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FirstEnergy
(NYSE:FE)
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Rating:62Neutral
Price Target:
$53.00
â–²(6.17% Upside)
Action:Reiterated
Date:07/29/26
The score reflects a stable but leveraged financial profile with historically weak free cash flow (despite a notable TTM rebound), partially offset by a constructive earnings-call outlook with reaffirmed guidance and a sizable transmission/data-center-driven growth pipeline. Technicals are moderately supportive with price above key moving averages, while valuation is mixed due to a solid yield but a relatively high P/E.
Positive Factors
Regulated business model
FirstEnergy earns through regulated distribution and transmission where approved rates and riders recover costs and provide an allowed return on rate‑base. This regulatory cash‑flow framework creates durable revenue visibility and capital recovery, supporting steady earnings and multi‑year investment plans.
Negative Factors
High leverage
A debt-to-equity ratio near ~2.1x implies meaningful leverage. While typical for utilities, this level reduces financial flexibility, increases refinancing and interest risks, and limits the firm's ability to absorb shocks or fund new projects without additional equity or higher rates, pressuring long‑term optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated business model
FirstEnergy earns through regulated distribution and transmission where approved rates and riders recover costs and provide an allowed return on rate‑base. This regulatory cash‑flow framework creates durable revenue visibility and capital recovery, supporting steady earnings and multi‑year investment plans.
Read all positive factors
FirstEnergy Key Performance Indicators (KPIs)
Any
Revenue by Type
Analyzes income from different sources, highlighting which business segments are driving growth and where diversification or concentration risks may lie.
Analyzes income from different sources, highlighting which business segments are driving growth and where diversification or concentration risks may lie.
Data provided by:
The Fly
The FlyFirstEnergy (FE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.19B
Dividend Yield3.73%
Average Volume (3M)3.95M
Price to Earnings (P/E)25.8
Beta (1Y)-0.03
Revenue Growth12.63%
EPS Growth-17.19%
CountryUS
Employees11,186
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)1.88
Shares Outstanding578,639,950
10 Day Avg. Volume4,089,173
30 Day Avg. Volume3,948,448
Financial Highlights & Ratios
PEG Ratio6.14
Price to Book (P/B)2.06
Price to Sales (P/S)1.71
P/FCF Ratio-25.70
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$53.56Price Target Upside7.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)2.73
Revenue Forecast (FY)$15.54B
FirstEnergy Business Overview & Revenue Model
Company Description
FirstEnergy Corp. is an American utility company that, through its subsidiaries, provides comprehensive electricity services, encompassing generation, transmission, and distribution throughout the United States. Its operations are structured into ...
How the Company Makes Money
FirstEnergy makes money primarily through regulated utility operations, where it earns revenue by delivering electricity over its distribution (and certain transmission) networks rather than primarily by selling electricity as a commodity. Key rev...
FirstEnergy Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive outlook driven by strong execution: reaffirmed guidance, accelerated capital deployment, substantial and growing data center demand (30% increase since Q1 and 6.4 GW contracted), constructive regulatory progress in multiple jurisdictions, and a transmission growth runway. Headwinds include a small quarter-over-quarter core EPS decline, planned higher operating expenses, regulatory uncertainties (particularly cost allocation in PJM and potential policy shifts in New Jersey), and timing/approval dependencies for major projects. Overall, the positive operational and growth indicators and material pipeline of contracted demand and regulatory filings outweigh the risks discussed.Positive Updates
Reaffirmed Capital and Earnings Guidance
Reaffirmed 2026 capital investment plan of $6.0 billion and core earnings guidance range of $2.62 to $2.82 per share; reaffirmed $36 billion 5-year capital plan and target core earnings growth near the top end of 6%–8% through 2030.
Negative Updates
Sequential Core Earnings Pressure in Q2
Core earnings per share for Q2 were $0.50 versus $0.52 a year ago (decline of ~3.8% year-over-year for the quarter), reflecting timing dynamics and higher planned operating expenses.
Read all updates
Q2-2026 Updates
Positive
Negative
Reaffirmed Capital and Earnings Guidance
Reaffirmed 2026 capital investment plan of $6.0 billion and core earnings guidance range of $2.62 to $2.82 per share; reaffirmed $36 billion 5-year capital plan and target core earnings growth near the top end of 6%–8% through 2030.
Read all positive updates
Company Guidance
Management reaffirmed 2026 guidance of a $6.0 billion capital spend and core earnings guidance of $2.62–$2.82 per share, maintained a $36 billion five‑year capital plan and reiterated core earnings growth near the top end of 6%–8% through 2030; through Q2 they reported GAAP EPS $0.50 (vs. $0.46) and core EPS $0.50 (vs. $0.52), YTD core EPS $1.22 (vs. $1.19), deployed $2.9 billion of 2026 capex (about 48% of the $6.0 billion and a 19% increase vs. 2025), produced a trailing‑12‑month consolidated ROE of 9.5% (in line with targets), and signaled transmission as a 16% CAGR growth driver through 2030; on data centers they noted total forecasted demand rose ~30% since Q1 to ~25 GW, added 2.1 GW of contracted demand in Q2 to 6.4 GW (with ~1.5 GW expected to contract imminently), contracted + pipeline demand equals ~70% of July system peak (34.8 GW) and West Virginia alone has 4.3 GW contracted/pipeline (including the 1.2 GW Maidsville proposal), with incremental generation roughly $250 million per GW and about $400 million of recent data‑center‑related investment currently outside the $36 billion plan; incremental capex would be financed with roughly 30%–40% incremental equity unless alternative customer funding reduces that need.FirstEnergy Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
52
Neutral
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.82B | 15.09B | 13.47B | 12.87B | 12.46B | 11.13B |
| Gross Profit | 8.46B | 8.27B | 9.10B | 8.22B | 7.87B | 7.69B |
| EBITDA | 4.67B | 4.25B | 4.10B | 3.95B | 3.77B | 4.29B |
| Net Income | 1.09B | 1.02B | 978.00M | 1.10B | 406.00M | 1.28B |
Balance Sheet | ||||||
| Total Assets | 58.22B | 55.90B | 52.04B | 48.77B | 46.11B | 45.43B |
| Cash, Cash Equivalents and Short-Term Investments | 191.00M | 99.00M | 111.00M | 137.00M | 160.00M | 1.46B |
| Total Debt | 28.98B | 27.07B | 24.27B | 24.91B | 21.66B | 23.85B |
| Total Liabilities | 43.80B | 41.98B | 38.32B | 37.85B | 35.47B | 36.76B |
| Stockholders Equity | 12.94B | 12.51B | 12.46B | 10.44B | 10.17B | 8.68B |
Cash Flow | ||||||
| Free Cash Flow | 1.58B | -1.00B | -1.14B | -1.97B | -73.00M | 366.00M |
| Operating Cash Flow | 3.12B | 3.70B | 2.89B | 1.39B | 2.68B | 2.81B |
| Investing Cash Flow | -5.50B | -5.07B | -4.35B | -3.65B | -3.08B | -2.56B |
| Financing Cash Flow | 1.96B | 1.31B | 1.43B | 2.24B | -912.00M | -542.00M |
FirstEnergy Technical Analysis
Neutral
49.92
Price Trends
47.50
Positive
47.97
Positive
46.92
Positive
Market Momentum
0.61
Negative
63.58
Neutral
83.12
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FE, the sentiment is Neutral. The current price of 49.92 is above the 20-day moving average (MA) of 48.72, above the 50-day MA of 47.50, and above the 200-day MA of 46.92, indicating a neutral trend. The MACD of 0.61 indicates Negative momentum. The RSI at 63.58 is Neutral, neither overbought nor oversold. The STOCH value of 83.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FE.
FirstEnergy Risk Analysis
FirstEnergy disclosed 45 risk factors in its most recent earnings report. FirstEnergy reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
FirstEnergy Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
63 Neutral | $27.77B | 18.55 | 10.86% | 4.11% | 7.75% | 66.25% | |
63 Neutral | $26.75B | 28.65 | 8.32% | 3.08% | 7.52% | 21.81% | |
62 Neutral | $28.19B | 25.76 | 9.03% | 3.61% | 12.63% | -17.19% | |
62 Neutral | $22.66B | 21.30 | 11.02% | 2.98% | 9.93% | -1.74% | |
60 Neutral | $29.49B | 22.27 | 10.78% | 3.07% | 17.53% | -8.86% | |
59 Neutral | $30.10B | 19.13 | 11.71% | 2.57% | 3.76% | 25.15% |
* Utilities Sector Average
FE
FirstEnergy
48.31
6.81
16.40%
AEE
Ameren
109.61
10.33
10.40%
CMS
CMS Energy
71.99
0.10
0.14%
DTE
DTE Energy
141.87
7.82
5.84%
ES
Eversource Energy
71.59
8.91
14.21%
PPL
PPL
35.21
0.65
1.87%
FirstEnergy Corporate Events
Business Operations and StrategyFinancial Disclosures
FirstEnergy posts solid Q2 earnings, reaffirms 2026 guidance
Positive
Jul 28, 2026
On July 28, 2026, FirstEnergy reported second-quarter 2026 GAAP earnings of $288 million, or $0.50 per share, on revenue of $3.7 billion, up from $268 million, or $0.46 per share, on $3.4 billion in the prior-year quarter. Core earnings were $0.50...
Business Operations and StrategyFinancial Disclosures
FirstEnergy Updates Strategy in Spring Investor Presentation
Neutral
Jun 1, 2026
On June 1, 2026, FirstEnergy published a spring investor presentation providing updated strategic and regulatory information for shareholders. The materials underscore management’s emphasis on its Energize365 transmission and distribution in...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
FirstEnergy Updates Transmission Governance, Maintains Shareholder Backing
Positive
May 20, 2026
On May 20, 2026, FirstEnergy, its majority-owned transmission subsidiary FirstEnergy Transmission (FET) and Brookfield-controlled North American Transmission Company II entered into a Fifth Amended and Restated Limited Liability Company Agreement ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.