WEC ENERGY GROUP INC (WEC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WEC - US92939U1060 - Common Stock
105.5 USD
-0.05 (-0.05%)
105.5 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 has a great profitability rating, there are quite some 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.
With an excellent Return On Equity value of 12.46%, WEC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 4.53%, WEC belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WEC is in line with the industry average of 3.94%.
The 3 year average ROIC (4.35%) for WEC is below the current ROIC(4.53%), indicating increased profibility in the last year.
| 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
WEC has a better Profit Margin (17.75%) than 96.15% of its industry peers.
In the last couple of years the Profit Margin of WEC has grown nicely.
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.
WEC has a Gross Margin (67.71%) which is comparable to the rest of the 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WEC is destroying value.
The number of shares outstanding for WEC has been increased compared to 1 year ago.
Compared to 5 years ago, WEC has more shares outstanding
Compared to 1 year ago, WEC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.10, we must say that WEC is in the distress zone and has some risk of bankruptcy.
WEC has a Altman-Z score of 1.10. This is amongst the best in the industry. WEC outperforms 84.62% of its industry peers.
A Debt/Equity ratio of 1.42 is on the high side and indicates that WEC has dependencies on debt 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 | 1.1 |
ROIC/WACC0.66
WACC6.87%
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.
The Quick ratio of WEC (0.33) is worse than 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.
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
WEC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.60% yearly.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 19.94, 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 valuation a bit cheaper than the S&P500 average which is at 26.57.
A Price/Forward Earnings ratio of 18.66 indicates a rather expensive valuation of WEC.
80.77% of the companies in the same industry are cheaper than WEC, based on the Price/Forward Earnings ratio.
WEC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.94 | ||
| Fwd PE | 18.66 |
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.11 |
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)2.44
PEG (5Y)3.1
EPS Next 2Y7.52%
EPS Next 3Y7.43%
5. Dividend
5.1 Amount
WEC has a Yearly Dividend Yield of 3.20%.
Compared to an average industry Dividend Yield of 3.56, WEC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.88, 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 paid a dividend for at least 10 years, which is 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 66.24% 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.
DP66.24%
EPS Next 2Y7.52%
EPS Next 3Y7.43%
105.5
-0.05 (-0.05%)
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 Cap34.32B
Revenue(TTM)9.55B
Net Income(TTM)1.69B
Analysts72.5
Price TargetN/A
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)-0.8%
EPS NQ rev (3m)-1.67%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)-5.95%
Revenue NQ rev (3m)-5.04%
Revenue NY rev (1m)1.79%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.94 | ||
| Fwd PE | 18.66 | ||
| P/S | 3.59 | ||
| P/FCF | N/A | ||
| P/OCF | 9.7 | ||
| P/B | 2.52 | ||
| P/tB | 3.26 | ||
| EV/EBITDA | 14.11 |
EPS(TTM)5.29
EY5.01%
EPS(NY)5.65
Fwd EY5.36%
FCF(TTM)-1.25
FCFYN/A
OCF(TTM)10.87
OCFY10.31%
SpS29.35
BVpS41.81
TBVpS32.33
PEG (NY)2.44
PEG (5Y)3.1
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 | 1.1 |
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 19.94 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.