.74% of the earnings are spent on dividend by FE. This is not a sustainable payout ratio.
DP107.74%
EPS Next 2Y7.53%
EPS Next 3Y7.41%

FIRSTENERGY CORP

NYSE:FE (12/31/2024, 8:23:55 PM)

After market: 39.78 0 (0%)

39.78

+0.14 (+0.35%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)10-29 2024-10-29/amc
Earnings (Next)02-06 2025-02-06/amc
Inst Owners91.12%
Inst Owner Change1.82%
Ins Owners0.1%
Ins Owner Change-0.31%
Market Cap22.93B
Analysts76.3
Price Target48.3 (21.42%)
Short Float %1.87%
Short Ratio3.89
Dividend
Industry RankSector Rank
Dividend Yield 4.27%
Dividend Growth(5Y)-2.56%
DP107.74%
Div Incr Years2
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.07%
Min EPS beat(2)-7.9%
Max EPS beat(2)-2.24%
EPS beat(4)1
Avg EPS beat(4)-3.34%
Min EPS beat(4)-7.9%
Max EPS beat(4)1.48%
EPS beat(8)3
Avg EPS beat(8)-3.04%
EPS beat(12)3
Avg EPS beat(12)-3.04%
EPS beat(16)5
Avg EPS beat(16)-4.37%
Revenue beat(2)0
Avg Revenue beat(2)-6.55%
Min Revenue beat(2)-7.33%
Max Revenue beat(2)-5.77%
Revenue beat(4)0
Avg Revenue beat(4)-4.17%
Min Revenue beat(4)-7.33%
Max Revenue beat(4)-0.96%
Revenue beat(8)3
Avg Revenue beat(8)1.72%
Revenue beat(12)6
Avg Revenue beat(12)1.76%
Revenue beat(16)6
Avg Revenue beat(16)-0.59%
PT rev (1m)0.26%
PT rev (3m)3.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.12%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.11%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.07%
Valuation
Industry RankSector Rank
PE 15.42
Fwd PE 13.39
P/S 1.71
P/FCF N/A
P/OCF 8.17
P/B 1.84
P/tB 3.37
EV/EBITDA 11.78
EPS(TTM)2.58
EY6.49%
EPS(NY)2.97
Fwd EY7.47%
FCF(TTM)-1.77
FCFYN/A
OCF(TTM)4.87
OCFY12.24%
SpS23.32
BVpS21.56
TBVpS11.81
PEG (NY)2.09
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.76%
ROE 7.18%
ROCE 5.15%
ROIC 4.06%
ROICexc 4.1%
ROICexgc 4.68%
OM 17.33%
PM (TTM) 6.64%
GM 70.73%
FCFM N/A
ROA(3y)1.99%
ROA(5y)2.11%
ROE(3y)9.78%
ROE(5y)11.45%
ROIC(3y)3.58%
ROIC(5y)4%
ROICexc(3y)3.63%
ROICexc(5y)4.08%
ROICexgc(3y)4.19%
ROICexgc(5y)4.75%
ROCE(3y)4.57%
ROCE(5y)5.18%
ROICexcg growth 3Y-2.24%
ROICexcg growth 5Y-6.31%
ROICexc growth 3Y-1.67%
ROICexc growth 5Y-5.66%
OM growth 3Y-4.22%
OM growth 5Y-4.55%
PM growth 3Y-5.04%
PM growth 5Y-0.34%
GM growth 3Y-3.16%
GM growth 5Y-1.22%
F-Score7
Asset Turnover0.26
Health
Industry RankSector Rank
Debt/Equity 1.74
Debt/FCF N/A
Debt/EBITDA 5.54
Cap/Depr 241.54%
Cap/Sales 28.46%
Interest Coverage 250
Cash Conversion 71.67%
Profit Quality N/A
Current Ratio 0.56
Quick Ratio 0.46
Altman-Z 0.72
F-Score7
WACC6.29%
ROIC/WACC0.65
Cap/Depr(3y)208.06%
Cap/Depr(5y)212.95%
Cap/Sales(3y)23.39%
Cap/Sales(5y)23.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.31%
EPS 3Y2.45%
EPS 5Y-0.15%
EPS Q2Q%-3.41%
EPS Next Y7.37%
EPS Next 2Y7.53%
EPS Next 3Y7.41%
EPS Next 5Y7.38%
Revenue 1Y (TTM)-16.67%
Revenue growth 3Y6.05%
Revenue growth 5Y2.71%
Sales Q2Q%6.94%
Revenue Next Year8.9%
Revenue Next 2Y6.63%
Revenue Next 3Y5.64%
Revenue Next 5Y6.13%
EBIT growth 1Y-12.01%
EBIT growth 3Y1.58%
EBIT growth 5Y-1.96%
EBIT Next Year74.69%
EBIT Next 3Y27.64%
EBIT Next 5Y19.76%
FCF growth 1Y-1392.41%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y10.26%
OCF growth 3Y-0.85%
OCF growth 5Y-0.33%