WEC ENERGY GROUP INC (WEC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WEC - US92939U1060 - Common Stock
105 USD
+0.35 (+0.33%)
105 USD
0 (0%)
Overall WEC gets a fundamental rating of 4 out of 10. We evaluated WEC against 26 industry peers in the Multi-Utilities industry. While WEC has a great profitability rating, there are quite some 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.
In the past 5 years WEC has always been profitable.
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.
WEC has a Return On Equity of 12.46%. This is amongst the best in the industry. WEC outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.53%, WEC belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WEC is in line with the industry average of 3.94%.
The 3 year average ROIC (4.35%) for WEC is below the current ROIC(4.53%), indicating increased profibility in the last year.
| 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
WEC has a better Profit Margin (17.75%) than 96.15% of its industry peers.
In the last couple of years the Profit Margin of WEC has grown nicely.
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.
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.
WEC's Gross Margin has been stable in the last couple of years.
| 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.
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.
The debt/assets ratio for WEC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.09, we must say that WEC is in the distress zone and has some risk of bankruptcy.
WEC has a better Altman-Z score (1.09) than 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 of 1.42. This is comparable to the rest of the industry: WEC outperforms 57.69% of 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
A Current Ratio of 0.50 indicates that WEC may have some problems paying 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.
WEC's Quick ratio of 0.33 is on the low side compared to the rest of the industry. WEC is outperformed by 96.15% of its industry peers.
| 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.
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
WEC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.68% yearly.
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
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
The Price/Earnings ratio is 19.85, which indicates a rather expensive current valuation of WEC.
Compared to the rest of the industry, the Price/Earnings ratio of WEC indicates a slightly more expensive valuation: WEC is more expensive than 73.08% of the companies listed in the same industry.
WEC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
The Price/Forward Earnings ratio is 18.58, which indicates a rather expensive current valuation of WEC.
WEC's Price/Forward Earnings ratio is rather expensive when compared to the industry. WEC is more expensive than 80.77% of the companies in the same industry.
WEC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.85 | ||
| Fwd PE | 18.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WEC is valued expensively inside the industry as 84.62% of the companies are valued cheaper.
| 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 WEC does not grow enough to justify the current Price/Earnings ratio.
WEC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.43
PEG (5Y)3.08
EPS Next 2Y7.5%
EPS Next 3Y7.46%
5. Dividend
5.1 Amount
WEC has a Yearly Dividend Yield of 3.62%.
Compared to an average industry Dividend Yield of 4.11, WEC has a dividend in line with its industry peers.
WEC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
5.2 History
The dividend of WEC is nicely growing with an annual growth rate of 7.17%!
WEC has paid a dividend for at least 10 years, which is 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
66.24% 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.
DP66.24%
EPS Next 2Y7.5%
EPS Next 3Y7.46%
105
+0.35 (+0.33%)
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 Cap34.16B
Revenue(TTM)9.55B
Net Income(TTM)1.69B
Analysts72.5
Price Target123.84 (17.94%)
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 | 19.85 | ||
| Fwd PE | 18.58 | ||
| P/S | 3.58 | ||
| P/FCF | N/A | ||
| P/OCF | 9.66 | ||
| P/B | 2.51 | ||
| P/tB | 3.25 | ||
| EV/EBITDA | 14.04 |
EPS(TTM)5.29
EY5.04%
EPS(NY)5.65
Fwd EY5.38%
FCF(TTM)-1.25
FCFYN/A
OCF(TTM)10.87
OCFY10.35%
SpS29.35
BVpS41.81
TBVpS32.33
PEG (NY)2.43
PEG (5Y)3.08
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 19.85 and the Price/Book (PB) ratio is 2.51.
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%.