FirstEnergy Corp. (FE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Edison International

Eversource Energy

Entergy Corp.

FirstEnergy Corp.

WEC Energy Group, Inc.

PG&E Corp.

Constellation Energy Corp.

Consolidated Edison, Inc.

Xcel Energy, Inc.

Public Service Enterprise Group, Inc.

DTE Energy Co.

Why is FirstEnergy Corp. ?

Weak Long Term Fundamental Strength with a 3.18% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.84 times
The company has been able to generate a Return on Capital Employed (avg) of 6.42% signifying low profitability per unit of total capital (equity and debt)

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 3,538 MM
NET PROFIT(Q) At USD 286.8 MM has Grown at 198.42%
RAW MATERIAL COST(Y) Fallen by -29.86% (YoY)

With ROCE of 6.77%, it has a very expensive valuation with a 1.29 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 9.25%, its profits have risen by 12.1% ; the PEG ratio of the company is 1.5

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to FirstEnergy Corp. should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is FirstEnergy Corp. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

FirstEnergy Corp.

9.35%

0.79

20.44%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.27%

EBIT Growth (5y)

3.18%

EBIT to Interest (avg)

2.02

Debt to EBITDA (avg)

6.84

Net Debt to Equity (avg)

1.96

Sales to Capital Employed (avg)

0.37

Tax Ratio

22.41%

Dividend Payout Ratio

99.41%

Pledged Shares

Institutional Holding

89.65%

ROCE (avg)

6.42%

ROE (avg)

11.62%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.87

EV to EBIT

19.10

EV to EBITDA

11.87

EV to Capital Employed

1.29

EV to Sales

3.45

PEG Ratio

1.51

Dividend Yield

4.21%

ROCE (Latest)

6.77%

ROE (Latest)

10.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 3,538 MM

NET PROFIT(Q)

At USD 286.8 MM has Grown at 198.42%

RAW MATERIAL COST(Y)

Fallen by -29.86% (YoY

DIVIDEND PER SHARE(HY)

Highest at USD 6.79

PRE-TAX PROFIT(Q)

At USD 430 MM has Grown at 73.39%

-3What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 17.79 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.79 times

Here's what is working for FirstEnergy Corp.

Operating Cash Flow

Highest at USD 3,538 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Profit

At USD 286.8 MM has Grown at 198.42%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Pre-Tax Profit

At USD 430 MM has Grown at 73.39%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Dividend per share

Highest at USD 6.79

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -29.86% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for FirstEnergy Corp.

Inventory Turnover Ratio

Lowest at 17.79 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 6.79 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio