FirstEnergy Stock Analysis, Valuation (NYSE:FE)

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$37.3 $0.23 (0.62%) FE stock closing price Aug 17, 2018 (Closing)

View the FirstEnergy stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for FE stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

FirstEnergy Corp. Stock Rating 2.1/5

Amigobulls FE stock analysis uses latest quarter 2018 Q2 financial data like FirstEnergy revenue growth, profit margins and cash flows. FirstEnergy valuation forms a crucial part of our stock analysis. FirstEnergy stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy FE stock?

  • The company has an operating cash flow which is 1.9799 times the net income. We see this as a positive signal.
  • FE stock is trading at an earnings multiple of 12.6 which is better than the sector average of 20.
  • FE stock is trading at a favorable price to sales multiple of 1.4 as against the Utilities sector average multiple of 2.1.
  • FirstEnergy has a healthy FCF (Free Cash Flow) margin of 8.8.

Should you sell FE stock?

  • FirstEnergy revenue saw a decline of -18.3% YoY in 2018-06.
  • Sales declined by -3.1 annually over the last 5 years.
  • FirstEnergy had a poor average operating margin of 2.63 over the last 4 quarters.
  • FirstEnergy posted an average Net loss of -4.6% in the last twelve months.
  • FirstEnergy is debt laden and has a high debt/equity ratio of 2.5.
  • FirstEnergy has a negative ROE (Return On Equity) of -9.3, indicating the company is not profitable.

Comments on this video and FirstEnergy stock

Amigobulls FirstEnergy stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of FE stock. The fundamentals of a company are vital to identify long-term investment opportunities.

FirstEnergy revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of FE technical analysis to check whether the fundamental story is reflected in the market sentiment.