FIRSTENERGY CORP's gross profit margin for the first quarter of its fiscal year 2015 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. FIRSTENERGY CORP has very weak liquidity. Currently, the Quick Ratio is 0.31 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.01% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||3897.0||4182.0|
|Net Income ($mil)||222.0||208.0|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||90.0||109.0|
|Total Assets ($mil)||52521.0||51228.0|
|Total Debt ($mil)||22476.0||21305.0|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||24.74||16.55|
|Return on Assets||0.59||0.78|
|Return on Equity||2.53||2.42|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||422.03||419.84|
|Div / share||0.36||0.36|
|Book value / share||29.26||30.02|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2770789.0||3617267.0|
BUY. FIRSTENERGY CORP's P/E ratio indicates a significant premium compared to an average of 15.32 for the Electric Utilities industry and a significant premium compared to the S&P 500 average of 20.55. Conducting a second comparison, its price-to-book ratio of 1.12 indicates a significant discount versus the S&P 500 average of 2.84 and a discount versus the industry average of 1.45. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.
|FE 44.41||Peers 15.32||FE 4.62||Peers 5.99|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
FE is trading at a significant premium to its peers.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
FE is trading at a discount to its peers.
|FE 12.31||Peers 13.96||FE 0.11||Peers 4.56|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
FE is trading at a valuation on par with its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
FE trades at a significant discount to its peers.
|FE 1.12||Peers 1.45||FE 1.36||Peers 73.59|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
FE is trading at a discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, FE is expected to significantly trail its peers on the basis of its earnings growth rate.
|FE 0.94||Peers 1.64||FE -3.74||Peers 6.03|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
FE is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
FE significantly trails its peers on the basis of sales growth
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