Recent News
Feb. 11, 2026 — Board declares a quarterly dividend of $0.465 per share payable June 1, 2026; company projects $1.86 per share in dividends for 2026. Mar. 2, 2026 — FirstEnergy Transmission selected by PJM to build multiple reliability projects, with ~ $950 million of planned investment. Mar. 14–17, 2026 — widespread windstorm outages prompted extensive restoration efforts across service territories; major restoration progress reported. Mar. 30, 2026 — Moody’s changed FirstEnergy’s outlook to positive while affirming ratings. Apr. 9, 2026 — company appointed Brian Harrell as Vice President and Chief Security Officer.
Technical Analysis
Directional Indicators (ADX/DI+/DI-): ADX at 37.1 signals a strong trend; DI- (32.97) increasing indicates dominant bearish directional pressure while DI+ (10.78) declines, reinforcing a trend-biased downside risk that ties to the broader valuation pressure.
MACD: MACD sits at -1.29 with the MACD trend decreasing and the signal at -0.86; negative, falling MACD indicates bearish momentum with no bullish cross above the signal line.
MRO (Momentum/Regression Oscillator): MRO at -15.21 (negative and declining) indicates price below the target model, implying technical scope for a corrective uptick, but the ongoing decrease in MRO reduces the odds of a strong immediate reversal.
RSI and Momentum: RSI 42.84 and trending down shows weakening momentum without reaching oversold extremes; combined with the MACD and DI structure, this favors continuation of selling pressure rather than a durable bounce.
Price vs. Moving Averages and Bands: Closing price $44.71 sits below the 12-day EMA ($46.27, decreasing), the 20-day average ($47.03) and the 50-day average ($49.49), and it trades essentially at the lower Bollinger band (1x lower ≈ $44.75); that alignment signals short-term negative bias with limited room before two-standard-deviation support (~$42.46).
Fundamental Analysis
Operating Performance: Total revenue $4,202,000,000 with operating income $828,000,000 and EBIT $876,000,000. YoY revenue growth stands at -42.49% while the reported revenue growth metric reads 10.67%; operating margin equals 19.70% and EBIT margin equals 20.85% (EBIT margin QoQ change +196.46%, EBIT margin YoY -0.65%).
Profitability & Returns: Net income $405,000,000 and EPS actual $0.72 (EPS estimate $0.72; EPS surprise ~0.63%). Return on equity 3.20% and return on assets 0.72% indicate low incremental returns on capital versus historical utility norms.
Cash Flow & Capital: Operating cash flow $148,000,000 contrasts with free cash flow of -$1,107,000,000 (free cash flow yield -3.87%), reflecting heavy capital deployment and working-capital dynamics; free cash growth YoY is +75.06% but absolute free cash remains negative, and capital expenditures totaled -$1,255,000,000.
Leverage & Coverage: Total debt $28,060,000,000, net debt ~$28,008,000,000; debt-to-equity 2.22x (≈222%), debt-to-assets 49.30%, and debt-to-EBITDA ~21.63x. Interest coverage roughly 3.22x, broadly in line with the industry peer mean interest coverage of ~3.18x but paired with very high leverage and elevated net debt.
Valuation Multiples: P/E ~68.63 and forward P/E ~66.09; price-to-book ~2.26 (P/B QoQ +5.89%, P/B YoY +22.58%). Enterprise multiple ~43.63. WMDST values the stock as over-valued given these multiple levels combined with negative free cash flow and elevated leverage.
Peer Comparisons Where Available: EBIT margin at ~20.85% sits below the industry peer mean EBIT margin of ~28.25% and below the industry peer median of ~25.79%, though above the industry peer low of ~12.97%. Price-to-book at ~2.26 sits below the industry peer mean P/B of ~2.66 and below the industry peer median of ~2.86. Interest coverage aligns with the industry peer mean.
Valuation Summary: Strong capital investment and regulatory-driven rate-base growth support medium-term earnings potential, but the combination of negative free cash flow, very high debt-to-EBITDA, and elevated P/E multiples leaves the current WMDST valuation categorized as over-valued.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-04-28 |
| NEXT REPORT DATE: | 2026-07-28 |
| CASH FLOW | Begin Period Cash Flow | $ 99.0 M |
| Operating Cash Flow | $ 148.0 M | |
| Capital Expenditures | $ -1.25 B | |
| Change In Working Capital | $ -437.00 M | |
| Dividends Paid | $ -257.00 M | |
| Cash Flow Delta | $ -19.00 M | |
| End Period Cash Flow | $ 80.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 4.2 B | |
| Forward Revenue | $ 1.1 B | |
| COSTS | ||
| Cost Of Revenue | $ 1.6 B | |
| Depreciation | $ 117.0 M | |
| Depreciation and Amortization | $ 117.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 3.4 B | |
| PROFITABILITY | ||
| Gross Profit | $ 2.6 B | |
| EBITDA | $ 1.3 B | |
| EBIT | $ 876.0 M | |
| Operating Income | $ 828.0 M | |
| Interest Income | — | |
| Interest Expense | $ 272.0 M | |
| Net Interest Income | $ -272.00 M | |
| Income Before Tax | $ 604.0 M | |
| Tax Provision | $ 138.0 M | |
| Tax Rate | 22.848 % | |
| Net Income | $ 405.0 M | |
| Net Income From Continuing Operations | $ 466.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.72 | |
| EPS Actual | $ 0.72 | |
| EPS Difference | $ 0.00 | |
| EPS Surprise | 0.63 % | |
| Forward EPS | $ 0.74 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 56.9 B | |
| Intangible Assets | $ 5.6 B | |
| Net Tangible Assets | $ 7.0 B | |
| Total Current Assets | $ 3.0 B | |
| Cash and Short-Term Investments | $ 52.0 M | |
| Cash | $ 52.0 M | |
| Net Receivables | $ 1.0 B | |
| Inventory | $ 582.0 M | |
| Long-Term Investments | $ 1.3 B | |
| LIABILITIES | ||
| Accounts Payable | $ 2.0 B | |
| Short-Term Debt | $ 1.7 B | |
| Total Current Liabilities | $ 5.8 B | |
| Net Debt | $ 28.0 B | |
| Total Debt | $ 28.1 B | |
| Total Liabilities | $ 42.8 B | |
| EQUITY | ||
| Total Equity | $ 12.7 B | |
| Retained Earnings | $ 171.0 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 21.88 | |
| Shares Outstanding | 578.431 M | |
| Revenue Per-Share | $ 7.26 | |
| VALUATION | Market Capitalization | $ 28.6 B |
| Enterprise Value | $ 56.6 B | |
| Enterprise Multiple | 43.631 | |
| Enterprise Multiple QoQ | -43.559 % | |
| Enterprise Multiple YoY | 9.603 % | |
| Enterprise Multiple IPRWA | high: 73.668 mean: 56.685 median: 51.966 FE: 43.631 low: 34.15 |
|
| EV/R | 13.467 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 4.498 | |
| Asset To Liability | 1.329 | |
| Debt To Capital | 0.689 | |
| Debt To Assets | 0.493 | |
| Debt To Assets QoQ | 3.783 % | |
| Debt To Assets YoY | 4.963 % | |
| Debt To Assets IPRWA | FE: 0.493 high: 0.484 median: 0.472 mean: 0.461 low: 0.295 |
|
| Debt To Equity | 2.217 | |
| Debt To Equity QoQ | 4.461 % | |
| Debt To Equity YoY | 12.431 % | |
| Debt To Equity IPRWA | high: 2.477 FE: 2.217 median: 1.891 mean: 1.86 low: 0.697 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.259 | |
| Price To Book QoQ | 5.885 % | |
| Price To Book YoY | 22.584 % | |
| Price To Book IPRWA | high: 3.412 median: 2.862 mean: 2.659 FE: 2.259 low: 1.206 |
|
| Price To Earnings (P/E) | 68.627 | |
| Price To Earnings QoQ | -21.239 % | |
| Price To Earnings YoY | 14.602 % | |
| Price To Earnings IPRWA | high: 116.866 median: 79.575 mean: 75.768 FE: 68.627 low: 40.323 |
|
| PE/G Ratio | 1.914 | |
| Price To Sales (P/S) | 6.802 | |
| Price To Sales QoQ | -3.219 % | |
| Price To Sales YoY | 10.596 % | |
| Price To Sales IPRWA | high: 28.12 mean: 17.432 median: 12.653 FE: 6.802 low: 5.549 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 66.088 | |
| Forward PE/G | 1.844 | |
| Forward P/S | 25.856 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 21.384 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.074 | |
| Asset Turnover Ratio QoQ | 9.657 % | |
| Asset Turnover Ratio YoY | 3.689 % | |
| Asset Turnover Ratio IPRWA | high: 0.093 FE: 0.074 mean: 0.062 median: 0.054 low: 0.031 |
|
| Receivables Turnover | 4.227 | |
| Receivables Turnover Ratio QoQ | 5.155 % | |
| Receivables Turnover Ratio YoY | 6.161 % | |
| Receivables Turnover Ratio IPRWA | high: 4.808 FE: 4.227 median: 3.005 mean: 2.881 low: 1.645 |
|
| Inventory Turnover | 2.744 | |
| Inventory Turnover Ratio QoQ | 15.405 % | |
| Inventory Turnover Ratio YoY | 23.768 % | |
| Inventory Turnover Ratio IPRWA | high: 5.019 FE: 2.744 mean: 1.892 median: 1.383 low: 1.101 |
|
| Days Sales Outstanding (DSO) | 21.586 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -73.785 | |
| Cash Conversion Cycle Days QoQ | 39.885 % | |
| Cash Conversion Cycle Days YoY | 10.547 % | |
| Cash Conversion Cycle Days IPRWA | high: 40.945 mean: -39.81 median: -54.561 FE: -73.785 low: -81.754 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -1.504 | |
| CapEx To Revenue | -0.299 | |
| CapEx To Depreciation | -10.726 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 39.0 B | |
| Net Invested Capital | $ 40.7 B | |
| Invested Capital | $ 40.7 B | |
| Net Tangible Assets | $ 7.0 B | |
| Net Working Capital | $ -2.79 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.009 | |
| Current Ratio | 0.522 | |
| Current Ratio QoQ | -7.668 % | |
| Current Ratio YoY | 25.458 % | |
| Current Ratio IPRWA | high: 1.21 mean: 0.753 median: 0.74 low: 0.526 FE: 0.522 |
|
| Quick Ratio | 0.422 | |
| Quick Ratio QoQ | -7.354 % | |
| Quick Ratio YoY | 25.562 % | |
| Quick Ratio IPRWA | high: 1.131 mean: 0.538 median: 0.441 FE: 0.422 low: 0.394 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 21.635 | |
| Cost Of Debt | 0.768 % | |
| Interest Coverage Ratio | 3.221 | |
| Interest Coverage Ratio QoQ | 218.442 % | |
| Interest Coverage Ratio YoY | 1.917 % | |
| Interest Coverage Ratio IPRWA | high: 4.612 FE: 3.221 mean: 3.183 median: 3.013 low: 1.9 |
|
| Operating Cash Flow Ratio | 0.074 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 133.884 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 1.576 | |
| Dividend Payout Ratio | 0.635 | |
| Dividend Rate | $ 0.44 | |
| Dividend Yield | 0.009 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.812 % | |
| Revenue Growth | 10.666 % | |
| Revenue Growth QoQ | -226.046 % | |
| Revenue Growth YoY | -42.486 % | |
| Revenue Growth IPRWA | high: 28.04 % median: 16.362 % mean: 10.875 % FE: 10.666 % low: -21.293 % |
|
| Earnings Growth | 35.849 % | |
| Earnings Growth QoQ | -199.181 % | |
| Earnings Growth YoY | -26.673 % | |
| Earnings Growth IPRWA | high: 140.0 % mean: 73.439 % median: 55.128 % FE: 35.849 % low: -27.273 % |
|
| MARGINS | ||
| Gross Margin | 62.161 % | |
| Gross Margin QoQ | -2.63 % | |
| Gross Margin YoY | -7.423 % | |
| Gross Margin IPRWA | FE: 62.161 % high: 58.946 % mean: 48.835 % median: 44.864 % low: 20.314 % |
|
| EBIT Margin | 20.847 % | |
| EBIT Margin QoQ | 196.459 % | |
| EBIT Margin YoY | -0.648 % | |
| EBIT Margin IPRWA | high: 37.099 % mean: 28.253 % median: 25.793 % FE: 20.847 % low: 12.969 % |
|
| Return On Sales (ROS) | 19.705 % | |
| Return On Sales QoQ | 24.079 % | |
| Return On Sales YoY | -6.091 % | |
| Return On Sales IPRWA | high: 29.115 % median: 27.212 % mean: 25.648 % FE: 19.705 % low: 12.173 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -1.11 B | |
| Free Cash Flow Yield | -3.873 % | |
| Free Cash Flow Yield QoQ | 3358.036 % | |
| Free Cash Flow Yield YoY | 143.738 % | |
| Free Cash Flow Yield IPRWA | high: 0.151 % median: -0.308 % mean: -0.897 % low: -3.774 % FE: -3.873 % |
|
| Free Cash Growth | 3590.0 % | |
| Free Cash Growth QoQ | -3934.2 % | |
| Free Cash Growth YoY | 7505.932 % | |
| Free Cash Growth IPRWA | FE: 3590.0 % high: 236.766 % median: 1.777 % mean: -38.748 % low: -309.386 % |
|
| Free Cash To Net Income | -2.733 | |
| Cash Flow Margin | 10.281 % | |
| Cash Flow To Earnings | 1.067 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | 0.718 % | |
| Return On Assets QoQ | -915.909 % | |
| Return On Assets YoY | 4.512 % | |
| Return On Assets IPRWA | high: 1.529 % median: 1.005 % mean: 0.991 % FE: 0.718 % low: 0.34 % |
|
| Return On Capital Employed (ROCE) | 1.715 % | |
| Return On Equity (ROE) | 0.032 | |
| Return On Equity QoQ | -916.582 % | |
| Return On Equity YoY | 11.728 % | |
| Return On Equity IPRWA | high: 0.04 mean: 0.032 FE: 0.032 median: 0.03 low: 0.01 |
|
| DuPont ROE | 3.219 % | |
| Return On Invested Capital (ROIC) | 1.66 % | |
| Return On Invested Capital QoQ | 207.407 % | |
| Return On Invested Capital YoY | 2.406 % | |
| Return On Invested Capital IPRWA | high: 2.499 % FE: 1.66 % mean: 1.339 % median: 1.081 % low: 0.869 % |
|