WEC ENERGY GROUP INC (WEC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WEC - US92939U1060 - Common Stock
106.09 USD
+0.36 (+0.34%)
106.09 USD
0 (0%)
WEC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 26 industry peers in the Multi-Utilities industry. WEC scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, WEC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year WEC was profitable.
In the past year WEC had a positive cash flow from operations.
WEC had positive earnings in each of the past 5 years.
WEC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WEC's Return On Assets of 3.40% is amongst the best of the industry. WEC outperforms 96.15% of its industry peers.
WEC has a better Return On Equity (12.46%) than 100.00% of its industry peers.
WEC has a Return On Invested Capital of 4.53%. This is amongst the best in the industry. WEC outperforms 88.46% 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 3.94%.
The last Return On Invested Capital (4.53%) for WEC is above the 3 year average (4.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.4% | ||
| ROE | 12.46% | ||
| ROIC | 4.53% |
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
With an excellent Profit Margin value of 17.75%, WEC belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
WEC's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 25.09%, WEC belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
WEC's Operating Margin has improved in the last couple of years.
WEC has a Gross Margin (67.71%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of WEC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.09% | ||
| PM (TTM) | 17.75% | ||
| GM | 67.71% |
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.
The number of shares outstanding for WEC has been increased compared to 1 year ago.
WEC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, WEC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.10, 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 1.10, WEC belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
WEC has a Debt/Equity ratio of 1.42. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.42, WEC is in line with its industry, outperforming 57.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.1 |
ROIC/WACC0.66
WACC6.86%
2.3 Liquidity
WEC has a Current Ratio of 0.50. 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 Current ratio of 0.50. This is amonst the worse of the industry: WEC underperforms 96.15% of its industry peers.
A Quick Ratio of 0.33 indicates that WEC may have some problems paying its short term obligations.
With a Quick ratio value of 0.33, WEC is not doing good in the industry: 96.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.01% over the past year.
WEC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.44% yearly.
WEC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.88%.
WEC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.71% yearly.
EPS 1Y (TTM)16.01%
EPS 3Y5.96%
EPS 5Y6.44%
EPS Q2Q%1.22%
Revenue 1Y (TTM)11.88%
Revenue growth 3Y1.13%
Revenue growth 5Y2.71%
Sales Q2Q%12.91%
3.2 Future
Based on estimates for the next years, WEC will show a small growth in Earnings Per Share. The EPS will grow by 7.60% on average per year.
The Revenue is expected to grow by 6.08% on average over the next years.
EPS Next Y8.16%
EPS Next 2Y7.5%
EPS Next 3Y7.46%
EPS Next 5Y7.6%
Revenue Next Year5.63%
Revenue Next 2Y5.84%
Revenue Next 3Y6.04%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WEC is valuated rather expensively with a Price/Earnings ratio of 20.05.
Based on the Price/Earnings ratio, WEC is valued a bit more expensive than the industry average as 76.92% of the companies are valued more cheaply.
WEC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.77.
A Price/Forward Earnings ratio of 18.77 indicates a rather expensive valuation of WEC.
80.77% of the companies in the same industry are cheaper than WEC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.35. WEC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.05 | ||
| Fwd PE | 18.77 |
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of WEC may justify a higher PE ratio.
PEG (NY)2.46
PEG (5Y)3.12
EPS Next 2Y7.5%
EPS Next 3Y7.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.61%, WEC has a reasonable but not impressive dividend return.
WEC's Dividend Yield is slightly below the industry average, which is at 4.62.
WEC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
5.2 History
On average, the dividend of WEC grows each year by 7.17%, which is quite nice.
WEC has been paying a dividend for at least 10 years, so it has 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
WEC pays out 66.24% of its income as dividend. This is not a sustainable payout ratio.
The dividend of WEC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP66.24%
EPS Next 2Y7.5%
EPS Next 3Y7.46%
106.09
+0.36 (+0.34%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.84%
Inst Owner Change2.17%
Ins Owners0.15%
Ins Owner Change-0.23%
Market Cap34.51B
Revenue(TTM)9.55B
Net Income(TTM)1.69B
Analysts72.5
Price Target123.84 (16.73%)
Short Float %4.07%
Short Ratio6.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
Yearly Dividend3.34
Dividend Growth(5Y)7.17%
DP66.24%
Div Incr Years21
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.34%
Min EPS beat(2)1.82%
Max EPS beat(2)6.86%
EPS beat(4)3
Avg EPS beat(4)2.86%
Min EPS beat(4)-0.36%
Max EPS beat(4)6.86%
EPS beat(8)7
Avg EPS beat(8)4.2%
EPS beat(12)10
Avg EPS beat(12)4.67%
EPS beat(16)14
Avg EPS beat(16)5.13%
Revenue beat(2)2
Avg Revenue beat(2)11.5%
Min Revenue beat(2)9.98%
Max Revenue beat(2)13.02%
Revenue beat(4)3
Avg Revenue beat(4)4.87%
Min Revenue beat(4)-13.9%
Max Revenue beat(4)13.02%
Revenue beat(8)3
Avg Revenue beat(8)-3.26%
Revenue beat(12)5
Avg Revenue beat(12)-1.26%
Revenue beat(16)9
Avg Revenue beat(16)2.74%
PT rev (1m)-0.62%
PT rev (3m)10.89%
EPS NQ rev (1m)-0.81%
EPS NQ rev (3m)-1.81%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)-5.95%
Revenue NQ rev (3m)-5.04%
Revenue NY rev (1m)1.94%
Revenue NY rev (3m)1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.05 | ||
| Fwd PE | 18.77 | ||
| P/S | 3.61 | ||
| P/FCF | N/A | ||
| P/OCF | 9.76 | ||
| P/B | 2.54 | ||
| P/tB | 3.28 | ||
| EV/EBITDA | 14.16 |
EPS(TTM)5.29
EY4.99%
EPS(NY)5.65
Fwd EY5.33%
FCF(TTM)-1.25
FCFYN/A
OCF(TTM)10.87
OCFY10.25%
SpS29.35
BVpS41.81
TBVpS32.33
PEG (NY)2.46
PEG (5Y)3.12
Graham Number70.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.4% | ||
| ROE | 12.46% | ||
| ROCE | 5.35% | ||
| ROIC | 4.53% | ||
| ROICexc | 4.53% | ||
| ROICexgc | 4.86% | ||
| OM | 25.09% | ||
| PM (TTM) | 17.75% | ||
| GM | 67.71% | ||
| FCFM | N/A |
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-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.02 | ||
| Cap/Depr | 272.69% | ||
| Cap/Sales | 41.31% | ||
| Interest Coverage | 2.96 | ||
| Cash Conversion | 92.07% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 1.1 |
F-Score6
WACC6.86%
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 Y8.16%
EPS Next 2Y7.5%
EPS Next 3Y7.46%
EPS Next 5Y7.6%
Revenue 1Y (TTM)11.88%
Revenue growth 3Y1.13%
Revenue growth 5Y2.71%
Sales Q2Q%12.91%
Revenue Next Year5.63%
Revenue Next 2Y5.84%
Revenue Next 3Y6.04%
Revenue Next 5Y6.08%
EBIT growth 1Y15.02%
EBIT growth 3Y8.08%
EBIT growth 5Y7.02%
EBIT Next Year74.09%
EBIT Next 3Y29.46%
EBIT Next 5Y21.26%
FCF growth 1Y-552.24%
FCF growth 3YN/A
FCF growth 5Y31.31%
OCF growth 1Y39.26%
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 4 / 10 to WEC.
Can you provide the valuation status for WEC ENERGY GROUP INC?
ChartMill assigns a valuation rating of 2 / 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 20.05 and the Price/Book (PB) ratio is 2.54.
How financially healthy is WEC ENERGY GROUP INC?
The financial health rating of WEC ENERGY GROUP INC (WEC) is 1 / 10.