WEC ENERGY GROUP INC (WEC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WEC - US92939U1060 - Common Stock
111.02 USD
-0.12 (-0.11%)
111.02 USD
0 (0%)
Overall WEC gets a fundamental rating of 4 out of 10. We evaluated WEC against 26 industry peers in the Multi-Utilities industry. While WEC belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, WEC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year WEC was profitable.
WEC had a positive operating cash flow in the past year.
In the past 5 years WEC has always been profitable.
WEC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.40%, WEC belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
WEC has a Return On Equity of 12.46%. This is amongst the best in the industry. WEC outperforms 100.00% of its industry peers.
WEC has a better Return On Invested Capital (4.53%) than 88.46% 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 3.96%.
The last Return On Invested Capital (4.53%) for WEC is above the 3 year average (4.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.4% | ||
| ROE | 12.46% | ||
| ROIC | 4.53% |
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
With an excellent Profit Margin value of 17.75%, WEC belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
In the last couple of years the Profit Margin of WEC has grown nicely.
Looking at the Operating Margin, with a value of 25.09%, WEC belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
WEC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 67.71%, WEC is in line with its industry, outperforming 53.85% of the companies in the same industry.
WEC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.09% | ||
| PM (TTM) | 17.75% | ||
| GM | 67.71% |
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
WEC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WEC has more shares outstanding
Compared to 5 years ago, WEC has more shares outstanding
WEC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.12, we must say that WEC is in the distress zone and has some risk of bankruptcy.
WEC has a Altman-Z score of 1.12. This is amongst the best in the industry. WEC outperforms 88.46% of its industry peers.
WEC has a Debt/Equity ratio of 1.42. This is a high value indicating a heavy dependency on external financing.
WEC has a Debt to Equity ratio (1.42) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.12 |
ROIC/WACC0.66
WACC6.86%
2.3 Liquidity
A Current Ratio of 0.50 indicates that WEC may have some problems paying its short term obligations.
WEC's Current ratio of 0.50 is on the low side compared to the rest of the industry. WEC is outperformed by 96.15% of its industry peers.
WEC has a Quick Ratio of 0.50. 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 has a Quick ratio of 0.33. This is amonst the worse of the industry: WEC underperforms 96.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
WEC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.01%, which is quite good.
Measured over the past 5 years, WEC shows a small growth in Earnings Per Share. The EPS has been growing by 6.44% on average per year.
Looking at the last year, WEC shows a quite strong growth in Revenue. The Revenue has grown by 11.88% in the last year.
Measured over the past years, WEC shows a small growth in Revenue. The Revenue has been growing by 2.71% on average per year.
EPS 1Y (TTM)16.01%
EPS 3Y5.96%
EPS 5Y6.44%
EPS Q2Q%1.22%
Revenue 1Y (TTM)11.88%
Revenue growth 3Y1.13%
Revenue growth 5Y2.71%
Sales Q2Q%12.91%
3.2 Future
Based on estimates for the next years, WEC will show a small growth in Earnings Per Share. The EPS will grow by 7.64% on average per year.
The Revenue is expected to grow by 6.08% on average over the next years.
EPS Next Y8.11%
EPS Next 2Y7.5%
EPS Next 3Y7.49%
EPS Next 5Y7.64%
Revenue Next Year3.61%
Revenue Next 2Y4.6%
Revenue Next 3Y5.43%
Revenue Next 5Y6.08%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.99, WEC is valued on the expensive side.
80.77% of the companies in the same industry are cheaper than WEC, based on the Price/Earnings ratio.
WEC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.65.
The Price/Forward Earnings ratio is 19.65, which indicates a rather expensive current valuation of WEC.
Based on the Price/Forward Earnings ratio, WEC is valued expensively inside the industry as 80.77% of the companies are valued cheaper.
WEC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.45, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.99 | ||
| Fwd PE | 19.65 |
4.2 Price Multiples
WEC's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. WEC is more expensive than 88.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WEC does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of WEC may justify a higher PE ratio.
PEG (NY)2.59
PEG (5Y)3.26
EPS Next 2Y7.5%
EPS Next 3Y7.49%
5. Dividend
5.1 Amount
WEC has a Yearly Dividend Yield of 3.20%. Purely for dividend investing, there may be better candidates out there.
WEC's Dividend Yield is comparable with the industry average which is at 3.44.
WEC's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.17%
Div Incr Years21
Div Non Decr Years23
5.3 Sustainability
66.24% of the earnings are spent on dividend by WEC. This is not a sustainable payout ratio.
WEC's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP66.24%
EPS Next 2Y7.5%
EPS Next 3Y7.49%
111.02
-0.12 (-0.11%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.68%
Inst Owner Change2.15%
Ins Owners0.15%
Ins Owner Change-0.23%
Market Cap35.73B
Revenue(TTM)9.55B
Net Income(TTM)1.69B
Analysts72.5
Price Target124.61 (12.24%)
Short Float %3.53%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Yearly Dividend3.34
Dividend Growth(5Y)7.17%
DP66.24%
Div Incr Years21
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.34%
Min EPS beat(2)1.82%
Max EPS beat(2)6.86%
EPS beat(4)3
Avg EPS beat(4)2.86%
Min EPS beat(4)-0.36%
Max EPS beat(4)6.86%
EPS beat(8)7
Avg EPS beat(8)4.2%
EPS beat(12)10
Avg EPS beat(12)4.67%
EPS beat(16)14
Avg EPS beat(16)5.13%
Revenue beat(2)2
Avg Revenue beat(2)11.5%
Min Revenue beat(2)9.98%
Max Revenue beat(2)13.02%
Revenue beat(4)3
Avg Revenue beat(4)4.87%
Min Revenue beat(4)-13.9%
Max Revenue beat(4)13.02%
Revenue beat(8)3
Avg Revenue beat(8)-3.26%
Revenue beat(12)5
Avg Revenue beat(12)-1.26%
Revenue beat(16)9
Avg Revenue beat(16)2.74%
PT rev (1m)10.89%
PT rev (3m)11.67%
EPS NQ rev (1m)-0.57%
EPS NQ rev (3m)-1.32%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)9.02%
Revenue NQ rev (3m)-4.78%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.99 | ||
| Fwd PE | 19.65 | ||
| P/S | 3.74 | ||
| P/FCF | N/A | ||
| P/OCF | 10.1 | ||
| P/B | 2.63 | ||
| P/tB | 3.4 | ||
| EV/EBITDA | 14.49 |
EPS(TTM)5.29
EY4.76%
EPS(NY)5.65
Fwd EY5.09%
FCF(TTM)-1.26
FCFYN/A
OCF(TTM)10.99
OCFY9.9%
SpS29.66
BVpS42.25
TBVpS32.67
PEG (NY)2.59
PEG (5Y)3.26
Graham Number70.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.4% | ||
| ROE | 12.46% | ||
| ROCE | 5.35% | ||
| ROIC | 4.53% | ||
| ROICexc | 4.53% | ||
| ROICexgc | 4.86% | ||
| OM | 25.09% | ||
| PM (TTM) | 17.75% | ||
| GM | 67.71% | ||
| FCFM | N/A |
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%
ROICexgc growth 3Y1.98%
ROICexgc 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-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.02 | ||
| Cap/Depr | 272.69% | ||
| Cap/Sales | 41.31% | ||
| Interest Coverage | 2.96 | ||
| Cash Conversion | 92.07% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 1.12 |
F-Score6
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)16.01%
EPS 3Y5.96%
EPS 5Y6.44%
EPS Q2Q%1.22%
EPS Next Y8.11%
EPS Next 2Y7.5%
EPS Next 3Y7.49%
EPS Next 5Y7.64%
Revenue 1Y (TTM)11.88%
Revenue growth 3Y1.13%
Revenue growth 5Y2.71%
Sales Q2Q%12.91%
Revenue Next Year3.61%
Revenue Next 2Y4.6%
Revenue Next 3Y5.43%
Revenue Next 5Y6.08%
EBIT growth 1Y15.02%
EBIT growth 3Y8.08%
EBIT growth 5Y7.02%
EBIT Next Year73.67%
EBIT Next 3Y28.18%
EBIT Next 5Y21.26%
FCF growth 1Y-552.24%
FCF growth 3YN/A
FCF growth 5Y31.31%
OCF growth 1Y39.26%
OCF growth 3Y16.47%
OCF growth 5Y6.49%
WEC ENERGY GROUP INC / WEC FAQ
What is the ChartMill fundamental rating of WEC ENERGY GROUP INC (WEC) stock?
ChartMill assigns a fundamental rating of 4 / 10 to WEC.
Can you provide the valuation status for WEC ENERGY GROUP INC?
ChartMill assigns a valuation rating of 2 / 10 to WEC ENERGY GROUP INC (WEC). This can be considered as Overvalued.
How profitable is WEC ENERGY GROUP INC (WEC) stock?
WEC ENERGY GROUP INC (WEC) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for WEC stock?
The Price/Earnings (PE) ratio for WEC ENERGY GROUP INC (WEC) is 20.99 and the Price/Book (PB) ratio is 2.63.
How financially healthy is WEC ENERGY GROUP INC?
The financial health rating of WEC ENERGY GROUP INC (WEC) is 1 / 10.