FE:NYSEFirstEnergy Corp. Analysis
Data as of 2026-06-21 - not real-time
$46.45
Latest Price
5/10Risk
Risk Level: Medium
Executive Summary
FirstEnergy (FE) trades at $46.45, comfortably above its 20‑day ($46.27) and 50‑day ($47.09) SMAs, while the MACD histogram is positive and the signal line is bullish, suggesting short‑term momentum support. The RSI sits near 50, indicating a neutral stance, and the stock sits between a clear support at $44.64 and resistance at $48.10, leaving modest upside room.
Fundamentally, the company commands a high dividend yield of 4 % but the payout ratio is nearly 97 %, free cash flow is negative, and debt‑to‑equity is an extreme 199 ×. The DCF fair value of $34.85 is well below the market price, the PE of 25.2 exceeds the industry average of 20.6, and the forward PE of 15.8 hints at limited earnings growth. Recent leadership appointments aim to improve reliability and compliance, yet the balance sheet stress and overvaluation temper enthusiasm.
Fundamentally, the company commands a high dividend yield of 4 % but the payout ratio is nearly 97 %, free cash flow is negative, and debt‑to‑equity is an extreme 199 ×. The DCF fair value of $34.85 is well below the market price, the PE of 25.2 exceeds the industry average of 20.6, and the forward PE of 15.8 hints at limited earnings growth. Recent leadership appointments aim to improve reliability and compliance, yet the balance sheet stress and overvaluation temper enthusiasm.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Bullish MACD but price already above short‑term averages
- Neutral RSI indicating no strong momentum shift
- Support level provides downside cushion
Medium Term
1–3 yearsPositive
Model confidence: 7/10
Key Factors
- Attractive 4 % dividend yield for income‑focused investors
- Revenue growth of ~12 % supporting earnings expansion
- Regulated utility model offers stable cash‑flow outlook
Long Term
> 3 yearsNeutral
Model confidence: 5/10
Key Factors
- High leverage (debt‑to‑equity ~199) and negative free cash flow raise sustainability concerns
- Overvaluation relative to DCF fair value limits upside
- Potential regulatory and political pressures on utility rates
Key Metrics & Analysis
Financial Health
Revenue Growth11.60%
Profit Margin6.94%
P/E Ratio25.2
ROE9.46%
ROA3.76%
Debt/Equity198.92
P/B Ratio2.1
Op. Cash Flow$3.2B
Free Cash Flow$-1835124992
Industry P/E20.6
Technical Analysis
TrendNeutral
RSI50.0
Support$44.64
Resistance$48.10
MA 20$46.27
MA 50$47.09
MA 200$46.92
MACDBullish
VolumeStable
Fear & Greed Index91.46
Valuation
Fair Value$34.85
Target Price$52.15
Upside/Downside12.28%
GradeOvervalued
TypeValue
Dividend Yield4.00%
Risk Assessment
Beta-0.02
Volatility19.76%
Sector RiskLow
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.