| 2015 | 2016 | 2017 | 2018 | 2019 (projected) | FirstEnergy Corp Receivables | 1,595,000,000 | 1,615,000,000 | 1,654,000,000 | 571,000,000 | 1,216,421,053 | FirstEnergy Corp Inventories | 785,000,000 | 564,000,000 | 463,000,000 | 252,000,000 | 514,157,895 |
A growth case for FirstEnergy Corp
 | By Ellen Johnson | Macroaxis Story |
This firm current daily volatility is 0.87 percent, with beta of 0.21 and alpha of 0.14 over Russell 2000 . What is FirstEnergy Corp Target Price Odds to finish over Current Price? Pertaining to normal probability distribution, the odds of FirstEnergy Corp to move above current price in 30 days from now is nearly 4.66%. The FirstEnergy Corp probability density function shows the probability of FirstEnergy Corp Stock to fall within a particular range of prices over 30 days . Allowing for the 30-days total investment horizon, FirstEnergy Corp has beta of 0.208 suggesting as returns on market go up, FirstEnergy Corp average returns are expected to increase less than the benchmark. However during bear market, the loss on holding FirstEnergy Corp will be expected to be much smaller as well. Additionally, the company has an alpha of 0.1369 implying that it can potentially generate 0.1369% excess return over Russell 2000 after adjusting for the inherited market risk (beta).
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Reviewed by Vlad Skutelnik
The company reports 20.91B of total liabilities with total debt to equity ratio (D/E) of 287.6 which implies that the stock may not be able to produce enough cash to satisfy its debt commitments. FirstEnergy Corp dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $0.73 per share. Earning per share calculations of the firm is based on official Zacks consensus of 5 analysts regarding FirstEnergy Corp future annual earnings. Given the historical accuracy of 88.12%, the future earnings per share of the company is estimated to be 2.565 with lowest and highest values of 2.5 and 2.63 respectively. Please note that this consensus of annual earnings estimates for the entity is an estimate of EPS before non-recurring items and including employee stock options expenses. FirstEnergy financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of FirstEnergy, including all of FirstEnergy's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of FirstEnergy assets, the company is considered highly leveraged. Understanding the composition and structure of overall FirstEnergy debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding FirstEnergy Total Liabilities
FirstEnergy liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. FirstEnergy has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on FirstEnergy balance sheet include debt obligations and money owed to different FirstEnergy vendors, workers, and loan providers. Below is the chart of FirstEnergy short long-term liabilities accounts currently reported on its balance sheet. You can use FirstEnergy financial leverage analysis tool to get a better grip on understanding its financial positionHow important is FirstEnergy's Liquidity
FirstEnergy financial leverage refers to using borrowed capital as a funding source to finance FirstEnergy ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. FirstEnergy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to FirstEnergy's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of FirstEnergy's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between FirstEnergy's total debt and its cash.
What is driving FirstEnergy Investor Appetite?
The modest gains experienced by current holders of FirstEnergy Corp could raise concerns from investors as the firm closed today at a share price of 47.27 on 10466490.000 in volume. The company executives have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in August. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 0.8677. The very small Stock volatility is a good signal to investors with longer term investment horizons. FirstEnergy Corp preserves 46.75% of probability of bankruptcy. FirstEnergy Corp is selling for 47.39. This is 1.5 percent decrease. Today highest was 48.15. FirstEnergy Corp Enterprise Value over EBITDA is decreasing over the last 4 years. FirstEnergy Corp Return on Sales is decreasing over the last 4 years. The previous year value of FirstEnergy Corp Return on Sales was 0.30. Furthermore, FirstEnergy Corp Investments Non Current is increasing over the last 4 years. The ongoing value of FirstEnergy Corp Investments Non Current is 1,464,209,276.
In closing, we belive that FirstEnergy Corp is currently undervalued with below average probability of financial unrest in the next two years. Our present buy/sell advice on the firm is Buy.
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