WEC ENERGY GROUP INC (WEC) Stock Fundamental Analysis
USA - NYSE:WEC - US92939U1060 - Common Stock
115.4 USD
+0.18 (+0.16%)
Overall WEC gets a fundamental rating of 5 out of 10. We evaluated WEC against 26 industry peers in the Multi-Utilities industry. While WEC has a great profitability rating, there are quite some 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.
In the past 5 years WEC has always been profitable.
In the past 5 years WEC always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 3.43%, WEC belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
WEC has a Return On Equity of 12.55%. This is amongst the best in the industry. WEC outperforms 100.00% of its industry peers.
WEC has a Return On Invested Capital of 4.54%. This is amongst the best in the industry. WEC outperforms 88.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WEC is in line with the industry average of 3.84%.
The last Return On Invested Capital (4.54%) for WEC is above the 3 year average (4.35%), which is a sign of increasing profitability.
| 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
The Profit Margin of WEC (17.87%) is better than 92.31% of its industry peers.
WEC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 25.03%, 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.
With a Gross Margin value of 67.81%, WEC perfoms like the industry average, 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 | 25.03% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WEC is destroying value.
Compared to 1 year ago, WEC has more shares outstanding
Compared to 5 years ago, WEC has more shares outstanding
The debt/assets ratio for WEC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.17, we must say that WEC is in the distress zone and has some risk of bankruptcy.
WEC has a better Altman-Z score (1.17) than 88.46% of its industry peers.
WEC has a debt to FCF ratio of 135.35. This is a negative value and a sign of low solvency as WEC would need 135.35 years to pay back of all of its debts.
The Debt to FCF ratio of WEC (135.35) is better than 96.15% of its industry peers.
WEC has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
WEC's Debt to Equity ratio of 1.38 is fine compared to the rest of the industry. WEC outperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 135.35 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.66
WACC6.87%
2.3 Liquidity
WEC has a Current Ratio of 0.55. 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's Current ratio of 0.55 is on the low side compared to the rest of the industry. WEC is outperformed by 84.62% of its industry peers.
WEC has a Quick Ratio of 0.55. This is a bad value and indicates that WEC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.40, WEC is doing worse than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
WEC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.39%, which is quite good.
The Earnings Per Share has been growing slightly by 6.44% on average over the past years.
WEC shows a small growth in Revenue. In the last year, the Revenue has grown by 7.88%.
The Revenue has been growing slightly by 2.71% on average over the past years.
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
Based on estimates for the next years, WEC will show a small growth in Earnings Per Share. The EPS will grow by 7.44% on average per year.
Based on estimates for the next years, WEC will show a small growth in Revenue. The Revenue will grow by 5.91% on average per year.
EPS Next Y8.16%
EPS Next 2Y7.58%
EPS Next 3Y7.46%
EPS Next 5Y7.44%
Revenue Next Year3.27%
Revenue Next 2Y4.44%
Revenue Next 3Y5.26%
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
Based on the Price/Earnings ratio of 21.86, the valuation of WEC can be described as rather expensive.
WEC's Price/Earnings ratio is a bit more expensive when compared to the industry. WEC is more expensive than 76.92% of the companies in the same industry.
WEC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
WEC is valuated rather expensively with a Price/Forward Earnings ratio of 20.39.
Based on the Price/Forward Earnings ratio, WEC is valued expensively inside the industry as 80.77% of the companies are valued cheaper.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.87, WEC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.86 | ||
| Fwd PE | 20.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WEC indicates a rather expensive valuation: WEC more expensive than 84.62% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WEC indicates a rather cheap valuation: WEC is cheaper than 96.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 244.85 | ||
| EV/EBITDA | 15.17 |
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)2.68
PEG (5Y)3.4
EPS Next 2Y7.58%
EPS Next 3Y7.46%
5. Dividend
5.1 Amount
WEC has a Yearly Dividend Yield of 3.08%.
Compared to an average industry Dividend Yield of 3.69, 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 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
5.2 History
On average, the dividend of WEC grows each year by 7.17%, which is quite nice.
WEC has been paying a dividend for at least 10 years, so it has a reliable track record.
WEC has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
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%
EPS Next 2Y7.58%
EPS Next 3Y7.46%
NYSE:WEC (10/29/2025, 12:27:08 PM)
115.4
+0.18 (+0.16%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.68%
Inst Owner Change0.02%
Ins Owners0.15%
Ins Owner Change-0.29%
Market Cap37.14B
Revenue(TTM)9.31B
Net Income(TTM)1.66B
Analysts68.42
Price Target112.37 (-2.63%)
Short Float %3.6%
Short Ratio5.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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)0.62%
PT rev (3m)0.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.4%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)1.33%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.86 | ||
| Fwd PE | 20.39 | ||
| P/S | 3.99 | ||
| P/FCF | 244.85 | ||
| P/OCF | 11.17 | ||
| P/B | 2.8 | ||
| P/tB | 3.65 | ||
| EV/EBITDA | 15.17 |
EPS(TTM)5.28
EY4.58%
EPS(NY)5.66
Fwd EY4.9%
FCF(TTM)0.47
FCFY0.41%
OCF(TTM)10.34
OCFY8.96%
SpS28.91
BVpS41.18
TBVpS31.6
PEG (NY)2.68
PEG (5Y)3.4
Graham Number69.94
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%
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-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 | 1.17 |
F-Score5
WACC6.87%
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 Y8.16%
EPS Next 2Y7.58%
EPS Next 3Y7.46%
EPS Next 5Y7.44%
Revenue 1Y (TTM)7.88%
Revenue growth 3Y1.13%
Revenue growth 5Y2.71%
Sales Q2Q%13.4%
Revenue Next Year3.27%
Revenue Next 2Y4.44%
Revenue Next 3Y5.26%
Revenue Next 5Y5.91%
EBIT growth 1Y7.31%
EBIT growth 3Y8.08%
EBIT growth 5Y7.02%
EBIT Next Year73.67%
EBIT Next 3Y28.18%
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%
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 5 / 10 to WEC.
Can you provide the valuation status for WEC ENERGY GROUP INC?
ChartMill assigns a valuation rating of 3 / 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 21.86 and the Price/Book (PB) ratio is 2.8.
How financially healthy is WEC ENERGY GROUP INC?
The financial health rating of WEC ENERGY GROUP INC (WEC) is 3 / 10.