FirstEnergy (FE) AI Stock Analysis

• Market Cap: $23.89B
• Dividend Yield: 4.15%
• Average Volume (3M): 4.18M
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.19
• Revenue Growth: 7.92%
• EPS Growth: 1.54%
• Country: US
• Employees: 12,294
• Sector: Utilities
• Sector Strength: 76
• Industry: Regulated Electric
• EPS (TTM): 0.67
• Shares Outstanding: 577,156,250
• 10 Day Avg. Volume: 3,425,738
• 30 Day Avg. Volume: 4,177,627
• PEG Ratio: 2.03
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -34.49
• Enterprise Value/Market Cap: 2.01
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 6.06
• Enterprise Value/Ebitda: 3.05
• 1Y Price Target: $44.67
• Price Target Upside: 7.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 70 Outperform
• Price Target: $45.00 ▲(8.70%Upside)

FirstEnergy's solid financial performance, strong earnings call outcomes, and attractive dividend yield contribute positively to the stock score. However, technical indicators suggest a neutral market sentiment, and regulatory challenges present moderate risks. Overall, the score reflects a stable investment outlook with notable income potential.

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.

Legal and 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 Environment

Staff's support of the Audit report is viewed positively, and adversarial intervenors have not significantly shifted the tone of overall testimony in the case.

Negative Factors

Earnings and Financial Performance

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.

Operational and Strategic Concerns

FirstEnergy is exploring a Signal Peak sale while facing earnings pressure, which complicates achieving long-term growth targets.

Regulatory Challenges

Utilities' requests for higher Return on Equity are not expected to be granted as filed, which might not attract new investors.

FirstEnergy Business Overview & Revenue Model

Company Description

FirstEnergy Corp. is a diversified energy company headquartered in Akron, Ohio. It operates through its subsidiaries and affiliates in the United States, primarily within the electric utility sector. The company is involved in the generation, transmission, and distribution of electricity, serving customers in the Midwest and Mid-Atlantic regions. FirstEnergy's core services include providing reliable electric service to residential, commercial, and industrial customers across its service territories.

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 and a reasonable ROE, while cash flow improvements indicate a positive trajectory. The company's financials reflect stability 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: Positive
• Last Price: 41.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 41.4 is above the 20-day moving average (MA) of 40.43, above the 50-day MA of 40.82, and above the 200-day MA of 40.36, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 61.37 is Neutral, neither overbought nor oversold. The STOCH value of 77.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FE.

FirstEnergy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPL	77 Outperform	$26.98B	27.25	7.00%	2.90%	5.62%	30.02%
CMS	72 Outperform	$21.80B	21.57	12.53%	2.90%	5.87%	3.59%
ES	71 Outperform	$24.40B	28.65	5.63%	4.42%	10.82%	―
FE	70 Outperform	$23.89B	21.91	8.69%	4.15%	7.92%	1.54%
CNP	67 Neutral	$24.23B	24.96	8.76%	2.25%	4.84%	-11.24%
EIX	67 Neutral	$19.78B	7.42	17.93%	6.34%	5.36%	209.92%
Sector *	67 Neutral	$16.88B	17.11	4.48%	3.27%	4.75%	6.12%

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.