FirstEnergy Corp

Find Ratings Reports
FE : NYSE : Utilities
$31.34 | %
Today's Range: 31.24 - 31.53
Avg. Daily Volume: 4293100.0
03/24/17 - 4:01 PM ET

Financial Analysis

FIRSTENERGY CORP's gross profit margin for the fourth quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. FIRSTENERGY CORP has very weak liquidity. Currently, the Quick Ratio is 0.17 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 49.75% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)3375.03541.0
EBITDA ($mil)729.0649.0
EBIT ($mil)292.0269.0
Net Income ($mil)-5796.0-226.0

Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)199.0131.0
Total Assets ($mil)43148.052187.0
Total Debt ($mil)22552.022066.0
Equity ($mil)6241.012421.0

Profitability Q4 FY16 Q4 FY15
Gross Profit Margin21.618.33
EBITDA Margin21.618.32
Operating Margin8.657.6
Sales Turnover0.340.29
Return on Assets-14.311.1
Return on Equity-98.974.65
Debt Q4 FY16 Q4 FY15
Current Ratio0.410.54
Interest Expense287.0286.0
Interest Coverage1.020.94

Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)442.34423.56
Div / share0.360.36
Book value / share14.1129.33
Institutional Own % n/a n/a
Avg Daily Volume4272635.04838414.0


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Conducting a second comparison, its price-to-book ratio of 2.21 indicates a discount versus the S&P 500 average of 2.93 and a premium versus the industry average of 1.88. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, FIRSTENERGY CORP proves to trade at a premium to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
FE NM Peers 22.15   FE 4.09 Peers 8.02

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

FE's P/E is negative making this valuation measure meaningless.


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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
FE 12.56 Peers 17.69   FE NA Peers 2.09

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 significant discount to its peers.


Neutral. 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.

Ratio not available.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
FE 2.21 Peers 1.88   FE -1146.71 Peers -23.86

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

FE is trading at a premium 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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
FE 0.95 Peers 2.28   FE -3.13 Peers 11.77

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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