NYSE:WEC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with questionable track record.


Similar Companies

Share Price & News

How has WEC Energy Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.4%

NYSE:WEC

1.1%

US Integrated Utilities

2.1%

US Market


1 Year Return

36.6%

NYSE:WEC

14.9%

US Integrated Utilities

-0.04%

US Market

WEC outperformed the Integrated Utilities industry which returned 14.9% over the past year.

WEC outperformed the Market in United States of America which returned -0% over the past year.


Share holder returns

WECIndustryMarket
7 Day2.4%1.1%2.1%
30 Day7.9%1.9%-3.2%
90 Day12.4%2.2%2.8%
1 Year40.7%36.6%19.0%14.9%2.2%-0.04%
3 Year71.1%55.1%36.9%23.2%41.5%32.3%
5 Year141.1%104.3%70.9%37.6%55.0%37.8%

Price Volatility Vs. Market

How volatile is WEC Energy Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is WEC Energy Group undervalued based on future cash flows and its price relative to the stock market?

26.7x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

WEC Energy Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

WEC Energy Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

WEC Energy Group is overvalued based on earnings compared to the US Integrated Utilities industry average.

WEC Energy Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

WEC Energy Group is poor value based on expected growth next year.


Price Based on Value of Assets

WEC Energy Group is overvalued based on assets compared to the US Integrated Utilities industry average.


Next Steps

Future Growth

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

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

WEC Energy Group's revenue is expected to grow by 0.7% yearly, however this is not considered high growth (20% yearly).

WEC Energy Group's earnings are expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).

WEC Energy Group's revenue growth is positive but not above the United States of America market average.

WEC Energy Group's earnings growth is positive but not above the United States of America market average.

WEC Energy Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

WEC Energy Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

16.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

WEC Energy Group's year on year earnings growth rate has been positive over the past 5 years.

WEC Energy Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

WEC Energy Group's 1-year earnings growth is negative, it can't be compared to the US Integrated Utilities industry average.


Return on Equity

WEC Energy Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

WEC Energy Group used its assets more efficiently than the US Integrated Utilities industry average last year based on Return on Assets.


Return on Capital Employed

WEC Energy Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is WEC Energy Group's financial position?


Financial Position Analysis

WEC Energy Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

WEC Energy Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

WEC Energy Group's level of debt (117.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (114.7% vs 117.3% today).

Debt is not well covered by operating cash flow (18.7%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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

2.72%

Expected Dividend Yield


Dividend Yield and Payments Analysis

WEC Energy Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

WEC Energy Group's dividend is below the markets top 25% of dividend payers in United States of America (3.82%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

What is the CEO of WEC Energy Group's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Joseph Fletcher (60yo)

0.5yrs

Tenure

US$2,719,501

Compensation

Mr. Joseph Kevin Fletcher has served as the been the President of WEC Energy Group Inc., since October 9, 2018 and has been its Chief Executive Officer since February 1, 2019. Mr. Fletcher has been a Direc ...


CEO Compensation Analysis

Joseph's remuneration is lower than average for companies of similar size in United States of America.

Joseph's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.6yrs

Average Tenure

54yo

Average Age

The average tenure for the WEC Energy Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

13.2yrs

Average Tenure

69yo

Average Age

The average tenure for the WEC Energy Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

WEC Energy Group individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$89,73414 Aug 19
Barbara Bowles
EntityIndividual
Role
Lead Director
Presiding Independent Director
Shares1,000
Max PriceUS$89.73
SellUS$178,27012 Aug 19
Tom Metcalfe
EntityIndividual
Shares2,000
Max PriceUS$89.14
SellUS$156,70009 May 19
Barbara Bowles
EntityIndividual
Role
Lead Director
Presiding Independent Director
Shares2,000
Max PriceUS$78.35
SellUS$350,00008 May 19
William Guc
EntityIndividual
Role
Chief Accounting Officer
VP, Controller & Principal Accounting Officer
Shares4,481.43
Max PriceUS$78.10
SellUS$504,45025 Feb 19
Ulice Payne
EntityIndividual
Role
Member of the Board of Directors
Director
Shares6,700
Max PriceUS$75.29
SellUS$432,35121 Feb 19
Allen Leverett
EntityIndividual
Shares5,781
Max PriceUS$74.79

Ownership Breakdown


Management Team

  • Rick Kuester (68yo)

    Senior Executive Vice President

    • Tenure: 15.8yrs
    • Compensation: US$3.98m
  • Gale Klappa (68yo)

    Executive Chairman

    • Tenure: 15.6yrs
    • Compensation: US$9.86m
  • Peggy Kelsey (54yo)

    Executive VP

    • Tenure: 1.6yrs
    • Compensation: US$2.11m
  • Mary Straka (54yo)

    Senior Vice President of Corporate Communications & Investor Relations

    • Tenure: 0.0yrs
  • William Guc (49yo)

    VP, Controller & Principal Accounting Officer

    • Tenure: 0.0yrs
  • Joseph Fletcher (60yo)

    President

    • Tenure: 0.5yrs
    • Compensation: US$2.72m
  • Scott Lauber (53yo)

    Senior EVP

    • Tenure: 3.3yrs
    • Compensation: US$2.71m
  • Brian Dobberke

    Senior VP of Human Resources & Organizational Effectiveness and Compliance Officer

    • Tenure: 1.4yrs
  • Joshua Erickson

    Director of Legal Services

    • Tenure: 4.2yrs
  • Molly Mulroy

    Chief Information Officer & VP

    • Tenure: 0.0yrs

Board Members

  • AI Budney (71yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: US$235.00k
  • Henry Knueppel (70yo)

    Director

    • Tenure: 6.6yrs
    • Compensation: US$235.00k
  • Curt Culver (66yo)

    Director

    • Tenure: 15.2yrs
    • Compensation: US$271.69k
  • Ulice Payne (63yo)

    Director

    • Tenure: 16.6yrs
    • Compensation: US$250.90k
  • Barbara Bowles (71yo)

    Presiding Independent Director

    • Tenure: 0.0yrs
    • Compensation: US$270.61k
  • Gale Klappa (68yo)

    Executive Chairman

    • Tenure: 15.6yrs
    • Compensation: US$9.86m
  • Mary Stanek (62yo)

    Director

    • Tenure: 7.6yrs
    • Compensation: US$235.00k
  • Patricia Chadwick (70yo)

    Director

    • Tenure: 13.2yrs
    • Compensation: US$265.11k
  • Tom Fischer (72yo)

    Director

    • Tenure: 14.1yrs
    • Compensation: US$276.95k
  • Joseph Fletcher (60yo)

    President

    • Tenure: 0.5yrs
    • Compensation: US$2.72m

Company Information

WEC Energy Group, Inc.'s company bio, 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
  • Market Cap: US$29.206b
  • Shares outstanding: 315.44m
  • Website: https://www.wecenergygroup.com

Number of Employees


Location

  • WEC Energy Group, Inc.
  • 231 West Michigan Street
  • Milwaukee
  • Wisconsin
  • 53203
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WECNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
WICDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0LSLLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968

Biography

WEC Energy Group, Inc., through its subsidiaries, provides regulated natural gas and electricity, and nonregulated renewable energy services in the United States. The company operates through six segments: ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 23:44
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.