WEC ENERGY GROUP INC (WEC) Stock Fundamental Analysis
USA - NYSE:WEC - US92939U1060 - Common Stock
116.19 USD
-1.09 (-0.93%)
116.77 USD
+0.58 (+0.5%)
WEC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 25 industry peers in the Multi-Utilities industry. WEC has an excellent profitability rating, but there are concerns on its financial health. WEC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WEC was profitable.
WEC had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 3.43%, WEC belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
With an excellent Return On Equity value of 12.55%, WEC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
WEC has a Return On Invested Capital of 4.54%. This is amongst the best in the industry. WEC outperforms 88.00% of its industry peers.
WEC had an Average Return On Invested Capital over the past 3 years of 4.35%. This is in line with the industry average of 3.82%.
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
With an excellent Profit Margin value of 17.87%, WEC belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
In the last couple of years the Profit Margin of WEC has grown nicely.
WEC has a better Operating Margin (25.03%) than 88.00% of its industry peers.
WEC's Operating Margin has improved in the last couple of years.
WEC has a Gross Margin (67.81%) which is comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WEC is destroying value.
WEC has more shares outstanding than it did 1 year ago.
WEC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WEC is higher compared to a year ago.
2.2 Solvency
WEC has an Altman-Z score of 1.19. This is a bad value and indicates that WEC is not financially healthy and even has some risk of bankruptcy.
WEC has a better Altman-Z score (1.19) than 88.00% of its industry peers.
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 96.00% 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.
WEC has a Debt to Equity ratio (1.38) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 135.35 | ||
| Altman-Z | 1.19 |
ROIC/WACC0.66
WACC6.91%
2.3 Liquidity
A Current Ratio of 0.55 indicates that WEC may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.55, WEC is doing worse than 88.00% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.40, WEC is doing worse than 96.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.39% 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.
The Revenue has been growing slightly by 7.88% in the past 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)11.39%
EPS 3Y5.96%
EPS 5Y6.44%
EPS Q2Q%13.43%
Revenue 1Y (TTM)7.88%
Revenue growth 3Y1.13%
Revenue growth 5Y2.71%
Sales Q2Q%13.4%
3.2 Future
The Earnings Per Share is expected to grow by 7.44% on average over the next years.
The Revenue is expected to grow by 5.91% on average over the next years.
EPS Next Y8.15%
EPS Next 2Y7.46%
EPS Next 3Y7.45%
EPS Next 5Y7.44%
Revenue Next Year3.62%
Revenue Next 2Y4.5%
Revenue Next 3Y5.05%
Revenue Next 5Y5.91%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
With a Price/Earnings ratio of 22.01, WEC is valued on the expensive side.
WEC's Price/Earnings ratio is a bit more expensive when compared to the industry. WEC is more expensive than 76.00% of the companies in the same industry.
WEC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.31, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.58 indicates a rather expensive valuation of WEC.
80.00% of the companies in the same industry are cheaper than WEC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of WEC to the average of the S&P500 Index (22.85), we can say WEC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.01 | ||
| Fwd PE | 20.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WEC is valued more expensive than 84.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WEC is valued cheaper than 96.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 246.53 | ||
| EV/EBITDA | 15.35 |
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)2.7
PEG (5Y)3.42
EPS Next 2Y7.46%
EPS Next 3Y7.45%
5. Dividend
5.1 Amount
WEC has a Yearly Dividend Yield of 3.13%. Purely for dividend investing, there may be better candidates out there.
WEC's Dividend Yield is slightly below the industry average, which is at 4.79.
Compared to an average S&P500 Dividend Yield of 2.40, WEC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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 their dividend for at least 10 years, which is a reliable track record.
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 2Y7.46%
EPS Next 3Y7.45%
116.19
-1.09 (-0.93%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.68%
Inst Owner Change-0.05%
Ins Owners0.15%
Ins Owner Change-0.29%
Market Cap37.40B
Analysts68.42
Price Target112.37 (-3.29%)
Short Float %3.9%
Short Ratio5.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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)0.62%
PT rev (3m)0.39%
EPS NQ rev (1m)0.77%
EPS NQ rev (3m)-6.79%
EPS NY rev (1m)0%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.16%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.01 | ||
| Fwd PE | 20.58 | ||
| P/S | 4.02 | ||
| P/FCF | 246.53 | ||
| P/OCF | 11.24 | ||
| P/B | 2.82 | ||
| P/tB | 3.68 | ||
| EV/EBITDA | 15.35 |
EPS(TTM)5.28
EY4.54%
EPS(NY)5.65
Fwd EY4.86%
FCF(TTM)0.47
FCFY0.41%
OCF(TTM)10.34
OCFY8.9%
SpS28.91
BVpS41.18
TBVpS31.6
PEG (NY)2.7
PEG (5Y)3.42
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%
ROICexcg growth 3Y1.98%
ROICexcg 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 | 1.19 |
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)11.39%
EPS 3Y5.96%
EPS 5Y6.44%
EPS Q2Q%13.43%
EPS Next Y8.15%
EPS Next 2Y7.46%
EPS Next 3Y7.45%
EPS Next 5Y7.44%
Revenue 1Y (TTM)7.88%
Revenue growth 3Y1.13%
Revenue growth 5Y2.71%
Sales Q2Q%13.4%
Revenue Next Year3.62%
Revenue Next 2Y4.5%
Revenue Next 3Y5.05%
Revenue Next 5Y5.91%
EBIT growth 1Y7.31%
EBIT growth 3Y8.08%
EBIT growth 5Y7.02%
EBIT Next Year73.67%
EBIT Next 3Y28.18%
EBIT Next 5Y20.84%
FCF growth 1Y126.82%
FCF growth 3YN/A
FCF growth 5Y31.31%
OCF growth 1Y62.09%
OCF growth 3Y16.47%
OCF growth 5Y6.49%