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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Edison International

Eversource Energy

PG&E Corp.

Constellation Energy Corp.

Public Service Enterprise Group, Inc.

FirstEnergy Corp.

WEC Energy Group, Inc.

Entergy Corp.

Consolidated Edison, Inc.

Xcel Energy, 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 9.87%, 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.

21.65%

0.65

20.41%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.94%

EBIT Growth (5y)

5.55%

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

99.73%

Pledged Shares

Institutional Holding

92.87%

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

2.39

EV to EBIT

19.92

EV to EBITDA

12.86

EV to Capital Employed

1.45

EV to Sales

3.74

PEG Ratio

0.25

Dividend Yield

3.43%

ROCE (Latest)

7.26%

ROE (Latest)

15.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

No Trend

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

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 3,700 MM

DIVIDEND PER SHARE(HY)

Highest at USD 7.83

PRE-TAX PROFIT(Q)

Highest at USD 630 MM

NET PROFIT(Q)

Highest at USD 578 MM

-6What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 315.88

RAW MATERIAL COST(Y)

Grown by 10.74% (YoY

OPERATING PROFIT(Q)

Lowest at USD 935 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 24.62 %

EPS(Q)

Lowest at USD -0.08

Here's what is working for FirstEnergy Corp.

Operating Cash Flow

Highest at USD 3,700 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 578 MM has Grown at 121.46%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Pre-Tax Profit

Highest at USD 630 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 630 MM has Grown at 66.23%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 578 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Dividend per share

Highest at USD 7.83

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Here's what is not working for FirstEnergy Corp.

Interest Coverage Ratio

Lowest at 315.88

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at USD 935 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 24.62 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at USD -0.08

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 10.74% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 107.67 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income