FirstEnergy (FE) AI Stock Analysis

• Market Cap: $22.95B
• Dividend Yield: 4.48%
• Average Volume (3M): 4.92M
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.20
• Revenue Growth: 7.92%
• EPS Growth: 1.54%
• Country: US
• Employees: 12,294
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.67
• Shares Outstanding: 577,156,250
• 10 Day Avg. Volume: 4,926,270
• 30 Day Avg. Volume: 4,918,816
• PEG Ratio: 2.00
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -34.02
• Enterprise Value/Market Cap: 2.08
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 6.02
• Enterprise Value/Ebitda: 3.03
• 1Y Price Target: $44.90
• Price Target Upside: 12.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 72 Outperform
• Price Target: $45.00 ▲(13.18%Upside)

FirstEnergy's solid financial performance and strategic investments drive a strong stock score. Positive earnings call insights and consistent dividend yield further contribute to investor confidence. Technical indicators suggest caution with current market trends, yet the overall valuation remains attractive.

Positive Factors

Financial Guidance

FE initiated '25 EPS guidance of $2.40-2.60, the midpoint of which is 5.5% higher than '24 core EPS of $2.37.

Operational Developments

A new report finds PacifiCorp not responsible for the Santiam Canyon fire, which could be seen as a positive development for utilities.

Regulatory Developments

Staff agreed to lift the base rate freeze agreed to as part of ESP IV settlement, allowing for the implementation of new base rates from the pending rate case.

Negative Factors

Earnings Forecast

FE reported 4Q earnings and lowered their earnings forecast due to the removal of non-utility earnings and a reduction in the earnings contribution at the utilities.

Investor Confidence

Concerns on low-quality pension and coal earnings are resurfacing, impacting the confidence in FirstEnergy's financial health.

Regulatory Uncertainty

The Ohio rate case remains an overhang, causing uncertainty for FirstEnergy's earnings outlook.

FirstEnergy Business Overview & Revenue Model

Company Description

FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. It operates through Regulated Distribution and Regulated Transmission segments. The company owns and operates coal-fired, nuclear, hydroelectric, natural gas, wind, and solar power generating facilities. It operates 24,074 circuit miles of overhead and underground transmission lines; and electric distribution systems, including 273,295 miles of overhead pole line and underground conduit carrying primary, secondary, and street lighting circuits. The company serves approximately 6 million customers in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. FirstEnergy Corp. was incorporated in 1996 and is headquartered in Akron, Ohio.

How the Company Makes Money

FirstEnergy makes money through several key revenue streams. The primary source of revenue is the sale of electricity to its customer base, which includes residential, commercial, and industrial users. The company generates electricity through its fleet of generating plants and purchases it from the wholesale market to meet customer demand. Additionally, FirstEnergy earns revenue from the transmission of electricity across its network of high-voltage lines, charging other utilities for the use of its infrastructure. The company also engages in regulated distribution activities, where it charges customers based on regulated tariffs approved by state utility commissions. These tariffs are designed to cover the costs of service and provide a reasonable return on investment. Significant partnerships with other utilities and energy providers, as well as strategic asset management, contribute to FirstEnergy's financial performance.

FirstEnergy Financial Statement Overview

Summary

FirstEnergy demonstrates solid financial performance with consistent revenue growth and robust gross margins, albeit with some pressure on net profitability. The balance sheet shows moderate leverage typical for the industry, while cash flow improvements indicate a positive trajectory. Overall, the company is in a stable financial position with opportunities for enhancing profitability and cash flow.

Income Statement

FirstEnergy has shown steady revenue growth with a 3.55% increase in the latest TTM period compared to the previous year. The gross profit margin stands at a robust 56.77%, indicating efficient cost management. However, the net profit margin is relatively lower at 8.16%, suggesting room for improving profitability. The EBIT and EBITDA margins are at 18.04% and 30.54% respectively, reflecting solid operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 1.84, which indicates a moderate level of leverage, typical for the regulated electric industry. The return on equity (ROE) is 9.06%, showing a reasonable return for shareholders, though there's potential for improvement. The equity ratio stands at 23.81%, signifying a balanced approach to asset financing.

Cash Flow

FirstEnergy's free cash flow has improved significantly, turning positive at $328 million in the TTM, from a negative position previously. The operating cash flow to net income ratio of 3.13 suggests strong cash generation relative to net income. This indicates a healthy cash flow position, though there is room for enhancing free cash flow sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.95B	13.47B	12.87B	12.46B	11.13B	10.79B
Gross Profit	7.92B	9.10B	8.22B	7.87B	7.69B	7.72B
EBITDA	4.27B	4.10B	3.73B	3.45B	4.24B	3.39B
Net Income	1.08B	978.00M	1.10B	406.00M	1.28B	1.08B
Balance Sheet
Total Assets	52.77B	52.04B	48.77B	46.11B	45.43B	44.46B
Cash, Cash Equivalents and Short-Term Investments	132.00M	111.00M	137.00M	160.00M	1.46B	1.73B
Total Debt	24.79B	24.02B	24.91B	21.65B	23.85B	24.48B
Total Liabilities	38.91B	38.32B	37.85B	35.47B	36.76B	37.23B
Stockholders Equity	12.57B	12.46B	10.44B	10.17B	8.68B	7.24B
Cash Flow
Free Cash Flow	-677.00M	-1.14B	-1.97B	-73.00M	366.00M	-1.23B
Operating Cash Flow	3.57B	2.89B	1.39B	2.68B	2.81B	1.42B
Investing Cash Flow	-4.58B	-4.35B	-3.65B	-3.08B	-2.56B	-2.91B
Financing Cash Flow	260.00M	1.43B	2.24B	-912.00M	-542.00M	2.61B

FirstEnergy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FE, the sentiment is Negative. The current price of 39.76 is below the 20-day moving average (MA) of 40.18, below the 50-day MA of 41.36, and below the 200-day MA of 40.51, indicating a bearish trend. The MACD of -0.33 indicates Negative momentum. The RSI at 40.72 is Neutral, neither overbought nor oversold. The STOCH value of 49.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FE.

FirstEnergy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPL	73 Outperform	$24.79B	25.04	7.00%	3.25%	5.62%	30.02%
FE	72 Outperform	$22.95B	21.15	8.69%	4.48%	7.92%	1.54%
CMS	71 Outperform	$20.98B	20.75	12.53%	3.09%	5.87%	3.59%
ES	71 Outperform	$23.68B	27.83	5.63%	4.67%	10.82%	―
EIX	67 Neutral	$20.35B	7.50	17.93%	6.30%	5.36%	209.92%
Sector *	67 Neutral	$16.39B	16.97	4.47%	3.56%	4.77%	6.10%
CNP	62 Neutral	$23.35B	24.05	9.22%	2.46%	4.76%	4.08%

FirstEnergy Corporate Events

FirstEnergy Updates Incentive Program Metrics to Core EPS

On June 17, 2025, FirstEnergy‘s Board of Directors approved a modification to the key performance indicators for its Long-term Incentive Compensation Program, replacing Operating EPS with Core EPS for performance periods in 2025 and 2026. This strategic shift aligns with the company’s transition to reporting based on Core EPS, reflecting its focus on regulated operations and providing consistent performance metrics for management incentives.

The most recent analyst rating on (FE) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on FirstEnergy stock, see the FE Stock Forecast page.

FirstEnergy Completes $2.5 Billion Convertible Note Offering

On June 12, 2025, FirstEnergy Corp. completed a $2.5 billion convertible note offering, issuing $1.35 billion in 3.625% Convertible Senior Notes due 2029 and $1.15 billion in 3.875% Convertible Senior Notes due 2031. The company plans to use approximately $1.2 billion of the net proceeds to repurchase a portion of its outstanding 4.00% convertible senior notes due 2026. This strategic financial maneuver is expected to impact the market price of FirstEnergy’s common stock and the 2026 Notes, as holders may adjust their positions and employ convertible arbitrage strategies, potentially affecting the effective conversion price of the new Notes.

The most recent analyst rating on (FE) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on FirstEnergy stock, see the FE Stock Forecast page.

FirstEnergy Announces $2.15 Billion Notes Offering

On June 9, 2025, FirstEnergy Corp. announced the pricing of its $2.15 billion convertible senior notes offering, with $1.15 billion due in 2029 and $1 billion due in 2031, in a private placement. The proceeds, expected to be approximately $2.13 billion, will be used for repurchasing existing notes, refinancing debt, and general corporate purposes, potentially impacting the company’s financial strategy and market positioning.

The most recent analyst rating on (FE) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on FirstEnergy stock, see the FE Stock Forecast page.

FirstEnergy Announces Convertible Senior Notes Offering

On June 9, 2025, FirstEnergy Corp. announced its intention to offer $950 million in Convertible Senior Notes due 2029 and $850 million due 2031, subject to market conditions. The proceeds from this private placement will be used for repurchasing existing notes, refinancing debt, and other corporate purposes, potentially impacting the company’s financial strategy and market positioning.

The most recent analyst rating on (FE) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on FirstEnergy stock, see the FE Stock Forecast page.

FirstEnergy Confirms Board and Auditor at Annual Meeting

FirstEnergy Corp. held its Annual Meeting of Shareholders virtually on May 21, 2025, where several key decisions were made. The election of board members was confirmed, the appointment of PricewaterhouseCoopers LLP as the independent auditor for 2025 was ratified, and executive compensation was approved. However, a shareholder proposal for a report on lobbying activities was not approved.

The most recent analyst rating on (FE) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on FirstEnergy stock, see the FE Stock Forecast page.

FirstEnergy Reports Strong Q1 2025 Financial Results

FirstEnergy Corp. reported a significant improvement in its first quarter 2025 financial results, with GAAP earnings rising to $0.62 per share from $0.44 per share in the same period of 2024. The company also achieved Core Earnings of $0.67 per share, up from $0.49 per share in the previous year. This growth is attributed to new base rates in several states, increased customer demand, and lower financing costs. FirstEnergy is on track with its $5 billion investment plan for 2025, part of a broader $28 billion Energize365 program through 2029. The company reaffirmed its full-year 2025 Core Earnings guidance of $2.40 to $2.60 per share and a 6-8% annual growth rate target through 2029.