FirstEnergy Corp. (FE)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I see FirstEnergy as a regulated electric utility with a real but regulated advantage: 252,959 distribution line miles and 24,157 transmission line miles serve essential demand, yet regulators set the returns. At the 2026-10-26 close of $46.18, FairStock calculations show a P/E of 24.70, P/B of 2.07, ROE of 9.49%, ROCE of 3.68%, dividend yield of 4.11%, and a FairStock score of 46/100. The Graham Number is $30.67, so the margin of safety is -50.47%; the price is well above asset-and-earnings support. The balance sheet is leveraged, with D/E of 2.01 and an Altman Z-Score of 0.41, while Piotroski is 5/9. Trailing free cash flow is -$2.0B and FCF yield is -7.3%, a serious issue for a capital-intensive utility. Filed results show that in fiscal year 2025, period ended 2025-12-31, revenue was $15.1B, net income $1.0B, and diluted EPS $1.76; in fiscal year 2024, period ended 2024-12-31, revenue was $13.5B, net income $978M, and EPS $1.70; in fiscal year 2023, period ended 2023-12-31, revenue was $12.9B, net income $1.1B, and EPS $1.92. Revenue has grown, but EPS is below fiscal 2023, and the supplied Lynch category is Slow Grower, citing five-year profit shrinkage of 1.1% a year and revenue growth of 7.1%. In fiscal Q1 2026, period ended 2026-03-31, revenue was $4.2B, net income $405M, and EPS $0.70, versus fiscal Q1 2025, period ended 2025-03-31, revenue $3.8B, net income $360M, and EPS $0.62. The trend has improved, but the valuation already assumes recovery. I see a defensive business, not a bargain.

In plain English: FirstEnergy is a regulated electric utility that distributes and transmits power across a large service area. Demand for electricity is steady and the 4.11% dividend is attractive, but profits have been uneven and the company spends more cash than it generates. At $46.18, the shares do not look cheap against the company's accounting numbers, and the heavy debt load adds risk.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer