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FE

FirstEnergy NYSE:FE Stock Report

Last Price

US$43.26

Market Cap

US$24.7b

7D

1.2%

1Y

15.0%

Updated

24 May, 2022

Data

Company Financials +
FE fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance2/6
Financial Health1/6
Dividends2/6

FE Stock Overview

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

FirstEnergy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for FirstEnergy
Historical stock prices
Current Share PriceUS$43.26
52 Week HighUS$48.85
52 Week LowUS$35.42
Beta0.37
1 Month Change-5.98%
3 Month Change9.19%
1 Year Change14.99%
3 Year Change3.89%
5 Year Change48.20%
Change since IPO71.75%

Recent News & Updates

May 17
FirstEnergy Corp. (NYSE:FE) Shares Could Be 21% Above Their Intrinsic Value Estimate

FirstEnergy Corp. (NYSE:FE) Shares Could Be 21% Above Their Intrinsic Value Estimate

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of FirstEnergy Corp...

Shareholder Returns

FEUS Electric UtilitiesUS Market
7D1.2%2.2%-4.0%
1Y15.0%9.6%-13.2%

Return vs Industry: FE exceeded the US Electric Utilities industry which returned 6.1% over the past year.

Return vs Market: FE exceeded the US Market which returned -12.3% over the past year.

Price Volatility

Is FE's price volatile compared to industry and market?
FE volatility
FE Average Weekly Movement3.1%
Electric Utilities Industry Average Movement3.0%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: FE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: FE's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199612,395Steve Strahhttps://www.firstenergycorp.com

FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. It operates through Regulated Distribution and Regulated Transmission segments. The company owns and operates coal-fired, nuclear, hydroelectric, natural gas, wind, and solar power generating facilities.

FirstEnergy Fundamentals Summary

How do FirstEnergy's earnings and revenue compare to its market cap?
FE fundamental statistics
Market CapUS$24.70b
Earnings (TTM)US$1.19b
Revenue (TTM)US$11.21b

20.7x

P/E Ratio

2.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FE income statement (TTM)
RevenueUS$11.21b
Cost of RevenueUS$3.58b
Gross ProfitUS$7.63b
Other ExpensesUS$6.44b
EarningsUS$1.19b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.09
Gross Margin68.10%
Net Profit Margin10.64%
Debt/Equity Ratio264.5%

How did FE perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

72%

Payout Ratio

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


20.72x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: FE ($43.26) is trading above our estimate of fair value ($34.38)

Significantly Below Fair Value: FE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FE is good value based on its Price-To-Earnings Ratio (20.7x) compared to the US Electric Utilities industry average (21.7x).

PE vs Market: FE is poor value based on its Price-To-Earnings Ratio (20.7x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: FE is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: FE is overvalued based on its Price-To-Book Ratio (2.8x) compared to the US Electric Utilities industry average (2x).


Future Growth

How is FirstEnergy forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FE's forecast earnings growth (8.2% per year) is above the savings rate (1.9%).

Earnings vs Market: FE's earnings (8.2% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: FE's revenue (2.8% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: FE's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FE's Return on Equity is forecast to be low in 3 years time (15%).


Past Performance

How has FirstEnergy performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


72.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FE has high quality earnings.

Growing Profit Margin: FE's current net profit margins (10.6%) are lower than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: FE has become profitable over the past 5 years, growing earnings by 72.5% per year.

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

Earnings vs Industry: FE had negative earnings growth (-9.3%) over the past year, making it difficult to compare to the Electric Utilities industry average (9.5%).


Return on Equity

High ROE: FE's Return on Equity (13.6%) is considered low.


Financial Health

How is FirstEnergy's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: FE's short term assets ($2.3B) do not cover its short term liabilities ($4.4B).

Long Term Liabilities: FE's short term assets ($2.3B) do not cover its long term liabilities ($31.5B).


Debt to Equity History and Analysis

Debt Level: FE's net debt to equity ratio (261.3%) is considered high.

Reducing Debt: FE's debt to equity ratio has reduced from 369% to 264.5% over the past 5 years.

Debt Coverage: FE's debt is not well covered by operating cash flow (11.4%).

Interest Coverage: FE's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.61%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FE's dividend (3.61%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: FE's dividend (3.61%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (72.2%), FE's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (327.4%), FE's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

1.7yrs

Average management tenure


CEO

Steve Strah (57 yo)

2yrs

Tenure

US$10,714,062

Compensation

Mr. Steven E. Strah, also known as Steve, serves as Director at Allegheny Generating Company. He serves as Director at The Cleveland Electric Illuminating Company and served as its Senior Vice President a...


CEO Compensation Analysis

Compensation vs Market: Steve 's total compensation ($USD10.71M) is about average for companies of similar size in the US market ($USD13.26M).

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


Leadership Team

Experienced Management: FE's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: FE's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 5%.


Top Shareholders

Company Information

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


Key Information

  • Name: FirstEnergy Corp.
  • Ticker: FE
  • Exchange: NYSE
  • Founded: 1996
  • Industry: Electric Utilities
  • Sector: Utilities
  • Implied Market Cap: US$24.699b
  • Shares outstanding: 570.93m
  • Website: https://www.firstenergycorp.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/24 00:00
End of Day Share Price2022/05/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.