NYSE:FE

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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: FE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

FE

1.8%

US Electric Utilities

0.7%

US Market


1 Year Return

21.3%

FE

14.3%

US Electric Utilities

12.9%

US Market

Return vs Industry: FE exceeded the US Electric Utilities industry which returned 14.3% over the past year.

Return vs Market: FE exceeded the US Market which returned 12.9% over the past year.


Shareholder returns

FEIndustryMarket
7 Day1.0%1.8%0.7%
30 Day-2.2%-1.5%4.4%
90 Day5.3%1.9%7.0%
1 Year25.7%21.3%18.2%14.3%15.4%12.9%
3 Year69.6%49.8%48.7%34.0%49.1%39.5%
5 Year55.8%26.4%64.2%36.3%62.7%44.7%

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

Valuation

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

20.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FE ($47.04) is trading above our estimate of fair value ($37.41)

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 PE Ratio (20.7x) compared to the Electric Utilities industry average (23.6x).

PE vs Market: FE is poor value based on its PE Ratio (20.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: FE is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: FE is overvalued based on its PB Ratio (3.5x) compared to the US Electric Utilities industry average (2.2x).


Next Steps

Future Growth

How is FirstEnergy forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FE's forecast earnings growth (4.7% per year) is above the savings rate (2.7%).

Earnings vs Market: FE's earnings (4.7% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: FE's revenue (1.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: FE's revenue (1.7% 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 (17.1%).


Next Steps

Past Performance

How has FirstEnergy performed over the past 5 years?

-3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FE has high quality earnings.

Growing Profit Margin: FE's current net profit margins (11.1%) are higher than last year (-4.7%).


Past Earnings Growth Analysis

Earnings Trend: FE's earnings have declined by -3.7% per year over the past 5 years.

Accelerating Growth: FE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electric Utilities industry (2%).


Return on Equity

High ROE: FE's Return on Equity (16.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is FirstEnergy's financial position?


Financial Position Analysis

Short Term Liabilities: FE's short term assets ($2.6B) do not cover its short term liabilities ($4.2B)

Long Term Liabilities: FE's short term assets (2.6B) do not cover its long term liabilities (30.0B)


Debt to Equity History and Analysis

Debt Level: FE's debt to equity ratio (285.2%) is considered high

Reducing Debt: FE's debt to equity ratio has increased from 169.1% to 285.2% over the past 5 years.

Debt Coverage: FE's debt is not well covered by operating cash flow (12.5%).

Interest Coverage: FE's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

Inventory Level: FE has a high level of physical assets or inventory.

Debt Coverage by Assets: FE's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

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

3.32%

Current Dividend Yield


Upcoming Dividend Payment

Purchase FirstEnergy before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.3%marketbottom25%1.4%markettop25%3.6%industryaverage3.2%forecastin3Years3.4%

Current dividend yield vs market & industry

Notable Dividend: FE's dividend (3.32%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: FE's dividend (3.32%) is low compared to the top 25% of dividend payers in the US market (3.65%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.9%), FE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FE's dividends in 3 years are forecast to be covered by earnings (62.3% payout ratio).


Next Steps

Management

What is the CEO of FirstEnergy's salary, the management and board of directors tenure and is there insider trading?

7.3yrs

Average management tenure


CEO

Chuck Jones (63yo)

4.8yrs

Tenure

US$11,123,128

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. Mr. Jones has been Senior Vice President and Chi ...


CEO Compensation Analysis

Compensation vs Market: Chuck's total compensation ($USD11.12M) is about average for companies of similar size in the US market ($USD11.01M).

Compensation vs Earnings: Chuck's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.3yrs

Average Tenure

54.5yo

Average Age

Experienced Management: FE's management team is seasoned and experienced (7.3 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

63yo

Average Age

Experienced Board: FE's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$123,41930 May 19
Christopher Pappas
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$41.14
SellUS$1,008,49312 Mar 19
Leila Vespoli
EntityIndividual
Shares24,400
Max PriceUS$41.33

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.2%.


Management Team

  • Bennett Gaines (65yo)

    Senior VP of Corporate Services & Chief Information Officer - FirstEnergy Service Company

    • Tenure: 0yrs
    • Compensation: US$1.44m
  • Chuck Jones (63yo)

    President

    • Tenure: 4.8yrs
    • Compensation: US$11.12m
  • Chris Walker (54yo)

    Senior VP & Chief Human Resources Officer - FirstEnergy Service Company

    • Tenure: 14.5yrs
  • Steve Strah (55yo)

    Senior VP & CFO - FirstEnergy Service Company

    • Tenure: 4.8yrs
    • Compensation: US$3.50m
  • Robert Reffner (68yo)

    • Tenure: 0yrs
  • John Judge

    Chief Risk Officer and Vice President of Corporate Risk

    • Tenure: 7.3yrs
  • Kevin Burgess (54yo)

    Vice President of Risk & Internal Audit

    • Tenure: 0yrs
  • Sam Belcher (51yo)

    Senior VP & President of FirstEnergy Utilities

    • Tenure: 1.7yrs
    • Compensation: US$3.11m
  • Irene Prezelj (52yo)

    Vice President of Investor Relations

    • Tenure: 8yrs
  • Gretchan Sekulich

    Vice President of Communications & Marketing

    • Tenure: 8.8yrs

Board Members

  • Jim O'Neil (60yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$245.48k
  • Steve Demetriou (61yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$229.90k
  • Mike Anderson (67yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$254.20k
  • Chris Pappas (63yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$247.40k
  • Julia Johnson (56yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$229.90k
  • Chuck Jones (63yo)

    President

    • Tenure: 4.8yrs
    • Compensation: US$11.12m
  • Tom Mitchell (63yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$248.40k
  • Sandra Pianalto (64yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$197.94k
  • Don Misheff (62yo)

    Non-executive Chairman

    • Tenure: 1.5yrs
    • Compensation: US$331.48k
  • Luis Reyes (67yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$232.88k

Company Information

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


Key Information

  • Name: FirstEnergy Corp.
  • Ticker: FE
  • Exchange: NYSE
  • Founded: 1996
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: US$25.416b
  • Shares outstanding: 540.31m
  • 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

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 Analysis2019/11/16 23:35
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.