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Relative valuation derived from Utilities sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
12.4%
Sector: 9.9%
Dividend Analysis audit
INCOME
3.80%
Trailing Yield
$3.80
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
65%MID
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, FIRSTENERGY CORP (FE) receives a "Hold" rating with a composite score of 52.0/100, ranked #159 out of 4446 stocks. Key factor scores: Quality 50/100, Value 66/100, Momentum 57/100. This is quantitative analysis only — not investment advice.
FIRSTENERGY CORP (FE) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does FIRSTENERGY CORP Do?
FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. It operates through Regulated Distribution and Regulated Transmission segments. The company owns and operates coal-fired, nuclear, hydroelectric, natural gas, wind, and solar power generating facilities. It operates 24,074 circuit miles of overhead and underground transmission lines; and electric distribution systems, including 273,295 miles of overhead pole line and underground conduit carrying primary, secondary, and street lighting circuits. The company serves approximately 6 million customers in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. FirstEnergy Corp. was incorporated in 1996 and is headquartered in Akron, Ohio. FIRSTENERGY CORP (FE) is classified as a large-cap stock in the Utilities sector. The company is led by CEO John W. Somerhalder and employs approximately 12,300 people, headquartered in Cleveland, Ohio. With a market capitalization of $29.5B, FE is one of the prominent companies in the Utilities sector.
FIRSTENERGY CORP (FE) Stock Rating — Hold (April 2026)
As of April 2026, FIRSTENERGY CORP receives a Hold rating with a composite score of 52.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.FE ranks #159 out of 4,446 stocks in our coverage universe. Within the Utilities sector, FIRSTENERGY CORP ranks #16 of 112 stocks, placing it in the top quartile of its Utilities peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
FE Stock Price and 52-Week Range
FIRSTENERGY CORP (FE) currently trades at $51.91. The 52-week high for FE is $52.02, which means the stock is currently trading -0.2% from its annual peak. The 52-week low is $37.58, putting the stock 38.1% above its annual trough. Recent trading volume was 0 shares, suggesting relatively thin trading activity.
Is FE Overvalued or Undervalued? — Valuation Analysis
FIRSTENERGY CORP (FE) carries a value factor score of 66/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 17.05x, compared to the Utilities sector average of 23.47x — a discount of 27%. The price-to-book ratio stands at 2.12x, versus the sector average of 1.98x. The price-to-sales ratio is 1.96x, compared to 0.82x for the average Utilities stock. On an enterprise value basis, FE trades at 9.98x EV/EBITDA, versus 4.75x for the sector.
Overall, FE's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
FIRSTENERGY CORP Profitability — ROE, Margins, and Quality Score
FIRSTENERGY CORP (FE) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 12.4%, compared to the Utilities sector average of 9.9%, which is within a healthy range. Return on assets (ROA) comes in at 3.1% versus the sector average of 3.1%.
On a margin basis, FIRSTENERGY CORP reports gross margins of 64.0%, compared to 53.1% for the sector. The operating margin is 19.7% (sector: 21.5%). Net profit margin stands at 11.4%, versus 12.8% for the average Utilities stock. Revenue growth is running at 26.5% on a trailing basis, compared to 20.1% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
FE Debt, Balance Sheet, and Financial Health
FIRSTENERGY CORP has a debt-to-equity ratio of 301.0%, compared to the Utilities sector average of 164.5%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 0.57x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $27.47B. Cash and equivalents stand at $1.40B.
FE has a beta of 0.12, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for FIRSTENERGY CORP is 97/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
FIRSTENERGY CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, FIRSTENERGY CORP reported revenue of $15.02B and earnings per share (EPS) of $1.77. Net income for the quarter was $1.73B. Gross margin was 64.0%. Operating income came in at $2.96B.
In FY 2025, FIRSTENERGY CORP reported revenue of $15.09B and earnings per share (EPS) of $1.77. Net income for the quarter was $1.27B. Revenue grew 12.0% year-over-year compared to FY 2024. Operating income came in at $2.21B.
In Q3 2025, FIRSTENERGY CORP reported revenue of $4.15B and earnings per share (EPS) of $0.76. Net income for the quarter was $532M. Revenue grew 11.2% year-over-year compared to Q3 2024. Operating income came in at $830M.
In Q2 2025, FIRSTENERGY CORP reported revenue of $3.38B and earnings per share (EPS) of $0.46. Net income for the quarter was $318M. Revenue grew 3.0% year-over-year compared to Q2 2024. Operating income came in at $646M.
Over the past 8 quarters, FIRSTENERGY CORP has demonstrated a growth trajectory, with revenue expanding from $3.28B to $15.02B. Investors analyzing FE stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
FE Dividend Yield and Income Analysis
FIRSTENERGY CORP (FE) currently pays a dividend yield of 3.8%. At this yield, a $10,000 investment in FE stock would generate approximately $$380.00 in annual dividend income. This compares to the Utilities sector average dividend yield of 2.8%, meaning FE offers above-average income for its sector. The net margin of 11.4% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
FE Momentum and Technical Analysis Profile
FIRSTENERGY CORP (FE) has a momentum factor score of 57/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 8/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
FE vs Competitors — Utilities Sector Ranking and Peer Comparison
Comparing FE against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full FE vs S&P 500 (SPY) comparison to assess how FIRSTENERGY CORP stacks up against the broader market across all factor dimensions.
FE Next Earnings Date
No upcoming earnings date has been announced for FIRSTENERGY CORP (FE) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy FE? — Investment Thesis Summary
FIRSTENERGY CORP presents a balanced picture with arguments on both sides. The value score of 66/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 97/100) reduces downside risk.
In summary, FIRSTENERGY CORP (FE) earns a Hold rating with a composite score of 52.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on FE stock.
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Institutional Research Dossier
FIRSTENERGY CORP (FE) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
FirstEnergy Corp. is currently rated as a Hold, a position we find justified given the company's mixed financial performance and valuation. While the company exhibits strengths in revenue growth and stability, concerns regarding its high debt levels, negative free cash flow, and a history marred by regulatory scrutiny temper our enthusiasm. The current valuation, while seemingly attractive on an EV/EBITDA basis, is less compelling when considering the P/E ratio relative to the sector, suggesting that the market may be pricing in future growth that is not yet fully realized.
The key takeaway is that FirstEnergy presents a complex investment case. Its regulated utility business provides a degree of predictability, but the company's financial leverage and past controversies necessitate a cautious approach. Investors should closely monitor the company's progress in reducing debt, improving free cash flow, and maintaining a constructive relationship with regulators before considering a more bullish stance.
Business Strategy & Overview
FirstEnergy Corp. operates as a regulated utility, primarily engaged in the transmission and distribution of electricity across six states: Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. The company's revenue is derived from providing electricity to approximately 6 million customers. Its strategic focus centers on maintaining and upgrading its existing infrastructure, ensuring reliable service delivery, and complying with evolving regulatory requirements. The company operates through two main segments: Regulated Distribution, which involves delivering electricity to end-users, and Regulated Transmission, which focuses on the high-voltage transmission network.
FirstEnergy's business model is predicated on the stability and predictability inherent in regulated utility operations. Revenue is largely determined by tariffs approved by state regulatory commissions, providing a degree of insulation from market volatility. However, this also means that revenue growth is constrained by regulatory decisions and the pace of infrastructure investments. The company's strategic investments in grid modernization and renewable energy projects are aimed at enhancing efficiency, reducing outages, and meeting growing demand for clean energy.
The company's product pipeline is primarily focused on infrastructure upgrades and technology deployments to improve grid reliability and efficiency. This includes investments in smart grid technologies, advanced metering infrastructure (AMI), and renewable energy integration. FirstEnergy is also actively involved in developing and implementing energy efficiency programs to help customers reduce their electricity consumption. These initiatives are often mandated or incentivized by regulatory bodies, reflecting the increasing emphasis on energy conservation and sustainability.
In the broader industry context, FirstEnergy operates in a sector characterized by increasing regulatory scrutiny, rising capital expenditures, and growing demand for renewable energy. The company faces challenges related to aging infrastructure, cybersecurity threats, and the need to adapt to evolving customer expectations. Competition comes from other regulated utilities in the region, as well as from alternative energy providers and distributed generation technologies. The company's ability to navigate these challenges and capitalize on emerging opportunities will be crucial to its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
26.5%
Sector: 20.1%
+32% VS SCTR
Economic Moat Analysis
FirstEnergy's economic moat can be characterized as Narrow. The company benefits from certain advantages inherent in the regulated utility industry, but these are not insurmountable. The primary source of its moat is efficient scale, as the high capital costs and regulatory hurdles associated with building and operating electricity transmission and distribution networks create barriers to entry for new competitors. In its service territories, FirstEnergy essentially operates as a natural monopoly, making it difficult for other companies to replicate its infrastructure and customer base.
However, the strength of this moat is limited by several factors. First, the regulatory environment subjects FirstEnergy to strict oversight and price controls, which constrain its ability to earn excessive profits. Regulatory commissions determine the rates that the company can charge its customers, balancing the need to provide a fair return on investment with the goal of ensuring affordable electricity prices. This limits the company's pricing power and reduces its ability to generate outsized returns.
Second, while the company benefits from a captive customer base in its service territories, it faces increasing competition from alternative energy sources and distributed generation technologies. Customers are increasingly adopting solar panels, battery storage systems, and other technologies that allow them to generate their own electricity and reduce their reliance on the grid. This trend could erode FirstEnergy's customer base and reduce its revenue over time.
Third, the company's past regulatory issues and legal settlements have damaged its reputation and increased its compliance costs. The bribery scandal in Ohio has led to increased scrutiny from regulators and lawmakers, which could result in stricter regulations and higher penalties in the future. This adds to the company's operational and financial risks and weakens its competitive position.
While FirstEnergy possesses some advantages due to its regulated utility status, its moat is not particularly wide or durable. The company faces increasing competition, regulatory challenges, and reputational risks that could erode its competitive position over time. Therefore, a Narrow moat rating is appropriate.
Financial Health & Profitability
FirstEnergy's financial health presents a mixed picture. The company's revenue has shown strong growth, with TTM revenue of $15.09 billion representing a 26.5% increase compared to the sector average of 20.1%. This growth is further evidenced by the consistent revenue increases observed in the quarterly financial history, indicating a positive trend in the company's top-line performance. However, this revenue growth has not translated into equally impressive bottom-line results.
While the company reports a net income of $1.27 billion for the TTM period, its free cash flow is significantly negative at $-2.66 billion. This discrepancy raises concerns about the company's ability to generate cash from its operations and suggests a reliance on external financing to fund its capital expenditures and other obligations. The negative free cash flow is a significant red flag, particularly in light of the company's high debt levels.
FirstEnergy's balance sheet is heavily leveraged, with total debt of $27.47 billion and a debt-to-equity ratio of 301.00, significantly higher than the sector average of 165.00. This high level of debt increases the company's financial risk and limits its flexibility to pursue growth opportunities or weather economic downturns. The current ratio of 0.57 indicates a potential liquidity risk, as the company's current liabilities exceed its current assets.
In terms of profitability, FirstEnergy's ROE of 12.4% is slightly above the sector average of 10.0%, suggesting that the company is generating reasonable returns on its equity. However, its operating margin of 19.7% is slightly below the sector average of 21.7%, indicating that the company's operating expenses are relatively high. The net margin of 11.4% is also below the sector average of 12.8%, further highlighting the company's challenges in translating revenue into profits.
The quarterly financial history reveals some volatility in the company's net income and EPS, with fluctuations from quarter to quarter. While the company has consistently generated positive net income, the magnitude of these profits has varied significantly. This volatility adds to the uncertainty surrounding the company's future financial performance.
Overall, FirstEnergy's financial health is characterized by strong revenue growth, but also by high debt levels, negative free cash flow, and inconsistent profitability. These factors warrant a cautious approach to investing in the company.
Valuation Assessment
FirstEnergy's valuation presents a mixed picture, requiring careful consideration of various metrics. The company's P/E ratio of 27.4x is higher than the sector average of 22.7x, suggesting that the stock may be overvalued relative to its earnings. This premium could be attributed to investor expectations of future growth or to the perceived stability of the regulated utility business. However, the higher P/E ratio also implies a greater risk of downside if the company fails to meet these expectations.
Conversely, FirstEnergy's EV/EBITDA ratio of 3.2x is significantly lower than the sector average of 4.8x, indicating that the stock may be undervalued relative to its enterprise value and earnings before interest, taxes, depreciation, and amortization. This lower EV/EBITDA ratio could be due to the company's high debt levels, which increase its enterprise value but do not necessarily reflect its underlying profitability. It could also reflect investor concerns about the company's past regulatory issues and future growth prospects.
The negative free cash flow further complicates the valuation assessment. A traditional discounted cash flow (DCF) analysis would be challenging to perform given the lack of positive free cash flow. This suggests that the company's current market capitalization may be based on factors other than its ability to generate cash, such as its regulated asset base or its potential for future growth.
Considering the company's high debt levels and negative free cash flow, a more conservative valuation approach may be warranted. Investors should carefully consider the company's ability to reduce its debt burden and improve its cash flow generation before assigning a premium valuation to the stock. A peer group comparison, focusing on utilities with similar risk profiles and growth prospects, could provide a more realistic assessment of the company's fair value.
Overall, FirstEnergy's valuation appears to be mixed, with some metrics suggesting undervaluation and others indicating overvaluation. The higher P/E ratio and negative free cash flow raise concerns about the stock's current price, while the lower EV/EBITDA ratio could indicate potential upside. Investors should carefully weigh these factors and conduct their own due diligence before making an investment decision.
Risk & Uncertainty
FirstEnergy faces several specific, idiosyncratic risks that could negatively impact its business and financial performance. The most significant risk stems from regulatory and legal challenges, particularly those related to the bribery scandal in Ohio. The ongoing investigations and potential penalties could result in significant financial liabilities, reputational damage, and increased regulatory scrutiny. This could also lead to stricter regulations and higher compliance costs, which would negatively impact the company's profitability.
Another key risk is the company's high debt levels. The company's debt-to-equity ratio is significantly higher than the sector average, increasing its financial risk and limiting its flexibility to pursue growth opportunities or weather economic downturns. Rising interest rates could further exacerbate this risk by increasing the company's borrowing costs and reducing its profitability. The company's ability to manage its debt burden and improve its credit rating will be crucial to its long-term financial health.
The transition to renewable energy and the increasing adoption of distributed generation technologies also pose a risk to FirstEnergy's business model. As customers increasingly adopt solar panels, battery storage systems, and other technologies that allow them to generate their own electricity, the company's customer base and revenue could erode over time. The company's ability to adapt to this changing energy landscape and invest in renewable energy projects will be critical to its long-term success.
Cybersecurity threats represent another significant risk. As a critical infrastructure provider, FirstEnergy is vulnerable to cyberattacks that could disrupt its operations, compromise sensitive data, and damage its reputation. The company must invest heavily in cybersecurity measures to protect its systems and data from these threats. A successful cyberattack could result in significant financial losses and regulatory penalties.
Bulls Say / Bears Say
The Bull Case
BULL VIEWFirstEnergy's regulated utility business provides a stable and predictable revenue stream, making it a safe haven in volatile market conditions.
BULL VIEWThe company's investments in grid modernization and renewable energy projects will drive future growth and enhance its long-term sustainability.
BULL VIEWFirstEnergy's low EV/EBITDA ratio suggests that the stock is undervalued and has significant upside potential.
The Bear Case
BEAR VIEWFirstEnergy's high debt levels and negative free cash flow raise serious concerns about its financial health and ability to generate sustainable returns.
BEAR VIEWThe ongoing regulatory and legal challenges related to the Ohio bribery scandal could result in significant financial liabilities and reputational damage.
BEAR VIEWThe increasing adoption of distributed generation technologies and the transition to renewable energy pose a threat to FirstEnergy's traditional business model.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score FE and 4,400+ other equities.
FIRSTENERGY CORP exhibits a 57% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
3.1%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
64.0%
Sector: 53.1%
Operating Margin
Core business profitability
19.7%
Sector: 21.5%
Net Margin
Bottom-line profitability
11.4%
Sector: 12.8%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.83%
Yield Delta+34%
Income Projection audit
A $10,000 investment would generate approximately $380 annually in dividends at the current trailing rate.
