FirstEnergyFRA:FE7 -1.02%71 Return-on-Tangible-Equity is 23.41% as of Mar. 2026, which is 16% above its 10-year median of 20.16. GuruFocus rates FRA:FE7 with a GF Score™ of 71/100 and a GF Value™ of €40.35 (Fairly Valued). The stock has 9 warning signs investors should review. Among 497 Utilities - Regulated companies, FirstEnergy ranks better than 65.79% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. FirstEnergy's annualized net income for the quarter that ended in Mar. 2026 was €1,401 Mil. FirstEnergy's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €5,986 Mil. Therefore, FirstEnergy's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 23.41%.
The historical rank and industry rank for FirstEnergy's Return-on-Tangible-Equity or its related term are showing as below:
FRA:FE7'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -186.45 Med: 20.16 Max: 72.51
Current: 15.09
During the past 13 years, FirstEnergy's highest Return-on-Tangible-Equity was 72.51%. The lowest was -186.45%. And the median was 20.16%.
FRA:FE7's Return-on-Tangible-Equity is ranked better than 65.79% of 497
companies
in the Utilities - Regulated industry
Industry Median: 10.83
vs FRA:FE7: 15.09
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.
FirstEnergy Return-on-Tangible-Equity Related Terms
FirstEnergy Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for FirstEnergy's Return-on-Tangible-Equity 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.
FRA:FE7 vs EIX, PPL, CNP: Return-on-Tangible-Equity Comparison
For the Utilities - Regulated Electric subindustry, FirstEnergy's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, FirstEnergy's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where FirstEnergy's Return-on-Tangible-Equity falls into.
* 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 23.41% mean?
FirstEnergy (FRA:FE7) has a Return-on-Tangible-Equity of 23.41% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on FirstEnergy and its competitors. This is 16% above median its historical median of 20.16. According to the industry distribution chart, FirstEnergy ranks #170 out of 497 companies in the Utilities - Regulated industry, placing it in the top 34.2%.
Is FirstEnergy's Return-on-Tangible-Equity too high?
FirstEnergy's current Return-on-Tangible-Equity of 23.41% is 16% above median its 10-year median of 20.16. The Utilities - Regulated industry median Return-on-Tangible-Equity is 10.83. FirstEnergy's value of 23.41% is 116.2% above this industry median. Based on the distribution chart, FirstEnergy ranks #170 out of 497 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, FirstEnergy has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does FirstEnergy's Return-on-Tangible-Equity compare to EIX and PPL?
According to the Utilities - Regulated industry distribution chart, FirstEnergy ranks #170 out of 497 companies for Return-on-Tangible-Equity. This puts FirstEnergy in the upper half of its industry. The industry median Return-on-Tangible-Equity is 10.83. FirstEnergy's value of 23.41% is 116.2% above this benchmark. While the company's 10-year median is 20.16 vs. the industry median of 10.83, FirstEnergy has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Utilities - Regulated company?
The median Return-on-Tangible-Equity among Utilities - Regulated companies is 10.83, based on 497 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. FirstEnergy's current Return-on-Tangible-Equity of 23.41% is 116.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on FirstEnergy and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Equity is 10.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FirstEnergy's current Return-on-Tangible-Equity is 23.41%, which is 16% above median its own 10-year median of 20.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FirstEnergy stock overvalued right now?
Based on GuruFocus' analysis, FirstEnergy (FRA:FE7) is currently considered Fairly Valued. The stock's GF Value™ is €40.35, compared to a current price of €41.87 — trading 3.8% above its estimated fair value. The current Return-on-Tangible-Equity is 23.41%, which is 16% above median its 10-year median of 20.16 and 116.2% above the Utilities - Regulated industry median of 10.83. FirstEnergy's overall GF Score™ is 71/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For FirstEnergy (FRA:FE7), the current Return-on-Tangible-Equity is 23.41% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is FirstEnergy (FRA:FE7) Overvalued in 2026?
Based on GuruFocus' analysis, FirstEnergy stock appears to be overvalued.
The current stock price of €41.87 is trading 3.8% above its estimated GF Value™ of €40.35.
GuruFocus considers FirstEnergy to be Fairly Valued.
Key valuation signals for FRA:FE7:
Return-on-Tangible-Equity: 23.41% (16% above median its 10-year median of 20.16)
GF Value™: €40.35 vs. price of €41.87 (3.8% above fair value)
Industry Position: 116.2% above the Utilities - Regulated median (#170 of 497)
No single metric tells the full story. See the FRA:FE7 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FirstEnergy is an investor-owned holding company with operations across five mid-Atlantic and Midwestern states. FirstEnergy also owns and operates one of the nation's largest electric transmission systems.
71GF Score
Get the complete analysis for FRA:FE7
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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