WEC ENERGY GROUP INC (WEC) Stock Fundamental Analysis
USA - NYSE:WEC - US92939U1060 - Common Stock
112.87 USD
+2.09 (+1.89%)
112.87 USD
0 (0%)
Overall WEC gets a fundamental rating of 5 out of 10. We evaluated WEC against 26 industry peers in the Multi-Utilities industry. WEC scores excellent on profitability, but there are concerns on its financial health. WEC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
WEC had positive earnings in the past year.
In the past year WEC had a positive cash flow from operations.
In the past 5 years WEC has always been profitable.
In the past 5 years WEC always reported a positive cash flow from operatings.
1.2 Ratios
WEC has a better Return On Assets (3.43%) than 96.15% of its industry peers.
Looking at the Return On Equity, with a value of 12.55%, WEC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
WEC has a better Return On Invested Capital (4.54%) than 92.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WEC is in line with the industry average of 3.89%.
The last Return On Invested Capital (4.54%) for WEC is above the 3 year average (4.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.43% | ||
| ROE | 12.55% | ||
| ROIC | 4.54% |
ROA(3y)3.21%
ROA(5y)3.24%
ROE(3y)11.99%
ROE(5y)11.85%
ROIC(3y)4.35%
ROIC(5y)4.27%
1.3 Margins
WEC's Profit Margin of 17.87% is amongst the best of the industry. WEC outperforms 92.31% of its industry peers.
In the last couple of years the Profit Margin of WEC has grown nicely.
WEC has a better Operating Margin (25.03%) than 88.46% of its industry peers.
In the last couple of years the Operating Margin of WEC has grown nicely.
WEC's Gross Margin of 67.81% is in line compared to the rest of the industry. WEC outperforms 53.85% of its industry peers.
WEC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.03% | ||
| PM (TTM) | 17.87% | ||
| GM | 67.81% |
OM growth 3Y6.87%
OM growth 5Y4.19%
PM growth 3Y4.33%
PM growth 5Y3.33%
GM growth 3Y4.72%
GM growth 5Y1.38%
2. Health
2.1 Basic Checks
WEC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WEC has more shares outstanding
Compared to 5 years ago, WEC has more shares outstanding
The debt/assets ratio for WEC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.15, we must say that WEC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.15, WEC belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
The Debt to FCF ratio of WEC is 135.35, which is on the high side as it means it would take WEC, 135.35 years of fcf income to pay off all of its debts.
WEC has a Debt to FCF ratio of 135.35. This is amongst the best in the industry. WEC outperforms 96.15% of its industry peers.
WEC has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of WEC (1.38) is better than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 135.35 | ||
| Altman-Z | 1.15 |
ROIC/WACC0.66
WACC6.91%
2.3 Liquidity
WEC has a Current Ratio of 0.55. This is a bad value and indicates that WEC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of WEC (0.55) is worse than 80.77% of its industry peers.
WEC has a Quick Ratio of 0.55. This is a bad value and indicates that WEC is not financially healthy enough and could expect problems in meeting its short term obligations.
WEC has a Quick ratio of 0.40. This is amonst the worse of the industry: WEC underperforms 88.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
WEC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.01%, which is quite good.
The Earnings Per Share has been growing slightly by 6.44% on average over the past years.
Looking at the last year, WEC shows a decrease in Revenue. The Revenue has decreased by -3.30% in the last year.
Measured over the past years, WEC shows a small growth in Revenue. The Revenue has been growing by 2.71% on average per year.
EPS 1Y (TTM)16.01%
EPS 3Y5.96%
EPS 5Y6.44%
EPS Q2Q%1.22%
Revenue 1Y (TTM)-3.3%
Revenue growth 3Y1.13%
Revenue growth 5Y2.71%
Sales Q2Q%12.91%
3.2 Future
The Earnings Per Share is expected to grow by 7.64% on average over the next years.
WEC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.08% yearly.
EPS Next Y8.11%
EPS Next 2Y7.5%
EPS Next 3Y7.49%
EPS Next 5Y7.64%
Revenue Next Year3.61%
Revenue Next 2Y4.6%
Revenue Next 3Y5.43%
Revenue Next 5Y6.08%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.34, the valuation of WEC can be described as rather expensive.
76.92% of the companies in the same industry are cheaper than WEC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.83. WEC is around the same levels.
With a Price/Forward Earnings ratio of 19.97, WEC is valued on the expensive side.
Based on the Price/Forward Earnings ratio, WEC is valued expensively inside the industry as 80.77% of the companies are valued cheaper.
WEC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.34 | ||
| Fwd PE | 19.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WEC is valued more expensive than 84.62% of the companies in the same industry.
WEC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WEC is cheaper than 96.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 239.48 | ||
| EV/EBITDA | 14.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WEC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.63
PEG (5Y)3.32
EPS Next 2Y7.5%
EPS Next 3Y7.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.20%, WEC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.87, WEC is paying slightly less dividend.
WEC's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
5.2 History
On average, the dividend of WEC grows each year by 7.17%, which is quite nice.
WEC has paid a dividend for at least 10 years, which is a reliable track record.
WEC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.17%
Div Incr Years21
Div Non Decr Years23
5.3 Sustainability
66.00% of the earnings are spent on dividend by WEC. This is not a sustainable payout ratio.
WEC's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP66%
EPS Next 2Y7.5%
EPS Next 3Y7.49%
112.87
+2.09 (+1.89%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.68%
Inst Owner Change-0.52%
Ins Owners0.15%
Ins Owner Change-0.29%
Market Cap36.33B
Revenue(TTM)8.60B
Net Income(TTM)1.66B
Analysts72.5
Price Target124.43 (10.24%)
Short Float %3.6%
Short Ratio5.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Yearly Dividend3.34
Dividend Growth(5Y)7.17%
DP66%
Div Incr Years21
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5%
Min EPS beat(2)3.14%
Max EPS beat(2)6.86%
EPS beat(4)3
Avg EPS beat(4)6.31%
Min EPS beat(4)-0.36%
Max EPS beat(4)15.6%
EPS beat(8)7
Avg EPS beat(8)5.06%
EPS beat(12)10
Avg EPS beat(12)5.36%
EPS beat(16)14
Avg EPS beat(16)5.96%
Revenue beat(2)2
Avg Revenue beat(2)11.71%
Min Revenue beat(2)10.39%
Max Revenue beat(2)13.02%
Revenue beat(4)2
Avg Revenue beat(4)1.23%
Min Revenue beat(4)-13.9%
Max Revenue beat(4)13.02%
Revenue beat(8)2
Avg Revenue beat(8)-5.09%
Revenue beat(12)5
Avg Revenue beat(12)-1.39%
Revenue beat(16)9
Avg Revenue beat(16)2.29%
PT rev (1m)11.42%
PT rev (3m)11.15%
EPS NQ rev (1m)-1.76%
EPS NQ rev (3m)-4.41%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)2.14%
Revenue NQ rev (3m)1.65%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.34 | ||
| Fwd PE | 19.97 | ||
| P/S | 3.9 | ||
| P/FCF | 239.48 | ||
| P/OCF | 10.92 | ||
| P/B | 2.74 | ||
| P/tB | 3.57 | ||
| EV/EBITDA | 14.79 |
EPS(TTM)5.29
EY4.69%
EPS(NY)5.65
Fwd EY5.01%
FCF(TTM)0.47
FCFY0.42%
OCF(TTM)10.34
OCFY9.16%
SpS28.91
BVpS41.18
TBVpS31.6
PEG (NY)2.63
PEG (5Y)3.32
Graham Number70.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.43% | ||
| ROE | 12.55% | ||
| ROCE | 5.31% | ||
| ROIC | 4.54% | ||
| ROICexc | 4.54% | ||
| ROICexgc | 4.88% | ||
| OM | 25.03% | ||
| PM (TTM) | 17.87% | ||
| GM | 67.81% | ||
| FCFM | 1.63% |
ROA(3y)3.21%
ROA(5y)3.24%
ROE(3y)11.99%
ROE(5y)11.85%
ROIC(3y)4.35%
ROIC(5y)4.27%
ROICexc(3y)4.36%
ROICexc(5y)4.27%
ROICexgc(3y)4.71%
ROICexgc(5y)4.64%
ROCE(3y)5.21%
ROCE(5y)5.14%
ROICexgc growth 3Y1.98%
ROICexgc growth 5Y0.43%
ROICexc growth 3Y2.41%
ROICexc growth 5Y0.94%
OM growth 3Y6.87%
OM growth 5Y4.19%
PM growth 3Y4.33%
PM growth 5Y3.33%
GM growth 3Y4.72%
GM growth 5Y1.38%
F-Score5
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 135.35 | ||
| Debt/EBITDA | 4.89 | ||
| Cap/Depr | 224.65% | ||
| Cap/Sales | 34.12% | ||
| Interest Coverage | 2.78 | ||
| Cash Conversion | 88.89% | ||
| Profit Quality | 9.12% | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | 1.15 |
F-Score5
WACC6.91%
ROIC/WACC0.66
Cap/Depr(3y)212.24%
Cap/Depr(5y)215.17%
Cap/Sales(3y)29.51%
Cap/Sales(5y)29.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.01%
EPS 3Y5.96%
EPS 5Y6.44%
EPS Q2Q%1.22%
EPS Next Y8.11%
EPS Next 2Y7.5%
EPS Next 3Y7.49%
EPS Next 5Y7.64%
Revenue 1Y (TTM)-3.3%
Revenue growth 3Y1.13%
Revenue growth 5Y2.71%
Sales Q2Q%12.91%
Revenue Next Year3.61%
Revenue Next 2Y4.6%
Revenue Next 3Y5.43%
Revenue Next 5Y6.08%
EBIT growth 1Y7.31%
EBIT growth 3Y8.08%
EBIT growth 5Y7.02%
EBIT Next Year73.67%
EBIT Next 3Y28.18%
EBIT Next 5Y21.26%
FCF growth 1Y126.82%
FCF growth 3YN/A
FCF growth 5Y31.31%
OCF growth 1Y62.09%
OCF growth 3Y16.47%
OCF growth 5Y6.49%
WEC ENERGY GROUP INC / WEC FAQ
What is the ChartMill fundamental rating of WEC ENERGY GROUP INC (WEC) stock?
ChartMill assigns a fundamental rating of 5 / 10 to WEC.
Can you provide the valuation status for WEC ENERGY GROUP INC?
ChartMill assigns a valuation rating of 3 / 10 to WEC ENERGY GROUP INC (WEC). This can be considered as Overvalued.
How profitable is WEC ENERGY GROUP INC (WEC) stock?
WEC ENERGY GROUP INC (WEC) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for WEC stock?
The Price/Earnings (PE) ratio for WEC ENERGY GROUP INC (WEC) is 21.34 and the Price/Book (PB) ratio is 2.74.
How financially healthy is WEC ENERGY GROUP INC?
The financial health rating of WEC ENERGY GROUP INC (WEC) is 3 / 10.