Stock analysis/Share presentation ⬇️
Today we are talking about the company FirstEnergy: $FE (-0,25 %)
What is and does FirstEnergy anyway: 🤔
FirstEnergy is an American energy company headquartered in Akron, Ohio. The company is engaged in the generation, transmission, and distribution of electricity and serves approximately six million customers in the United States. The company also operates various energy and environmental projects, including solar power plants, wind farms and hydroelectric plants. FirstEnergy is also active in the research and development of new technologies for energy generation and storage.
History of FirstEnergy:
The company was founded in 1997 as a result of a merger of Ohio Edison with Centerior Energy. Since the merger, FirstEnergy has experienced tremendous growth, both in terms of its regions and companies, as well as its product portfolio.
In 2007, FirstEnergy acquired Allegheny Energy, and in 2011, the company began its merger process with GPU, an energy company. This merger was finally completed in 2012, resulting in the creation of one of the largest and most diversified energy companies in the country.
Today, FirstEnergy is one of the largest electric utilities in the United States. The Group provides analysis, planning, design and maintenance, and construction of energy and energy infrastructure solutions, and operates a comprehensive thermal power plant, including coal, gas coal, nuclear, wind power, and biomass.
How many employees does the company have: 🙋🏽♂️🙋🏻♀️
Currently, FirstEnergy has a total of over 12,000 employees.
P/E RATIO:
FirstEnergy has a current P/E ratio of just under 54, which is quite high in my opinion.
Market capitalization: 🏦
Currently, FirstEnergy has a market capitalization of around 20.2 billion euros.
Dividend yield: 💰
The company pays its shareholders a nice dividend of currently over 4.05%. This payout is made on a quarterly basis. FirstEnergy shareholders receive their dividends in March, June, September and December.
Strengths of the share: 📈
- FirstEnergy is a leading provider of energy in the U.S., serving approximately six million customers.
- The company has a wide range of power generation assets, including coal, gas, nuclear, and renewable energy sources.
- FirstEnergy has a strong presence in the markets in which it operates and has an extensive network of transmission and distribution systems.
- The company has a strong financial position and has a solid balance sheet.
- FirstEnergy is a leader in energy and environmental projects, investing in innovative technologies for energy generation and storage.
- The company has a dedicated and experienced management team focused on providing high quality services.
- FirstEnergy has a strong relationship with its customers and strives to meet their needs and provide them with excellent customer service.
Weaknesses of the share: 📉
- FirstEnergy is heavily dependent on coal and nuclear power, which makes the company more vulnerable to regulatory changes and environmental regulations.
- The company has faced regulatory challenges and litigation in the past, resulting in significant costs and a negative impact on the company's image.
- FirstEnergy has also faced supply interruptions in the past, resulting in inconvenience to customers and a negative impact on the company's image.
- The company has also faced financial challenges in the past, leading to deteriorating financial metrics and an increase in debt.
- FirstEnergy has faced intense competitive pressures in some of the regions in which it operates, which can lead to pricing pressure and a reduction in profit margins.
- The company has also faced cybersecurity and data privacy issues in the past, which may lead to risks for the company and its customers.
FirstEnergy's industry:
FirstEnergy is part of the U.S. electric utility industry, which includes corporations, public owners and municipal utilities. The industry is highly regulated. Government powers and restrictions can vary by state and jurisdiction. Legislation regulates rates, technical standards and operating requirements, ensuring a safe and reliable supply of energy, and measures to prevent and eliminate undesirable problems.
Shareholding structure:
FirstEnergy has a diversified investor base, with the largest shareholders being BlackRock, Vanguard Group and State Street Corporation, which together own approximately 25% of the company.
Other shareholders include Fidelity Management & Research, Geode Capital, Wellington Management and Bank of America.
A little more about the business model: ⬇️
FirstEnergy conducts its business as an energy provider to public utilities in Ohio, Pennsylvania, New Jersey, West Virginia and Maryland.
The company purchases energy from the wholesale market by entering into long-term energy procurement contracts or buying in the futures markets.
Its product portfolio includes hydrocarbons, natural gas, coal and nuclear energy for power generation. The company also provides services such as distribution system operation, plant maintenance and new construction.
Management:
FirstEnergy is led by CEO Charles E. Jones, who has been president and CEO since 2009. He also holds an MBA from the Wharton School of Business at the University of Pennsylvania and has served in various leadership positions at FirstEnergy and its predecessors.
FirstEnergy's board of directors consists of a total of nine members, including Douglas E. Timmerman (chairman) and Neal P. Nathanson, who serve as chairman of the board and executive director, respectively. It is also responsible for the implementation and management of various strategic, financial and operational ventures.
What is the objective of FirstEnergy: 🏁
FirstEnergy's goal is to provide its customers with a reliable and cost-effective energy supply while meeting shareholder needs and regulatory requirements.
Your opinion: 🤔🧐
Now I'd love to hear your thoughts on this stock in the comments.
What do you think of FirstEnergy and did you already know this company?
Do you guys maybe already have this stock in your portfolio?
Feel free to let me know in the comments.
Of course, this is not an investment advice but just my own opinion that I would like to share with you.
