WEC Energy Group Inc
Exchange: NYSESector: UtilitiesIndustry: Utilities - Regulated Electric
Wisconsin Energy Corporation is a diversified holding company. The Company operates primarily through two segments: a utility energy segment and a non-utility energy segment. Its primary subsidiaries are Wisconsin Electric Power Company (Wisconsin Electric), Wisconsin Gas LLC (Wisconsin Gas) and W.E. Power, LLC (We Power). Its utility energy segment consists of Wisconsin Electric and Wisconsin Gas, operating together under the trade name of We Energies. Its non-utility energy segment derives its revenues primarily from the ownership of electric power generating facilities for long-term lease to Wisconsin Electric. Its non-utility energy segment derives its revenues primarily from the ownership of electric power generating facilities for long-term lease to Wisconsin Electric. As of December 31, 2012, the Company have a 26.2% interest in ATC.
Did you know?
Capital expenditures increased by 58% from FY24 to FY25.
Current Price
$117.54
-1.04%GoodMoat Value
$87.19
25.8% overvaluedProfile
Valuation (TTM)
Market Cap$38.24B
P/E24.55
EV$58.74B
P/B2.81
Shares Out325.29M
P/Sales3.90
Revenue$9.80B
EV/EBITDA14.94
WEC Energy Group Inc (WEC) Stock Analysis
GoodMoat Analysis
WEC Energy Group is a regulated electric utility with a stable, asset-heavy business model. While it possesses a moderate moat from regulatory barriers and scale, its valuation appears unfavourable, trading at a significant premium to the GoodMoat target price with a negative free cash flow yield.
Read full analysis
WEC Energy Group operates regulated electric and natural gas utilities, primarily in Wisconsin, Illinois, Michigan, and Minnesota. This business model provides predictable, government-authorized returns on its massive infrastructure investments. Applying the GoodMoat framework, its primary competitive advantage (Section 1: Moat) stems from regulatory barriers, as it holds monopoly-like licenses in its service territories (criterion 5). It also benefits from scale privilege (criterion 8) in its physical grid assets. However, its moat is likely narrow; it scores low on most other criteria like switching costs, brand, and technology leadership. The company's quality indicators are mixed, with a strong operating margin of 22.9% but a high debt/equity ratio of 1.64 and a negative free cash flow yield of -2.8%, which is unfavourable for an asset-heavy business. The Decision Framework (Section 6) highlights a critical valuation issue. The current price of $112.72 is 29% above the GoodMoat target of $87.19, indicating no margin of safety. With a P/E of 23.5x and negative free cash flow, the stock appears overvalued relative to its growth profile (11.1% revenue YoY) and capital-intensive model. For a value investor, this combination of a moderate moat, weak cash flow generation, and premium pricing makes the stock unfavourable for further investigation without a substantially lower entry point. Analysis based on data as of 2024-05-15.
Market Cap$38.24B
Current Price$117.54
P/E Ratio24.55
Forward P/E—
PEG Ratio-0.76
EPS$4.81
Book Value$41.85
P/B Ratio2.81
WEC Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 22.3B
Revenue
7.5B
FY19
7.2B
FY20
8.3B
FY21
9.6B
FY22
8.9B
FY23
8.6B
FY24
9.8B
FY25
Net Income
1.1B
FY19
1.2B
FY20
1.3B
FY21
1.4B
FY22
1.3B
FY23
1.5B
FY24
1.6B
FY25
WEC 52-Week Range
$99.77
$118.78
50-Day MA: $114.60200-Day MA: $109.25
Did you know?
Net income compounded at 5.4% annually over 6 years.
WEC Energy Group Inc (WEC) Financial Summary
WEC Energy Group Inc (WEC) is a Utilities company in the Utilities - Regulated Electric industry, listed on NYSE. The stock currently trades at $117.54 with a market capitalization of $38.24B.
Key valuation metrics include a P/E ratio of 24.55, price-to-book ratio of 2.81, and EPS of $4.81. The company reports a profit margin of 15.9% and return on equity of 11.4%.
WEC Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $38.24B |
| P/E Ratio | 24.55 |
| EPS | $4.81 |
| P/B Ratio | 2.81 |
| P/S Ratio | 3.90 |
| EV/EBITDA | 14.94 |
| Dividend Yield | 3.00% |
| Profit Margin | 15.9% |
| Return on Equity | 11.4% |
| Debt/Equity | 1.64 |
WEC Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $7.52B | $1.14B |
| FY20 | $7.24B | $1.20B |
| FY21 | $8.32B | $1.30B |
| FY22 | $9.60B | $1.41B |
| FY23 | $8.89B | $1.33B |
| FY24 | $8.60B | $1.53B |
| FY25 | $9.80B | $1.56B |
WEC Energy Group Inc (WEC) Valuation
Based on GoodMoat's DCF model, WEC Energy Group Inc has a fair value estimate of $87.19. At the current price of $117.54, the stock appears 34.8% overvalued relative to our intrinsic value estimate.
WEC Quality Indicators
WEC Energy Group Inc maintains a profit margin of 15.9% and an operating margin of 22.9%. Return on equity stands at 11.4%. The current ratio is 0.59. Debt-to-equity ratio is 1.64.
About WEC Energy Group Inc
Wisconsin Energy Corporation is a diversified holding company. The Company operates primarily through two segments: a utility energy segment and a non-utility energy segment. Its primary subsidiaries are Wisconsin Electric Power Company (Wisconsin Electric), Wisconsin Gas LLC (Wisconsin Gas) and W.E. Power, LLC (We Power). Its utility energy segment consists of Wisconsin Electric and Wisconsin Gas, operating together under the trade name of We Energies. Its non-utility energy segment derives its revenues primarily from the ownership of electric power generating facilities for long-term lease to Wisconsin Electric. Its non-utility energy segment derives its revenues primarily from the ownership of electric power generating facilities for long-term lease to Wisconsin Electric. As of December 31, 2012, the Company have a 26.2% interest in ATC.
WEC Free Cash Flow
WEC Energy Group Inc generated $-1.02B in trailing twelve-month free cash flow, representing an FCF yield of -2.66%. This low FCF yield may reflect heavy reinvestment or growth spending.
WEC Shares Outstanding
WEC Energy Group Inc has 0.33 billion shares outstanding at a share price of $117.54, giving it a market capitalization of $38.24B.
WEC Recent Insider Trades
Recent insider transactions at WEC Energy Group Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| PAYNE ULICE JR | SELL | 1,450 | $166166.38 |
| KLAPPA GALE E | SELL | 3,180 | $367099.20 |
| KLAPPA GALE E | SELL | 5,000 | $576909.00 |