WEC ENERGY GROUP INC (WEC) Stock Fundamental Analysis
NYSE:WEC - US92939U1060 - Common Stock
106.89 USD
+0.87 (+0.82%)
106.89 USD
0 (0%)
WEC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 25 industry peers in the Multi-Utilities industry. WEC has an excellent profitability rating, but there are concerns on its financial health. WEC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WEC was profitable.
WEC had a positive operating cash flow in the past year.
Each year in the past 5 years WEC has been profitable.
WEC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WEC has a Return On Assets of 3.43%. This is amongst the best in the industry. WEC outperforms 96.00% of its industry peers.
The Return On Equity of WEC (12.55%) is better than 100.00% of its industry peers.
The Return On Invested Capital of WEC (4.54%) is better than 88.00% 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 3.82%.
The 3 year average ROIC (4.35%) for WEC is below the current ROIC(4.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.43% | ||
| ROE | 12.55% | ||
| ROIC | 4.54% |
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 17.87%, WEC belongs to the best of the industry, outperforming 92.00% 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 25.03%, WEC belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
WEC's Operating Margin has improved in the last couple of years.
WEC has a Gross Margin (67.81%) which is comparable to the rest of the industry.
WEC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.03% | ||
| PM (TTM) | 17.87% | ||
| GM | 67.81% |
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.
The number of shares outstanding for WEC has been increased compared to 1 year ago.
The number of shares outstanding for WEC has been increased compared to 5 years ago.
WEC has a worse debt/assets ratio than last year.
2.2 Solvency
WEC has an Altman-Z score of 1.12. This is a bad value and indicates that WEC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of WEC (1.12) is better than 88.00% of its industry peers.
The Debt to FCF ratio of WEC is 135.35, which is on the high side as it means it would take WEC, 135.35 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 135.35, WEC belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
A Debt/Equity ratio of 1.38 is on the high side and indicates that WEC has dependencies on debt financing.
WEC has a Debt to Equity ratio (1.38) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 135.35 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.66
WACC6.92%
2.3 Liquidity
A Current Ratio of 0.55 indicates that WEC may have some problems paying its short term obligations.
WEC has a worse Current ratio (0.55) than 88.00% of its industry peers.
A Quick Ratio of 0.40 indicates that WEC may have some problems paying its short term obligations.
With a Quick ratio value of 0.40, WEC is not doing good in the industry: 96.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.39% over the past year.
WEC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.44% yearly.
WEC shows a small growth in Revenue. In the last year, the Revenue has grown by 7.88%.
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)11.39%
EPS 3Y5.96%
EPS 5Y6.44%
EPS Q2Q%13.43%
Revenue 1Y (TTM)7.88%
Revenue growth 3Y1.13%
Revenue growth 5Y2.71%
Sales Q2Q%13.4%
3.2 Future
The Earnings Per Share is expected to grow by 7.25% on average over the next years.
The Revenue is expected to grow by 5.91% on average over the next years.
EPS Next Y8.15%
EPS Next 2Y7.41%
EPS Next 3Y7.33%
EPS Next 5Y7.25%
Revenue Next Year3.81%
Revenue Next 2Y4.48%
Revenue Next 3Y4.94%
Revenue Next 5Y5.91%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.24, which indicates a rather expensive current valuation of WEC.
68.00% of the companies in the same industry are cheaper than WEC, based on the Price/Earnings ratio.
WEC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.84.
With a Price/Forward Earnings ratio of 18.95, WEC is valued on the expensive side.
Based on the Price/Forward Earnings ratio, WEC is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
WEC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.48.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 18.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WEC is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
Based on the Price/Free Cash Flow ratio, WEC is valued cheaply inside the industry as 96.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 226.79 | ||
| EV/EBITDA | 14.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of WEC may justify a higher PE ratio.
PEG (NY)2.48
PEG (5Y)3.15
EPS Next 2Y7.41%
EPS Next 3Y7.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.25%, WEC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.67, WEC has a dividend in line with its industry peers.
WEC's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
5.2 History
On average, the dividend of WEC grows each year by 7.17%, which is quite nice.
WEC has paid a dividend for at least 10 years, which is 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
WEC pays out 66.00% of its income as dividend. This is not a sustainable payout ratio.
The dividend of WEC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP66%
EPS Next 2Y7.41%
EPS Next 3Y7.33%
106.89
+0.87 (+0.82%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners82.32%
Inst Owner Change0.96%
Ins Owners0.15%
Ins Owner Change-0.32%
Market Cap34.40B
Analysts68.57
Price Target111.59 (4.4%)
Short Float %3.75%
Short Ratio5.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
Yearly Dividend3.34
Dividend Growth(5Y)7.17%
DP66%
Div Incr Years21
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5%
Min EPS beat(2)3.14%
Max EPS beat(2)6.86%
EPS beat(4)3
Avg EPS beat(4)6.31%
Min EPS beat(4)-0.36%
Max EPS beat(4)15.6%
EPS beat(8)7
Avg EPS beat(8)5.06%
EPS beat(12)10
Avg EPS beat(12)5.36%
EPS beat(16)14
Avg EPS beat(16)5.96%
Revenue beat(2)2
Avg Revenue beat(2)11.71%
Min Revenue beat(2)10.39%
Max Revenue beat(2)13.02%
Revenue beat(4)2
Avg Revenue beat(4)1.23%
Min Revenue beat(4)-13.9%
Max Revenue beat(4)13.02%
Revenue beat(8)2
Avg Revenue beat(8)-5.09%
Revenue beat(12)5
Avg Revenue beat(12)-1.39%
Revenue beat(16)9
Avg Revenue beat(16)2.29%
PT rev (1m)-0.32%
PT rev (3m)3.96%
EPS NQ rev (1m)-3.44%
EPS NQ rev (3m)-14.74%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-8.54%
Revenue NY rev (1m)0.83%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 18.95 | ||
| P/S | 3.7 | ||
| P/FCF | 226.79 | ||
| P/OCF | 10.34 | ||
| P/B | 2.6 | ||
| P/tB | 3.38 | ||
| EV/EBITDA | 14.38 |
EPS(TTM)5.28
EY4.94%
EPS(NY)5.64
Fwd EY5.28%
FCF(TTM)0.47
FCFY0.44%
OCF(TTM)10.34
OCFY9.67%
SpS28.91
BVpS41.18
TBVpS31.6
PEG (NY)2.48
PEG (5Y)3.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.43% | ||
| ROE | 12.55% | ||
| ROCE | 5.31% | ||
| ROIC | 4.54% | ||
| ROICexc | 4.54% | ||
| ROICexgc | 4.88% | ||
| OM | 25.03% | ||
| PM (TTM) | 17.87% | ||
| GM | 67.81% | ||
| FCFM | 1.63% |
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%
ROICexcg growth 3Y1.98%
ROICexcg 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-Score5
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 135.35 | ||
| Debt/EBITDA | 4.89 | ||
| Cap/Depr | 224.65% | ||
| Cap/Sales | 34.12% | ||
| Interest Coverage | 2.78 | ||
| Cash Conversion | 88.89% | ||
| Profit Quality | 9.12% | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | 1.12 |
F-Score5
WACC6.92%
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)11.39%
EPS 3Y5.96%
EPS 5Y6.44%
EPS Q2Q%13.43%
EPS Next Y8.15%
EPS Next 2Y7.41%
EPS Next 3Y7.33%
EPS Next 5Y7.25%
Revenue 1Y (TTM)7.88%
Revenue growth 3Y1.13%
Revenue growth 5Y2.71%
Sales Q2Q%13.4%
Revenue Next Year3.81%
Revenue Next 2Y4.48%
Revenue Next 3Y4.94%
Revenue Next 5Y5.91%
EBIT growth 1Y7.31%
EBIT growth 3Y8.08%
EBIT growth 5Y7.02%
EBIT Next Year73.21%
EBIT Next 3Y27.92%
EBIT Next 5Y20.84%
FCF growth 1Y126.82%
FCF growth 3YN/A
FCF growth 5Y31.31%
OCF growth 1Y62.09%
OCF growth 3Y16.47%
OCF growth 5Y6.49%