FirstEnergy Corp

Find Ratings Reports
FE : NYSE : Utilities
$36.51 | %
Today's Range: 35.87 - 36.58
Avg. Daily Volume: 4,094,400
07/22/16 - 4:01 PM ET

Financial Analysis


FIRSTENERGY CORP's gross profit margin for the first quarter of its fiscal year 2016 has 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 0.27 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained unchanged 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 FY16 Q1 FY15
Net Sales ($mil)3869.03897.0
EBITDA ($mil)1166.0964.0
EBIT ($mil)776.0613.0
Net Income ($mil)328.0222.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)146.090.0
Total Assets ($mil)52695.052521.0
Total Debt ($mil)22358.022476.0
Equity ($mil)12463.012348.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin30.1424.74
EBITDA Margin30.1324.73
Operating Margin20.0615.73
Sales Turnover0.280.28
Return on Assets1.290.59
Return on Equity5.482.53
Debt Q1 FY16 Q1 FY15
Current Ratio0.510.64
Debt/Capital0.640.65
Interest Expense288.0279.0
Interest Coverage2.692.2


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)424.71422.03
Div / share0.360.36
EPS0.770.53
Book value / share29.3429.26
Institutional Own % n/a n/a
Avg Daily Volume4089898.04026515.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 22.19 for the Electric Utilities industry and a discount compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 1.23 indicates a significant discount versus the S&P 500 average of 2.81 and a discount versus the industry average of 1.93. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
FE 22.34 Peers 22.19   FE 3.92 Peers 8.25

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

FE is trading at a valuation on par with 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 significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
FE 13.99 Peers 17.73   FE 0.24 Peers 4.07

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

FE is trading at a discount to 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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
FE 1.23 Peers 1.93   FE 117.56 Peers 12.85

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 significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

FE is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
FE 1.02 Peers 2.35   FE 1.61 Peers -5.23

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

FE has a sales growth rate that significantly exceeds its peers.

 

 

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