Bedrijfsoverzicht
FirstEnergy Corp. is a major utility entity engaged in the generation, distribution, and transmission of electricity across the United States, operating through distinct segments for distribution, integrated operations, and standalone transmission. The company functions within the Utilities sector, specifically the Regulated Electric industry, which implies that its operations are subject to government oversight and rate regulation rather than pure market competition. As of the latest available data, the enterprise holds a market capitalization of $29.75B and generates annual revenue of $14.90B, employing a workforce of 11,186 individuals. These valuation and revenue figures position FirstEnergy as a significant player within the regulated utility landscape, reflecting a substantial asset base and operational footprint that supports its core mission of delivering power infrastructure services to a broad customer base.
Financiële gezondheid
The company reported total revenue of $14.90B over the trailing twelve months, resulting in a net income of $1.02B and an EBITDA of $4.93B. The substantial disparity between the revenue figure and the net income reveals a cost structure where operational expenses, including cost of goods sold, taxes, and interest, consume approximately 93.2% of total sales before reaching the bottom line. Free cash flow stands at -$1,227,874,944, indicating that the company is currently generating more cash outflows than inflows, which suggests a lack of immediate financial flexibility for internal reinvestment without external capital raising. Profitability is assessed through three key margins: a gross margin of 66.9%, an operating margin of 26.6%, and a profit margin of 6.8%, where the high gross margin reflects the capital-intensive nature of utility assets, while the lower operating and profit margins indicate significant overhead and tax burdens relative to sales. Liquidity and leverage are further analyzed by comparing cash holdings of $57.00M against total debt of $26.84B, resulting in a debt-to-equity ratio of 192.75% that characterizes the balance sheet as highly leveraged rather than conservative. Short-term liquidity is constrained by a current ratio of 0.56, meaning current assets are insufficient to cover current liabilities without relying on operating cash flows or asset sales. Return metrics show a return on equity of 9.2% and a return on assets of 3.7%, suggesting that while shareholders receive a moderate return on their capital, the asset-heavy business model yields a lower return on the total asset base relative to equity.
Waarderingsbeoordeling
Valuation multiples for FirstEnergy include a trailing P/E ratio of 29.22 and a forward P/E of 17.48, where the significant difference between these two figures implies that the market expects earnings to increase substantially in the coming year to justify the lower forward multiple. The price-to-book ratio is recorded at 2.38, indicating that the market values the company at a premium of 138% over its book value, a common characteristic for regulated utilities with tangible infrastructure assets. Alternative valuation metrics such as a price-to-sales ratio of 2.00 and an EV/EBITDA of 11.74 provide additional context, suggesting the stock is priced at two times its revenue and roughly eleven times its earnings before interest, taxes, depreciation, and amortization. Price volatility and trading range are defined by a 52-week high of $52.34 and a 52-week low of $39.28, placing the current trading price within a range that reflects recent market fluctuations and investor sentiment. The beta coefficient is 0.59, which indicates that the stock's price volatility is less than half that of the broader market, suggesting a defensive investment profile that moves in inverse proportion to market risk during periods of volatility.
Growth & Income
Revenue growth for the year-over-year period is 20.7%, while earnings growth data is listed as N/A, preventing a direct comparison of earnings expansion versus revenue expansion in this specific reporting period. For dividend payers, the company offers a dividend yield of 3.6% with a payout ratio of 100.0%, meaning the entire net income of $1.02B is distributed to shareholders rather than retained for growth. The 100.0% payout ratio indicates that the company is not retaining any earnings for internal reinvestment, a strategy typical for mature utility firms that prioritize returning cash to investors given their stable cash flow profiles. Overall, the growth and income profile combines significant revenue expansion with a maximum payout strategy, offering investors exposure to utility sector growth while providing a high current income yield without reliance on capital appreciation or retained earnings for expansion.