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On January 19, 2026 FirstEnergy requested more time from the Public Utilities Commission of Ohio to meet restoration standards following service challenges. On March 17, 2026 jurors began deliberations in the corruption trial of two former FirstEnergy executives; on March 31, 2026 the jury reported it could not reach a verdict. The company declared a quarterly dividend of $0.445 per share payable March 1, 2026.
Technical Analysis
Directional indicators show an emerging trend: ADX at 23.09 signals trend formation rather than extension, but both DI+ and DI– behavior points to bearish directional pressure. DI+ sits at 25.8 and has peaked-and-reversed, which counts as bearish; DI– at 17.99 has shown a dip-and-reversal and is now rising, which also counts as bearish. Together these readings increase the probability of near-term downside pressure on price action relative to recent levels.
MACD reads 0.41 with a signal line at 0.39, so MACD currently sits just above its signal line — a short-term bullish crossing. The MACD trend, however, shows a peak-and-reversal, which indicates fading bullish momentum and aligns with the directional indicators that favor a weakening advance.
The Momentum/Regression Oscillator registers 20.08 and is decreasing; a positive MRO at that level implies price trading above the model target and therefore a higher likelihood of a corrective move. The declining MRO reduces the scope for further immediate gains absent fresh fundamental catalysts.
RSI at 58.33 peaked recently and has reversed, signaling that buying momentum cooled from modest strength and that upside momentum may stall. Short-term moving averages reinforce the mixed picture: the 12-day EMA is rising and price ($51.04) sits above the 20-day average ($50.84) and the 50-day average ($49.92), which provides layered support, while the 200-day average ($45.60) remains well below current price, supporting the longer-term structural uptrend.
Bollinger band placement shows a narrow 20-day volatility environment (upper ~$51.57, lower ~$50.12), consistent with low realized volatility and a setup prone to a short, sharp move if one of the technical bearish signals accelerates. Overall, short-term technicals favor a pullback or consolidation into the next few weeks while longer-term averages offer support.
Fundamental Analysis
Operating performance shows a split between cash generation and bottom-line strain. Total revenue reached $3,797,000,000 and operating cash flow stood at $1,136,000,000, indicating strong cash conversion from operations despite reported net income of -$49,000,000 for the period. EBIT measured $267,000,000 with an EBIT margin of 7.03%, which declined QoQ by 66.51% and YoY by 63.86%.
WMDST notes that the company’s EBIT margin (7.03%) sits well below the industry peer mean of 22.225% and the industry peer median of 22.438%, while exceeding the industry peer low of -6.942% and below the industry peer high of 29.277%. This gap highlights compression versus typical peer profitability even as the business retains regulated cash flows.
Leverage and coverage metrics remain elevated. Total debt approximates $26.556 billion with net debt near $26.499 billion; debt-to-EBITDA registers ~38.6x and debt-to-equity sits near 2.12x. Interest coverage stands at about 1.01x and declined sharply QoQ, which signals limited earnings cushion against interest expense and amplifies sensitivity to operating variation and financing costs.
Free cash flow posted at -$30,000,000 and free cash flow yield equaled about -0.11%, with free cash flow contracting materially YoY. Operating cash flow remains positive, and cash conversion ratio dynamics show operating cash well ahead of reported net earnings, but negative free cash flow and the company’s recent convertible-note transactions increase capital structure complexity.
Earnings metrics: reported EPS matched the estimate at $0.53 with an EPS surprise of roughly -0.9%. Forward EPS near $0.736 and forward P/E at ~61.1x reflect elevated forward multiples despite the compressed current margin profile; trailing P/E sits around 87.1x. The company declared a quarterly dividend of $0.445 per share (yield ~0.96%).
WMDST values the stock as under-valued based on the firm’s regulated asset base, persistent operating cash flow, and WMDST’s valuation framework; however, material regulatory and legal exposure plus high leverage reduce margin for error in execution and financing.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-17 |
| NEXT REPORT DATE: | 2026-05-19 |
| CASH FLOW | Begin Period Cash Flow | $ 1.4 B |
| Operating Cash Flow | $ 1.1 B | |
| Capital Expenditures | $ -1.17 B | |
| Change In Working Capital | $ 402.0 M | |
| Dividends Paid | $ -257.00 M | |
| Cash Flow Delta | $ -1.33 B | |
| End Period Cash Flow | $ 99.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 3.8 B | |
| Forward Revenue | $ -8.24 B | |
| COSTS | ||
| Cost Of Revenue | $ 1.4 B | |
| Depreciation | $ 337.0 M | |
| Depreciation and Amortization | $ 337.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 3.2 B | |
| PROFITABILITY | ||
| Gross Profit | $ 2.4 B | |
| EBITDA | $ 688.0 M | |
| EBIT | $ 267.0 M | |
| Operating Income | $ 603.0 M | |
| Interest Income | — | |
| Interest Expense | $ 264.0 M | |
| Net Interest Income | $ -264.00 M | |
| Income Before Tax | $ 3.0 M | |
| Tax Provision | $ -4.00 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ -49.00 M | |
| Net Income From Continuing Operations | $ 7.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.53 | |
| EPS Actual | $ 0.53 | |
| EPS Difference | $ 0.00 | |
| EPS Surprise | -0.91 % | |
| Forward EPS | $ 0.74 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 55.9 B | |
| Intangible Assets | $ 5.6 B | |
| Net Tangible Assets | $ 6.9 B | |
| Total Current Assets | $ 3.0 B | |
| Cash and Short-Term Investments | $ 57.0 M | |
| Cash | $ 57.0 M | |
| Net Receivables | $ 939.0 M | |
| Inventory | $ 577.0 M | |
| Long-Term Investments | $ 1.4 B | |
| LIABILITIES | ||
| Accounts Payable | $ 2.0 B | |
| Short-Term Debt | $ 1.0 B | |
| Total Current Liabilities | $ 5.3 B | |
| Net Debt | $ 26.5 B | |
| Total Debt | $ 26.6 B | |
| Total Liabilities | $ 42.0 B | |
| EQUITY | ||
| Total Equity | $ 12.5 B | |
| Retained Earnings | $ 35.0 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 21.65 | |
| Shares Outstanding | 577.851 M | |
| Revenue Per-Share | $ 6.57 | |
| VALUATION | Market Capitalization | $ 26.7 B |
| Enterprise Value | $ 53.2 B | |
| Enterprise Multiple | 77.303 | |
| Enterprise Multiple QoQ | 107.123 % | |
| Enterprise Multiple YoY | 219.912 % | |
| Enterprise Multiple IPRWA | high: 80.229 FE: 77.303 median: 64.053 mean: 57.598 low: 1.664 |
|
| EV/R | 14.007 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 4.469 | |
| Asset To Liability | 1.332 | |
| Debt To Capital | 0.68 | |
| Debt To Assets | 0.475 | |
| Debt To Assets QoQ | -3.361 % | |
| Debt To Assets YoY | 1519.052 % | |
| Debt To Assets IPRWA | high: 0.476 FE: 0.475 median: 0.433 mean: 0.346 low: 0.012 |
|
| Debt To Equity | 2.123 | |
| Debt To Equity QoQ | -1.102 % | |
| Debt To Equity YoY | 1631.468 % | |
| Debt To Equity IPRWA | high: 2.432 FE: 2.123 median: 1.487 mean: 1.266 low: 0.013 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.133 | |
| Price To Book QoQ | 6.535 % | |
| Price To Book YoY | 14.245 % | |
| Price To Book IPRWA | high: 3.11 mean: 2.227 FE: 2.133 median: 2.045 low: 0.011 |
|
| Price To Earnings (P/E) | 87.133 | |
| Price To Earnings QoQ | 63.03 % | |
| Price To Earnings YoY | 44.75 % | |
| Price To Earnings IPRWA | high: 181.261 median: 133.353 mean: 119.4 FE: 87.133 low: -114.345 |
|
| PE/G Ratio | -2.411 | |
| Price To Sales (P/S) | 7.028 | |
| Price To Sales QoQ | 13.764 % | |
| Price To Sales YoY | -4.018 % | |
| Price To Sales IPRWA | high: 26.13 mean: 15.256 median: 14.36 FE: 7.028 low: 0.028 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 61.092 | |
| Forward PE/G | -1.69 | |
| Forward P/S | -3.234 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 8.195 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.068 | |
| Asset Turnover Ratio QoQ | -9.835 % | |
| Asset Turnover Ratio YoY | 9.937 % | |
| Asset Turnover Ratio IPRWA | high: 0.166 FE: 0.068 mean: 0.063 median: 0.047 low: 0.031 |
|
| Receivables Turnover | 4.02 | |
| Receivables Turnover Ratio QoQ | -12.872 % | |
| Receivables Turnover Ratio YoY | 15.313 % | |
| Receivables Turnover Ratio IPRWA | high: 4.607 FE: 4.02 mean: 1.979 median: 1.801 low: 0.811 |
|
| Inventory Turnover | 2.377 | |
| Inventory Turnover Ratio QoQ | -7.287 % | |
| Inventory Turnover Ratio YoY | 28.337 % | |
| Inventory Turnover Ratio IPRWA | high: 5.265 median: 2.615 mean: 2.598 FE: 2.377 low: 0.857 |
|
| Days Sales Outstanding (DSO) | 22.698 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -52.747 | |
| Cash Conversion Cycle Days QoQ | -28.284 % | |
| Cash Conversion Cycle Days YoY | 8.336 % | |
| Cash Conversion Cycle Days IPRWA | high: 81.214 mean: -13.306 median: -42.087 FE: -52.747 low: -68.344 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -1.657 | |
| CapEx To Revenue | -0.307 | |
| CapEx To Depreciation | -3.46 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 38.0 B | |
| Net Invested Capital | $ 39.1 B | |
| Invested Capital | $ 39.1 B | |
| Net Tangible Assets | $ 6.9 B | |
| Net Working Capital | $ -2.29 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.011 | |
| Current Ratio | 0.565 | |
| Current Ratio QoQ | -24.385 % | |
| Current Ratio YoY | 1.735 % | |
| Current Ratio IPRWA | high: 2.279 mean: 0.817 median: 0.73 FE: 0.565 low: 0.455 |
|
| Quick Ratio | 0.456 | |
| Quick Ratio QoQ | -29.33 % | |
| Quick Ratio YoY | 2.251 % | |
| Quick Ratio IPRWA | high: 1.827 mean: 0.694 median: 0.6 FE: 0.456 low: 0.267 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 38.599 | |
| Cost Of Debt | 0.772 % | |
| Interest Coverage Ratio | 1.011 | |
| Interest Coverage Ratio QoQ | -69.694 % | |
| Interest Coverage Ratio YoY | -60.887 % | |
| Interest Coverage Ratio IPRWA | high: 11.589 mean: 3.343 median: 2.436 FE: 1.011 low: -2.921 |
|
| Operating Cash Flow Ratio | 0.126 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 110.483 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | -0.191 | |
| Dividend Payout Ratio | -5.245 | |
| Dividend Rate | $ 0.44 | |
| Dividend Yield | 0.01 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.036 % | |
| Revenue Growth | -8.462 % | |
| Revenue Growth QoQ | -137.241 % | |
| Revenue Growth YoY | -42.94 % | |
| Revenue Growth IPRWA | high: 28.355 % FE: -8.462 % mean: -11.229 % median: -11.565 % low: -30.545 % |
|
| Earnings Growth | -36.145 % | |
| Earnings Growth QoQ | -160.631 % | |
| Earnings Growth YoY | 70.689 % | |
| Earnings Growth IPRWA | high: 26.316 % median: -33.889 % FE: -36.145 % mean: -37.583 % low: -79.31 % |
|
| MARGINS | ||
| Gross Margin | 63.84 % | |
| Gross Margin QoQ | 0.154 % | |
| Gross Margin YoY | -6.607 % | |
| Gross Margin IPRWA | high: 71.162 % FE: 63.84 % median: 57.4 % mean: 51.778 % low: 8.328 % |
|
| EBIT Margin | 7.032 % | |
| EBIT Margin QoQ | -66.511 % | |
| EBIT Margin YoY | -63.861 % | |
| EBIT Margin IPRWA | high: 29.277 % median: 22.438 % mean: 22.225 % FE: 7.032 % low: -6.942 % |
|
| Return On Sales (ROS) | 15.881 % | |
| Return On Sales QoQ | -20.635 % | |
| Return On Sales YoY | -18.383 % | |
| Return On Sales IPRWA | high: 26.505 % median: 19.041 % mean: 18.777 % FE: 15.881 % low: 5.256 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -30.00 M | |
| Free Cash Flow Yield | -0.112 % | |
| Free Cash Flow Yield QoQ | -93.906 % | |
| Free Cash Flow Yield YoY | -89.581 % | |
| Free Cash Flow Yield IPRWA | high: 0.916 % FE: -0.112 % median: -0.185 % mean: -0.861 % low: -9.091 % |
|
| Free Cash Growth | -93.631 % | |
| Free Cash Growth QoQ | -138.011 % | |
| Free Cash Growth YoY | -1121.058 % | |
| Free Cash Growth IPRWA | high: 150.31 % median: -82.083 % FE: -93.631 % mean: -134.031 % low: -401.968 % |
|
| Free Cash To Net Income | 0.612 | |
| Cash Flow Margin | 17.435 % | |
| Cash Flow To Earnings | -13.51 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | -0.088 % | |
| Return On Assets QoQ | -110.986 % | |
| Return On Assets YoY | -117.323 % | |
| Return On Assets IPRWA | high: 2.845 % mean: 0.901 % median: 0.736 % FE: -0.088 % low: -0.509 % |
|
| Return On Capital Employed (ROCE) | 0.527 % | |
| Return On Equity (ROE) | -0.004 | |
| Return On Equity QoQ | -111.376 % | |
| Return On Equity YoY | -118.702 % | |
| Return On Equity IPRWA | high: 0.066 median: 0.028 mean: 0.027 low: 0.008 FE: -0.004 |
|
| DuPont ROE | -0.387 % | |
| Return On Invested Capital (ROIC) | 0.54 % | |
| Return On Invested Capital QoQ | -71.368 % | |
| Return On Invested Capital YoY | -98.416 % | |
| Return On Invested Capital IPRWA | high: 4.647 % mean: 1.473 % median: 1.104 % low: 0.709 % FE: 0.54 % |
|