FirstEnergy (FE) AI Stock Analysis

• Market Cap: $26.66B
• Dividend Yield: 3.84%
• Average Volume (3M): 5.03M
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.08
• 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: 5,212,268
• 30 Day Avg. Volume: 5,031,970
• 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: 2.02
• Enterprise Value/Revenue: 3.73
• Enterprise Value/Gross Profit: 5.70
• Enterprise Value/Ebitda: 11.75
• 1Y Price Target: $50.40
• Price Target Upside: 9.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 2.55
• Revenue Forecast (FY): $14.20B

• Rating: 72 Outperform
• Price Target: $51.00 ▲(11.18% Upside)

FirstEnergy's overall stock score is driven by strong earnings call results and positive technical indicators. Financial performance is solid but hindered by high leverage and cash flow challenges. Valuation is fair, with a competitive dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective pricing strategies, supporting long-term financial stability.

Capital Investments

Increased capital investments in regulated utilities enhance infrastructure, potentially boosting operational efficiency and future earnings.

Transmission Investments

Significant transmission investments ensure grid reliability and capacity expansion, aligning with long-term energy demand trends.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk during economic downturns, potentially impacting long-term growth.

Declining Free Cash Flow

Declining free cash flow may constrain investment capacity and affect the company's ability to fund future growth initiatives.

Rising Customer Bills

Rising customer bills could lead to regulatory scrutiny and customer dissatisfaction, potentially impacting revenue stability.

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 generates revenue primarily through the sale of electricity to residential, commercial, and industrial customers. Its revenue model is largely based on regulated pricing, where state utility commissions approve rates that the company can charge for electricity delivery. Key revenue streams include transmission and distribution charges, which are collected from customers along with the cost of electricity supplied. Additionally, FirstEnergy earns revenue from ancillary services related to the management of the electric grid and from energy efficiency programs. Partnerships with state governments and regulatory bodies also play a significant role in shaping its earnings, as they influence rate structures and investment in infrastructure improvements that can enhance operational efficiency and service reliability.

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: 45.87
• 50DMA: Positive
• 100DMA: Positive
• 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 45.87 is below the 20-day moving average (MA) of 46.59, above the 50-day MA of 45.25, and above the 200-day MA of 41.65, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 48.03 is Neutral, neither overbought nor oversold. The STOCH value of 36.25 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
FE	72 Outperform	$26.66B	20.05	10.54%	3.84%	7.64%	48.61%
CMS	72 Outperform	$22.20B	21.06	12.34%	3.00%	10.96%	-0.77%
AEE	71 Outperform	$27.56B	22.38	11.47%	2.74%	22.71%	22.86%
PPL	66 Neutral	$26.81B	27.25	7.65%	2.95%	8.42%	32.48%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ES	65 Neutral	$27.40B	20.28	―	4.15%	13.12%	―
DTE	65 Neutral	$27.71B	19.99	11.64%	3.25%	19.42%	-9.68%

FirstEnergy Corporate Events

FirstEnergy Reports Strong Q3 2025 Earnings Growth

FirstEnergy Corp. is a major electric utility company based in Akron, Ohio, serving over 6 million customers across several states and operating an extensive network of transmission lines.

FirstEnergy Corp Reports Strong Earnings and Growth Plans

FirstEnergy Corp’s recent earnings call painted a picture of robust financial health and a promising future. The company reported strong earnings growth and increased capital investments, buoyed by a surge in demand from data centers. However, there was a note of caution regarding the rising energy generation costs impacting customer bills.

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.

The most recent analyst rating on (FE) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on FirstEnergy stock, see the FE Stock Forecast page.

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.

The most recent analyst rating on (FE) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on FirstEnergy stock, see the FE Stock Forecast page.