WEC ENERGY GROUP INC (WEC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WEC - US92939U1060 - Common Stock
104.65 USD
-0.58 (-0.55%)
104.65 USD
0 (0%)
Taking everything into account, WEC scores 4 out of 10 in our fundamental rating. WEC was compared to 26 industry peers in the Multi-Utilities industry. WEC scores excellent on profitability, 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.
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
Looking at the Return On Assets, with a value of 3.40%, WEC belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
The Return On Equity of WEC (12.46%) is better 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.
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 3.94%.
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
The Profit Margin of WEC (17.75%) is better than 96.15% of its industry peers.
In the last couple of years the Profit Margin of WEC has grown nicely.
Looking at the Operating Margin, with a value of 25.09%, WEC belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
In the last couple of years the Operating Margin of WEC has grown nicely.
WEC's Gross Margin of 67.71% is in line compared to the rest of the industry. WEC outperforms 53.85% of its industry peers.
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
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.
The number of shares outstanding for WEC has been increased compared to 5 years ago.
Compared to 1 year ago, WEC has a worse debt to assets ratio.
2.2 Solvency
WEC has an Altman-Z score of 1.09. This is a bad value and indicates that WEC is not financially healthy and even has some risk of bankruptcy.
WEC has a Altman-Z score of 1.09. This is amongst the best in the industry. WEC outperforms 84.62% of its industry peers.
A Debt/Equity ratio of 1.42 is on the high side and indicates that WEC has dependencies on debt financing.
WEC has a Debt to Equity ratio (1.42) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.09 |
ROIC/WACC0.66
WACC6.88%
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.
The Current ratio of WEC (0.50) is worse than 96.15% of its industry peers.
A Quick Ratio of 0.33 indicates that WEC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.33, WEC is doing worse than 96.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.33 |
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.
WEC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.44% yearly.
Looking at the last year, WEC shows a quite strong growth in Revenue. The Revenue has grown by 11.88% in the last year.
The Revenue has been growing slightly by 2.71% on average over the past years.
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 7.68% on average per year.
The Revenue is expected to grow by 6.34% on average over the next years.
EPS Next Y8.16%
EPS Next 2Y7.5%
EPS Next 3Y7.46%
EPS Next 5Y7.68%
Revenue Next Year5.63%
Revenue Next 2Y5.84%
Revenue Next 3Y6.04%
Revenue Next 5Y6.34%
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
A Price/Earnings ratio of 19.78 indicates a rather expensive valuation of WEC.
Based on the Price/Earnings ratio, WEC is valued a bit more expensive than 73.08% of the companies in the same industry.
When comparing the Price/Earnings ratio of WEC to the average of the S&P500 Index (27.19), we can say WEC is valued slightly cheaper.
A Price/Forward Earnings ratio of 18.52 indicates a rather expensive valuation of WEC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WEC indicates a rather expensive valuation: WEC more expensive than 80.77% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of WEC to the average of the S&P500 Index (23.92), we can say WEC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.78 | ||
| Fwd PE | 18.52 |
4.2 Price Multiples
84.62% of the companies in the same industry are cheaper than WEC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.04 |
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)2.42
PEG (5Y)3.07
EPS Next 2Y7.5%
EPS Next 3Y7.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.62%, WEC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.11, WEC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, WEC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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
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%
104.65
-0.58 (-0.55%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.88%
Inst Owner Change0.2%
Ins Owners0.15%
Ins Owner Change3.58%
Market Cap34.04B
Revenue(TTM)9.55B
Net Income(TTM)1.69B
Analysts72.5
Price Target123.84 (18.34%)
Short Float %4.07%
Short Ratio6.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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)-1.01%
PT rev (3m)10.21%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)-1.38%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-5.04%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.78 | ||
| Fwd PE | 18.52 | ||
| P/S | 3.57 | ||
| P/FCF | N/A | ||
| P/OCF | 9.63 | ||
| P/B | 2.5 | ||
| P/tB | 3.24 | ||
| EV/EBITDA | 14.04 |
EPS(TTM)5.29
EY5.05%
EPS(NY)5.65
Fwd EY5.4%
FCF(TTM)-1.25
FCFYN/A
OCF(TTM)10.87
OCFY10.39%
SpS29.35
BVpS41.81
TBVpS32.33
PEG (NY)2.42
PEG (5Y)3.07
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 | 1.09 |
F-Score6
WACC6.88%
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 5Y7.68%
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 5Y6.34%
EBIT growth 1Y15.02%
EBIT growth 3Y8.08%
EBIT growth 5Y7.02%
EBIT Next Year74.09%
EBIT Next 3Y29.46%
EBIT Next 5Y21.27%
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.
What is the valuation status for WEC stock?
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 19.78 and the Price/Book (PB) ratio is 2.5.
Is the dividend of WEC ENERGY GROUP INC sustainable?
The dividend rating of WEC ENERGY GROUP INC (WEC) is 6 / 10 and the dividend payout ratio is 66.24%.