NYSE:WEC

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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 Analysis

Established dividend payer with proven 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

Stable Share Price: WEC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.9%

WEC

2.7%

US Integrated Utilities

2.9%

US Market


1 Year Return

11.6%

WEC

-4.5%

US Integrated Utilities

8.9%

US Market

Return vs Industry: WEC exceeded the US Integrated Utilities industry which returned -4.5% over the past year.

Return vs Market: WEC exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

WECIndustryMarket
7 Day0.9%2.7%2.9%
30 Day9.0%8.5%10.6%
90 Day-11.6%-8.9%5.1%
1 Year14.7%11.6%-1.3%-4.5%11.4%8.9%
3 Year60.8%46.6%19.4%7.7%34.3%25.4%
5 Year138.8%103.1%65.6%32.2%60.7%42.7%

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 compared to its fair value and its price relative to the market?

25.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WEC ($92.57) is trading above our estimate of fair value ($57.21)

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


Price To Earnings Ratio

PE vs Industry: WEC is poor value based on its PE Ratio (25x) compared to the Integrated Utilities industry average (20.2x).

PE vs Market: WEC is poor value based on its PE Ratio (25x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: WEC is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: WEC is overvalued based on its PB Ratio (2.8x) compared to the US Integrated Utilities industry average (1.8x).


Next Steps

Future Growth

How is WEC Energy Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WEC's forecast earnings growth (6.5% per year) is above the savings rate (2.2%).

Earnings vs Market: WEC's earnings (6.5% per year) are forecast to grow slower than the US market (22.3% per year).

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

Revenue vs Market: WEC's revenue (2.8% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: WEC's revenue (2.8% 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 (11.8%).


Next Steps

Past Performance

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

13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WEC has high quality earnings.

Growing Profit Margin: WEC's current net profit margins (16.1%) are higher than last year (14%).


Past Earnings Growth Analysis

Earnings Trend: WEC's earnings have grown by 13.2% per year over the past 5 years.

Accelerating Growth: WEC's earnings growth over the past year (7.1%) is below its 5-year average (13.2% per year).

Earnings vs Industry: WEC earnings growth over the past year (7.1%) exceeded the Integrated Utilities industry -6.1%.


Return on Equity

High ROE: WEC's Return on Equity (11.1%) is considered low.


Next Steps

Financial Health

How is WEC Energy Group's financial position?


Financial Position Analysis

Short Term Liabilities: WEC's short term assets ($1.8B) do not cover its short term liabilities ($2.8B).

Long Term Liabilities: WEC's short term assets ($1.8B) do not cover its long term liabilities ($21.5B).


Debt to Equity History and Analysis

Debt Level: WEC's debt to equity ratio (120.9%) is considered high.

Reducing Debt: WEC's debt to equity ratio has increased from 113.7% to 120.9% over the past 5 years.

Debt Coverage: WEC's debt is not well covered by operating cash flow (18.2%).

Interest Coverage: WEC's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Next Steps

Dividend

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

2.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WEC's dividend (2.73%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: WEC's dividend (2.73%) is low compared to the top 25% of dividend payers in the US market (4.32%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65%), WEC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WEC's dividends in 3 years are forecast to be covered by earnings (67.3% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Joseph Fletcher (60yo)

1.33yrs

Tenure

US$9,262,101

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

Compensation vs Market: Joseph's total compensation ($USD9.26M) is about average for companies of similar size in the US market ($USD11.52M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gale Klappa
Executive Chairman16.42yrsUS$8.20m0.068% $19.8m
Joseph Fletcher
President1.33yrsUS$9.26m0.0052% $1.5m
Scott Lauber
Senior EVP & COOno dataUS$3.14m0.0069% $2.0m
Margaret Kelsey
Executive VP2.42yrsUS$2.30m0.0019% $557.7k
Frederick Kuester
Senior Executive Vice President16.67yrsUS$5.74m0.013% $3.8m
Robert Garvin
Executive Vice President of External Affairs9.17yrsUS$1.89m0.0030% $881.8k
Liu Xia
Senior EVP & CFOno datano datano data
William Guc
VP, Controller & Principal Accounting Officerno datano data0.0023% $677.4k
Joshua Erickson
Director of Legal Services5yrsno datano data
Molly Mulroy
Chief Information Officer & VPno datano datano data

3.7yrs

Average Tenure

53.5yo

Average Age

Experienced Management: WEC's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gale Klappa
Executive Chairman16.42yrsUS$8.20m0.068% $19.8m
Joseph Fletcher
President1.33yrsUS$9.26m0.0052% $1.5m
Henry Knueppel
Independent Director7.42yrsUS$235.00k0.0063% $1.8m
Curt Culver
Independent Director16yrsUS$272.73k0.00054% $157.7k
Ulice Payne
Independent Director17.42yrsUS$259.21k0.0074% $2.2m
Mary Stanek
Independent Director8.42yrsUS$235.00k0.0013% $382.5k
Patricia Chadwick
Director14yrsUS$255.61k0.0062% $1.8m
William Farrow
Independent Lead Director0.083yrUS$235.00k0.0018% $525.6k
Thomas Fischer
Independent Director14.92yrsUS$278.37k0.014% $4.0m
Danny Cunningham
Independent Director2.42yrsUS$235.00k0.0018% $537.3k

11.2yrs

Average Tenure

65yo

Average Age

Experienced Board: WEC's board of directors are seasoned and experienced ( 11.2 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 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$29.200b
  • Shares outstanding: 315.43m
  • 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
WICETLX (Eurotlx)YesCommon StockITEURJan 1968
W1EC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020

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: 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, and biomass sources; provides electricity transmission services; offers retail natural gas distribution services; transports customer-owned natural gas; and generates, distributes, and sells steam. The company offers electricity to approximately 1.6 million residential, small and large commercial and industrial, and other customers; and natural gas to 2.8 million residential, and commercial and industrial customers. As of December 31, 2018, it operated approximately 36,800 miles of overhead distribution lines and 33,300 miles of underground distribution cable, as well as approximately 500 distribution substations and 500,450 line transformers; and approximately 48,900 miles of natural gas distribution mains, as well as 1,100 miles of natural gas transmission mains. The company was formerly known as Wisconsin Energy Corporation and changed its name to WEC Energy Group, Inc. in June 2015. WEC Energy Group, Inc. was founded in 1896 and is headquartered in Milwaukee, Wisconsin. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 02:44
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.