FirstEnergy Corp (FE)
NYSE:FE
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FirstEnergy
(NYSE:FE)
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Rating:64Neutral
Price Target:
$53.00
â–²(5.79% Upside)
Action:Reiterated
Date:04/29/26
The score is driven primarily by steady regulated financial performance but constrained by elevated leverage and historically uneven free cash flow. Earnings-call read-through is constructive with reaffirmed guidance and accelerating rate-base investment, though regulatory/affordability and financing risks remain. Technical indicators are mildly negative near term, while valuation is supportive due to a reasonable P/E and solid dividend yield.
Positive Factors
Regulated Rate-Base Growth
FirstEnergy’s core regulated footprint has delivered durable top-line growth driven by a growing rate base and transmission investment. Sustained revenue expansion (2021→TTM) and transmission rate-base gains translate into predictable, utility-style earnings drivers over multi-year horizons.
Negative Factors
Elevated Leverage
FirstEnergy’s capital structure remains debt‑heavy relative to peers, limiting balance-sheet flexibility as it executes a large multi-year capex agenda. Elevated leverage increases refinancing and interest-rate sensitivity and constrains the company’s ability to absorb regulatory delays or unexpected costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated Rate-Base Growth
FirstEnergy’s core regulated footprint has delivered durable top-line growth driven by a growing rate base and transmission investment. Sustained revenue expansion (2021→TTM) and transmission rate-base gains translate into predictable, utility-style earnings drivers over multi-year horizons.
Read all positive factors
FirstEnergy Key Performance Indicators (KPIs)
FirstEnergy (FE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.64B
Dividend Yield3.94%
Average Volume (3M)5.48M
Price to Earnings (P/E)18.1
Beta (1Y)-0.02
Revenue Growth11.30%
EPS Growth-1.99%
CountryUS
Employees12,294
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)1.84
Shares Outstanding578,431,150
10 Day Avg. Volume6,044,103
30 Day Avg. Volume5,482,694
Financial Highlights & Ratios
PEG Ratio6.15
Price to Book (P/B)2.06
Price to Sales (P/S)1.71
P/FCF Ratio-25.70
Enterprise Value/Market Cap2.11
Enterprise Value/Revenue3.48
Enterprise Value/Gross Profit6.47
Enterprise Value/Ebitda12.18
Forecast
1Y Price Target
$52.45Price Target Upside4.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)2.73
Revenue Forecast (FY)$15.41B
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,...
How the Company Makes Money
FirstEnergy makes money primarily through regulated utility revenues and regulated transmission revenues.
1) Regulated electric distribution (utilities): A major share of earnings comes from delivering electricity to end-use customers through its...
FirstEnergy Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call presents a constructive operational and financial picture: core earnings grew 7.5% year-over-year, guidance and capital plan were reaffirmed, investments and transmission rate base are accelerating, credit metrics improved (Moody's positive outlook) and the data center pipeline and WV generation opportunity are notable growth catalysts. Offsetting risks include strong political and regulatory focus on affordability, uncertainty in PJM capacity reforms and backstop proposals, supply-side pressures on major equipment pricing, and continued large capital needs that require careful financing. Management emphasizes engagement with stakeholders, cost reductions (O&M down materially since 2022) and disciplined financing to mitigate these challenges.Positive Updates
Quarterly Earnings Beat
GAAP EPS of $0.70 vs $0.62 year-ago; core earnings $0.72/share, up 7.5% from $0.67 in Q1 2025.
Negative Updates
Affordability and Political/Regulatory Pressure
Significant affordability concerns across service territories (notably Pennsylvania, New Jersey and other states) with political scrutiny of rate increases and investment timing; capacity auction cap and public pressure could constrain rate case outcomes or timing.
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly Earnings Beat
GAAP EPS of $0.70 vs $0.62 year-ago; core earnings $0.72/share, up 7.5% from $0.67 in Q1 2025.
Read all positive updates
Company Guidance
FirstEnergy reaffirmed 2026 core earnings guidance of $2.62–$2.82 per share (midpoint $2.72) and a $6.0 billion 2026 capital plan, while reaffirming long‑term core earnings CAGR of 6%–8% through 2030 (targeting near the top end off the $2.72 midpoint); Q1 results included GAAP EPS $0.70 vs. $0.62 a year ago and core EPS $0.72 vs. $0.67 (+7.5% YoY), with $1.4 billion of customer‑focused investment in the quarter (+33% YoY), 75% of the capital program under formula rates, transmission rate base growth of 13% (integrated +19%, standalone +11%), consolidated TTM ROE of 9.8%, base O&M down ~5% in the quarter (and >$200 million or ~15% since 2022), and a financing plan that included an $850 million PA debt issue (4.4% coupon), $250 million (MAIT) and $175 million (ATSI) offerings, $1.7 billion of planned subsidiary debt for the year, modest common equity issuance and up to $2 billion of equity/equity‑like over five years (including $100 million annually from benefit programs; annual common equity ≈1% of market cap); notable project and regulatory metrics called out include the 1.2 GW WV combined‑cycle project (~$2.5 billion capex, approval expected H2 2026 with equipment online by 2031 and rate base growth rising from just over 10% to just over 11% with ~35% equity funding), WV data center pipeline ~1.8 GW credible (+50% since Feb) and >6 GW prospective (4 GW in final contract negotiations), Ohio distribution investment >$1.3 billion since 2024 with a proposed ~15% increase to ~$800 million annually (customer bill impacts <3%/yr; new rates mid‑2027), PA recovery of ~50% of FE PA capital via the DSIC, and >$5 billion of competitive transmission awards over the last four years (PJM open‑window approvals expected Q1 next year).FirstEnergy Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
55
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.53B | 15.09B | 13.47B | 12.87B | 12.46B | 11.13B |
| Gross Profit | 8.35B | 8.27B | 9.10B | 8.22B | 7.87B | 7.69B |
| EBITDA | 4.44B | 4.39B | 4.10B | 3.95B | 3.77B | 4.29B |
| Net Income | 1.06B | 1.02B | 978.00M | 1.10B | 406.00M | 1.28B |
Balance Sheet | ||||||
| Total Assets | 56.92B | 55.90B | 52.04B | 48.77B | 46.11B | 45.43B |
| Cash, Cash Equivalents and Short-Term Investments | 80.00M | 99.00M | 111.00M | 137.00M | 160.00M | 1.46B |
| Total Debt | 28.06B | 27.07B | 24.27B | 24.91B | 21.66B | 23.85B |
| Total Liabilities | 42.81B | 41.98B | 38.32B | 37.85B | 35.47B | 36.76B |
| Stockholders Equity | 12.65B | 12.51B | 12.46B | 10.44B | 10.17B | 8.68B |
Cash Flow | ||||||
| Free Cash Flow | 1.79B | -1.00B | -1.14B | -1.97B | -73.00M | 366.00M |
| Operating Cash Flow | 3.21B | 3.70B | 2.89B | 1.39B | 2.68B | 2.81B |
| Investing Cash Flow | -5.39B | -5.07B | -4.35B | -3.65B | -3.08B | -2.56B |
| Financing Cash Flow | 2.10B | 1.31B | 1.43B | 2.24B | -912.00M | -542.00M |
FirstEnergy Technical Analysis
Negative
50.10
Price Trends
48.44
Negative
47.64
Negative
45.75
Negative
Market Momentum
-1.29
Positive
38.76
Neutral
34.47
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 50.1 is above the 20-day moving average (MA) of 46.17, above the 50-day MA of 48.44, and above the 200-day MA of 45.75, indicating a bearish trend. The MACD of -1.29 indicates Positive momentum. The RSI at 38.76 is Neutral, neither overbought nor oversold. The STOCH value of 34.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FE.
FirstEnergy Risk Analysis
FirstEnergy disclosed 45 risk factors in its most recent earnings report. FirstEnergy reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
FirstEnergy Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $29.72B | 21.28 | 11.71% | 2.86% | 12.32% | 23.95% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $25.64B | 18.07 | 8.38% | 3.94% | 11.30% | -1.99% | |
61 Neutral | $22.28B | 17.15 | 12.35% | 3.10% | 13.31% | 6.97% | |
61 Neutral | $26.28B | 15.88 | 8.32% | 3.13% | 7.52% | 21.81% | |
60 Neutral | $25.60B | 10.73 | 10.86% | 4.54% | 9.83% | 101.90% | |
58 Neutral | $29.40B | 30.64 | 10.43% | 3.45% | 22.33% | -17.75% |
* Utilities Sector Average
FE
FirstEnergy
45.07
4.01
9.76%
AEE
Ameren
109.00
13.19
13.77%
CMS
CMS Energy
73.31
3.46
4.95%
DTE
DTE Energy
143.15
9.24
6.90%
ES
Eversource Energy
68.81
6.13
9.78%
PPL
PPL
35.25
1.44
4.24%
FirstEnergy Corporate Events
Business Operations and StrategyFinancial Disclosures
FirstEnergy Posts Strong Q1 Earnings and Reaffirms 2026 Outlook
Positive
Apr 28, 2026
FirstEnergy reported first quarter 2026 GAAP earnings of $405 million, or $0.70 per share, on revenue of $4.2 billion, up from $360 million, or $0.62 per share, on $3.8 billion of revenue a year earlier. Core EPS rose 7.5% to $0.72, reflecting hig...
Business Operations and StrategyFinancial Disclosures
FirstEnergy Posts Strong 2025 Results, Expands Capital Plan
Positive
Feb 17, 2026
FirstEnergy reported 2025 GAAP earnings of $1.02 billion, or $1.77 per basic share, on $15.1 billion in revenue, with Core Earnings of $2.55 per share, up 7.6% from 2024 and at the top end of its revised guidance range. The results, released on Fe...
Executive/Board Changes
FirstEnergy announces routine board change as director departs
Neutral
Feb 12, 2026
On February 8, 2026, FirstEnergy Corp. announced that board member Melvin Williams notified the company he will not stand for re-election after his current term ends at the 2026 Annual Meeting of Shareholders. The company emphasized that Williams&...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.