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FirstEnergy

NYSE:FE
Snowflake Description

Second-rate dividend payer with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FE
NYSE
$23B
Market Cap
  1. Home
  2. US
  3. Utilities
Company description

FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. The last earnings update was 56 days ago. More info.


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FE Share Price and Events
7 Day Returns
1.8%
NYSE:FE
1.3%
US Electric Utilities
0.1%
US Market
1 Year Returns
24.6%
NYSE:FE
19.9%
US Electric Utilities
1.2%
US Market
FE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
FirstEnergy (FE) 1.8% 2.4% 7.2% 24.6% 29.7% 26.6%
US Electric Utilities 1.3% 3.1% 5.3% 19.9% 18% 38.6%
US Market 0.1% 0.6% 0.9% 1.2% 36.7% 37.9%
1 Year Return vs Industry and Market
  • FE outperformed the Electric Utilities industry which returned 19.9% over the past year.
  • FE outperformed the Market in United States of America which returned 1.2% over the past year.
Price Volatility
FE
Industry
5yr Volatility vs Market

FE Value

 Is FirstEnergy undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of FirstEnergy to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for FirstEnergy.

NYSE:FE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:FE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electric Utilities Unlevered Beta Simply Wall St/ S&P Global 0.28
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.279 (1 + (1- 21%) (88.82%))
0.648
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NYSE:FE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for FirstEnergy is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:FE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 -221.00 Analyst x1 -205.59
2020 550.00 Analyst x2 475.95
2021 634.00 Analyst x1 510.37
2022 702.21 Est @ 10.76% 525.85
2023 760.84 Est @ 8.35% 530.02
2024 811.54 Est @ 6.66% 525.90
2025 856.04 Est @ 5.48% 516.05
2026 895.91 Est @ 4.66% 502.41
2027 932.46 Est @ 4.08% 486.44
2028 966.72 Est @ 3.67% 469.13
Present value of next 10 years cash flows $4,336.54
NYSE:FE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $966.72 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$20,828.66
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $20,828.66 ÷ (1 + 7.5%)10
$10,107.82
NYSE:FE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,336.54 + $10,107.82
$14,444.36
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $14,444.36 / 531.44
$27.18
NYSE:FE Discount to Share Price
Calculation Result
Value per share (USD) From above. $27.18
Current discount Discount to share price of $43.51
= -1 x ($43.51 - $27.18) / $27.18
-60.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of FirstEnergy is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for FirstEnergy's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are FirstEnergy's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:FE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.94
NYSE:FE Share Price ** NYSE (2019-06-18) in USD $43.51
United States of America Electric Utilities Industry PE Ratio Median Figure of 26 Publicly-Listed Electric Utilities Companies 22.51x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.63x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of FirstEnergy.

NYSE:FE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:FE Share Price ÷ EPS (both in USD)

= 43.51 ÷ 1.94

22.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • FirstEnergy is good value based on earnings compared to the US Electric Utilities industry average.
  • FirstEnergy is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does FirstEnergy's expected growth come at a high price?
Raw Data
NYSE:FE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.44x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
4.6%per year
United States of America Electric Utilities Industry PEG Ratio Median Figure of 22 Publicly-Listed Electric Utilities Companies 3.21x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NYSE:FE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.44x ÷ 4.6%

4.91x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • FirstEnergy is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on FirstEnergy's assets?
Raw Data
NYSE:FE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $13.00
NYSE:FE Share Price * NYSE (2019-06-18) in USD $43.51
United States of America Electric Utilities Industry PB Ratio Median Figure of 29 Publicly-Listed Electric Utilities Companies 2.16x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:FE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:FE Share Price ÷ Book Value per Share (both in USD)

= 43.51 ÷ 13.00

3.35x

* Primary Listing of FirstEnergy.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • FirstEnergy is overvalued based on assets compared to the US Electric Utilities industry average.
X
Value checks
We assess FirstEnergy's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check)
  5. FirstEnergy has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

FE Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is FirstEnergy expected to grow at an attractive rate?
  • FirstEnergy's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • FirstEnergy's earnings growth is positive but not above the United States of America market average.
  • FirstEnergy's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:FE Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:FE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 4.6%
NYSE:FE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 2%
United States of America Electric Utilities Industry Earnings Growth Rate Market Cap Weighted Average 8%
United States of America Electric Utilities Industry Revenue Growth Rate Market Cap Weighted Average 2.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:FE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:FE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 3,117
2021-12-31 12,018 2,949 1,434 8
2020-12-31 11,803 2,796 1,357 12
2019-12-31 11,560 2,179 1,392 11
NYSE:FE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 11,282 2,108 980
2018-12-31 11,261 1,410 655
2018-09-30 11,220 1,604 -591
2018-06-30 11,068 2,038 -623
2018-03-31 11,035 2,143 -521
2017-12-31 10,928 3,808 -289
2017-09-30 11,233 3,553 -5,024
2017-06-30 12,231 3,393 -4,945
2017-03-31 13,149 3,518 -6,248
2016-12-31 10,700 3,383 551
2016-09-30 14,322 3,722 -607
2016-06-30 14,530 3,929 -592

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • FirstEnergy's earnings are expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
  • FirstEnergy's revenue is expected to grow by 2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:FE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from FirstEnergy Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:FE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 2.64 2.66 2.60 4.00
2020-12-31 2.50 2.61 2.44 6.00
2019-12-31 2.58 2.60 2.55 5.00
NYSE:FE Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.94
2018-12-31 1.33
2018-09-30 -1.25
2018-06-30 -1.36
2018-03-31 -1.15
2017-12-31 -0.65
2017-09-30 -11.41
2017-06-30 -11.34
2017-03-31 -14.50
2016-12-31 1.29
2016-09-30 -1.43
2016-06-30 -1.40

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • FirstEnergy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess FirstEnergy's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
FirstEnergy has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

FE Past Performance

  How has FirstEnergy performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare FirstEnergy's growth in the last year to its industry (Electric Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • FirstEnergy's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • FirstEnergy has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • FirstEnergy has become profitable in the last year making it difficult to compare the US Electric Utilities industry average.
Earnings and Revenue History
FirstEnergy's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from FirstEnergy Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:FE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 11,282.00 980.00 179.00
2018-12-31 11,261.00 655.00 144.00
2018-09-30 11,220.00 -591.00 35.00
2018-06-30 11,068.00 -623.00 42.00
2018-03-31 11,035.00 -521.00 92.00
2017-12-31 10,928.00 -289.00 129.00
2017-09-30 11,233.00 -5,024.00 170.00
2017-06-30 12,231.00 -4,945.00 163.00
2017-03-31 13,149.00 -6,248.00 113.00
2016-12-31 10,700.00 551.00 108.00
2016-09-30 14,322.00 -607.00 242.00
2016-06-30 14,530.00 -592.00 242.00
2016-03-31 14,590.00 684.00 242.00
2015-12-31 14,610.00 578.00 242.00
2015-09-30 14,549.00 498.00 835.00
2015-06-30 14,318.00 436.00 835.00
2015-03-31 14,346.00 313.00 835.00
2014-12-31 14,629.00 213.00 835.00
2014-09-30 14,766.00 661.00 -256.00
2014-06-30 14,898.00 537.00 -256.00
2014-03-31 14,901.00 305.00 -256.00
2013-12-31 14,434.00 375.00 -256.00
2013-09-30 14,273.00 80.00 609.00
2013-06-30 14,287.00 293.00 609.00
2013-03-31 14,518.00 640.00 609.00
2012-12-31 14,771.00 754.00 609.00
2012-09-30 15,106.00 1,005.00 507.00
2012-06-30 15,760.00 1,115.00 507.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • FirstEnergy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • FirstEnergy used its assets more efficiently than the US Electric Utilities industry average last year based on Return on Assets.
  • FirstEnergy has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess FirstEnergy's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
FirstEnergy has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

FE Health

 How is FirstEnergy's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up FirstEnergy's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • FirstEnergy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • FirstEnergy's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of FirstEnergy's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from FirstEnergy Company Filings, last reported 2 months ago.

NYSE:FE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 6,932.00 20,539.00 174.00
2018-12-31 6,814.00 19,504.00 367.00
2018-09-30 6,873.00 19,436.00 436.00
2018-06-30 7,699.00 19,257.00 256.00
2018-03-31 7,375.00 19,097.00 248.00
2017-12-31 3,925.00 19,545.00 588.00
2017-09-30 6,406.00 22,665.00 399.00
2017-06-30 6,320.00 22,822.00 114.00
2017-03-31 6,139.00 22,659.00 164.00
2016-12-31 6,241.00 22,552.00 199.00
2016-09-30 11,503.00 22,723.00 551.00
2016-06-30 11,407.00 22,600.00 199.00
2016-03-31 12,464.00 22,358.00 146.00
2015-12-31 12,422.00 21,973.00 131.00
2015-09-30 12,628.00 22,174.00 86.00
2015-06-30 12,531.00 22,770.00 94.00
2015-03-31 12,350.00 22,476.00 90.00
2014-12-31 12,422.00 21,779.00 85.00
2014-09-30 12,704.00 21,538.00 109.00
2014-06-30 12,685.00 21,754.00 76.00
2014-03-31 12,605.00 21,305.00 109.00
2013-12-31 12,695.00 20,650.00 218.00
2013-09-30 12,547.00 20,584.00 222.00
2013-06-30 12,803.00 20,655.00 71.00
2013-03-31 13,000.00 20,260.00 67.00
2012-12-31 13,093.00 19,147.00 172.00
2012-09-30 13,449.00 18,704.00 150.00
2012-06-30 13,512.00 18,626.00 94.00
  • FirstEnergy's level of debt (293.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (169% vs 293.1% today).
  • Debt is not well covered by operating cash flow (10.4%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess FirstEnergy's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. FirstEnergy has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

FE Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.49%
Current annual income from FirstEnergy dividends. Estimated to be 3.65% next year.
If you bought $2,000 of FirstEnergy shares you are expected to receive $70 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • FirstEnergy's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • FirstEnergy's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:FE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
United States of America Electric Utilities Industry Average Dividend Yield Market Cap Weighted Average of 27 Stocks 3.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:FE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 1.76 2.00
2021-12-31 1.65 11.00
2020-12-31 1.58 14.00
2019-12-31 1.52 14.00
NYSE:FE Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-19 1.520 3.640
2018-11-12 1.520 3.909
2018-09-18 1.440 3.845
2018-07-17 1.440 3.934
2018-03-20 1.440 4.179
2018-01-16 1.440 4.481
2017-09-19 1.440 4.504
2017-07-18 1.440 4.496
2017-03-21 1.440 4.825
2017-01-17 1.440 4.686
2016-09-20 1.440 4.493
2016-07-19 1.440 4.303
2016-03-15 1.440 4.189
2016-01-19 1.440 4.312
2015-09-15 1.440 4.584
2015-07-21 1.440 4.393
2015-03-17 1.440 4.138
2015-01-20 1.440 3.868
2014-09-16 1.440 3.933
2014-07-15 1.440 4.386
2014-03-18 1.440 4.306
2014-01-21 1.440 4.625
2013-09-17 2.200 6.321
2013-07-16 2.200 5.824
2013-03-19 2.200 5.360
2012-12-21 2.200 5.428
2012-09-18 2.200 5.093
2012-07-17 2.200 4.769
2012-03-20 2.200 4.674
2011-12-20 2.200 5.076
2011-09-20 2.200 4.941
2011-07-19 2.200 5.090
2011-02-15 2.200 5.434
2010-09-22 2.200 5.872
2010-07-20 2.200 5.928
2010-03-16 2.200 5.927
2009-12-15 2.200 5.129
2009-09-15 2.200 4.921
2009-07-21 2.200 5.023

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of FirstEnergy's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess FirstEnergy's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can FirstEnergy afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. FirstEnergy has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

FE Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chuck Jones
COMPENSATION $11,123,128
AGE 62
TENURE AS CEO 4.4 years
CEO Bio

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 Chief Financial Officer of American Transmission Systems since March 5, 2018. Mr. Jones served as President of American Transmission Systems until March 4, 2018. Mr. Jones serves as Director at Potomac Edison Company. He has been the Chief Executive Officer, President and Director of FirstEnergy Corp. since January 1, 2015. He serves as Director of Monongahela Power Company. Mr. Jones served as Principal Executive Officer of FES and President of FES at FirstEnergy Generation, LLC. Mr. Jones served as the President of Pennsylvania Electric Company until 2015. He served as the President of Firstenergy Utilities at FirstEnergy Corp. since April 1, 2010 until December 31, 2015 and served as its Executive Vice President since January 01, 2014 until 2015, Senior Vice President from 2010 to 2011. He served as Principal Executive Officer of Ohio Edison Company and its President from 2010 to 2015. He served as President of Metropolitan Edison Company since 2009 and served as its Principal Executive Officer. Mr. Jones served as President and Principal Executive Officer of The Toledo Edison Company. He served as Principal Executive Officer of Ohio Edison Company until 2015. He served as a Senior Vice President of Pennsylvania Power Company since 2005 and serves as Director. He served as the President of The Cleveland Electric Illuminating Company since 2010 and serves as its Principal Executive Officer. Mr. Jones served as Executive Vice President and President of Firstenergy Utilities at FirstEnergy Corp from 2014 to December 31, 2014. He served as Principal Executive Officer and President of Pennsylvania Electric Company. He served as Senior Vice President at FirstEnergy Corp., since 2011. He served as Senior Vice President of FirstEnergy Corp. from April 1, 2010 to 2011. Mr. Jones also served as the Chief Information Officer of Pennsylvania Electric Company since 2003. He served as Senior Vice President – Energy Delivery & Customer Service at Pennsylvania Electric Company since 2009. He served as Senior Vice President of Energy Delivery & Customer Service at Metropolitan Edison Company from February 2, 2009 to March 31, 2010. He served as Senior Vice President of Energy Delivery & Customer Service of FirstEnergy Solutions Corp. from February 2, 2009 to April 1, 2010. Mr. Jones served as Chief Information Officer and Vice President of Cleveland Electric Illuminating Company since 2003 and Senior Vice President of Toledo Edison Company since 2003. He serves as a Director of Toledo Edison Company. Mr. Jones served as Senior Vice President of Ohio Edison Co. from 2003 to 2007 and Cleveland Electric Illuminating Co. since 2003. He served as Chief Information officer of Ohio Edison Company since 2003. Mr. Jones served as the President of FirstEnergy Solutions Corp. from March 1, 2007 to February 2, 2009 and also served as its Principal Executive Officer. He served as Senior Vice President and Vice President of Pennsylvania Electric Company since 2003. He served as Senior Vice President of FirstEnergy Service for FirstEnergy Corp. He served as President of Northern Region for Ohio Edison Co. from 1997 to 2001 and as Vice President of Regional Operations from 2001 to 2003. He served as Regional Vice President of Operations of Cleveland Electric Illuminating Co. from 2001 to 2003 and President of Northern Region from January 1, 2001 to 2001. He began his career with Ohio Edison in 1978 as a Substation Engineer in 1978. He held a variety of positions in the Akron, Marion and Elyria areas and in 1995 was named President of Ohio Edison's Penn Power subsidiary, based in New Castle, Pennsylvania. He returned to Akron in 1996 as Division Manager. He served as Director at Allegheny Generating Company until January 16, 2017. He has been a Director of FirstEnergy Corp. since January 1, 2015. Mr. Jones serves as a Director of Jersey Central Power & Light Company, a subsidiary of FirstEnergy Corp., and Metropolitan Edison Company. He serves as a Director of Cleveland Electric Illuminating Company and Pennsylvania Electric Company. He served as a Director of FirstEnergy Solutions Corp. since 2015 until November 15, 2016. Mr. Jones serves on the board of the Greater Cleveland Growth Association, City of Akron's Workforce Initiative, Cascade Locks Park Association and Great Lakes Innovation and Development Enterprise. He served on the boards of the Cuyahoga County chapter of the American Red Cross, United Way Services, Youth Opportunities Unlimited and Cleveland Initiative for Education and the Cleveland Tomorrow Deputy Board. Mr. Jones attended United States Naval Academy for two years and was a Member of the Institute of Electrical and Electronics Engineers. Mr. Jones received a Bachelor of Science degree in Electrical Engineering from University of Akron. He also completed the Massachusetts Institute of Technology's Reactor Technology Program for Utility Executives.

CEO Compensation
  • Chuck's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Chuck's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the FirstEnergy management team in years:

2.9
Average Tenure
54.5
Average Age
  • The tenure for the FirstEnergy management team is about average.
Management Team

Chuck Jones

TITLE
President
COMPENSATION
$11M
AGE
62
TENURE
4.4 yrs

Steve Strah

TITLE
Senior VP & CFO
COMPENSATION
$3M
AGE
54
TENURE
1.3 yrs

Bennett Gaines

TITLE
Senior VP of Corporate Services & Chief Information Officer
COMPENSATION
$1M
AGE
64

Sam Belcher

TITLE
Senior VP & President of FirstEnergy Utilities
COMPENSATION
$3M
AGE
50
TENURE
1.3 yrs

Jason Lisowski

TITLE
VP, Controller & Chief Accounting Officer
AGE
37
TENURE
1.4 yrs

Irene Prezelj

TITLE
Vice President of Investor Relations
AGE
51
TENURE
7.6 yrs

Robert Reffner

TITLE
Senior VP & General Counsel
AGE
67
TENURE
1.4 yrs

Gretchan Sekulich

TITLE
Vice President of Communications & Marketing
TENURE
8.3 yrs

Charlie Lasky

TITLE
Senior VP of HR & Chief Human Resources Officer
AGE
55

John Judge

TITLE
Chief Risk Officer and Vice President of Corporate Risk
TENURE
6.8 yrs
Board of Directors Tenure

Average tenure and age of the FirstEnergy board of directors in years:

3.9
Average Tenure
62
Average Age
  • The tenure for the FirstEnergy board of directors is about average.
Board of Directors

Don Misheff

TITLE
Chairman of the Board
COMPENSATION
$331K
AGE
61
TENURE
1.1 yrs

Chuck Jones

TITLE
President
COMPENSATION
$11M
AGE
62
TENURE
4.4 yrs

Mike Anderson

TITLE
Director
COMPENSATION
$254K
AGE
66
TENURE
12.3 yrs

Julia Johnson

TITLE
Director
COMPENSATION
$230K
AGE
55
TENURE
8.3 yrs

Chris Pappas

TITLE
Director
COMPENSATION
$247K
AGE
62
TENURE
7.8 yrs

Jim O'Neil

TITLE
Director
COMPENSATION
$245K
AGE
59
TENURE
2.4 yrs

Luis Reyes

TITLE
Director
COMPENSATION
$233K
AGE
66
TENURE
5.8 yrs

Tom Mitchell

TITLE
Director
COMPENSATION
$248K
AGE
62
TENURE
3.4 yrs

Steve Demetriou

TITLE
Director
COMPENSATION
$230K
AGE
60
TENURE
2.4 yrs

Sandra Pianalto

TITLE
Director
COMPENSATION
$198K
AGE
63
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by FirstEnergy insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
30. May 19 Buy Christopher Pappas Individual 30. May 19 30. May 19 3,000 $41.14 $123,419
12. Mar 19 Sell Leila Vespoli Individual 11. Mar 19 11. Mar 19 -24,400 $41.33 $-1,008,493
X
Management checks
We assess FirstEnergy's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. FirstEnergy has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

FE News

Simply Wall St News

Can FirstEnergy Corp. (NYSE:FE) Maintain Its Strong Returns?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for FirstEnergy: 17% = US$980m ÷ US$6.9b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … How Does Debt Impact Return On Equity? … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

Does FirstEnergy Corp.'s (NYSE:FE) CEO Pay Matter?

Chuck Jones has been the CEO of FirstEnergy Corp. … View our latest analysis for FirstEnergy How Does Chuck Jones's Compensation Compare With Similar Sized Companies? … Boasting a total shareholder return of 50% over three years, FirstEnergy Corp.

Simply Wall St -

FirstEnergy Corp (NYSE:FE): Assessing Capital Returns

Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … To understand FirstEnergy’s capital returns we will look at a useful metric called return on capital employed. … What is Return on Capital Employed (ROCE)?

Simply Wall St -

Is FirstEnergy Corp's (NYSE:FE) CEO Being Overpaid?

Chuck Jones is the CEO of FirstEnergy Corp (NYSE:FE), which has recently grown to a market capitalization of US$16.70b. … Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … This is because, if incentives are aligned, more value is created for shareholders which directly impacts your returns as an investor.

Simply Wall St -

Is FirstEnergy Corp (NYSE:FE) A Smart Choice For Dividend Investors?

Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. … Over the past 10 years, FirstEnergy Corp (NYSE:FE) has returned an average of 5.00% per year to shareholders in terms of dividend yield. … Let's dig deeper into whether FirstEnergy should have a place in your portfolio.

Simply Wall St -

Should You Be Content With FirstEnergy Corp's (NYSE:FE) Earnings Growth?

I like to use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … This shows that, while FirstEnergy is presently running a loss, it may have been aided by industry tailwinds, moving earnings towards to right direction.What does this mean? … I suggest you continue to research FirstEnergy to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for FE’s future growth?

Simply Wall St -

Should You Buy FirstEnergy Corp (NYSE:FE)?

And if you believe FirstEnergy should be trading in this range, then there isn’t really any room for the share price grow beyond what it’s currently trading. … The stock appears to be trading at fair value, which means there’s less benefit from mispricing. … Furthermore, the negative growth outlook increases the risk of holding the stock.

Simply Wall St -

FirstEnergy Corp (NYSE:FE): What You Have To Know Before Buying For The Upcoming Dividend

See our latest analysis for FirstEnergy How I analyze a dividend stock When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Is its annual yield among the top 25% of dividend-paying companies? … FirstEnergy has a negative payout ratio, which means that it is loss-making, and paying its dividend from its retained earnings. … Next Steps: Whilst there are few things you may like about FirstEnergy from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor.

Simply Wall St -

Is FirstEnergy Corp's (NYSE:FE) Balance Sheet Strong Enough To Weather A Storm?

See our latest analysis for FirstEnergy How does FE’s operating cash flow stack up against its debt? … On top of this, FE has generated US$3.81B in operating cash flow in the last twelve months, resulting in an operating cash to total debt ratio of 16.93%, indicating that FE’s debt is not appropriately covered by operating cash. … NYSE:FE Historical Debt Apr 23rd 18 Is FE’s debt level acceptable?

Simply Wall St -

FirstEnergy Corp's (NYSE:FE) Sustainability In Question?

FirstEnergy Corp (NYSE:FE) is a company I've been following for a while, and one that I believe the market is over-hyped about. … It's crucial to understand if a company has a strong future based on its current operations and financial status. … A good company is reflected in its financials, and for FE, the financials don't look good.

Simply Wall St -

FE Company Info

Description

FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. The company operates through Regulated Distribution and Regulated Transmission segments. It owns and operates coal-fired, nuclear, hydroelectric, natural gas, wind, and solar power generating facilities. The company also provides energy-related products and services to retail and wholesale customers. It operates 24,506 circuit miles of overhead and underground transmission lines; and electric distribution systems, including 277,284 miles of overhead pole line and underground conduit carrying primary, secondary, and street lighting circuits, as well as owns substations with a total installed transformer capacity of approximately 164,611,989 kilovolt-amperes. The company serves approximately six million customers in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. FirstEnergy Corp. was founded in 1996 and is headquartered in Akron, Ohio.

Details
Name: FirstEnergy Corp.
FE
Exchange: NYSE
Founded: 1996
$23,123,054,864
531,442,309
Website: http://www.firstenergycorp.com
Address: FirstEnergy Corp.
76 South Main Street,
Akron,
Ohio, 44308,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE FE Common Shares New York Stock Exchange US USD 10. Nov 1997
DB FE7 Common Shares Deutsche Boerse AG DE EUR 10. Nov 1997
LSE 0IPB Common Shares London Stock Exchange GB USD 10. Nov 1997
BMV FE * Common Shares Bolsa Mexicana de Valores MX MXN 10. Nov 1997
Number of employees
Current staff
Staff numbers
12,494
FirstEnergy employees.
Industry
Electric Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 23:37
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2019/06/18
Last earnings filing: 2019/04/23
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.