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FirstEnergy Corporation (FE) Stock

FirstEnergy Corporation Stock Details, Movements and Public Alerts

FirstEnergy Corp (FE): The $27B Regulated Utility Rebuilding Trust Through Transmission Investment

When Ohio homeowners flip light switches, Pennsylvania factories power production lines, or New Jersey hospitals maintain critical operations, FirstEnergy's transmission and distribution networks deliver the electrons. CEO Brian Tierney, who became CEO in 2022 after the governance crisis that brought down predecessor and implicated the company in Ohio's largest corruption scandal, has refocused FirstEnergy on pure regulated utility operations. The 2024 sale of 30% stake in transmission assets to Brookfield unlocked $3.5B while validating premium infrastructure valuations. Trading at 13x forward earnings with 4.5%+ dividend yield and $26B in planned investments through 2028, FirstEnergy offers income investors regulated utility exposure with visible rate base growth—if management sustains the cultural transformation required after reputational damage.

52-Week Range

$47.73 - $36.45

-6.54% from high · +22.39% from low

Avg Daily Volume

3,565,849

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

19.33

Near market average

Forward P/E

16.18

Earnings expected to grow

PEG Ratio

1.13

Reasonably valued

Price to Book

2.00

EV/EBITDA

11.23

EPS (TTM)

$2.28

Price to Sales

1.78

Beta

0.65

Less volatile than market

How is FE valued relative to its earnings and growth?
FirstEnergy Corporation trades at a P/E ratio of 19.33, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 16.18 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.13 indicates reasonable value when growth is considered.
What is FE's risk profile compared to the market?
With a beta of 0.65, FirstEnergy Corporation is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 2.00 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

9.31%

Operating Margin

21.30%

EBITDA

$4.51B

Return on Equity

11.20%

Return on Assets

3.28%

Revenue Growth (YoY)

11.20%

Earnings Growth (YoY)

4.50%

How profitable and efficient is FE's business model?
FirstEnergy Corporation achieves a profit margin of 9.31%, meaning it retains $9.31 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 21.30% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 11.20% and ROA at 3.28%, the company achieves moderate returns on invested capital.
What are FE's recent growth trends?
FirstEnergy Corporation's revenue grew by 11.20% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 4.50% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against UTILITIES - REGULATED ELECTRIC industry averages for proper context.

Dividend Information

Dividend Per Share

$1.74

Dividend Yield

3.92%

Ex-Dividend Date

Nov 7, 2025

Dividend Date

Dec 1, 2025

What dividend income can investors expect from FE?
FirstEnergy Corporation offers a dividend yield of 3.92%, paying $1.74 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Nov 7, 2025.
How reliable is FE's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - FirstEnergy Corporation pays $1.74 per share in dividends against earnings of $2.28 per share, resulting in a payout ratio of 76.32%. This high payout ratio of 60-90% leaves limited earnings for reinvestment. While currently sustainable, there's less buffer for dividend growth or protection during earnings downturns. The next dividend payment is scheduled for Dec 1, 2025.

Company Size & Market

Market Cap

$25.5B

Revenue (TTM)

$14.28B

Revenue/Share (TTM)

$24.77

Shares Outstanding

577.67M

Book Value/Share

$22.16

Asset Type

Common Stock

What is FE's market capitalization and position?
FirstEnergy Corporation has a market capitalization of $25.5B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 577.67M shares outstanding, the company's ownership is relatively concentrated. As a participant in the UTILITIES - REGULATED ELECTRIC industry, it competes with other firms in this sector.
How does FE's price compare to its book value?
FirstEnergy Corporation's book value per share is $22.16, while the current stock price is $44.61, resulting in a price-to-book (P/B) ratio of 2.01. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$50.00

12.08% upside potential

Analyst Recommendations

Strong Buy

3

Buy

4

Hold

9

Sell

0

Strong Sell

0

How reliable are analyst predictions for FE?
16 analysts cover FE with 44% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $50.00 implies 12.1% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on FE?
Current analyst recommendations:3 Strong Buy, 4 Buy, 9 Hold, 00The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:27 AM

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FirstEnergy Corp (FE) Stock Analysis 2025: Regulated Utility Guide

The Utility Turnaround

FirstEnergy's recent history involves scandal and transformation. The company's involvement in Ohio's House Bill 6 corruption scandal—which resulted in criminal charges against the former CEO and other executives—damaged reputation and distracted management from operational execution. CEO Brian Tierney, appointed in 2022 as an internal candidate who demonstrated integrity during investigations, has led cultural overhaul emphasizing compliance, ethics, and operational focus. The company exited unregulated generation through 2018's FES bankruptcy and now operates as pure regulated transmission and distribution utility.

The transformation refocuses FirstEnergy on regulated infrastructure investment. Transmission represents the growth engine—FERC-regulated returns of 10%+ with automatic rate adjustments create attractive economics for capital deployment. Distribution utilities in Ohio (Ohio Edison, Cleveland Electric, Toledo Edison), Pennsylvania (Met-Ed, Penelec, Penn Power, West Penn), New Jersey (JCP&L), West Virginia (Mon Power, Potomac Edison), and Maryland provide stable cash flows with constructive regulatory relationships. CEO Brian Tierney's strategy emphasizes reliability investment, customer service improvement, and transparent regulatory engagement—basics that predecessors neglected during the generation transition and political involvement era.

Business Model & Competitive Position

FirstEnergy generates revenue through regulated transmission and distribution operations. Transmission (approximately 30% of earnings) earns FERC-regulated returns with formula rate mechanisms providing automatic cost recovery. Distribution (70% of earnings) operates under state regulatory compacts in Ohio, Pennsylvania, New Jersey, West Virginia, and Maryland. The company owns no generation—power procurement flows through customer rates without commodity exposure. Revenue stability derives from the essential nature of electric service and regulatory frameworks designed to ensure utility financial health.

Competitive advantages stem from regulated monopoly positions and transmission infrastructure value. FirstEnergy's utilities serve exclusive territories with limited direct competition. Transmission assets benefit from grid modernization requirements, renewable integration needs, and load growth from data centers and electrification. The Brookfield partnership—selling 30% of transmission assets at premium valuation—demonstrated market recognition of infrastructure quality while providing capital for accelerated investment. However, FirstEnergy's reputational damage from the Ohio scandal creates regulatory relationship challenges that peers avoid.

Financial Performance

  • •Revenue: $13B+ annually from transmission and distribution operations
  • •Earnings: $2.70-2.80 EPS growing 6-8% through rate base expansion
  • •Rate Base: $35B+ growing to $50B+ by 2028 through $26B capital plan
  • •Dividend: $1.70/share (4.5% yield) with 6-8% growth target after 2021 restoration
  • •Balance Sheet: 14-15% FFO/debt target maintaining investment-grade ratings (Baa3/BBB-)
  • •Valuation: 13x forward P/E discount to utility peers (15-17x) reflecting governance history

Growth Catalysts

  • •Transmission Investment: $14B+ planned through 2028 earning FERC-regulated 10%+ returns
  • •Data Center Load: Ohio and Pennsylvania attracting data center development with associated infrastructure needs
  • •Grid Modernization: Distribution automation, smart grid investment creating rate base growth
  • •Regulatory Recovery: Improved relationships with state commissions enabling constructive rate outcomes
  • •Multiple Re-rating: Governance improvements and execution could narrow discount to peers

Risks & Challenges

  • •Regulatory Overhang: Ohio scandal legacy creates challenging environment for rate requests
  • •Governance Scrutiny: Ongoing investigations, settlements, and compliance requirements distract management
  • •Balance Sheet Constraints: Investment-grade ratings require discipline; limited flexibility for acquisitions
  • •Pennsylvania Political Risk: Largest service territory faces potential regulatory changes
  • •Interest Rate Sensitivity: High leverage (14-15% FFO/debt) creates refinancing risk if rates stay elevated

Competitive Landscape

Regional peers include PPL Corporation (Pennsylvania and Kentucky), Eversource (New England), and Consolidated Edison (New York metro). FirstEnergy's transmission-focused strategy differentiates from vertically integrated utilities with generation exposure. Pure-play transmission companies (ITC Holdings, Pattern Energy) trade at premium valuations that FirstEnergy's regulated transmission assets could approach if separated. The Brookfield partnership validates infrastructure value while maintaining operational control and growth optionality.

CEO Brian Tierney positions FirstEnergy for steady rehabilitation rather than aggressive transformation. The 13x forward P/E versus utility peer average of 15-17x reflects governance discount that could narrow with sustained execution. However, FirstEnergy competes for investor capital against clean governance records at peers—the reputational damage requires years of consistent performance to fully overcome. For value-oriented utility investors, the discount creates opportunity; for those prioritizing governance, alternatives exist without legacy concerns.

Who Is This Stock Suitable For?

Perfect For

  • ✓Income investors seeking 4.5%+ yield from regulated utility
  • ✓Value-oriented buyers accepting governance discount for turnaround potential
  • ✓Investors comfortable with utility regulatory dynamics
  • ✓Those seeking transmission infrastructure exposure without pure-play premium

Less Suitable For

  • ✗ESG-focused investors concerned about governance history
  • ✗Conservative investors requiring pristine management track records
  • ✗Those uncomfortable with regulatory and political risk exposure
  • ✗Investors seeking utilities with clean energy transition leadership

Investment Thesis

FirstEnergy offers discounted utility exposure with visible earnings growth through transmission investment. CEO Brian Tierney's turnaround emphasizes operational excellence and cultural improvement that predecessors abandoned during the generation transition and political involvement era. The 4.5%+ dividend yield with 6-8% growth guidance provides attractive total return potential while $26B capital investment drives rate base expansion. The 13x forward P/E creates value opportunity if governance improvements sustain.

However, reputational rehabilitation takes time. Ohio regulatory relationships remain challenging, and any governance setbacks would damage the recovery narrative. The balance sheet provides limited flexibility, requiring disciplined execution on the capital plan. For investors comfortable with turnaround situations and willing to accept governance risk for yield and value, FirstEnergy merits consideration. Those prioritizing clean governance records should consider utility peers despite higher valuations.

Conclusion

FirstEnergy is a HOLD/BUY for income investors accepting governance history for value and yield. The 4.5%+ dividend yield exceeds utility peers while transmission investment provides visible growth. The 13x forward P/E discount creates upside if CEO Brian Tierney sustains operational improvement and regulatory relationships heal. Avoid if governance concerns override value considerations; consider peers like Eversource or PPL for cleaner alternatives.
Bull Case
$55 (15% upside) - Governance discount narrows, transmission investment accelerates, multiple expands to 15x
Base Case
$50 (5% upside) - Steady 6-8% EPS growth, dividend grows, valuation stable
Bear Case
$38 (20% downside) - Regulatory setbacks, governance concerns resurface, multiple compresses

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