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FirstEnergy ROE %

: 7.63% (As of Jun. 2022)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. FirstEnergy's annualized net income attributable to common stockholders for the quarter that ended in Jun. 2022 was $748 Mil. FirstEnergy's average Total Stockholders Equity over the quarter that ended in Jun. 2022 was $9,807 Mil. Therefore, FirstEnergy's annualized ROE % for the quarter that ended in Jun. 2022 was 7.63%.

The historical rank and industry rank for FirstEnergy's ROE % or its related term are showing as below:

FE' s ROE % Range Over the Past 10 Years
Min: -66.2   Med: 5.25   Max: 18.27
Current: 15.8

During the past 13 years, FirstEnergy's highest ROE % was 18.27%. The lowest was -66.20%. And the median was 5.25%.

FE's ROE % is ranked better than
80.17% of 469 companies
in the Utilities - Regulated industry
Industry Median: 8.07 vs FE: 15.80

FirstEnergy ROE % Historical Data

The historical data trend for FirstEnergy's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

FirstEnergy Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -33.92 18.27 13.17 15.18 16.13

FirstEnergy Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.14 24.84 21.15 13.22 7.63

Competitive Comparison

For the Utilities - Regulated Electric subindustry, FirstEnergy's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

FirstEnergy ROE % Distribution

For the Utilities - Regulated industry and Utilities sector, FirstEnergy's ROE % distribution charts can be found below:

* The bar in red indicates where FirstEnergy's ROE % falls into.



FirstEnergy ROE % Calculation

FirstEnergy's annualized ROE % for the fiscal year that ended in Dec. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Dec. 2021 )/( (Total Stockholders Equity (A: Dec. 2020 )+Total Stockholders Equity (A: Dec. 2021 ))/ count )
=1283/( (7237+8675)/ 2 )
=1283/7956
=16.13 %

FirstEnergy's annualized ROE % for the quarter that ended in Jun. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Jun. 2022 )/( (Total Stockholders Equity (Q: Mar. 2022 )+Total Stockholders Equity (Q: Jun. 2022 ))/ count )
=748/( (8755+10858)/ 2 )
=748/9806.5
=7.63 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


FirstEnergy  (NYSE:FE) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %**(Q: Jun. 2022 )
=Net Income/Total Stockholders Equity
=748/9806.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(748 / 11272)*(11272 / 44868.5)*(44868.5 / 9806.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=6.64 %*0.2512*4.5754
=ROA %*Equity Multiplier
=1.67 %*4.5754
=7.63 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %**(Q: Jun. 2022 )
=Net Income/Total Stockholders Equity
=748/9806.5
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (748 / 964) * (964 / 1788) * (1788 / 11272) * (11272 / 44868.5) * (44868.5 / 9806.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7759 * 0.5391 * 15.86 % * 0.2512 * 4.5754
=7.63 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Jun. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


FirstEnergy ROE % Related Terms

Thank you for viewing the detailed overview of FirstEnergy's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


FirstEnergy Business Description

FirstEnergy logo
Address
76 South Main Street, Akron, OH, USA, 44308
FirstEnergy is one of the largest investor-owned utilities in the United States with 10 regulated distribution companies across six mid-Atlantic and Midwestern states. FirstEnergy also owns and operates one of the nation's largest electric transmission systems with 24,000 miles of lines.
Executives
Croom Jana T director 1205 KIMBALL BLVD. JASPER IN 47546
Klimczak Sean director C/O THE BLACKSTONE GROUP 345 PARK AVE. NEW YORK NY 10154
Hicks Lisa Winston director 76 S. MAIN ST AKRON OH 44308
Kaleta Paul J director P O BOX 30150 RENO NV 89520
Williams Melvin D. director 76 SOUTH MAIN STREET AKRON OH 44308
Teno Andrew director C/O FIR TREE INC. 55 WEST 46TH STREET, 29TH FLOOR NEW YORK NY 10036
Lynn Jesse director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Somerhalder John W Ii director, officer: Vice Chair & Exec Director 76 SOUTH MAIN STREET AKRON OH 44308
Park Hyun officer: SVP & CLO 76 SOUTH MAIN STREET AKRON OH 44308
Turner Leslie M director THE HERSHEY COMPANY 100 CRYSTAL A DRIVE HERSHEY PA 17036
Mikkelsen Eileen officer: VP, Rates & Regulatory Affairs 76 SOUTH MAIN STREET AKRON OH 44308
Prezelj Irena officer: VP, Investor Relations 76 SOUTH MAIN STREET AKRON OH 44308
Walker Christine officer: VP, Human Resources 76 SOUTH MAIN STREET AKRON OH 44308
Belcher Samuel officer: SVP & President, FE Utilities 76 SOUTH MAIN STREET AKRON OH 44308
Lisowski Jason officer: VP, Controller & CAO 76 SOUTH MAIN STREET AKRON OH 44333

FirstEnergy Headlines

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