Sep. 1 at 8:35 PM
$FE — HOLD 🟡
Leverage and cash flow keep the setup in the middle: total debt is
$29B, total debt/equity is 200.9%, and current ratio is 0.5.
Operating cash flow is
$3.1B, but levered free cash flow is -
$2B and levered free cash flow/revenue is -12.9%, so equity holders are still leaning on regulated earnings rather than cash conversion.
Valuation is not cheap enough to offset that balance sheet: forward P/E is 15.4x, trailing P/E is 24.3x, EV/EBITDA is 10.5x, and EV/revenue is 3.6x.
The franchise is durable with over 6 million customers across a 65,000-square-mile footprint, but the market is already paying for that stability while 12 analysts still frame the range at
$48 to
$56.
Full research: https://lf0.com/research/firstenergy-stock-analysis-fe/?utm_source=stocktwits&utm_medium=social&utm_campaign=research_distribution