WEC ENERGY GROUP INC (WEC) Stock Fundamental Analysis
USA - NYSE:WEC - US92939U1060 - Common Stock
110.19 USD
-0.78 (-0.7%)
Taking everything into account, WEC scores 5 out of 10 in our fundamental rating. WEC was compared to 25 industry peers in the Multi-Utilities industry. While WEC has a great profitability rating, there are quite some 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.
Each year in the past 5 years WEC has been profitable.
WEC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WEC (3.43%) is better than 96.00% of its industry peers.
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's Return On Invested Capital of 4.54% is amongst the best of 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 3 year average ROIC (4.35%) for WEC is below the current ROIC(4.54%), indicating increased profibility in the last year.
| 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 92.00% 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 88.00% of its industry peers.
In the last couple of years the Operating Margin of WEC has grown nicely.
The Gross Margin of WEC (67.81%) 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 | 25.03% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WEC is destroying value.
The number of shares outstanding for WEC has been increased compared to 1 year ago.
The number of shares outstanding for WEC has been increased compared to 5 years ago.
WEC has a worse debt/assets ratio than last year.
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.
WEC has a better Altman-Z score (1.15) 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's Debt to FCF ratio of 135.35 is amongst the best of the industry. WEC outperforms 96.00% of its industry peers.
A Debt/Equity ratio of 1.38 is on the high side and indicates that WEC has dependencies on debt financing.
The Debt to Equity ratio of WEC (1.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 135.35 | ||
| Altman-Z | 1.15 |
ROIC/WACC0.66
WACC6.86%
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.
WEC's Current ratio of 0.55 is on the low side compared to the rest of the industry. WEC is outperformed by 88.00% of its industry peers.
A Quick Ratio of 0.40 indicates that WEC may have some problems paying its short term obligations.
WEC has a worse Quick ratio (0.40) than 96.00% 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 11.39%, which is quite good.
The Earnings Per Share has been growing slightly by 6.44% on average over the past years.
The Revenue has been growing slightly by 7.88% in the past year.
The Revenue has been growing slightly by 2.71% on average over the past years.
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 7.25% 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 5.91% yearly.
EPS Next Y8.15%
EPS Next 2Y7.41%
EPS Next 3Y7.33%
EPS Next 5Y7.25%
Revenue Next Year3.81%
Revenue Next 2Y4.5%
Revenue Next 3Y5.01%
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
The Price/Earnings ratio is 20.87, which indicates a rather expensive current valuation of WEC.
Based on the Price/Earnings ratio, WEC is valued a bit more expensive than 72.00% of the companies in the same industry.
WEC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.27.
A Price/Forward Earnings ratio of 19.53 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 84.00% of the companies listed in the same industry.
WEC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.87 | ||
| Fwd PE | 19.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WEC is valued expensively inside the industry as 84.00% of the companies are valued cheaper.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WEC indicates a rather cheap valuation: WEC is cheaper than 96.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 233.8 | ||
| EV/EBITDA | 14.81 |
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)2.56
PEG (5Y)3.24
EPS Next 2Y7.41%
EPS Next 3Y7.33%
5. Dividend
5.1 Amount
WEC has a Yearly Dividend Yield of 3.32%.
Compared to an average industry Dividend Yield of 3.64, WEC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, WEC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
5.2 History
The dividend of WEC is nicely growing with an annual growth rate of 7.17%!
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 66.00% 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%
EPS Next 2Y7.41%
EPS Next 3Y7.33%
NYSE:WEC (9/16/2025, 10:03:43 AM)
110.19
-0.78 (-0.7%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners82.32%
Inst Owner Change0.96%
Ins Owners0.15%
Ins Owner Change-0.32%
Market Cap35.47B
Analysts68
Price Target111.68 (1.35%)
Short Float %3.74%
Short Ratio5.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
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)-0.94%
PT rev (3m)0.62%
EPS NQ rev (1m)-1.99%
EPS NQ rev (3m)-7.67%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-6.58%
Revenue NY rev (1m)0.83%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.87 | ||
| Fwd PE | 19.53 | ||
| P/S | 3.81 | ||
| P/FCF | 233.8 | ||
| P/OCF | 10.66 | ||
| P/B | 2.68 | ||
| P/tB | 3.49 | ||
| EV/EBITDA | 14.81 |
EPS(TTM)5.28
EY4.79%
EPS(NY)5.64
Fwd EY5.12%
FCF(TTM)0.47
FCFY0.43%
OCF(TTM)10.34
OCFY9.38%
SpS28.91
BVpS41.18
TBVpS31.6
PEG (NY)2.56
PEG (5Y)3.24
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 | 1.15 |
F-Score5
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)11.39%
EPS 3Y5.96%
EPS 5Y6.44%
EPS Q2Q%13.43%
EPS Next Y8.15%
EPS Next 2Y7.41%
EPS Next 3Y7.33%
EPS Next 5Y7.25%
Revenue 1Y (TTM)7.88%
Revenue growth 3Y1.13%
Revenue growth 5Y2.71%
Sales Q2Q%13.4%
Revenue Next Year3.81%
Revenue Next 2Y4.5%
Revenue Next 3Y5.01%
Revenue Next 5Y5.91%
EBIT growth 1Y7.31%
EBIT growth 3Y8.08%
EBIT growth 5Y7.02%
EBIT Next Year73.21%
EBIT Next 3Y27.92%
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%