Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Company Overview
- Ticker: FE
- Current Price (July 14, 2025): ~$40.36 — FinanceCharts :contentReference[oaicite:0]{index=0}
- Market Cap: ~$23.3 billion; EV ≈ $49.2 billion
- Industry: Regulated Electric Utilities
Investment Thesis
FirstEnergy is a large regulated utility serving approximately 6 million customers across the U.S. Its earnings are backed by regulated rate bases and supported by the “Energize365” grid modernization plan, under which management plans to invest about $28 billion over five years (investors.firstenergycorp.com) :contentReference[oaicite:1]{index=1}. Analysts forecast mid-single‑digit EPS growth (6–8% CAGR) through 2029, in line with recent results and guidance.
Business Model & Infrastructure Plan
- Revenue from regulated distribution, transmission, and generation operations
- Rate base expansion driven by $28 billion infrastructure program over five years (investors.firstenergycorp.com) :contentReference[oaicite:2]{index=2}
- Current dividend yield of ~4.4%
Financial Performance & Outlook
- Q1 2025 GAAP EPS: $0.62 (+41% YoY); Core EPS: $0.67 (+37%) (investors.firstenergycorp.com) :contentReference[oaicite:3]{index=3}
- 2025 guidance: Core EPS $2.40–2.60; 6–8% annual growth through 2029 (investors.firstenergycorp.com) :contentReference[oaicite:4]{index=4}
- Third‑party estimates: 2025 EPS ~$2.53; 2026 ~$2.76; 2027 ~$3.00 (+17% CAGR) — WallStreetZen :contentReference[oaicite:5]{index=5}
Valuation & Forward PEG
| Metric | Value / Estimate |
|---|---|
| Forward P/E | ~15.8× — Yahoo Finance |
| EPS Growth Rate (2025–27) | ~16.9% CAGR |
| Forward PEG | ~0.93 |
| Industry Benchmark (Utilities) | ~1.5×+; FE below average |
Analyst Coverage & Sentiment
- Consensus Rating: Neutral to Moderate Buy; 6 Buys, 8 Holds, 0 Sells — MarketBeat
- Price Target Range: $44.83–$46.15 — StockAnalysis, TipRanks
- Alternative Estimates: $45.85 average; $42.40–$50.40 — Fintel
Dividend Profile & Yield
- Current Yield: ~4.4%
- Payout Ratio: ~100% of earnings; supported by regulated cash flows
- Stability: Dividends supported by regulated rates and free cash flow generation
Risk Factors
| Risk | Mitigation |
|---|---|
| Regulatory shifts | Diversified rate base and transmission footprint |
| Rising interest rates | Rate base valuations moderate sensitivity |
| Infrastructure execution | Backed by multi‑year capital programs |
| Severe weather events | Insurance coverage and cost recovery mechanisms |
Short Interest & Float Dynamics
- Float: ~575 M shares — GuruFocus
- Short Interest: ~20 M shares (~3.5% of float) — Fintel
- Days to Cover: ~4.2 days — Finviz
Valuation Considerations
Analysts’ target ranges imply potential price levels between $44.83 and $46.15, alongside a dividend yield near 4.4%. The forward PEG of approximately 0.93 suggests valuation in line with projected earnings growth, consistent with utility-sector norms.
Summary
FirstEnergy provides regulated utility exposure with stable cash flows, a dividend yield around 4.4%, and projected mid-single-digit EPS growth. Regulatory frameworks and grid investments support earnings visibility, while infrastructure execution and rate-case risk warrant attention. This profile may suit allocations oriented toward income and capital preservation rather than high-growth objectives.
Disclaimer
This article is for informational and educational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. The author is not a registered investment advisor. All opinions are the author’s own. Readers are encouraged to do their own research and consult with a licensed financial professional before making investment decisions.
