FirstEnergy Corp. (FE) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: FirstEnergy Corp.

Updated on October 31, 2026 · accounts published on October 27, 2026

A stable regulated utility weighed down by heavy debt and a dividend that absorbs all its profit

FirstEnergy trades at a P/E of 22.6, 9 % above its ten-year median, while net debt reached 6.3× EBITDA in fiscal 2025.

• Is FirstEnergy expensive or cheap? FirstEnergy's P/E is 9 % above both its ten-year median and its sector median; it traded cheaper 67 % of the past decade.
• How is the business doing? Revenue grew 12 % over the last 12 months, but EPS rose only 3.5 % and fell 2.3 % a year over fiscal 2020-2025.
• How strong is the balance sheet? Net debt was $48.72 per share in fiscal 2025, equal to 104 % of the current share price and 6.3× EBITDA.
• What to expect from the next earnings? Analysts expect EPS of $0.62 in the quarter due February 16, 2027; FirstEnergy beat estimates in 5 of the last 8 quarters.
• Is the dividend sustainable with this debt? FirstEnergy paid out 99.6 % of fiscal 2025 earnings, far above the 80 % ceiling seen as healthy for utilities.

Is FirstEnergy expensive or cheap?

Over the last 12 months FirstEnergy trades at a P/E of 22.6, 9 % above its ten-year median of 20.8 and 9 % above the median of 20.7 for 83 sector peers. Over the past decade the multiple ranged from 15.3 to 30.1, and the stock traded at a lower P/E 67 % of the time, so it sits in the upper part of its history without being at an extreme. EV/EBITDA stands at 14.4× and P/B at 2.1×. The free cash flow yield of 10.6 % over the last 12 months is well above the 4.3 % earnings yield, a gap to read together with the debt load.

How is the business doing?

Over the last 12 months revenue rose 12 % while EPS grew only 3.5 %, so sales growth is reaching shareholders at a much slower pace. The operating margin of 19 % over the last 12 months is above the 17 % average of fiscal 2014-2025 and matches fiscal 2025, a steady level for a regulated utility. Net margin is 7.4 %. ROIC of 4.6 % beats the sector median of 4.0 % by 0.6 points, but it has not cleared 10 % in any of the last ten fiscal years. ROE of 9.4 % sits inside the 8 % to 12 % regulated range.

How strong is the balance sheet?

In fiscal 2025 FirstEnergy carried net debt of $48.72 per share against just $0.17 of cash, equal to 104 % of today's share price. Net debt reached 6.3× EBITDA, above the 5.5× considered healthy for utilities, and interest coverage of 2.5× fell short of the 3.0× benchmark. Debt to equity is 2.32 and the current ratio 0.38 over the last 12 months, so the company relies on financing far more than on liquid assets. A Piotroski score of 6 out of 9 points to a middling overall financial picture.

What to expect from the next earnings?

On October 27, 2026 FirstEnergy reported EPS of $0.98, 8.9 % above the $0.90 expected, and it has beaten estimates in 5 of the last 8 quarters. The next report is due February 16, 2027, with consensus at $0.62 per share. The 2026 EPS consensus held at $2.73 over the last 30 days across 8 analysts, while the 2026 revenue estimate rose 0.6 %. Of 28 analysts, 12 rate the stock a buy, 16 a hold and none a sell, a cautious stance that fits the stock's 5 % gain over the last 12 months.

Is the dividend sustainable with this debt?

Utilities work like bonds with extra risk: regulated, slow-growing businesses whose appeal is the dividend, which is why leverage, interest costs and payout consistency matter more here than growth multiples. FirstEnergy yields 3.9 % over the last 12 months and has raised its dividend for 4 consecutive fiscal years, yet the dividend grew only 2.0 % a year over 2015-2025, below the 4 % healthy pace. With a 99.6 % payout in fiscal 2025, EPS down 2.3 % a year since 2020 and interest coverage of 2.5×, there is little room to grow the dividend without stronger earnings or more debt.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.