📊 FE Key Takeaways
Is Firstenergy Corp. (FE) a Good Investment?
FirstEnergy exhibits severe financial distress despite 12% revenue growth: critical liquidity crisis with current ratio of 0.52x, negative free cash flow of -$1.1B, and a minimal cash position of $52M against $42.8B liabilities. Net income collapsed 19.7% despite growing revenue, revealing deteriorating operational leverage, while 2.08x debt-to-equity ratio and 2.7x interest coverage create refinancing risk.
FirstEnergy shows solid top-line growth and resilient operating profitability for a regulated utility, with revenue up 12.0% and operating income reaching $2.21B. However, weaker net income, high leverage, thin liquidity, and negative free cash flow driven by heavy capital spending temper the quality of that growth. The fundamentals support stability more than upside, with execution on cash flow and balance sheet discipline likely determining improvement.
Firstenergy Corp. Key Strengths (FE)
- Revenue growth of 12% YoY demonstrates operational scale and market demand
- Operating margin of 19.7% shows reasonable cost control in core operations
- Large enterprise with $4.2B annual revenue provides market position and stability potential
- Revenue growth is strong at 12.0% YoY, indicating healthy demand recovery or favorable rate/base dynamics
- Operating margin of 14.6% and interest coverage of 7.2x suggest the core business remains financially productive and debt service is currently manageable
- Operating cash flow of $3.70B provides meaningful internal funding capacity despite large capital requirements
FE Stock Risks: Firstenergy Corp. Investment Risks
- Current ratio of 0.52x indicates critical liquidity crisis; current liabilities exceed current assets by 2x
- Negative free cash flow of -$1.1B reveals inability to fund operations internally; dependent on external financing
- Net income declined 19.7% while revenue grew 12%, signaling margin compression and deteriorating profitability
- Debt-to-equity of 2.08x combined with interest coverage of only 2.7x creates refinancing vulnerability
- Minimal cash position of $52M inadequate for $42.8B liabilities and $1.3B annual capex requirements
- ROE of 3.2% and ROA of 0.7% indicate poor capital efficiency
- Net income declined 19.7% YoY, pointing to pressure below the operating line and weaker earnings quality
- Leverage is elevated with debt/equity at 2.04x and long-term debt of $25.51B, limiting financial flexibility
- Liquidity is weak and free cash flow is negative at -$1.00B, increasing reliance on external financing if capex remains high
Key Metrics to Watch
- Free cash flow trend and timeline to positive generation
- Current ratio improvement and working capital management
- Debt refinancing activity and interest rate exposure
- Net income stabilization and margin recovery trajectory
- Interest coverage ratio sustainability above 3.0x
- Free cash flow trend relative to capital expenditures
- Net income and debt reduction progress
Firstenergy Corp. (FE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
FE Profit Margin, ROE & Profitability Analysis
FE vs Utilities Sector: How Firstenergy Corp. Compares
How Firstenergy Corp. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Firstenergy Corp. Stock Overvalued? FE Valuation Analysis 2026
Based on fundamental analysis, Firstenergy Corp. shows some fundamental concerns relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Firstenergy Corp. Balance Sheet: FE Debt, Cash & Liquidity
FE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Firstenergy Corp.'s revenue has shown modest growth of 2% over the 5-year period. The most recent EPS of $1.92 reflects profitable operations.
FE Revenue Growth, EPS Growth & YoY Performance
FE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.8B | $360.0M | $0.62 |
| Q3 2025 | $3.7B | $419.0M | $0.73 |
| Q2 2025 | $3.3B | $45.0M | $0.08 |
| Q1 2025 | $3.3B | $253.0M | $0.44 |
| Q3 2024 | $3.5B | $400.0M | $0.69 |
| Q2 2024 | $3.0B | $45.0M | $0.08 |
| Q1 2024 | $3.2B | $253.0M | $0.44 |
| Q3 2023 | $3.5B | $334.0M | $0.58 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Firstenergy Corp. Dividends, Buybacks & Capital Allocation
FE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Firstenergy Corp. (CIK: 0001031296)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FE
What is the AI rating for FE?
Firstenergy Corp. (FE) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FE's key strengths?
Claude: Revenue growth of 12% YoY demonstrates operational scale and market demand. Operating margin of 19.7% shows reasonable cost control in core operations. ChatGPT: Revenue growth is strong at 12.0% YoY, indicating healthy demand recovery or favorable rate/base dynamics. Operating margin of 14.6% and interest coverage of 7.2x suggest the core business remains financially productive and debt service is currently manageable.
What are the risks of investing in FE?
Claude: Current ratio of 0.52x indicates critical liquidity crisis; current liabilities exceed current assets by 2x. Negative free cash flow of -$1.1B reveals inability to fund operations internally; dependent on external financing. ChatGPT: Net income declined 19.7% YoY, pointing to pressure below the operating line and weaker earnings quality. Leverage is elevated with debt/equity at 2.04x and long-term debt of $25.51B, limiting financial flexibility.
What is FE's revenue and growth?
Firstenergy Corp. reported revenue of $4.2B.
Does FE pay dividends?
Firstenergy Corp. pays dividends, with $257.0M distributed to shareholders in the trailing twelve months.
Where can I find FE SEC filings?
Official SEC filings for Firstenergy Corp. (CIK: 0001031296) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FE's EPS?
Firstenergy Corp. has a diluted EPS of $0.70.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is FE's fundamental grade?
Based on our AI fundamental analysis in June 2026, Firstenergy Corp. has a C grade with 79% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is FE stock overvalued or undervalued?
Valuation metrics for FE: ROE of 3.2% (sector avg: 10%), net margin of 9.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is FE's AI grade for 2026?
Our dual AI analysis gives Firstenergy Corp. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FE's free cash flow?
Firstenergy Corp.'s operating cash flow is $148.0M, with capital expenditures of $1.3B. FCF margin is -26.3%.
How does FE compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 9.6% (avg: 12%), ROE 3.2% (avg: 10%), current ratio 0.52 (avg: 0.8).
Is Firstenergy Corp. carrying too much debt?
FE has a debt-to-equity ratio of 2.08x, which is above the Utilities sector average of 1.4x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.