FEFE
US • —
$47.38
P/E
25.75
PEG
—
FCF Yield
—
Rev Growth YoY
+8.9% YoY
Gross Margin
60.8%
Health Score
5/10
D/E Ratio
2.12
Confidence
LOW
Business Snapshot
FirstEnergy Corp. operates as a holding company for regulated electric utility subsidiaries, primarily serving customers in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. The company generates revenue through the transmission and distribution of electricity to residential, commercial, and industrial customers within its service territories. Operating as a regulated utility, FirstEnergy holds a strong competitive position with a built-in customer base within its franchise areas, insulated from direct competition by regulatory boundaries. A defining characteristic of the company is its highly capital-intensive business model, requiring significant ongoing investment in grid infrastructure and reliability, which is typically recovered through regulated rate cases.
Financial Health
Gross margin stands at a strong 60.8%, while net margin (TTM) is a much thinner 7.2%, highlighting the high operating and interest costs typical of the regulated utility sector. The balance sheet is stretched, as evidenced by a Debt/Equity ratio of 2.12x, indicating high leverage, and a current ratio of 0.57x, pointing to potential liquidity pressure as current assets do not fully cover short-term liabilities...
Risk Assessment
- DEBT / LIQUIDITY — Debt/equity of 2.12x indicates high leverage, limiting financial flexibility and increasing sensitivity to interest rate changes.
- LIQUIDITY — Current ratio of 0.57x is well below the 1.0x threshold, suggesting potential difficulty meeting short-term obligations.
- EARNINGS QUALITY — Earnings growth is negative at -2.0% despite revenue rising 8.9%, pointing to margin compression and rising costs.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- INSIDER ACTIVITY — Insiders have been net sellers over the last 90 days, with 0 buys versus 1 sell, a cautious signal from those closest to the business....
Gross margin stands at a strong 60.8%, while net margin (TTM) is a much thinner 7.2%, highlighting the high operating and interest costs typical of the regulated utility sector. The balance sheet is stretched, as evidenced by a Debt/Equity ratio of 2.12x, indicating high leverage, and a current ratio of 0.57x, pointing to potential liquidity pressure as current assets do not fully cover short-term liabilities. Return on equity of 8.4% suggests the company is generating returns above its cost of equity but not by a wide margin. Free cash flow data is unavailable, making it impossible to assess the company’s ability to self-fund its dividend and capital expenditure program, which represents a significant information gap for a capital-intensive utility.
- DEBT / LIQUIDITY — Debt/equity of 2.12x indicates high leverage, limiting financial flexibility and increasing sensitivity to interest rate changes. - LIQUIDITY — Current ratio of 0.57x is well below the 1.0x threshold, suggesting potential difficulty meeting short-term obligations. - EARNINGS QUALITY — Earnings growth is negative at -2.0% despite revenue rising 8.9%, pointing to margin compression and rising costs. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - INSIDER ACTIVITY — Insiders have been net sellers over the last 90 days, with 0 buys versus 1 sell, a cautious signal from those closest to the business.
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