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 Analysis

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

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


Market Performance


7 Day Return

3.9%

WEC

2.7%

US Integrated Utilities

1.7%

US Market


1 Year Return

35.7%

WEC

21.0%

US Integrated Utilities

23.2%

US Market

Return vs Industry: WEC exceeded the US Integrated Utilities industry which returned 19.5% over the past year.

Return vs Market: WEC exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

WECIndustryMarket
7 Day3.9%2.7%1.7%
30 Day4.9%2.4%4.2%
90 Day3.5%1.4%11.9%
1 Year39.7%35.7%25.2%21.0%25.8%23.2%
3 Year81.0%64.4%45.1%30.5%52.8%42.9%
5 Year99.1%68.9%58.8%27.4%75.2%55.8%

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

27.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WEC ($93.95) is trading above our estimate of fair value ($59.76)

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 (27.1x) compared to the Integrated Utilities industry average (21x).

PE vs Market: WEC is poor value based on its PE Ratio (27.1x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: WEC is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: WEC is overvalued based on its PB Ratio (2.9x) compared to the US Integrated Utilities industry average (2.1x).


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?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WEC's forecast earnings growth (6.2% per year) is above the savings rate (1.7%).

Earnings vs Market: WEC's earnings (6.2% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: WEC's revenue (1.6% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: WEC's revenue (1.6% 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 (11.7%).


Next Steps

Past Performance

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

15.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WEC has high quality earnings.

Growing Profit Margin: WEC's current net profit margins (14.3%) are lower than last year (16.8%).


Past Earnings Growth Analysis

Earnings Trend: WEC's earnings have grown by 15.6% per year over the past 5 years.

Accelerating Growth: WEC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WEC had negative earnings growth (-14.9%) over the past year, making it difficult to compare to the Integrated Utilities industry average (-9.8%).


Return on Equity

High ROE: WEC's Return on Equity (10.7%) is considered low.


Return on Assets


Return on Capital Employed


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 ($21.4B).


Debt to Equity History and Analysis

Debt Level: WEC's debt to equity ratio (120.1%) is considered high.

Reducing Debt: WEC's debt to equity ratio has increased from 115% to 120.1% over the past 5 years.

Debt Coverage: WEC's debt is not well covered by operating cash flow (18.6%).

Interest Coverage: WEC's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet

Inventory Level: WEC has a high level of physical assets or inventory.

Debt Coverage by Assets: WEC's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

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

2.63%

Current Dividend Yield


Upcoming Dividend Payment

Purchase WEC Energy Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.6%marketbottom25%1.4%markettop25%3.6%industryaverage3.2%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: WEC's dividend (2.69%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: WEC's dividend (2.69%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 (66.9%), 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 (67.2% payout ratio).


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?

2.0yrs

Average management tenure


CEO

Joseph Fletcher (60yo)

0.9yrs

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

Compensation vs Market: Joseph's total compensation ($USD2.72M) is below average for companies of similar size in the US market ($USD10.76M).

Compensation vs Earnings: Joseph's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.0yrs

Average Tenure

54yo

Average Age

Experienced Management: WEC's management team is considered experienced (2 years average tenure).


Board Age and Tenure

13.6yrs

Average Tenure

69yo

Average Age

Experienced Board: WEC's board of directors are seasoned and experienced ( 13.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$87,37013 Nov 19
Barbara Bowles
EntityIndividual
Role
Lead Director
Presiding Independent Director
Shares1,000
Max PriceUS$87.37
BuyUS$31,30505 Sep 19
Curt Culver
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares367
Max PriceUS$85.30
SellUS$16,36705 Sep 19
Curt Culver
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares191
Max PriceUS$85.69
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
Independent Director
Shares6,700
Max PriceUS$75.29
SellUS$432,35121 Feb 19
Allen Leverett
EntityIndividual
Shares5,781
Max PriceUS$74.79

Ownership Breakdown

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


Management Team

  • Rick Kuester (68yo)

    Senior Executive Vice President

    • Tenure: 16.3yrs
    • Compensation: US$3.98m
  • Gale Klappa (68yo)

    Executive Chairman

    • Tenure: 16yrs
    • Compensation: US$9.86m
  • Peggy Kelsey (54yo)

    Executive VP

    • Tenure: 2yrs
    • Compensation: US$2.11m
  • Mary Straka (54yo)

    Senior Vice President of Corporate Communications & Investor Relations

    • William Guc (49yo)

      VP, Controller & Principal Accounting Officer

      • Joseph Fletcher (60yo)

        President

        • Tenure: 0.9yrs
        • Compensation: US$2.72m
      • Scott Lauber (53yo)

        Senior EVP & CFO

        • Tenure: 3.8yrs
        • Compensation: US$2.71m
      • Brian Dobberke

        Senior VP of Human Resources & Organizational Effectiveness and Compliance Officer

        • Tenure: 1.8yrs
      • Joshua Erickson

        Director of Legal Services

        • Tenure: 4.6yrs
      • Molly Mulroy

        Chief Information Officer & VP


        Board Members

        • AI Budney (71yo)

          Independent Director

          • Tenure: 4.6yrs
          • Compensation: US$235.00k
        • Henry Knueppel (70yo)

          Independent Director

          • Tenure: 7yrs
          • Compensation: US$235.00k
        • Curt Culver (66yo)

          Independent Director

          • Tenure: 15.6yrs
          • Compensation: US$271.69k
        • Ulice Payne (63yo)

          Independent Director

          • Tenure: 17yrs
          • Compensation: US$250.90k
        • Barbara Bowles (71yo)

          Presiding Independent Director

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

          Executive Chairman

          • Tenure: 16yrs
          • Compensation: US$9.86m
        • Mary Stanek (62yo)

          Independent Director

          • Tenure: 8yrs
          • Compensation: US$235.00k
        • Patricia Chadwick (70yo)

          Director

          • Tenure: 13.6yrs
          • Compensation: US$265.11k
        • Tom Fischer (72yo)

          Independent Director

          • Tenure: 14.5yrs
          • Compensation: US$276.95k
        • Joseph Fletcher (60yo)

          President

          • Tenure: 0.9yrs
          • 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$30.335b
        • 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: 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 Analysis2020/01/17 01:39
        End of Day Share Price2020/01/16 00:00
        Earnings2019/09/30
        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.