FirstEnergy Corp.
FirstEnergy Corp. Fundamental Analysis
FirstEnergy Corp. (FE) shows weak financial fundamentals with a PE ratio of 29.03, profit margin of 6.76%, and ROE of 8.04%. The company generates $15.1B in annual revenue with moderate year-over-year growth of 4.68%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FE's fundamental strength across five key dimensions:
Efficiency Score
WeakFE struggles to generate sufficient returns from assets.
Valuation Score
ModerateFE shows balanced valuation metrics.
Growth Score
WeakFE faces weak or negative growth trends.
Financial Health Score
WeakFE carries high financial risk with limited liquidity.
Profitability Score
WeakFE struggles to sustain strong margins.
Key Financial Metrics
Is FE Expensive or Cheap?
P/E Ratio
FE trades at 29.03 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FE's PEG of -1.25 indicates potential undervaluation.
Price to Book
The market values FirstEnergy Corp. at 2.37 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.61 times EBITDA. This is generally considered low.
How Well Does FE Make Money?
Net Profit Margin
For every $100 in sales, FirstEnergy Corp. keeps $6.76 as profit after all expenses.
Operating Margin
Core operations generate 18.77 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.04 in profit for every $100 of shareholder equity.
ROA
FirstEnergy Corp. generates $1.82 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
FirstEnergy Corp. produces operating cash flow of $3.71B, showing steady but balanced cash generation.
Free Cash Flow
FirstEnergy Corp. generates strong free cash flow of $2.54B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.39 in free cash annually.
FCF Yield
FE converts 8.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.37
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.97
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How FE Stacks Against Its Sector Peers
| Metric | FE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.03 | 20.35 | Worse (Expensive) |
| ROE | 8.04% | 922.00% | Weak |
| Net Margin | 6.76% | 765.00% | Weak |
| Debt/Equity | 2.16 | 1.50 | Weak (High Leverage) |
| Current Ratio | 0.57 | 1.44 | Weak Liquidity |
| ROA | 1.82% | -5800.00% (disorted) | Weak |
FE outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews FirstEnergy Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
13.59%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
-0.22%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
9.03%
Industry Style: Defensive, Dividend, Income
Growing