FE FirstEnergy
too hard · 38
Owner-earnings value$37.42
Price$46.18
Margin of safety
-19.0%
Quality gate · 38/100
⚠ sub-hurdle returns (median roic 6% < 9%) · over-levered (net debt/EBITDA 6.4x > 4x)
Median ROIC5.7%
Gross margin63.5%
Net debt / EBITDA6.3x
FCF conversion-122%
Share count / yr+0.3%
Profitable years4/4
Moat & management
Owner-earnings inputs
| Owner earnings (TTM) | 1.08B |
| Owner-earnings yield | 4.1% |
| Free-cash-flow yield | -7.3% |
| Growth used (normalized) | 6.6% |
| Market-implied growth (reverse DCF) | 11.7% |
| Terminal growth | 3.0% |
| Discount rate (hurdle) | 9.0% |
Projected owner earnings
| Yr | Owner earnings | Growth | PV |
|---|---|---|---|
| 1 | 1.16B | 6.6% | 1.06B |
| 2 | 1.23B | 6.2% | 1.03B |
| 3 | 1.30B | 5.8% | 1.00B |
| 4 | 1.37B | 5.4% | 970.19M |
| 5 | 1.44B | 5.0% | 934.56M |
| 6 | 1.50B | 4.6% | 896.82M |
| 7 | 1.57B | 4.2% | 857.31M |
| 8 | 1.63B | 3.8% | 816.40M |
| 9 | 1.68B | 3.4% | 774.45M |
| 10 | 1.73B | 3.0% | 731.82M |
⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Price pays for ~12%/yr owner-earnings growth over 10y (reverse DCF); model credits 7%.