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WEC

WEC Energy Group NYSE:WEC Stock Report

Last Price

US$103.12

Market Cap

US$32.5b

7D

-0.7%

1Y

7.1%

Updated

06 Aug, 2022

Data

Company Financials +
WEC fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance4/6
Financial Health1/6
Dividends4/6

WEC Stock Overview

WEC Energy Group, Inc., through its subsidiaries, provides regulated natural gas and electricity, and renewable and nonregulated renewable energy services in the United States.

WEC Energy Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for WEC Energy Group
Historical stock prices
Current Share PriceUS$103.12
52 Week HighUS$108.39
52 Week LowUS$86.84
Beta0.28
1 Month Change3.32%
3 Month Change2.44%
1 Year Change7.07%
3 Year Change14.74%
5 Year Change61.53%
Change since IPO866.75%

Recent News & Updates

Aug 01

WEC Energy Q2 2022 Earnings Preview

WEC Energy (NYSE:WEC) is scheduled to announce Q2 earnings results on Tuesday, August 2nd, before market open. The consensus EPS Estimate is $0.85 (-2.3% Y/Y) and the consensus Revenue Estimate is $1.76B (+5.0% Y/Y). Over the last 1 year, WEC has beaten EPS estimates 100% of the time and has beaten revenue estimates 25% of the time. Over the last 3 months, EPS estimates have seen 3 upward revisions and 8 downward. Revenue estimates have seen 6 upward revisions and 0 downward.

Aug 01
Returns On Capital At WEC Energy Group (NYSE:WEC) Have Stalled

Returns On Capital At WEC Energy Group (NYSE:WEC) Have Stalled

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Shareholder Returns

WECUS Integrated UtilitiesUS Market
7D-0.7%-1.1%1.0%
1Y7.1%11.2%-12.9%

Return vs Industry: WEC underperformed the US Integrated Utilities industry which returned 11.2% over the past year.

Return vs Market: WEC exceeded the US Market which returned -12.8% over the past year.

Price Volatility

Is WEC's price volatile compared to industry and market?
WEC volatility
WEC Average Weekly Movement3.6%
Integrated Utilities Industry Average Movement3.4%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: WEC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: WEC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18967,000Scott Lauberhttps://www.wecenergygroup.com

WEC Energy Group, Inc., through its subsidiaries, provides regulated natural gas and electricity, and renewable and nonregulated renewable energy services in the United States. The company operates through six segments: Wisconsin, Illinois, Other States, Electric Transmission, Non-Utility Energy Infrastructure, and Corporate and Other. It generates and distributes electricity from coal, natural gas, oil, hydroelectric, wind, solar, and biomass sources; provides electric transmission services; offers retail natural gas distribution services; transports natural gas; and generates, distributes, and sells steam.

WEC Energy Group Fundamentals Summary

How do WEC Energy Group's earnings and revenue compare to its market cap?
WEC fundamental statistics
Market CapUS$32.53b
Earnings (TTM)US$1.37b
Revenue (TTM)US$8.98b

23.8x

P/E Ratio

3.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WEC income statement (TTM)
RevenueUS$8.98b
Cost of RevenueUS$5.80b
Gross ProfitUS$3.18b
Other ExpensesUS$1.82b
EarningsUS$1.37b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 01, 2022

Earnings per share (EPS)4.34
Gross Margin35.45%
Net Profit Margin15.22%
Debt/Equity Ratio133.4%

How did WEC perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

65%

Payout Ratio

Does WEC pay a reliable dividends?

See WEC dividend history and benchmarks
When do you need to buy WEC by to receive an upcoming dividend?
WEC Energy Group dividend dates
Ex Dividend DateAug 11 2022
Dividend Pay DateSep 01 2022
Days until Ex dividend3 days
Days until Dividend pay date24 days

Does WEC pay a reliable dividends?

See WEC dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is WEC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WEC?

Other financial metrics that can be useful for relative valuation.

WEC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.3x
Enterprise Value/EBITDA15.8x
PEG Ratio4.1x

Price to Earnings Ratio vs Peers

How does WEC's PE Ratio compare to its peers?

WEC PE Ratio vs Peers
The above table shows the PE ratio for WEC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.5x
ED Consolidated Edison
21.3x8.0%US$34.5b
AEE Ameren
23.4x8.5%US$23.6b
DTE DTE Energy
31.7x9.6%US$25.0b
CMS CMS Energy
25.6x9.1%US$19.6b
WEC WEC Energy Group
23.8x5.9%US$32.5b

Price-To-Earnings vs Peers: WEC is good value based on its Price-To-Earnings Ratio (23.8x) compared to the peer average (25.5x).


Price to Earnings Ratio vs Industry

How does WEC's PE Ratio compare vs other companies in the Global Integrated Utilities Industry?

Price-To-Earnings vs Industry: WEC is expensive based on its Price-To-Earnings Ratio (23.8x) compared to the US Integrated Utilities industry average (23.4x)


Price to Earnings Ratio vs Fair Ratio

What is WEC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WEC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.8x
Fair PE Ratio22.9x

Price-To-Earnings vs Fair Ratio: WEC is expensive based on its Price-To-Earnings Ratio (23.8x) compared to the estimated Fair Price-To-Earnings Ratio (22.9x).


Share Price vs Fair Value

What is the Fair Price of WEC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WEC ($103.12) is trading above our estimate of fair value ($78.41)

Significantly Below Fair Value: WEC is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is WEC Energy Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


5.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WEC's forecast earnings growth (5.9% per year) is above the savings rate (1.9%).

Earnings vs Market: WEC's earnings (5.9% per year) are forecast to grow slower than the US market (12.8% per year).

High Growth Earnings: WEC's earnings are forecast to grow, but not significantly.

Revenue vs Market: WEC's revenue (2.9% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: WEC's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WEC's Return on Equity is forecast to be low in 3 years time (12.8%).


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Past Performance

How has WEC Energy Group performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


4.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WEC has high quality earnings.

Growing Profit Margin: WEC's current net profit margins (15.2%) are lower than last year (16.2%).


Past Earnings Growth Analysis

Earnings Trend: WEC's earnings have grown by 4.3% per year over the past 5 years.

Accelerating Growth: WEC's earnings growth over the past year (5.9%) exceeds its 5-year average (4.3% per year).

Earnings vs Industry: WEC earnings growth over the past year (5.9%) exceeded the Integrated Utilities industry -1.3%.


Return on Equity

High ROE: WEC's Return on Equity (11.9%) is considered low.


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Financial Health

How is WEC Energy Group's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: WEC's short term assets ($2.6B) do not cover its short term liabilities ($3.8B).

Long Term Liabilities: WEC's short term assets ($2.6B) do not cover its long term liabilities ($24.3B).


Debt to Equity History and Analysis

Debt Level: WEC's net debt to equity ratio (133.1%) is considered high.

Reducing Debt: WEC's debt to equity ratio has increased from 112% to 133.4% over the past 5 years.

Debt Coverage: WEC's debt is not well covered by operating cash flow (16.8%).

Interest Coverage: WEC's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


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Dividend

What is WEC Energy Group current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.82%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 07 2022Ex Dividend DateAug 11 2022Dividend Pay DateSep 01 202221 days from Ex DividendBuy in the next 3 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: WEC's dividend (2.82%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: WEC's dividend (2.82%) is low compared to the top 25% of dividend payers in the US market (4.09%).


Stability and Growth of Payments

Stable Dividend: WEC's dividends per share have been stable in the past 10 years.

Growing Dividend: WEC's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (64.8%), WEC's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (308.4%), WEC's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Scott Lauber (56 yo)

0.58

Tenure

US$4,987,251

Compensation

Mr. Scott J. Lauber has been President and Manager at WEPCo Environmental Trust Finance I, LLC since January 2021. He has been Director of American Transmission Company LLC since July 2022. He was Presiden...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD4.99M) is below average for companies of similar size in the US market ($USD13.00M).

Compensation vs Earnings: Scott's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: WEC's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: WEC's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WEC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

WEC Energy Group, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: WEC Energy Group, Inc.
  • Ticker: WEC
  • Exchange: NYSE
  • Founded: 1896
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Implied Market Cap: US$32.528b
  • Shares outstanding: 315.43m
  • Website: https://www.wecenergygroup.com

Number of Employees


Location

  • WEC Energy Group, Inc.
  • 231 West Michigan Street
  • PO Box 1331
  • Milwaukee
  • Wisconsin
  • 53201
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.