DB:FE7

Stock Analysis Report

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Executive Summary

FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. More Details


Snowflake Analysis

Second-rate dividend payer with questionable track record.


Similar Companies

Share Price & News

How has FirstEnergy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FE7 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.7%

FE7

-4.3%

DE Electric Utilities

-6.6%

DE Market


1 Year Return

-34.9%

FE7

6.8%

DE Electric Utilities

-6.6%

DE Market

Return vs Industry: FE7 underperformed the German Electric Utilities industry which returned 7.5% over the past year.

Return vs Market: FE7 underperformed the German Market which returned -7.4% over the past year.


Shareholder returns

FE7IndustryMarket
7 Day3.7%-4.3%-6.6%
30 Day16.7%-1.2%-7.5%
90 Day15.7%-2.9%-4.1%
1 Year-32.3%-34.9%10.9%6.8%-3.7%-6.6%
3 Year13.2%0.4%44.4%28.0%-8.7%-16.7%
5 Year20.7%-1.1%57.8%23.8%12.2%-3.8%

Price Volatility Vs. Market

How volatile is FirstEnergy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is FirstEnergy undervalued compared to its fair value and its price relative to the market?

6.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FE7 (€28) is trading below our estimate of fair value (€29.99)

Significantly Below Fair Value: FE7 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FE7 is poor value based on its PE Ratio (31.6x) compared to the XE Electric Utilities industry average (11.4x).

PE vs Market: FE7 is poor value based on its PE Ratio (31.6x) compared to the German market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: FE7 is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: FE7 is overvalued based on its PB Ratio (2.4x) compared to the XE Electric Utilities industry average (0.7x).


Next Steps

Future Growth

How is FirstEnergy forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FE7's forecast earnings growth (14.1% per year) is above the savings rate (0.2%).

Earnings vs Market: FE7's earnings (14.1% per year) are forecast to grow slower than the German market (26% per year).

High Growth Earnings: FE7's earnings are forecast to grow, but not significantly.

Revenue vs Market: FE7's revenue (2.6% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: FE7's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FE7's Return on Equity is forecast to be low in 3 years time (17.7%).


Next Steps

Past Performance

How has FirstEnergy performed over the past 5 years?

22.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FE7 has high quality earnings.

Growing Profit Margin: FE7's current net profit margins (5.1%) are lower than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: FE7 has become profitable over the past 5 years, growing earnings by 22.2% per year.

Accelerating Growth: FE7's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FE7 had negative earnings growth (-53%) over the past year, making it difficult to compare to the Electric Utilities industry average (-5.4%).


Return on Equity

High ROE: FE7's Return on Equity (7.5%) is considered low.


Next Steps

Financial Health

How is FirstEnergy's financial position?


Financial Position Analysis

Short Term Liabilities: FE7's short term assets ($2.0B) do not cover its short term liabilities ($2.5B).

Long Term Liabilities: FE7's short term assets ($2.0B) do not cover its long term liabilities ($32.7B).


Debt to Equity History and Analysis

Debt Level: FE7's debt to equity ratio (305.8%) is considered high.

Reducing Debt: FE7's debt to equity ratio has increased from 181.6% to 305.8% over the past 5 years.

Debt Coverage: FE7's debt is not well covered by operating cash flow (9.1%).

Interest Coverage: FE7's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet


Next Steps

Dividend

What is FirstEnergy current dividend yield, its reliability and sustainability?

4.90%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: FE7's dividend (4.9%) is higher than the bottom 25% of dividend payers in the German market (1.28%).

High Dividend: FE7's dividend (4.9%) is in the top 25% of dividend payers in the German market (3.89%)


Stability and Growth of Payments

Stable Dividend: FE7's dividend payments have been volatile in the past 10 years.

Growing Dividend: FE7's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (153.9%), FE7's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FE7's dividends in 3 years are forecast to be covered by earnings (61% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Chuck Jones (64 yo)

5.75yrs

Tenure

US$14,684,659

Compensation

Mr. Charles E. Jones, Jr., also known as Chuck, serves as Director of Mid-Atlantic Interstate Transmission, LLC and Trans-Allegheny Interstate Line Company. He has been the Chief Executive Officer and Dire ...


CEO Compensation Analysis

Compensation vs Market: Chuck's total compensation ($USD14.68M) is above average for companies of similar size in the German market ($USD5.24M).

Compensation vs Earnings: Chuck's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Charles Jones
CEO & Director5.75yrsUS$14.68m0.11%
$ 16.7m
Steven Strah
President0.42yrUS$6.03m0.013%
$ 1.9m
Robert Reffner
Senior VP & Chief Legal Officer2.75yrsUS$2.47m0.016%
$ 2.3m
Bennett Gaines
Senior VP of Corporate Services & Chief Information Officer - FirstEnergy Service Companyno dataUS$1.98m0.014%
$ 2.1m
Samuel Belcher
Senior VP & President of FirstEnergy Utilitiesno dataUS$2.90m0.0066%
$ 981.9k
K. Taylor
Senior VP & CFO0.42yrno data0.0050%
$ 741.2k
Jason Lisowski
VP, Controller & Chief Accounting Officer2.75yrsno data0.0011%
$ 160.9k
Gretchan Sekulich
Vice President of Communications & Marketing9.58yrsno datano data
Christine Walker
Senior VP & Chief Human Resources Officer1.25yrsno data0.0084%
$ 1.2m
Dennis Chack
Senior VP of Product Development5.33yrsno data0.0070%
$ 1.0m
Kevin Burgess
Vice President of Risk & Internal Auditno datano datano data
Gary Benz
Senior Vice President of Strategy - FirstEnergy Service Company5.33yrsno data0.0086%
$ 1.3m

2.8yrs

Average Tenure

56yo

Average Age

Experienced Management: FE7's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Charles Jones
CEO & Director5.75yrsUS$14.68m0.11%
$ 16.7m
James O'Neil
Independent Director3.75yrsUS$271.60k0.00085%
$ 125.5k
Steven Demetriou
Independent Director3.75yrsUS$249.90k0.00076%
$ 112.2k
Michael Anderson
Independent Director13.58yrsUS$273.73k0.00018%
$ 26.6k
Christopher Pappas
Independent Director9.08yrsUS$269.85k0.0030%
$ 448.9k
Julia Johnson
Independent Director9.58yrsUS$259.05k0.0022%
$ 329.3k
Thomas Mitchell
Independent Director4.75yrsUS$265.41k0.0014%
$ 208.2k
Sandra Pianalto
Independent Director2.58yrsUS$254.90k0.00060%
$ 88.6k
Donald Misheff
Independent Non-Executive Chairman2.42yrsUS$399.90k0.000020%
$ 3.0k
Luis Reyes
Independent Director7.08yrsUS$249.90k0.000060%
$ 8.9k
Leslie Turner
Independent Director2.08yrsUS$249.90k0.00083%
$ 122.6k

4.8yrs

Average Tenure

64yo

Average Age

Experienced Board: FE7's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

FirstEnergy Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FirstEnergy Corp.
  • Ticker: FE7
  • Exchange: DB
  • Founded: 1996
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: US$17.217b
  • Listing Market Cap: US$14.766b
  • Shares outstanding: 542.11m
  • Website: https://www.firstenergycorp.com

Number of Employees


Location

  • FirstEnergy Corp.
  • 76 South Main Street
  • Akron
  • Ohio
  • 44308
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FENYSE (New York Stock Exchange)YesCommon SharesUSUSDNov 1997
FE7DB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1997
0IPBLSE (London Stock Exchange)YesCommon SharesGBUSDNov 1997
FE *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNNov 1997
F1EC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Biography

FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. The company operates through Regulated Distribution and Regulated Transmission segments. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 21:30
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.