FirstEnergy (FE) AI Stock Analysis

• Market Cap: $25.71B
• Dividend Yield: 3.94%
• Average Volume (3M): 4.56M
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.03
• Revenue Growth: 7.64%
• EPS Growth: 48.61%
• Country: US
• Employees: 12,294
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.83
• Shares Outstanding: 577,665,500
• 10 Day Avg. Volume: 4,747,299
• 30 Day Avg. Volume: 4,558,089
• PEG Ratio: -2.04
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 1.70
• P/FCF Ratio: -20.08
• Enterprise Value/Market Cap: 2.10
• Enterprise Value/Revenue: 3.73
• Enterprise Value/Gross Profit: 5.70
• Enterprise Value/Ebitda: 11.75
• 1Y Price Target: $49.67
• Price Target Upside: 11.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $49.00 ▲(9.82% Upside)

FirstEnergy's overall stock score is driven by strong earnings call results and a balanced valuation, offset by technical analysis indicating bearish momentum and financial performance challenges related to high leverage and cash flow issues. The company's strategic investments and positive earnings outlook provide a solid foundation, but operational and market risks remain.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable demand for FirstEnergy's services, supporting long-term business sustainability and market presence.

Capital Investments

Increased capital investments in grid reliability and modernization enhance infrastructure, potentially leading to improved service and competitive advantage.

Transmission Investments

Strong focus on transmission investments supports long-term growth and aligns with industry trends towards infrastructure enhancement.

Negative Factors

High Leverage

Significant leverage poses risks in volatile markets, potentially impacting financial flexibility and increasing vulnerability to economic downturns.

Declining Free Cash Flow

Declining free cash flow can limit the company's ability to invest in growth opportunities and manage debt, affecting long-term financial health.

Rising Customer Bills

Rising customer bills due to energy generation costs could lead to customer dissatisfaction and regulatory scrutiny, impacting future revenue.

FirstEnergy Business Overview & Revenue Model

Company Description

FirstEnergy Corp. is a leading energy company headquartered in Akron, Ohio, focused on the transmission and distribution of electricity. It operates through various subsidiaries, providing electric utility services to customers across the Midwest and Mid-Atlantic regions of the United States. The company primarily serves residential, commercial, and industrial customers and is involved in the generation of electricity through various sources, including nuclear, coal, gas, and renewable energy. FirstEnergy's core products and services include electricity delivery, grid management, and energy efficiency programs.

How the Company Makes Money

FirstEnergy generates revenue primarily through the delivery of electricity to its customers, which includes residential, commercial, and industrial segments. The company earns money by charging customers for the electricity they consume, as well as through transmission and distribution fees. Significant revenue streams include regulated utility operations, which are governed by state public utility commissions and provide a stable income through approved rate structures. Additionally, FirstEnergy derives income from ancillary services related to grid management and reliability. The company also engages in energy efficiency programs and demand response initiatives, often receiving incentives and rebates for reducing energy consumption. FirstEnergy's partnerships with regional transmission organizations (RTOs) and its participation in wholesale electricity markets further contribute to its earnings by allowing the company to optimize its energy generation and transmission capabilities.

FirstEnergy Financial Statement Overview

Summary

FirstEnergy shows solid revenue growth and profitability improvements, but faces challenges with high leverage and declining free cash flow. The company needs to focus on improving operational efficiencies and managing its debt levels to enhance financial stability.

Income Statement

FirstEnergy's income statement shows a stable revenue growth rate of 2.98% in the TTM period, with a solid gross profit margin of 65.39%. The net profit margin improved to 9.19%, indicating enhanced profitability. However, the EBIT and EBITDA margins, while healthy at 20.69% and 31.72% respectively, suggest room for operational efficiency improvements.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.01, indicating significant leverage, which poses a risk in volatile markets. The return on equity stands at 7.07%, reflecting moderate efficiency in using equity to generate profits. The equity ratio of 22.89% suggests a balanced asset financing structure but highlights the reliance on debt.

Cash Flow

FirstEnergy's cash flow statement shows a concerning decline in free cash flow growth, down by 335.40% in the TTM period. The operating cash flow to net income ratio of 0.63 indicates adequate cash generation relative to net income, but the negative free cash flow to net income ratio of -0.28 highlights cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.47B	13.47B	12.87B	12.46B	11.13B	10.79B
Gross Profit	9.46B	9.10B	8.22B	7.87B	7.69B	7.72B
EBITDA	4.59B	4.10B	3.95B	3.77B	4.29B	3.39B
Net Income	1.33B	978.00M	1.10B	406.00M	1.28B	1.08B
Balance Sheet
Total Assets	55.88B	52.04B	48.77B	46.11B	45.43B	44.46B
Cash, Cash Equivalents and Short-Term Investments	1.43B	111.00M	137.00M	160.00M	1.46B	1.73B
Total Debt	27.47B	24.27B	24.91B	21.66B	23.85B	24.48B
Total Liabilities	41.70B	38.32B	37.85B	35.47B	36.76B	37.23B
Stockholders Equity	12.80B	12.46B	10.44B	10.17B	8.68B	7.24B
Cash Flow
Free Cash Flow	2.31B	-1.14B	-1.97B	-73.00M	366.00M	-1.23B
Operating Cash Flow	3.61B	2.89B	1.39B	2.68B	2.81B	1.42B
Investing Cash Flow	-5.19B	-4.35B	-3.65B	-3.08B	-2.56B	-2.91B
Financing Cash Flow	2.55B	1.43B	2.24B	-912.00M	-542.00M	2.61B

FirstEnergy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 44.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FE, the sentiment is Neutral. The current price of 44.62 is below the 20-day moving average (MA) of 45.51, below the 50-day MA of 45.90, and above the 200-day MA of 42.23, indicating a neutral trend. The MACD of -0.47 indicates Positive momentum. The RSI at 42.77 is Neutral, neither overbought nor oversold. The STOCH value of 32.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FE.

FirstEnergy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEE	72 Outperform	$26.65B	18.95	11.47%	2.86%	22.71%	22.86%
FE	67 Neutral	$25.71B	19.33	10.54%	3.94%	7.64%	48.61%
CMS	67 Neutral	$21.38B	20.28	12.34%	3.07%	10.96%	-0.77%
ES	66 Neutral	$25.24B	18.49	8.65%	4.43%	13.12%	―
PPL	66 Neutral	$25.40B	23.37	7.65%	3.14%	8.42%	32.48%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
DTE	65 Neutral	$26.77B	19.31	11.64%	3.41%	19.42%	-9.68%

FirstEnergy Corporate Events

FirstEnergy Releases 2026 Financial Outlook and Guidance

On December 9, 2025, FirstEnergy Corp. released its 2026 financial outlook, highlighting a Core Earnings guidance of $2.62 to $2.82 per share, supported by $6 billion in planned capital investments. This represents a 7.5% growth over the increased 2025 guidance midpoint. The company also affirmed its 6-8% compound annual growth rate through 2029, with investments focused on distribution infrastructure and grid modernization, aiming to enhance reliability and resiliency.

FirstEnergy Faces $250.7 Million Order from Ohio Commission

On November 19, 2025, FirstEnergy‘s Ohio subsidiaries received orders from the Public Utilities Commission of Ohio regarding their 2024 base rate case and consolidated audits. The orders include significant financial implications, such as a combined payment of $250.7 million for refunds, restitution, and civil forfeitures. These developments mark important milestones for FirstEnergy, as they continue to invest in distribution system improvements and prepare to file a three-year rate plan in early 2026, aiming to enhance reliability and customer experience.

FirstEnergy Reports Q3 Earnings, Boosts Capital Investment

On October 22, 2025, FirstEnergy Corp. announced its third-quarter financial results, reporting GAAP earnings of $0.76 per share and Core Earnings of $0.83 per share, marking improvements from the previous year. The company has narrowed its full-year 2025 Core Earnings guidance and increased its capital investment program by 10% to $5.5 billion, driven by a strategic focus on grid reliability and industry transformation. FirstEnergy projects a 30% increase in future transmission investments and affirms a 6-8% annual Core Earnings growth rate from 2025 through 2029, positioning itself advantageously within the industry.

FirstEnergy Updates Executive Severance and Control Plans

On September 23, 2025, FirstEnergy Corp. announced amendments and restatements to its Executive Severance Benefits Plan and Change in Control Severance Plan, alongside new forms of restricted stock unit award agreements, effective January 1, 2026. These changes aim to modernize the company’s executive severance compensation program and align it with industry practices. The amendments include extending severance benefits to the CEO, revising cash severance calculations, and updating the Change in Control Plan to provide enhanced benefits for the CEO. These adjustments are expected to impact the company’s executive compensation structure, potentially affecting its market positioning and stakeholder relations.