# FirstEnergy (FE.US)

Canonical: https://gigainvestors.com/s/FE

Analysis as of: 2026-10-16T07:34:29.647Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $45.55 per share; close as of 2026-10-15.

Estimated value: low $9.74 per share, central $11.08 per share, high $12.87 per share. Buy at or below the central value $11.08 per share. Valuation as of 2026-10-16T07:34:29.647Z; scenarios are not confidence intervals.

Expected annual return: 4.7% at the stated quote. About 4.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 1

- Operating margin variation: 0.13×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.17×

- FY2018: 0.22×

- FY2019: 0.23×

- FY2020: 0.20×

- FY2021: 0.16×

- FY2022: 0.15×

- FY2023: 0.18×

- FY2024: 0.18×

- FY2025: 0.19×

- LTM to Jun 2026: 0.19×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 10.9pp below the typical margin (limit 4pp)

- ROIC, median of available years: 6.9%

- ROIC, second-lowest year: 5.4%

- Typical minus recent gross margin: 10.9 pp

- Typical gross margin (annual median): 65.7%

- Recent gross margin (lower of latest and 3-year median): 54.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 24.0%

- ROIC including acquisitions, ten-year median: 0.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 7.1%

- FY2017: 9.1%

- FY2018: 8.3%

- FY2019: 9.3%

- FY2020: 7.9%

- FY2021: 5.4%

- FY2022: 4.8%

- FY2023: 6.3%

- FY2024: 5.7%

- FY2025: 6.8%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.69×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $3.3B

- Net income, five-year total: $4.8B

- Return on incremental invested capital: 5.3%

- Working capital / revenue, annual change: -0.2 pp

- Working capital / revenue, change between three-year averages: -1.1 pp

- Working capital / revenue, final three-year average: 5.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 0.23×

- FY2024: 0.37×

- FY2025: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 8.3% vs 6.3%

- Per-share earnings: -3.88 to 1.76 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.1%

- Ordinary dilution, 5-year annual growth: 1.3%

- Market cap gain: $12B

- Cumulative retained earnings: $4.6B

- Diluted shares, 10-year annual growth: 3.1%

- Diluted shares, 5-year annual growth: 1.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $5.65

- Per-share value, starting three-year median: -$3.88

- Per-share value, ending three-year median: $1.76

- Average buyback yield: 0.4%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: $5.6B

- Cumulative net income, 10 years: $227M

- ROIC, first three-year median: 8.3%

- ROIC, last three-year median: 6.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$14.50

- FY2017: -$3.88

- FY2018: $2.73

- FY2019: $1.68

- FY2020: $1.99

- FY2021: $2.35

- FY2022: $0.71

- FY2023: $1.92

- FY2024: $1.69

- FY2025: $1.76

### accounting: pass

- Sloan accruals: -4.8%

- Receivables to sales index (DSRI): 0.98×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.63×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.45×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -22.1%

- FY2017: -13.1%

- FY2018: -0.2%

- FY2019: -3.7%

- FY2020: -0.8%

- FY2021: -3.4%

- FY2022: -4.9%

- FY2023: -0.6%

- FY2024: -3.7%

- FY2025: -4.8%

## Holders

## Price story

Price needs cash profits to grow 18.9% a year for ten years · "FirstEnergy Reaffirms Growth Strategy as Data Center Demand Reaches 6.4 GW" (finance.yahoo.com, Jul 2026) · sales +4.9%

Story as of 2026-10-16T10:00:00.764Z; price observation 2026-10-15.

Price needs cash profits to grow 18.9% a year for ten years

- 2026-02-18: FirstEnergy Q4 Earnings Top Estimates, Revenues Increase Y/Y ([finance.yahoo.com](https://finance.yahoo.com/news/firstenergy-q4-earnings-top-estimates-142600005.html))

- 2026-06-18: FE's Growth Is Driven by Investments and Rise in Data Center Demand ([finance.yahoo.com](https://finance.yahoo.com/energy/articles/fes-growth-driven-investments-rise-154400428.html))

- 2026-07-29: FirstEnergy Reaffirms Growth Strategy as Data Center Demand Reaches 6.4 GW ([finance.yahoo.com](https://finance.yahoo.com/energy/articles/firstenergy-reaffirms-growth-strategy-data-034000353.html))

### Sales · FY2025–2026

sales +4.9%; source https://www.sec.gov/Archives/edgar/data/1031296/000103129626000046/fe-20251231.htm; observed 2026-02-18.

- FY2017: $14B 

- FY2018: $11B 

- FY2019: $11B 

- FY2020: $11B 

- FY2021: $11B 

- FY2022: $12B 

- FY2023: $13B 

- FY2024: $13B 

- FY2025: $15B 

- FY2026: $16B 

### Gross margin · FY2025

gross margin 54.8%; source https://www.sec.gov/Archives/edgar/data/1031296/000103129626000046/fe-20251231.htm; observed 2026-02-18.

- FY2016: 46.8% 

- FY2017: 53.5% 

- FY2018: 67.6% 

- FY2019: 69.0% 

- FY2020: 71.5% 

- FY2021: 69.1% 

- FY2022: 63.1% 

- FY2023: 63.9% 

- FY2024: 67.5% 

- FY2025: 54.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in utilities regulated electric; annual sales are USD 15.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1031296/000103129626000046/fe-20251231.htm (filed 2026-02-18); FY2025: revenue 15090000000; grossProfit 8265000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 54.8% to 67.5% during 2023–25; it earns 6.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2023: grossProfit / revenue = 63.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2024: grossProfit / revenue = 67.5%.

- Source: https://www.sec.gov/Archives/edgar/data/1031296/000103129626000046/fe-20251231.htm (filed 2026-02-18); FY2025: grossProfit / revenue = 54.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); 10-year return on capital observations [[2016,0.0706241295264624],[2017,0.09142095811851937],[2018,0.08317349464745324],[2019,0.09349087538549371],[2020,0.07884056752777288],[2021,0.05390080617787664],[2022,0.0476620085995086],[2023,0.06260927299801897],[2024,0.05742355697146278],[2025,0.0682056856764107]]; median 0.06941490760143654. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Earns 5.3% on new investment; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2018: growth capex 0; upkeep 2675000000; owner earnings 57000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2021: growth capex 781000000; upkeep 1664000000; owner earnings 1283000000. Growth capex / owner earnings = 0.6087295401402962.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2022: growth capex 1439000000; upkeep 1317000000; owner earnings 406000000. Growth capex / owner earnings = 3.544334975369458.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2023: growth capex 1230685404.1764326; upkeep 2125314595.8235674; owner earnings 256685404.1764326. Growth capex / owner earnings = 4.794528181783649.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2024: growth capex 1824615708.835744; upkeep 2205384291.164256; owner earnings 360615708.8357439. Growth capex / owner earnings = 5.059723312460673.

- Source: https://www.sec.gov/Archives/edgar/data/1031296/000103129626000046/fe-20251231.htm (filed 2026-02-18); FY2025: growth capex 3098000000; upkeep 1607000000; owner earnings 1020000000. Growth capex / owner earnings = 3.037254901960784.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); Incremental return on capital 0.052696306341451025, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); Dividend observations: [[2016,611000000],[2017,639000000],[2018,772000000],[2019,820000000],[2020,845000000],[2021,849000000],[2022,891000000],[2023,906000000],[2024,970000000],[2025,1016000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FE.US SharesStats.PercentInsiders = 0.13799999999999998 percentage points; cache date 2026-10-16.

### What could break it

"Risks Associated with Climate Change, GHG Emissions and Other Environmental Matters" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1031296/000103129626000046/fe-20251231.htm (filed 2026-02-18); Risks Associated with Climate Change, GHG Emissions and Other Environmental Matters

### What the price says

The price assumes cash profits grow 18.9% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); Ten-year compound average after fade. Initial solved rate 0.2614586577938979. Price 45.55; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -1.1556603773584906 → FY2025 1.7647058823529411. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $34.29 per share

- 2016-11: $31.29 per share

- 2016-12: $30.97 per share

- 2017-01: $30.32 per share

- 2017-02: $32.43 per share

- 2017-03: $31.82 per share

- 2017-04: $29.94 per share

- 2017-05: $29.24 per share

- 2017-06: $29.16 per share

- 2017-07: $31.91 per share

- 2017-08: $32.58 per share

- 2017-09: $30.83 per share

- 2017-10: $32.95 per share

- 2017-11: $34.14 per share

- 2017-12: $30.62 per share

- 2018-01: $32.90 per share

- 2018-02: $32.33 per share

- 2018-03: $34.01 per share

- 2018-04: $34.40 per share

- 2018-05: $34.42 per share

- 2018-06: $35.91 per share

- 2018-07: $35.43 per share

- 2018-08: $37.38 per share

- 2018-09: $37.17 per share

- 2018-10: $37.28 per share

- 2018-11: $37.83 per share

- 2018-12: $37.55 per share

- 2019-01: $39.20 per share

- 2019-02: $40.75 per share

- 2019-03: $41.61 per share

- 2019-04: $42.03 per share

- 2019-05: $41.24 per share

- 2019-06: $42.81 per share

- 2019-07: $43.97 per share

- 2019-08: $46.00 per share

- 2019-09: $48.23 per share

- 2019-10: $48.32 per share

- 2019-11: $47.69 per share

- 2019-12: $48.60 per share

- 2020-01: $50.79 per share

- 2020-02: $44.53 per share

- 2020-03: $40.07 per share

- 2020-04: $41.27 per share

- 2020-05: $42.26 per share

- 2020-06: $38.78 per share

- 2020-07: $29.00 per share

- 2020-08: $28.59 per share

- 2020-09: $28.71 per share

- 2020-10: $29.72 per share

- 2020-11: $26.56 per share

- 2020-12: $30.61 per share

- 2021-01: $30.76 per share

- 2021-02: $33.14 per share

- 2021-03: $34.69 per share

- 2021-04: $37.92 per share

- 2021-05: $37.91 per share

- 2021-06: $37.21 per share

- 2021-07: $38.32 per share

- 2021-08: $38.87 per share

- 2021-09: $35.62 per share

- 2021-10: $38.53 per share

- 2021-11: $37.66 per share

- 2021-12: $41.59 per share

- 2022-01: $41.96 per share

- 2022-02: $41.85 per share

- 2022-03: $45.86 per share

- 2022-04: $43.31 per share

- 2022-05: $42.96 per share

- 2022-06: $38.39 per share

- 2022-07: $41.10 per share

- 2022-08: $39.55 per share

- 2022-09: $37.00 per share

- 2022-10: $37.71 per share

- 2022-11: $41.24 per share

- 2022-12: $41.94 per share

- 2023-01: $40.95 per share

- 2023-02: $39.54 per share

- 2023-03: $40.06 per share

- 2023-04: $39.80 per share

- 2023-05: $37.39 per share

- 2023-06: $38.88 per share

- 2023-07: $39.39 per share

- 2023-08: $36.07 per share

- 2023-09: $34.18 per share

- 2023-10: $35.60 per share

- 2023-11: $36.94 per share

- 2023-12: $36.66 per share

- 2024-01: $36.68 per share

- 2024-02: $36.61 per share

- 2024-03: $38.62 per share

- 2024-04: $38.34 per share

- 2024-05: $40.26 per share

- 2024-06: $38.27 per share

- 2024-07: $41.91 per share

- 2024-08: $43.92 per share

- 2024-09: $44.35 per share

- 2024-10: $41.83 per share

- 2024-11: $42.55 per share

- 2024-12: $39.78 per share

- 2025-01: $39.80 per share

- 2025-02: $38.77 per share

- 2025-03: $40.42 per share

- 2025-04: $42.88 per share

- 2025-05: $41.94 per share

- 2025-06: $40.26 per share

- 2025-07: $42.71 per share

- 2025-08: $43.62 per share

- 2025-09: $45.82 per share

- 2025-10: $45.83 per share

- 2025-11: $47.72 per share

- 2025-12: $44.77 per share

- 2026-01: $47.34 per share

- 2026-02: $51.16 per share

- 2026-03: $50.66 per share

- 2026-04: $47.52 per share

- 2026-05: $46.39 per share

- 2026-06: $47.54 per share

- 2026-07: $48.31 per share

- 2026-08: $45.86 per share

- 2026-09: $43.33 per share

- 2026-10: $45.55 per share

## Annual estimated value (USD per share)

- FY2022: low $1.21 per share, central $1.37 per share, high $1.59 per share

- FY2023: low $4.89 per share, central $5.56 per share, high $6.46 per share

- FY2024: low $6.83 per share, central $7.77 per share, high $9.03 per share

- FY2025: low $9.30 per share, central $10.58 per share, high $12.29 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:15.276Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1031296/000103129626000046/fe-20251231.htm); period 2025-12-31, filed 2026-02-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations



# FE — FirstEnergy Corp.

Held by 1 investor · USD 136,151,916 total · 2024 Q2 · reported price USD 38.27 (split-adjusted).
Page: https://gigainvestors.com/s/FE

## Holders (2024 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Steven Romick (https://gigainvestors.com/FPA) | USD 136,151,916 | 1.9% | add +1.99% |

## Total held by quarter

- 2021 Q1: USD 657,991,490 · 1 holder · USD 34.69
- 2021 Q2: USD 705,790,238 · 1 holder · USD 37.21
- 2021 Q3: USD 675,631,504 · 1 holder · USD 35.62
- 2021 Q4: USD 788,869,014 · 1 holder · USD 41.59
- 2022 Q1: USD 869,861,336 · 1 holder · USD 45.86
- 2022 Q2: USD 728,172,191 · 1 holder · USD 38.39
- 2022 Q3: USD 701,807,009 · 1 holder · USD 37.00
- 2022 Q4: USD 795,507,729 · 1 holder · USD 41.94
- 2023 Q1: USD 759,848,345 · 1 holder · USD 40.06
- 2023 Q2: USD 547,849,449 · 1 holder · USD 38.88
- 2023 Q3: USD 481,622,792 · 1 holder · USD 34.18
- 2023 Q4: USD 215,823,689 · 1 holder · USD 36.66
- 2024 Q1: USD 134,712,546 · 1 holder · USD 38.62
- 2024 Q2: USD 136,151,916 · 1 holder · USD 38.27
- 2024 Q3: USD 0 · 0 holders