WEC ENERGY GROUP INC (WEC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WEC - US92939U1060 - Common Stock
105.25 USD
+0.49 (+0.47%)
105.61 USD
+0.36 (+0.34%)
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 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.
In the past year WEC had a positive cash flow from operations.
WEC had positive earnings in each of the past 5 years.
WEC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WEC (3.40%) is better than 96.15% of its industry peers.
The Return On Equity of WEC (12.46%) is better than 100.00% of its industry peers.
WEC's Return On Invested Capital of 4.53% is amongst the best of the industry. WEC outperforms 88.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WEC is in line with the industry average of 3.94%.
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
Looking at the Profit Margin, with a value of 17.75%, WEC belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
WEC's Profit Margin has improved in the last couple of years.
The Operating Margin of WEC (25.09%) is better than 88.46% of its industry peers.
WEC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 67.71%, WEC perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
In the last couple of years the Gross Margin of WEC has remained more or less at the same level.
| 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.
The number of shares outstanding for WEC has been increased compared to 1 year ago.
WEC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WEC is higher compared to a year ago.
2.2 Solvency
WEC has an Altman-Z score of 1.09. This is a bad value and indicates that WEC is not financially healthy and even has some risk of bankruptcy.
WEC has a Altman-Z score of 1.09. This is amongst the best in the industry. WEC outperforms 84.62% 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 of 1.42. This is comparable to the rest of the industry: WEC outperforms 57.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.09 |
ROIC/WACC0.66
WACC6.87%
2.3 Liquidity
WEC has a Current 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.
With a Current ratio value of 0.50, WEC is not doing good in the industry: 96.15% of the companies in the same industry are doing better.
A Quick Ratio of 0.33 indicates that WEC may have some problems paying its short term obligations.
WEC's Quick ratio of 0.33 is on the low side compared to the rest of the industry. WEC is outperformed by 96.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.01% over the past year.
The Earnings Per Share has been growing slightly by 6.44% on average over the past years.
The Revenue has grown by 11.88% in the past year. This is quite good.
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 7.60% on average per year.
WEC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.08% yearly.
EPS Next Y8.18%
EPS Next 2Y7.52%
EPS Next 3Y7.43%
EPS Next 5Y7.6%
Revenue Next Year5.46%
Revenue Next 2Y5.71%
Revenue Next 3Y5.92%
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.
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 19.90, the valuation of WEC can be described as rather expensive.
Based on the Price/Earnings ratio, WEC is valued a bit more expensive than 76.92% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.26, WEC is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.62, which indicates a rather expensive current valuation of WEC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WEC indicates a rather expensive valuation: WEC more expensive than 80.77% of the companies listed in the same industry.
WEC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.9 | ||
| Fwd PE | 18.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WEC is valued more expensive than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.05 |
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)2.43
PEG (5Y)3.09
EPS Next 2Y7.52%
EPS Next 3Y7.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.20%, WEC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.64, WEC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, WEC pays a better dividend.
| 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 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
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 2Y7.52%
EPS Next 3Y7.43%
105.25
+0.49 (+0.47%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.84%
Inst Owner Change2.17%
Ins Owners0.15%
Ins Owner Change-0.23%
Market Cap34.24B
Revenue(TTM)9.55B
Net Income(TTM)1.69B
Analysts72.5
Price Target125.1 (18.86%)
Short Float %3.88%
Short Ratio5.85
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)0.54%
PT rev (3m)12.02%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)-1.42%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)-5.91%
Revenue NQ rev (3m)-5%
Revenue NY rev (1m)1.79%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.9 | ||
| Fwd PE | 18.62 | ||
| P/S | 3.59 | ||
| P/FCF | N/A | ||
| P/OCF | 9.68 | ||
| P/B | 2.52 | ||
| P/tB | 3.26 | ||
| EV/EBITDA | 14.05 |
EPS(TTM)5.29
EY5.03%
EPS(NY)5.65
Fwd EY5.37%
FCF(TTM)-1.25
FCFYN/A
OCF(TTM)10.87
OCFY10.33%
SpS29.35
BVpS41.81
TBVpS32.33
PEG (NY)2.43
PEG (5Y)3.09
Graham Number70.54
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 | 1.09 |
F-Score6
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)16.01%
EPS 3Y5.96%
EPS 5Y6.44%
EPS Q2Q%1.22%
EPS Next Y8.18%
EPS Next 2Y7.52%
EPS Next 3Y7.43%
EPS Next 5Y7.6%
Revenue 1Y (TTM)11.88%
Revenue growth 3Y1.13%
Revenue growth 5Y2.71%
Sales Q2Q%12.91%
Revenue Next Year5.46%
Revenue Next 2Y5.71%
Revenue Next 3Y5.92%
Revenue Next 5Y6.08%
EBIT growth 1Y15.02%
EBIT growth 3Y8.08%
EBIT growth 5Y7.02%
EBIT Next Year73.54%
EBIT Next 3Y29.37%
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 19.9 and the Price/Book (PB) ratio is 2.52.
How financially healthy is WEC ENERGY GROUP INC?
The financial health rating of WEC ENERGY GROUP INC (WEC) is 1 / 10.